Your capital is at risk, and you may get back less than you originally invested.

It gives you the option to have a portfolio manager, or portfolio advisors look after the management of your portfolios.

Also known as investment management, portfolio management lets you choose the level of control you have on the shares you buy and sell in your portfolio.

What investment portfolio management options are there?

There are two approaches to investment and portfolio management:

  1. 1.

    Active: You have a manager that checks your portfolio is performing as expected. If it is not, they will give you the opportunity to change your investments before they make a greater loss.

  2. 2.

    Passive: You choose from portfolio funds, which have an expected level of growth over a set period. This means you may not get advice on changing your portfolio if it starts to under perform.

You should seek independent financial advice if you are not sure which portfolio management approach is best.

How active portfolio management works

It depends on the style you choose:

  • Advisory portfolio management: Your broker gives you advice on the company shares to buy, and when to sell your shares. However, you get to make the final decision on whether to buy or sell by choosing this option.

  • Discretionary portfolio management: Your broker can buy and sell shares on your behalf, without getting permission first. This means they can act fast and get shares when they hit an attractive price.

This comparison shows fund management companies that let you choose an active style of portfolio investing.

Portfolio management FAQs

Q

Can I invest in portfolio management?

A

You have to be at least 18 years old to invest in portfolio management.
Check the broker's opening criteria for any other requirements.

Q

How many portfolios can I have?

A

You usually have one portfolio of investments with one broker, but you can open investments with several brokers.

Q

Is it riskier than other types of investment?

A

There is risk to every type of investment. You can usually choose the level of risk you take with your money when using portfolio management.

Q

How are portfolios taxed?

A

You may need to pay several taxes, including dividends tax, income tax and Capital Gains Tax (CGT). Learn more about investment tax here.

About our portfolio management comparison

Q

Who do we include in this comparison?

A

We include portfolio management brokers from our panel. They are regulated by the Financial Conduct Authority (FCA).

Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.