Folio[fn], a broker/dealer in Vienna, Va., is planning to offer a new kind of investment that is a hybrid between a mutual fund and a discount brokerage account.

The company is calling the new product a "folio" and plans to introduce it by mid-May. The new product will allow investors to select and weight holdings in a folio of 50 stocks from a selection of 2,500 stocks. For a $295 annual fee, investors will be able to create three personalized folio baskets. Twice a day, at 10:45 a.m. and 2:45 p.m., investors will also be able to trade holdings in each folio, for no additional charge.

An investor can hold an additional folio for a $95 annual fee and conduct more than two trades a day for $14.95 per trade.

Folio[fn] will promote its new folios as cheaper than separately-managed accounts, mutual funds and even discount brokerage accounts, said Nancy Smith, vice president for web content and investor education. The folios also give investors complete control over their investments, Smith said.

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