Managed Money

DEFINITION of 'Managed Money'

A means of investment where the investor, rather than buying and selling their own securities, places their investment funds in the hands of a qualified investment professional for a predetermined annual fee.

BREAKING DOWN 'Managed Money'

Mutual funds are a good example of managed money; investors simply put their money into the fund, which deducts a specified percentage from the funds on a periodic basis for the service of researching prospective investments and maintaining the fund's portfolio. Essentially, investors with managed money believe they can earn higher returns by employing someone else to professionally handle their investments.