Discretionary Mandate - Under a discretionary mandate, the Portfolio Manager (“PM”) manages your wealth on your behalf. Based on objectives and risk parameters described during the first meeting, the PM takes investment decisions. The benefits of entering into a discretionary mandate include low time commitment and low availability requirement due to it being a “Hands-off” approach.
Advisory Mandate - Under an advisory mandate, the Investment Advisor (“IA”) provides periodic investment reviews. The ultimate investment decisions, based on consultation with IA, are taken by the clients. The benefits of entering into an advisory mandate include the independence of receiving advisory on pre-existing client portfolio at other banks and having transactions executed in those accounts. This is a more “Hands-on” approach.