Differences between self-directed and managed portfolios

Self-directed portfolios and managed portfolios are two different types of investment offerings that can be offered by Robo-advisors. While both types of portfolios may use similar investment strategies and tools, there are some key differences between them.

Self-directed portfolios are portfolios that are managed by an individual investor, rather than by a professional investment manager. In a self-directed portfolio, the investor has full control over which investments are included in the portfolio and is responsible for making all decisions about buying and selling securities. Self-directed portfolios may be suitable for investors who have a strong understanding of the financial markets and are comfortable making their own investment decisions.

Managed portfolios, on the other hand, are portfolios that are managed by a professional investment manager, such as a Robo-advisor. In a managed portfolio, the investment manager...