Separately managed account
Hi there little one! So, have you ever heard of something called a "separately managed account"? No? Well, no worries, I'll explain it to you in a simple way.
Think of it like this: Let's say you have a toy box with lots of different toys in it. You may like some toys more than others, right? Well, that's kind of like how a separately managed account works.
You see, when grown-ups invest their money, they might choose to put it all into one big fund, which has lots of different companies and investments in it - a bit like a mix of all the toys in your toy box.
But with a separately managed account, the grown-up can choose which specific companies and investments they want their money to go into. It's like they're picking out their favorite toys from the toy box.
This is handy because it means the grown-up can choose to invest in companies that they really believe in, or that they think will do well in the future. And they can change their mind and pick different companies later on too.
Overall, a separately managed account is like a more personalized way for grown-ups to invest their money, and it lets them have more control over where their money goes.
Does that make sense to you, little one?
Think of it like this: Let's say you have a toy box with lots of different toys in it. You may like some toys more than others, right? Well, that's kind of like how a separately managed account works.
You see, when grown-ups invest their money, they might choose to put it all into one big fund, which has lots of different companies and investments in it - a bit like a mix of all the toys in your toy box.
But with a separately managed account, the grown-up can choose which specific companies and investments they want their money to go into. It's like they're picking out their favorite toys from the toy box.
This is handy because it means the grown-up can choose to invest in companies that they really believe in, or that they think will do well in the future. And they can change their mind and pick different companies later on too.
Overall, a separately managed account is like a more personalized way for grown-ups to invest their money, and it lets them have more control over where their money goes.
Does that make sense to you, little one?