An investment vehicle that provides a middle ground between a discount brokerage and a mutual fund. It constitutes a personalized basket of investments tradable as one issue. This vehicle allows investors to invest in mutual funds without the tax burdens associated with them. However, unlike in mutual funds, in a folio the individual investor owns the assets. Just like a separate account, investors can select folios from a list of ready-made baskets and customize them to suit their own needs. Investors can also design their folios from scratch. Investors can adjust their accounts for specific companies or tax strategies. Brokerage firms offering folios usually charge a fee to open the account in which the folio will be held.