Discretionary Fund Management Guide

DFM at a Glance... By their very nature, stock markets can be volatile and having the ability to react quickly to market movements is becoming a necessity. The traditional investment and fund management routes, where client portfolios are reviewed and adjusted from time to time, may not offer the best opportunities to maximise the rise and fall of our markets. What’s more, finding the time to research the investment world is virtually impossible for both clients and IFA’s alike. This is where Discretionary Fund Management (DFM) comes in to its own. In some ways it is like having a stockbroker but the investment diversity goes way beyond the buying and selling of just shares.

A DFM will assess your attitude to risk by discussing this with you and your IFA. They will then construct a portfolio taking these factors into account and manage the investment for you, rebalancing all the time to make sure you do not move out of your risk category. All you have to do is sit back and relax. Your IFA will make sure the DFM is doing the right job and this will be conveyed to you once or twice a year depending on how often you want to meet. DFM’s are normally cost effective with their ‘hands on’ investment approach and are for clients with, typically, over £100,000 to invest...

Discretionary Fund Management Advantages