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Discuss the pros and cons of managing your own portfolio vs. having an investment "professional" manage...

Discuss the pros and cons of managing your own portfolio vs. having an investment "professional" manage your portfolio. (hint - several of my instructor postings have information related to this topic.) Google search: What percentage of investment managers actually earn higher returns for their clients than the market average? What is the best way to increase the chance that your portfolio will at least earn the market average?

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Answer #1

Pros:

  • Having an investment professional will help you to attain the financial goal in the desired tenure as his/her focus will be only on the investments.

Cons:

  • Investment professional will have annual fee and even commission from the investments so the return will be bit less when compared to managing own portfolio.

Atleast half the investment managers actually earn higher returns than the market average for their clients.

Inorder to atleast earn the market average return, your portfolio should have stcoks in line with the market. So just follow the market composition strategy.

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