There are some key distinctions in rates and efficiency between mutual funds and managed accounts, which possibly have a significant effect on your investment profits.
 
Mutual funds are shared funds, which mean that all the money that an individual and thousands of other people allocate in the fund company will be poured into one big pool of money and the manager will take care of this pool.  If an individual desires to add new funds or take out some funds, it drives into and comes out of this pool.  On the contrary, a managed account is a private account, which means that you own separate account.

The three chief cost components in a mutual fund would be internal expense ratio-the incidental day-to-day expenses of the fund like the rent, salaries, utility bills, research etc. Secondly, loads, marketing and 12b-1 fees, which are issued in marketing the funds and lastly, transaction costs, which usually add up to anywhere from one to three percent or more yearly for any mutual fund, even supposed no load funds. 
 
Normally, managed funds can be held for one to two percent all-in in case you can tell your broker that you are aware of the tactics. You are trapped with the common expense ratios with mutual funds, no matter what amount of money you invest.

A fund manager will seek valuations and buying when things are less costly, which is when the markets are poor, and selling when things are costly, which is when markets are doing well.  Majority of the fund managers are driven to do the exact reverse due to a phenomenon called the Small Investor Effect. The theory-and verified fact is that the usual investor purchases funds when the markets are ascending and sells when they are not.  That would be fine except that this action keeps the fund manager in a bind and compels him to sell when the markets are a buy and vice versa. Individual or managed accounts were introduced to some extent for this reason and in theory, they stay away from this grave drag on performance, as long as an individual trusts the manager to do his thing and not get in the way with panic and greed impulses.

Generally, managed accounts are promising if the minimum requirements are fulfilled.  Several mutual fund managers also have their brand private or managed accounts.  Nevertheless, there are times when a mutual fund is the correct choice.
So, whatever you choose, just make sure you know the differences clearly and rope in the best deal.