A Beginner’s Guide to the Managed Portfolio Service
What is a Managed Portfolio Service?
A Managed Portfolio Service (MPS) is a type of investment service that offers a range of pre-built investment portfolios, or “models”, managed by specialists.
These models are designed to meet the specific investment objectives and risk tolerance of individual investors.
An MPS provides a convenient way to invest in a range of assets, with a portfolio manager making investment decisions on behalf of the investor.
MPS models are typically built around a set goal, such as delivering long-term capital growth.
How Portfolio Management Works
Portfolio management involves the process of selecting, managing, and monitoring a portfolio of investments to achieve specific investment objectives.
Portfolio managers use a range of investment strategies, including active and passive management, to manage the portfolio.
Active management involves actively managing a portfolio of securities, whereas passive management involves passively tracking a market index.
Portfolio managers make investment decisions based on research, analysis, and market trends.
Portfolio Management can be direct or via a Trust for example, typical Pensions such as SIPP’s and QROPS’s have Trustees who will appoint the MPS on your behalf.
Investment Strategy Options
Book a free 1 to 1 meeting to discuss your strategy and objectives CLICK HERE
Investors can choose from a range of investment strategies, including active, passive, blended, and agnostic.
Active management involves actively managing a portfolio of securities to generate returns exceeding a given benchmark or index.
Passive management involves passively tracking a market index, with the goal of matching the returns of the index.
Blended strategies combine active and passive funds, while agnostic strategies offer even more freedom for portfolio managers to choose the best funds for their models.
Benefits of a Managed Portfolio Service
A Managed Portfolio Service provides a convenient way to invest in a range of assets, with a portfolio manager making investment decisions on behalf of the investor.
MPS models are designed to meet the specific investment objectives and risk tolerance of individual investors for example Cautious, Balanced, Growth & Adventurous.
A Managed Portfolio Service can provide a higher level of customization, as investors can work with their managers to create a portfolio that meets their specific needs.
MPS models are typically built around a set goal, such as delivering long-term capital growth.
Choosing a Managed Portfolio Service
When choosing a Managed Portfolio Service, investors should consider their investment objectives, risk tolerance, and investment experience.
Investors should also consider the fees associated with the MPS, as well as the reputation and track record of the portfolio manager.
Fees
It’s important that all the fees are considered, however low fees are not always the best option, consider the returns especially over 3 & 5 years, as you may pay a little more in fees but gain considerably more in your returns.
It’s also important to consider the investment strategy options available, as well as the level of customization and support provided.
Getting Started with a Managed Portfolio Service
To get started with a Managed Portfolio Service, investors typically need to provide information about their investment objectives, risk tolerance, and investment experience.
This is very important as the provider will need to prove due diligence and Anti Money Laundering procedures have been followed
Investors may also need to provide financial information, such as their income and assets.
The portfolio manager will then use this information to create a customized investment portfolio that meets the investor’s specific needs.
Ongoing Support and Monitoring
A Managed Portfolio Service typically provides ongoing support and monitoring, with the portfolio manager regularly reviewing and adjusting the portfolio as needed.
Investors can expect regular updates on their portfolio’s performance, as well as any changes made to the portfolio.
Investors can also expect to have access to their portfolio manager, who can provide guidance and support as needed.
Common Questions and Concerns
One common question is whether a Managed Portfolio Service is right for me?
Another common concern is the cost of a Managed Portfolio Service, as well as the potential for higher fees.
Investors may also be concerned about the level of risk associated with a Managed Portfolio Service, as well as the potential for losses.
Conclusion
A Managed Portfolio Service can provide a convenient and customized way to invest in a range of assets, with a portfolio manager making investment decisions on behalf of the investor.
By understanding how portfolio management works, investors can make informed decisions about their investment strategy and choose a Managed Portfolio Service that meets their specific needs.
With ongoing support and monitoring, investors can feel confident that their investments are being managed to achieve their specific investment objectives.
Book a free 1 to 1 meeting with Robin to discuss you goals & objectives CLICK HERE