What is the managed account?

The

account is a personally adapted to the investment portfolio, which is managed by a professional manager. If an investor has a managed account, it gives the investment manager to buy and sell securities to the account without required to require permission. The manager is basically entitled to take all decisions on the investor's transaction in accordance with specific objectives and goals.

Unlike other types of investment accounts, the managed account is intended only to satisfy the needs of an individual investor, unlike the group of investors. For example, the mutual fund could mix the assets of thousands of clients, while the managed account consists of only one investor's assets. The holder of the managed account may be an individual or organization.

Every managed account has specific goals. For example, an individual may decide to invest in growth, reception or combination of both. Managed Account holder has freedom to adapt his portfolio, select specific shares or debta copy or decide to omit one.

There are three basic types of managed accounts. The standard manager is operated by a professional investment manager. Accounts with multiple disciplines are operated by a group of managers, each with a different specialty and provides a greater level of investment diversity. Accounts managed by mutual funds are invested in various mutual funds instead of individual securities.

In the past, administered accounts were usually available only for very rich. Today, however, they have a wider range of clients. Although some professional managers decide to set minimum investment amounts of $ 1 million or more, many of them are willing to handle minimum investment accounts from $ 50,000.

The investor often decides to seek the help of financial Advisor. The task of the financial advisor is to understand the goals of the investor and to help develop a planfor their address. Often he is a financial advisor who suggests that the client open the managed account. Sometimes the advisor can even suggest that the client bought more than one managed account.

There are many companies that offer administered accounts. Every company has something different that it offers in terms of investment philosophy, reputation and level of service. With so many companies from which they can choose, investors can explore and select companies that offer the most adapted service for the lowest fees for free.