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6 ноября, 2024Understanding Discretionary Investment Management Services: A Complete Guide
6 ноября, 2024Discretionary Asset Management
Let's delve into the world of discretionary asset management. This is a sophisticated method of investment management where all decisions regarding the purchase or sale of assets are expertly made by a portfolio manager, always with the best interest of the client in mind.
Discretionary asset management can only be performed by experienced, highly qualified professionals. Managers demonstrate their strategies using a systematic approach. According to specific goals and risk tolerance, all clients are divided into groups, each with the same investment portfolio created from the money contributed.
What is discretionary management, and what are its benefits?
Discretionary asset management offers a range of benefits, including:
- Freeing clients from having to make decisions on the allocation of funds - this is handled by a professional asset manager;
- delegation of the investment process, taking into account the harmonization of the manager's and depositor's interests;
- guaranteeing access to a wide range of investment opportunities;
- Portfolio growth under the guidance of an experienced manager.
Services and transactions within discretionary investment management are designed for high-net-worth clients, as the accounts have higher minimum capital requirements for investors. A new investor with a small amount to invest will not be able to benefit from the discretionary management method.