Managed Account
Definition of 'Managed Account'An investment account that is owned by an individual investor and looked after by a hired professional money manager. In contrast to mutual funds (which are professionally managed on behalf of many mutual-fund holders), managed accounts are personalized investment portfolios tailored to the specific needs of the account holder. |
|
Investopedia explains 'Managed Account'For example, if an investor buys ABC Mutual Funds, which invests in Company 1 and Company 2, and that investor wants to reduce the weighting of Company 1 in the fund, the fund company wouldn't allow it since the money manager looking after the fund cannot make investment decisions based on one investor's preferences. On the other hand, with managed accounts, investors are given the freedom and ability to do what they want with the investments within the portfolio, and any decision made by the money manager is based on the individual investor's goals and objectives. Thus, if an investor holds a managed account and wants to reduce holdings in Company 1, he or she could do so. |
Related Definitions
Articles Of Interest
-
Separately Managed Accounts: A Mutual Fund Alternative
It takes a hefty minimum investment to get in in on an SMA, but these offer some distinct advantages. -
Separately Managed Accounts: A Boon For All
We provide an explanation of individual cost basis and the advantages it brings to these accounts. -
An Introduction To Managed Futures
Their inverse correlation with stocks and bonds make these alternative investments worth getting to know. -
3 Alternative Ways To Assess Your Investment Manager
Find out whether your funds are being managed according to your goals. -
The Quest To Build A Unified Managed Account
Find out why the convenient, customizable UMA should be the next big thing in managed money. -
What types of accounts are available for forex trading?
There are many different types of forex accounts available to the retail forex trader. Demo accounts are offered by forex brokers as a way to introduce traders to their software and execution ... -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary. -
Financial Career Options For Professionals
Find out if spreading your wings to try a new career will make you soar or fall flat. -
Women: Invest In Your Financial Literacy
Learning about money may seem intimidating, but it's not as hard as it looks.
Free Annual Reports