Definition of Managed account:
Investment account administered and supervised by an investment manager who decides when and where to invest the funds contributed by one or more investors. These investors share in the gains and losses in proportion to their contribution to the account.
A managed account is an investment account that is owned by a single investor, either by an institutional investor or an individual or retail investor. A professional money manager, hired by the investor oversees the account. Armed with discretionary authority over the account, this dedicated manager actively makes investment decisions pertinent to the individual, considering the client's needs and goals, risk tolerance, and asset size.
Managed accounts hold many benefits for the high net-worth investor.
How to use Managed account in a sentence?
- Money managers often demand six-figure minimum investments to manage accounts and are compensated by a fee, a set percentage of assets under management (AUM).
- A managed account is an investment account that is owned by one investor but is supervised by a professional money manager who has been hired by that investor.
- A mutual fund is a type of managed account, but it is open to anyone with the means to buy its shares, rather than personalized for a particular investor.
Meaning of Managed account & Managed account Definition