Discretionary Investment Management

Discretionary investment management is a kind of investment technique in which the clients don’t take investment decisions directly. All the investment decisions including buy, sell and all kind of trading is done through a portfolio manager or a counselor on the behave of the client. In this kind of investment strategy all decisions of the client account are handled by the portfolio manager. This means that the client must trust in the capabilities and the abilities of the portfolio manager. The portfolio managers and counselors are the individuals that have an extensive experience in the field of account and finance. Not all people can become discretionary investment mangers but those who have advance education credentials along with having a capability of managing investment processes and have worked as Charter Financial Analyst. The facility of discretionary investment management is only offered to high profile clients that have high net worth and have a high level of investable assets in hand.

There are a number of benefits offered by this kind of investment strategy to their clients. The major and the basic advantage is that it saves the clients from the tough and the boring job of taking day to day decisions regarding their investment. These decisions are made by the portfolio manager who no doubt knows the investment policies better and can make more sound decisions. Moreover this kind of strategy also links the manager’s interest to the client’s investment portfolio as the manager typically charges a percentage of assets under the administration of the manager.

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