DEFINITION of 'Advisory Management'

A group within a bank or brokerage that provides professional, personalized investment guidance. Advisory management services allow private individuals to consult with investment professionals before making changes to their portfolios. Advisory management professionals have expertise in one or more investment areas and provide guidance that is tailored to an individual's specific situation.

BREAKING DOWN 'Advisory Management'

Investment advisors who work for advisory management groups will assess a client's time horizon, performance objectives and risk tolerance to determine which asset classes will be the most suitable investments. They will also provide guidance in the areas of asset allocation and portfolio rebalancing, and they will monitor investment performance and execute orders. Advisory management services allow individuals to retain full control over their portfolios and make their own investment decisions; the investment advisor's role is solely to offer an informed opinion.

RELATED TERMS
  1. Federal Advisory Council

    A group of 12 banking executives - one from each Federal Reserve ...
  2. Mutual-Fund Advisory Program

    A portfolio of mutual funds that are selected to match a pre-set ...
  3. Money Manager

    A business or bank responsible for managing the securities portfolio ...
  4. Advisor

    1. The person or company responsible for making investments on ...
  5. Managed Futures

    An alternative investment strategy in which professional portfolio ...
  6. Investment Management

    A generic term that most commonly refers to the buying and selling ...
Related Articles
  1. Investing

    That's A (Mutual Fund) Wrap!

    These advisory programs offer professional supervision and other handy tools for building a diversified portfolio.
  2. Financial Advisor

    Paying Your Investment Advisor - Fees Or Commissions?

    The way a professional is compensated can affect quality of service. Learn more here.
  3. Investing

    Advisory Board and Elliott Management Reach a Standstill

    Advisory Board has reached a standstill agreement with activist investors Elliott Management.
  4. Investing

    Paul Singer's Elliott Management Takes 8.3% Stake in Advisory Board

    The billionaire and activist investor may be looking to invigorate Advisory Board's stock price.
  5. Financial Advisor

    The Gatekeepers: Consultants Hold The Key

    Institutional investment consultants help match up asset managers with large institutions.
  6. Financial Advisor

    Selecting Mergers & Acquisitions Advisories For Small Businesses

    Mergers and acquisitions advisories aren't just for big players. Many advisory firms cater to small and medium businesses.
  7. Personal Finance

    Portfolio Manager: Job Description & Average Salary

    Discover the duties and responsibilities of a portfolio manager, along with education, training and skills requirements, and salary expectations.
  8. Financial Advisor

    Buying an Advisory Practice? These Tips Will Help You Get it Right

    Before purchasing a financial advisory practice, ensure due diligence is done and that you understand the business and culture of the organization in question.
  9. Financial Advisor

    What an Investment Policy Statement Looks Like

    The anatomy of an Investment Policy Statement.
  10. Investing

    Earnings Guidance: Can It Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.
RELATED FAQS
  1. What is the difference between portfolio management and financial planning?

    Understand the difference between financial planning and portfolio management, and learn which financial professionals can ... Read Answer >>
  2. What does the 'FIG' at an investment bank refer to?

    The 'FIG' at an investment bank usually refers to the financial institutions group - a group of professionals that provides ... Read Answer >>
  3. What fees do financial advisors charge?

    Learn how much financial advisors charge clients; discover the various payment plans available to customers seeking financial ... Read Answer >>
  4. What is private wealth management?

    Understand what private wealth management is from the perspective of both the private client as well as the private wealth ... Read Answer >>
Hot Definitions
  1. Free Rider Problem

    1. In economics, the free rider problem refers to a situation where some individuals in a population either consume more ...
  2. Dumping

    In international trade, the export by a country or company of a product at a price that is lower in the foreign market than ...
  3. Tender Offer

    An offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the ...
  4. Ponzi Scheme

    A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns ...
  5. Dow Jones Industrial Average - DJIA

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange ...
  6. Revolving Credit

    A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is ...
Trading Center