Managed Accounts

Managed account can be defined as an account that is owned by an investor but it is managed and supervised by a paid and professional money manager. They should not be confused with the mutual funds accounts as the mutual fund accounts are jointly managed by the money managing professionals however these accounts are personal investment accounts and are managed on personal level. These accounts offer a personalized account portfolio that is customized to fulfill the individual needs of the investors or the account holder.

The money manager is only there to manage the money however he can’t take important investment decisions on the behalf of the owner of the account. For example an investor opens and investment account in Company ABC and opens another investment account in company XYZ. Now if the owner wants to withdraw its investment from the company ABC he has to do this by himself as the money mangers on his behalf cannot take these crucial investment decisions.

In mutual fund there must be the consensus of all the members of the mutual funds to take an investment regarding decision however in managed account the money manager can take the decisions on the biases of that single account on the willingness of the owner of that account. All the decisions made by the money manager on the behalf of investor are according to the goals and objectives of the investor and the owner of the account.

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