American Express Financial Advisors of Minneapolis is launching a combined brokerage and mutual fund service in an effort to compete with full-service brokers and mutual fund sellers E*Trade of Menlo Park, Calif., and Charles Schwab Investment Management of San Francisco.

The new service, the American Express Diversified Portfolio Service, requires investors to deposit a minimum of $50,000 in a wrap-fee account for an annual fee of 1.25 percent or less, depending on the amount of assets under management. The fee gives investors access to stocks, bonds and more than 500 mutual funds, along with investment guidance and the right to make 30 mutual fund trades per calendar year and six to ten brokerage trades per calendar year.

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