Best Managed Investment Accounts

A managed investment account is a personalized financial portfolio owned by a retail or institutional investor but actively overseen by professional money managers. It combines the expertise of human advisors with tailored investment strategies. If you prefer hands-off investing, managed accounts can relieve you from daily portfolio management, allowing experienced professionals to monitor and adjust your investments actively. 

The appeal lies in the opportunity to access sophisticated investment strategies and diversification tailored to your goals and risk tolerance, potentially leading to optimized returns.

By entrusting your investments to skilled professionals, you can navigate market complexities and seize opportunities that align with your financial objectives. Whether you're new to investing or experienced, Benzinga's selection of the best managed investment accounts can assist you in choosing the right one to improve your financial journey and work towards long-term wealth growth.

Quick Look: Best Managed Investment Accounts 

• Best for Comprehensive Portfolio Management and Low-Cost Investment Options: Vanguard Personal Advisor Services 
• Best for Inexpensive and Highly Diversified Investment: Charles Schwab Intelligent Portfolio
• Best for Personalized Financial Planning and Investment Guidance: Fidelity Personalized Planning & Advice 
• Best for Automated Investing With Personalized Advice and Tax-Efficient Strategies: Betterment Premium 
• Best for Comprehensive Digital Financial Services: Wealthfront
• Best for Actively Managed Portfolios: Merrill Guided Investing
• Best for a Hands-Off Approach to Investing With Low-Cost ETF and Diversified Portfolios: E*TRADE Core Portfolios 
• Best for Holistic Financial Planning With Credentialed Human Advisors: J.P. Morgan Personal Advisors 

8 Best Managed Investment Accounts

When selecting a managed investment account, investors typically prioritize professional expertise, investment philosophy, pricing transparency, diversification and customization. Some managed accounts offer personalized investment plans and robust technological tools to enhance the investing experience. Benzinga's picks meet these criteria, providing you with a comprehensive range of options tailored to your needs and preferences. 

1. Best for Comprehensive Portfolio Management and Low-Cost Investment Options: Vanguard Personal Advisor Services

Vanguard Personal Advisor combines automated investments with unlimited access to live financial professionals, offering the best of both worlds in the hybrid robo-advisor/online planning sector. The financial professionals are fiduciaries who manage your investment at a very reasonable cost. 

Vanguard Personal Advisor is especially ideal if you’re nearing retirement. The service prioritizes goal-based investing while maximizing tax loss harvesting and suitable withdrawal strategies. It pairs Vanguard's solid and low-cost fund lineup with technology to create a customized financial plan that suits your goals.

While the minimum balance requirement is relatively high, you get virtual planning tools and guidance from human financial advisors.

2. Best for Inexpensive and Highly Diversified Investment: Charles Schwab Intelligent Portfolios

Schwab Intelligent Portfolios is a solid robo-advisor reputed for its low expenses. It is ideal If you prioritize cost efficiency. The basic account has no advisory fee, while the premium account is decently priced with access to certified financial planners or advisors. Additionally, Schwab provides robust fund diversification, drawing from 51 low-fee exchange-traded funds (ETFs) to construct a customized portfolio of approximately 20 funds aligned with your goals and risk tolerance. 

Schwab Intelligent Advisors benefits from the support, security and expertise of Charles Schwab, the largest broker in the country. Its major downside is the large cash reallocation. Depending on your account type and other factors, you may need to keep between 6% and 30% of your balance in cash. This can reduce your overall earnings since you earn a minimum APY on cash.

3. Best for Personalized Financial Planning and Investment Guidance: Fidelity Personalized Planning & Advice

Fidelity Personalized Planning & Advice is one of Fidelity's most accessible investment products. It is a hybrid robo-advisor service that blends digital investment guidance and human support for more personalized investment solutions. With a $25,000 account minimum, you get a customized financial roadmap, unlimited coaching from its financial advisors, digital financial planning tools and investment via Fidelity Go, the company's robo-advisor. 

Suppose you can't afford this account minimum. In that case, you can still invest using the robo-advisor (Fidelity Go) to grow your balance to the $25,000 needed for the Personalized Planning & Advice level of service. Fidelity requires a $10 minimum to use the robo-advisor aspect of this service. Your account will hold a mix of Fidelity Flex® mutual funds encompassing bonds, short-term investments, domestic stocks and foreign stocks with no expense ratios.

4. Best for Automated Investing With Personalized Advice and Tax-Efficient Strategies: Betterment Premium

Betterment packs many stellar features that benefit anyone serious about investing in something big, like a college fund, home down payment or retirement. Its goal-based tools and remarkable tax strategies may appeal to you, too. There's no minimum deposit requirement; you need $10 to start investing. There are two service tiers: Betterment Digital has an annual management fee of 0.25%, and Betterment Premium, available for investors with a balance exceeding $100,000, charges 0.40%. 

With the Premium, you get unlimited consultation and coaching from Betterment’s financial advisors or CFPs. Digital subscribers can purchase a standalone advice package. Either way, you'll have access to low-cost investment funds, including socially responsible funds and crypto funds. Even if you decide not to open an investing account, you can still access Betterment's no-fee cash management account, which offers an attractive interest rate and other appealing features.

5. Best for Comprehensive Digital Financial Services: Wealthfront

Suppose you're comfortable with a digital-first investment portfolio. In that case, Wealthfront's digital investment lineup, innovative planning tools and various tax-efficient strategies may appeal to you. Wealthfront offers holistic investment services, from portfolio management and construction to goal planning. At a reasonable price, you'll get a diverse and highly customized portfolio encompassing SRI funds, cryptocurrency funds and automated bonds, as well as a classic portfolio comprising diversified low-cost ETFs. Its risk-adjusted investment portfolios can be tailored using over 200 ETFs. 

In addition, DIY investors can invest in individual stocks. Wealthfront also offers savings and borrowing services. It boasts a cash sweep feature within the robo-advisory account that automatically invests uninvested cash into money market funds with a seven-day yield of 5.26%. Plus, you can qualify for a portfolio line of credit that lets you borrow up to 30% of your account value if you've at least $25,000 invested in Wealthfront taxable accounts. This requires no credit, repayment schedule or usage constraints. 

6. Best for Actively Managed Portfolios: Merrill Guided Investing

Merrill Guided Investing can be a great choice if you're seeking a sophisticated, premium robo-advisor experience. It offers the highest level of active management, providing investment portfolios designed and managed by Merrill's experts. This means you'll benefit from the vast experience of a prestigious Wall Street stalwart managing your portfolio. Merrill Guided Investing stands out from typical market-matching index fund portfolios with its unique asset allocation and hands-on investment strategies. 

You'll also get access to Merrill financial advisors if you meet the higher minimum balance. Merrill charges a steep fee of 0.85% for its advisory service, relying on its reputation as a renowned wealth management firm to justify the premium. However, you can reduce costs via the Preferred Rewards program with Bank of America and Merrill. Existing Bank of America account holders might also consider looking into this service as it is well integrated with Bank of America products and services. 

7. Best for a Hands-Off Approach to Investing With Low-Cost ETF and Diversified Portfolios: E*TRADE Core Portfolios

E*TRADE primarily serves retail account traders. However, it also provides robo-advisory services through Core Portfolios for investors. This robo-advisor invests client assets in portfolios comprising low-cost ETFs with underlying expense ratios ranging from 0.06% to 0.12%. 

Besides its standard customized portfolio options, E*TRADE Core Portfolios lets you select specific focuses, such as tax-advantaged portfolios and strategies exclusively investing in socially responsible ETFs. 

E*TRADE Core Portfolios seamlessly integrates with other accounts on E*TRADE's platform, meaning you can view all your accounts in one place and effortlessly transfer into and out of the E*TRADE Core Portfolios account. You can also convert your existing E*TRADE account into E*TRADE Core Portfolios. E*Trade has been part of Morgan Stanley since it was acquired in 2020.

8. Best for Holistic Financial Planning With Credentialed Human Advisors: J.P. Morgan Personal Advisors

JP Morgan Personal Advisors is a remote wealth advisory service that grants investors unlimited access to JP Morgan's team of fiduciary advisors. It is not a robo-advisor; human-credentialed advisors will construct your financial plan and oversee your portfolio. You should consider this service only if you're comfortable with the absence of in-person financial planning and guidance. 

The reason is that online or phone collaboration is the only means of connection. However, you'll enjoy the convenience of connecting with an advisor as frequently as you want via phone or video call. You can book a free 45-minute one-on-one meeting with an advisor to discuss your financial situation and goals and how JP Morgan Personal Advisors can help. You have no obligation to proceed with the service after the meeting. 

What Makes a Managed Account Stand Out?

Beyond rankings, several key factors are crucial to consider when evaluating managed investment accounts:

Investment philosophy: Understand the investment approach and philosophy of the account management firm. Is it focused on growth, income, capital preservation or a combination? Ensure the strategy aligns with your investment goals.

Risk management: Assess how the account management team handles risk. Does it have a robust risk management strategy in place? Consider factors like diversification, asset allocation, and hedging techniques.

Performance consistency: Look beyond short-term performance and evaluate the consistency of returns over various market conditions. A track record of consistent performance can indicate a disciplined and reliable approach.

Fees and costs: Consider all fees associated with the managed account, including management fees, performance fees and any other charges. Ensure transparency regarding costs and understand how they impact overall returns. You shouldn’t pay more than 0.50% for assets-under-management (AUM) management fees.

Client support: Assess the quality of client support and service offered by the account manager or the investment firm. Accessible and responsive support can enhance the overall client experience.

How to Choose the Right Managed Investment Account for You

The right managed investment accounts can help steer your portfolio towards optimized returns. To make the best choice, ideally, you should:

Define your goals: Clarify your investment objectives, such as growth, income or a balanced approach.

Assess risk tolerance: Determine your comfort level with risk to align with suitable investment strategies.

Research providers: Compare managed account providers based on reputation, performance history and fees.

Review investment philosophy: Ensure the provider's investment philosophy matches your goals and risk tolerance.

Evaluate services: Consider account customization, communication and reporting capabilities.

Understand fees: Analyze all fees involved, including management fees, transaction costs and potential performance fees.

Seek professional advice: Consult with financial advisors for personalized guidance tailored to your specific financial situation.

Steps to Open a Managed Investment Account

The thought of opening a managed investment account can seem intimidating if you're a retail investor. But the thing is, the process is not entirely different from opening a brokerage account. Also, managed accounts are not restricted to high-net-worth or institutional investors. To open a managed investment account, you typically need to follow these steps:

Gather required documents: Prepare documents such as proof of identity, proof of address and other specific paperwork required by the investment firm.

Choose an account type: Decide on the type of managed investment account you want to open, such as a taxable individual account, joint account or tax-advantaged retirement account.

Complete application: Fill out the account application form provided by the investment firm. Depending on your selected investment firm, you can do this online at the convenience of your home. Either way, provide accurate information and ensure all required fields are properly filled.

Submit documentation: Upload or mail the required documents along with your application. This may include copies of your ID, proof of address and additional forms requested.

Initial deposit: Follow the instructions provided by the investment firm to make your initial deposit. This may involve transferring funds electronically or mailing a check.

Account setup: Once your application and initial deposit are received and processed, your managed investment account will be set up. You will receive confirmation and login details to access your account online.

Review and confirm: Before proceeding, take time to review the account details, investment options and any associated fees or charges. Confirm that everything meets your expectations.

Investing Made Easy

Investing in a well-managed investment account requires thorough research and consideration of key factors. Prioritize accounts with a track record of solid performance, transparent fees and a diverse range of investment options. Consider consulting a financial advisor for personalized guidance tailored to your financial goals and risk tolerance. That way, you're set up for optimal financial growth and security.

Frequently Asked Questions