Whether you're an experienced investor or just getting started, you can buy and sell stocks, ETFs, and other investments via an online brokerage account. However, managed investment accounts offer a unique approach to investing that can provide a range of benefits for investors looking to grow their wealth.
A brokerage account is an investment account used to buy and sell securities like stocks, bonds, ETFs, and mutual funds. While these accounts give investors control over their investment decisions, managed accounts offer a more hands-off approach with professional portfolio management.
A separately managed account, or SMA, is just what it sounds like: a portfolio of securities that's professionally managed separately from other accounts. This personalized approach allows investors to tailor their investments to their specific financial goals and risk tolerance.
SMAs have some specific tax advantages. “While you cannot control capital-gains distributions in a mutual fund, you can in a separately managed account. This can lead to more tax-efficient investing strategies and potentially lower tax liabilities for investors.
The asset manager is giving advisors more power to personalize portfolios with fixed-income and multi-asset options. This level of customization can help investors achieve their financial goals more effectively and efficiently.
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These specialized mutual funds can help SMA portfolios achieve diversification and gain access to a greater range of investable securities. By incorporating these funds into their managed accounts, investors can further enhance the performance and diversification of their portfolios.
