Discretionary fund management refers to a type of investment management where the portfolio manager has the authority to make investment decisions on behalf of the client without needing their prior approval. The client gives the manager full discretion to buy and sell securities based on the investment strategy agreed upon.
Non-discretionary fund management, on the other hand, is when the portfolio manager makes investment recommendations to the client, but the client ultimately makes the final decision on whether or not to implement them. The client retains control over the investment decisions and the manager does not have the authority to make trades without explicit approval. Both discretionary and non-discretionary fund management have their own advantages and disadvantages, depending on the investor's preferences and financial goals. Discretionary management may offer more flexibility and convenience, while non-discretionary management may provide more transparency and control for the client. Comments are closed.
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May 2024
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