what are the advantages of professionally managed portfolio ?

Answer 1

For a person that has no desire to manage his/her money there is an advantage of having someone trustworthy and with a good track record managed the money. That is the advantage.

The most popular examples of professionally managed portfolios are mutual funds. Now here is the disadvantage. 70% of all mutual funds perform worse than the market in general. And some down right pitifully.

Answer 2

Professionally Managed Portfolios

Answer 3

By nature, an individual investor has only a limited amount of time to study securities to start with. Most people only have a few hours a week to spend working on their portfolio.

On the other hand a professional money manger specializes in studying stocks and bonds, and often work much more than 40 hours a week doing just that. For example, Peter Lynch, money manager for arguably the most successful mutual fund in history, was legendary for his 80-hour workweek.

With a low-cost no-load mutual fund you can have a diverse portfolio that is professionally managed at a bargain basement price. Vanguard mutual funds, for example, typically charge less than half a percent for their professional management. You can even buy the fund directly from them with no trading fee. This allows you to use the time you would have spent studying stocks to do fun things.

The disadvantage to this is that fewer than 1 in 5 mutual funds outperform the S&P 500 in a given year even with the advantage of professional management. One might say that, logically, it would be wiser to totally forgo money management and just buy an index fund that matches the market. You would never beat the market, but you would never underperform it, either. You would save on management fees and save time studying stocks.

Answer 4

Most people do a pretty poor job. In fact, studies show that 80% of people who have 401(k) plans underperform pension plan returns over the same period. The biggest advantage is that a reputable firm will generally keep you away from the biggest mistakes.

I would recommend, given that I do not know your location, visiting an Edward Jones branch office nearby. I am not affiliated with them in any way.

Answer 5

If you are a beginner without much free time, you better stick to mutual funds.But avoid like hell all high charging, super hyped, funds which in time will take a huge slice of your cake.

Studies in both US and UK have shown that over the long term, only 1 in 5 of actively managed funds outperform the S&P 500 index and some of them fail miserably. So stick to index trackers which also have the lowest annual charges. That is my advice.

Answer 6

The advantages are that professional, experienced persons advise you of investments you should make within the "goals area" you have established. However, it will cost you!!
Another advantage is that it will save you tons of time and energy.

Answer 7

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Answer 8

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