When it comes to investing, choosing the right approach for your portfolio is important. We have two types of portfolio management styles; DIY (Do-It-Yourself) and Managed Portfolios. Here's a breakdown of the key differences between these options to help you make an informed decision:
What Is a DIY Portfolio?
A DIY portfolio puts you in full control of your investments. You choose the assets, decide how to allocate your funds, and make all the buy/sell decisions yourself. This approach is ideal for individuals who prefer hands-on involvement and have the time, knowledge, and confidence to manage their own investments.
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Management Style: Self-managed. You initiate all of the investments, weightings and rebalancing.
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Fee: Zero fees. You’ll only incur standard brokerage costs for trading (if applicable).
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Who It’s Best For: Experienced investors or those eager to learn and take charge of their financial journey.
What Is a Managed Portfolio?
A Managed Portfolio takes the hassle out of investing by entrusting your portfolio to our expert investment team. Our specialist team oversee your investments based on your risk tolerance.
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Management Style: Hands-off. Your portfolio is managed by experts to keep it aligned with your risk profile.
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Fee: 0.15% annual fee, which covers the cost of professional management and oversight.
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Who It’s Best For: Investors who prefer a simple, convenient solution or those with limited expertise to actively manage investments.
Both DIY and Managed Portfolios offer unique advantages, depending on your investment style, expertise, and preferences. If you’re still unsure which approach suits you best, consider your long-term financial goals, the time you can dedicate to managing investments, and your comfort level with fees.
Making the right choice can significantly impact your financial journey, so take your time and choose the path that aligns with your needs.
It's worth noting, you can invest in both a managed and DIY portfolio under one account. It's completely up to you!