Separate Account

What Does Separate Account Mean?
1. A privately managed investment account opened through a brokerage or financial advisor that uses pooled money to buy individual assets.

2. In the context of variable annuities, these are payments made to an insurance company for the purpose of investing in securities. These securities are kept separate from the insurer's general investments.

Investopedia explains Separate Account
1. This differs from a mutual fund because the investor directly owns the securities instead of owning a share in a pool of securities. Most separate accounts require a minimum investment of $100,000 or more.

Related Terms

Investment Advisor
Managed Account
Mutual Fund
Unified Managed Household Account - UMHA
Variable Annuity
Variable Life Insurance Policy
More Related Terms

Related Links

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.
That's A (Mutual Fund) Wrap! - These advisory programs offer professional supervision and other handy tools for building a diversified portfolio.
Introduction To Multi-Discipline Accounts - You get multiple managers, affordable diversification, customization and consolidated reporting all under one roof.
Understanding The Mutual Fund Style Box - Evaluate your investments with this simple tool.

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