March 15, 2021 | By: Sound Choices

Why Managed Solutions?

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A managed solution is an investment made up of funds that have been carefully selected to form a portfolio. Why a managed solution? To answer that, let’s look at what’s involved in determining the right mix of investments for your portfolio – also known is its asset allocation.

Building Your Portfolio

A portfolio mix (also known as its asset allocation) should be properly diversified and take into account:

  • Investment goals
  • Risk tolerance level
  • Time horizon
  • The world macro environment (economies, interest rates, etc.)
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For Illustrative purposes only.

Managing Your Portfolio

The investments in your portfolio will likely grow at different rates.

So what do you do when you no longer have the asset allocation you started with?

  • Do you rebalance back to your original portfolio?
  • Do you find a new one to reflect changes in the economic environment?
  • How often should you rebalance your portfolio?
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For Illustrative purposes only.

A Managed Portfolio Offers a One-Stop Solution

Choosing a fund-of-fund managed solution can simplify your investment process – with one investment, you get a professionally managed, diversified portfolio of funds (ETFs, mutual funds or both).

Professionally Managed

An investment management firm that offers managed solutions is responsible for:

  • Conducting thorough research and making the appropriate fund selections
  • Constructing the portfolio with complementary investment styles to manage risk and enhance return potential
  • Actively monitoring the portfolio and rebalancing when required to maintain optimal positioning in an ever-changing economic environment
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Typically, an investment management firm will offer several portfolios in its managed solution lineup, each designed to meet different investment objectives. For example, to generate an income stream, to provide a mix of income and capital growth, to maximize growth potential.

 

sound choices
For Illustrative purposes only.

Choosing a portfolio solution can enable you and your financial advisor to devote more time to other important aspects of your financial plan.

To learn more about the benefits of managed solutions, read this investment strategy and talk to your financial advisor.

The contents are provided for informational and educational purposes, and are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax. Please consult with your own professional advisor on your particular circumstances.

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