As a registered investment advisor, we charge for our services on a fee basis. For total portfolio management, Capital Management Group uses a formula based on the market value of the total assets multiplied by 1.0% per year, payable monthly. For example, the fee for a $600,000 account would be $6,000 per year, or $500 per month.
Our fee arrangement benefits our clients because we have no incentive to create excessive or unnecessary trading activity. Since our compensation is based on the size of the account, our objectives and our clients` objectives are one and the same, namely to achieve growth in the portfolio with a suitable level of risk.