What is a wallet manager?

In the investment world, a portfolio manager is responsible for professionally managing an investor’s capital. When hired, he is free to buy and sell assets, forming the investment portfolio of those who hired the service.

The name portfolio is given for the composition of this capital. That is, by the portfolio or, more objectively, by the financial assets chosen for its composition. This choice is made by the portfolio manager who is nothing more than who analyzes, manages and makes decisions about capital.

This function is fundamental in decision-making and presents the tranquility of transferring it to a professional who has better knowledge of the market as a great advantage for investors. Despite the formal name

What is a managed portfolio?


A managed portfolio is, in an extremely simplified way, a way for the investor to “hire” a market specialist (the portfolio manager himself) to manage his capital.

It can even be said that it is an outsourcing, since every decision-making process is done by this professional. The idea is to free the capital holder from the need to study and monitor the financial market , finding professional management in the managed portfolio. This, of course, does not prevent the owner of the money from monitoring and evaluating everything that is done – something that is even more than recommended.

It is also worth emphasizing that the managed portfolio is not a product or a financial asset, but a service provided to the investor. You do not invest in a managed portfolio, but choose this service so that the money is used in certain products (such as funds, government bonds, stocks and others).

What are the responsibilities of a portfolio manager?

The main responsibility of a portfolio manager is, of course, the capital management of the client who contracts the service.

It is important to note that it is not anyone who can assume this position: you must be authorized by the Securities and Exchange Commission (CVM) . This is because, when entrusting the capital to this professional, the investor needs total confidence in the procedure.

In addition, the portfolio manager must comply with some rules established by the CVM itself. Among them are the fulfillment of technical requirements for the position and transparency in management portfolios (including accountability), for example. Like everything that involves the financial market, the inspection on this work is strict.

What are the advantages of having a portfolio manager?

The great advantage of working with a managed portfolio is ease. The investor does not have to worry about practically nothing in relation to his capital. Management is professional and decisions are made on behalf of the portfolio manager.

The fact of working with investments in this way is also a technical advantage. At least in theory, this professional has a broad knowledge of the market and that, in most cases, is better than that of the investor himself.

In addition, this is a way for a person to hire personalized management for their financial goals. The decision-making on the assets that will make up the portfolio will depend directly on this type of information, and it is up to the administrator to keep him duly informed about the results.

Finally, all of this is done under strict CVM supervision. This implies a safe and transparent service.

What are the disadvantages of having a portfolio manager?

The main problem with this format is cost. In addition to paying all fees that are already part of the financial market (such as taxes, for example), the use of a managed portfolio brings an extra amount that the investor needs to bear.

Generally, the fee charged is a percentage of what the contracting client has as equity – something that is positive in that it makes the portfolio manager want to obtain the best results. If the customer earns more money, he wins too.

At a lower level, there is also the feeling that money is “stuck” insofar as the movement and choice of assets does not belong to the owner of the capital, but to the administrator. However, at least generally, the search for this professional is precisely to avoid having this type of concern.

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