Discretionary Mutual Fund Advisory Programs: A Comprehensive Guide

A discretionary mutual fund advisory program is an investment option that you might want to consider. Here are the basics of a discretionary mutual fund advisory program.

Discretionary Mutual Fund Advisory Programs

A discretionary mutual fund advisory program allows the average investor to get involved with professional money management. For many years, you had to have at least $100,000 to invest in order to get access to the professional money management that hedge funds had to offer. However, with this model, you can get involved for as little as $20,000 in some cases.

Working with A Manager

You will work closely with a professional money manager in order to select from many different mutual funds. You will try to come up with the perfect asset allocation model for your investment goals. You will then pick and choose mutual funds in order to fit this asset allocation model. 

When necessary, the portfolio will re-balance automatically, depending on the ratios that you decide on with your manager. The manager will also be in charge of selecting new mutual funds for you when a fund needs to be replaced in the portfolio. Therefore, you will be able to benefit greatly from professional money management.