What Does a Money Manager Do?

What Does a Money Manager Do?

When you heard about the term money manager, maybe you will think about someone who works to manager money. Well, it is not completely wrong. But, what is exactly a money manager? And what does a money manager do? It must be better if you can learn more about this thing before anything else.

What is A Money Manager?

Before you learn more about what are the jobs of a money manager, it must be great to know about what is the meaning of this term first generally. A money manager is actually someone or a firm that helps a client to take care of their investment and also to suggest ways or strategies that best to grow their investments. By providing this to the clients, a money manager is supposed to help his/her clients to be able to reach his/her financial goal.

On the other hand, when a client still does not really know about what his/her goal is and has not known where they would like to be financially later in the future, a money manager will help the client to define which goal is realistic and give him/her suggestions about it.

What Will a Money Manager Do?

Now, what does a money manager do? When it comes to meeting a client, a money manager will do it in one-on-one meeting. They will act as liaison between a client with other financial institution. Moreover, they will also gather any information for the client to understand. And they also research about various factors of the market so that their client will stay up to date and also well-informed.

If you come to the quality money manager, you will be able to find them creating a portfolio plan which is specifically suitable to your needs. They are also able to assess particular client and their conditions.

For further, here are a few services that a money manager provides to you.

  • Monitor the assets of a client and manage them. When it is necessary, the money manager may suggest for a trade as well.
  • Keep a client stay informed about what they have for assets and also what kind of choices being made are.
  • Provide proper reports of a client’s portfolio activity. The report is usually available for a monthly basis.
  • Offer personalized service dependent to what each client needs.

So, what does a money manager do? Now, you have known a little about what they do and what we can expect from their services. Furthermore, when you as a client and your money manager once decide on particular investment goal, your money manager will develop a strategy for how you can reach the goals. It can be complicated if you have such large portfolio or have a large amount of money for investment.

At this point, the money manager is supposed to balance the development with a particular amount of safety which depends on how much the risk a client is willing to overcome. It is no secret that there will be numerous investment choices available and your money manager will think carefully about which investment choice suits a client best. They will also think about how many investment types are possible to use and how much money to invest for each investment type taken.

Moreover, a money manager will also make any required transaction for the client. When particular percentage of portfolio has been decided to go into stock or mutual fund, the money manager is going to assist the client to decide more specific mutual fund or specific fund. After that, the money manager will manage the investments actively; make trades if necessary on his/her clients’ behalf.

The point of what does a money manager do is that he/she will try the best to maximize the potential earning of a client by creating the right decisions through extensive and diligence financial investment knowledge.

When You Need a Money Manager?

Then, when we actually need a money manager to help us with our financial? One of the signs that you need to have a money manager help you with your financial is when your portfolio keeps failing to meet your expectations. Then, if you don’t know whether you will have enough money for your retirement or not, you actually need a money manager to help you with that problem.

By working with a professional money manager who has expertise and resources, it is more potential for us to maximize what we have right now and let it grow for much better financial life later in the future. So, if you find that your portfolio keeps failing to meet your goals and you are confused about what you want your financial to be in the future, you surely need a money manager to help you get the most of what you have already had then develop it.

How Much Does a Money Manager Cost You?

After you learn what does a money manager do and you find that you need a money manager to help you with your financial, you may start to wonder how much a money manager will cost you for their services. Typically, a money manager will cost management fees for about 0.5% up to 2% for each annum. But, it is possible that the cost depend on the size of your portfolio as well.

For example, your money manager may cost you a one-percent management fee on every $1 million portfolio. In terms of dollar, it is equal to a $10,000 management fee. In addition to this cost, your money manager may charge you performance fees too which ranges 10% to 20% of the profit of your funds. As an example, if the fund costs 10% performance cost and the returns profit is $250,000, so you will pay for additional fee $25,000.


That’s all what you need to know about a money manager and what does a money manager do for helping your make best use of your financial potential. If you find that you currently need a money manager to work with, it is the best time to take a step and find a reliable money manager to work with. Finally, hope you enjoy it!



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