A managed account is a personalized investment portfolio managed by a professional, with specific goals and objectives. It is intended for individual investors and can be customized. There are three types of managed accounts, and they are now available to a wider range of customers. Financial advisors often suggest managed accounts, and there are many companies to choose from.
A managed account is a personalized investment portfolio that is managed by a professional manager. When an investor has a managed account, he or she gives an investment manager the authority to buy and sell securities for the account, without needing to request permission. Essentially, the manager is empowered to make all decisions about operations on behalf of the investor in accordance with specific goals and objectives.
Unlike other types of investment accounts, a managed account is only intended to serve the needs of an individual investor, as opposed to a group of investors. For example, a mutual fund might combine the assets of thousands of clients, while a managed account consists of the assets of only one investor. A managed account holder can be an individual or an organization.
Each managed account has specific goals. For example, an individual may choose to invest for growth, income, or a combination of both. A managed account holder has the freedom to customize their portfolio, by selecting a particular security or bond or choosing to omit one.
There are three basic types of managed accounts. The standard managed account is managed by a professional investment manager. Multi-discipline managed accounts are managed by a group of managers, each with a different specialty, and provide a greater level of investment diversity. Accounts managed by mutual funds are invested in various mutual funds rather than individual stocks.
In the past, managed accounts were typically only available to the very wealthy. Today, however, they have a wider range of customers. Although some professional managers choose to set minimum investment amounts of a million dollars or more, many are willing to manage accounts with minimum investments starting at $50,000.
Often, an investor will choose to seek the help of a financial advisor. It is the financial advisor’s job to understand the investor’s goals and assist in developing a plan to achieve them. It is often the financial advisor who suggests that the client open a managed account. At times, an advisor may also suggest that the client purchase more than one managed account.
There are an abundance of companies offering managed accounts. Every company has something different to offer in terms of investment philosophy, reputation and level of service. With so many companies to choose from, investors are free to research and select the companies that offer the most personalized service at the lowest rates.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
