What Is Commingling?
Commingling is the process of combining two or more assets into a single account. This can be done with investments, such as stocks and bonds, but it also applies to other types of accounts like bank accounts and retirement plans. The purpose of commingling is to simplify the management of multiple assets by consolidating them into one account. It allows investors to easily track their holdings in one place without having to manage separate accounts for each asset type.
The most common form of commingling involves pooling funds from different sources into a single investment vehicle, such as an exchange-traded fund (ETF). By investing in ETFs, investors are able to diversify their portfolios across many different asset classes while still keeping all their money under one roof. Commingling also makes it easier for financial advisors and institutions to manage large amounts of capital since they only have to deal with one account instead of several individual ones. Additionally, this practice helps reduce transaction costs associated with buying and selling securities since there’s no need for multiple trades when dealing with just one portfolio.