What is Discretionary Fund Management?

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Discretionary fund management is a fund management arrangement where the investor authorize the fund manager to manage the investor's fund on a discretionary basis. This means that the fund manager can buy and sell stocks and bonds without consulting the investor. The fund manager will be responsible for making all the investment decision at the same time adhere to the requirements of the investor.

Almost all fund managers manage investment on a discretionary basis, whereas most private bankers serve their clients on a non-discretionary basis.  

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