A managed account is a type of investment account for which a financial professional helps manage your money. This arrangement is similar to what you will find with a mutual fund except that you are not working in conjunction with other investors. Instead of pooling your money with that of many other investors, you have an individual account that the money manager takes care of.

One of the benefits of using a managed account is that you can have more say over what goes on with your money. For example, when you are investing in a mutual fund and decide that you do not want to have holdings in a particular company, you cannot talk to the fund manager to have him or her sell your shares. However, when you invest in a managed account, you can tell your account manager to sell the shares that you no longer want.

One of the disadvantages of a managed account when compared to investing in a mutual fund is that you do not pool your money with that of other investors. This can limit the amount of opportunities that you have as an investor, and you will not be able to benefit from large economies of scale.

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