Separately Managed Accounts Offer Flexibility – at a Price
(LifeWire) – In the investment world, separately managed accounts are exactly what the name implies – they are accounts that are managed separately for each investor, as opposed to mutual funds, which are managed for hundreds or thousands of investors as a group. The key difference: separately managed accounts are, in essence, individually owned portfolios run by a professional manager for the benefit of the individual, in exchange for fees paid by that individual. Mutual funds, in contrast, are pools of investment money that are invested by professional managers for the benefit of the larger group of shareowners, paid for by fees that can be levied on the group in a variety of ways. The two forms of investment ownership offer very different degrees of personal flexibility.
