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Customization
For many investors, customization is an added attraction
of managed accounts and multiple-discipline accounts — though
not mutual fund wraps. It means that as an accountholder, you
have some flexibility to modify your individual
portfolio
in comparison with the investment manager's standard portfolio.
For example, you might want to exclude the stocks of certain companies
from your account because you already own them through another
investment. Or perhaps you object to their products or business
practices, and prefer not to include them.
Similarly, if you're selling assets to consolidate
your holdings in a managed account, you might ask that a certain
investment you'd prefer to keep be included in your managed
account portfolio.
Within reasonable boundaries
There are limits on how much customization is
appropriate in managed accounts, however. Because all of the individual
portfolios are officially pursuing the same formal investment
objective, they have to be substantially the same for the investment
manager to handle them efficiently.
If you prefer to design your own portfolio, a
managed account may not be the best choice for you.
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