A managed account is a type of investment account that is owned by an individual investor but managed by a professional money manager on their behalf. The manager makes decisions about the account’s assets, often customizing the portfolio based on the investor’s goals, risk tolerance, and preferences. Key Features of a Managed Account: Professional Management: A dedicated money manager makes all investment decisions. Transparency: Investors have full visibility into their portfolios, with access to performance reports and transaction details. Ownership of Assets: Unlike mutual funds or pooled investments, where an investor owns shares in a fund, in a managed account, the investor directly owns the underlying assets (stocks, bonds, etc.). Cost: Managed accounts typically come with management fees, often charged as a percentage of assets under management (AUM) and performance fee. This fee covers the active management services provided.