Things Every Investor Should Know About Managed Accounts

A managed account is an investment account that is managed by a professional investment manager on behalf of an individual or institution. The manager is responsible for making investment decisions in the account based on the account owner's investment objectives and risk tolerance.

Managed accounts can be tailored to meet the specific needs and preferences of the account owner, such as investing in certain asset classes, avoiding certain investments or sectors, or incorporating environmental, social, and governance (ESG) factors into the investment strategy.

Managed accounts often have higher fees than other investment options, such as mutual funds or exchange-traded funds (ETFs), because of the personalized service provided by the investment manager. However, managed accounts may offer advantages such as greater transparency, more control over the investment strategy, and potentially better tax efficiency.

It's important to carefully evaluate the investment manager, their track record, and their fees before investing in a managed account. It's also important to understand the risks associated with investing in the underlying securities in the account, as market conditions can affect investment performance.