What Money Managers Do
Many investors find that managing their portfolios independently is a difficult task. Researching investments, making trades, and rebalancing is time-consuming. Those outside the world of finance are missing important experience and expertise that can directly impact portfolio returns.
How Money Managers Get Paid
Money managers aren’t paid by the transaction generally (unless they receive a commission from buying mutual fund A-shares for example), so they don’t usually make their money by making trades.
How Money Managers Can Screw You, Even When Your Portfolio is Growing
A money manager’s job is to deliver returns, so if your statements show growth, you might be satisfied – but look closely. The fees you are paying your money manager could be eating away at your profits.
A Closer Look at the Impact of Fees on Your Portfolio
If your money manager is committed to transparency, your statement should itemize all of the fees charged to your account. Examples include: