We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Money Manager?

Nicole Madison
By
Updated Feb 16, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A money manager is responsible for handling the entire investment portfolio of an individual or business entity. He or she receives payment in exchange for planning, monitoring, and implementing client investments. Client portfolios can include individual securities and bonds, as well as real estate and other investments. Great emphasis is placed on personalization and each portfolio is tailored to the unique objectives and goals of the client. Portfolio management is on a discretionary basis, meaning the money manager has the right to make daily portfolio decisions, without consulting the client.

Investing can be complex, stressful, and time consuming. Often, investors choose to relieve the pressure by hiring money managers to evaluate markets and make critical portfolio decisions. This can help investors have more time for other things, such as work, family, and hobbies. Furthermore, a good money manager can help her clients avoid making costly investment errors.

A money manager typically handles larger portfolios, though each professional or firm has different minimum investing requirements. In exchange for shouldering the responsibility of portfolio decision-making, a money manager charges a fee, based on a percentage of the assets in his care. Though these fees can be expensive, many investors consider the money well spent.

A professional money manager may choose to work as an independent contractor, starting her own business, while another may decide to accept employment with a firm. Each money manger has a unique style and investment philosophy. Many money-management professionals employ sophisticated techniques and technologies in making decisions and formulating investment strategies. Others rely more on simple intuition.

The fundamental goal of a money manager is to position the client's portfolio to meet financial objectives, while managing appropriate levels of risk. To be successful, a money manager must have excellent communication skills, a strong understanding of financial markets, discipline, and the ability to think about all aspects of investment issues. As millions of dollars are often at stake, most prospective clients expect money-management professionals to possess experience and solid credentials as well.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Nicole Madison
By Nicole Madison
Nicole Madison's love for learning inspires her work as a WiseGeek writer, where she focuses on topics like homeschooling, parenting, health, science, and business. Her passion for knowledge is evident in the well-researched and informative articles she authors. As a mother of four, Nicole balances work with quality family time activities such as reading, camping, and beach trips.
Discussion Comments
By andee — On Jun 23, 2011

Whether someone has their own business or works as an institutional money manager for a firm, the responsibilities that go along with this job are huge. Anytime you are dealing with money, there is a lot at stake.

The financial world can be complex and scary if you don't have any idea about investments and the best way to get a return on your money. I have some knowledge of this, but still rely on the advice of a professional to get good feedback and recommendations that I am not aware of.

The financial industry constantly changes, so you must follow it regularly to know what is going on. Even if you hire someone to help you make these decision, it is still your responsibility to keep up with your money.

By LisaLou — On Jun 21, 2011

Being a successful money manager can be a very challenging, yet rewarding job. There is a lot of responsibility involved when making financial investments for a person or a company.

Having worked in the financial industry for many years, I have met many people who are very uncomfortable making these decisions themselves, and rely on professionals in the business to guide them through money management options.

The single best money management tip I ever give is to encourage people to always live within their means. This makes their financial planning so much easier when they have already been practicing this and don't have a lot of debt to pay off before they can begin saving and investing.

Nicole Madison
Nicole Madison
Nicole Madison's love for learning inspires her work as a WiseGeek writer, where she focuses on topics like...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.