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The Wise Investor


5.6 Managed and pooled
investments
"The world, Kate, is full of people who want to
manage your money for you.
They come with promises of expert, skilled
management, high returns and secure strategies.
Naturally, they charge a fee for their services.
These people may be accountants, investment
advisers or even institutions.
The first class of managed investments we will
look at are often called 'portfolio management
services'.
These are called various different names, but the
basic operation is the same.
All individual investments are owned in your
name, but someone else makes the decisions on
what to buy and when to sell.
I suggest you avoid these services, even though
many work well, because the benefits provided do
not outweigh the disadvantages.
I have spoken many times about the need to
manage your affairs personally, and I cannot stress
this highly enough.
Your financial future is simply too important to
trust to anyone else but yourself. Some people
cannot be bothered managing their investments, and
would rather pay someone else to do it.
Others suffer from a lack of confidence, and
believe that only an expert can invest their money
successfully.
Both these attitudes are highly dangerous. Even
if the person or institution you choose to manage
your affairs is trustworthy and successful, and many
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