Advisor Account

Reviewed by Annapoorna | Updated on Nov 11, 2021


What is an Advisor Account?

Advisor accounts refer to a type of investment accounts that involves investment advisory services. These help investors to devise and execute purchases and strategies for the investment.

Most platforms now have a combination of automated as well as personal contact, known as hybrid advisory accounts. Usually, the fee structure of any advisor account is asset-based, with the client paying an annual fee depending on the amount of the assets kept in the account.

With the Robo-advisory services picking up pace, advisor accounts can include multiple levels of service and counselling.

Advisor Account Explained

Advisor accounts are for investors looking to invest more holistically. These can help the holistic management of portfolios, personal financial planning, or targeted capital assets.

Assets managed in advisor accounts need to adhere to the fiduciary standards. Their investment recommendations are based on a full portfolio fit. These accounts will also incur an asset-based fee that includes operating transaction costs and portfolio management expenditures.

Types of Advisory Accounts

Consultant accounts are typically organised around the industry to attract either high net worth investors or investors looking for discount platforms.

High Networth Accounts

High net worth investors have the benefit of obtaining qualified financial advice and assistance from a wider variety of options and services.

Portfolio Management

High net worth investors can select from a multitude of personal portfolio management packages. These are professionally monitored by a financial advisor for fees ranging from 1% to 5% of total assets.

Financial consultants provide holistic portfolio management recommendations with services, which integrate stock, bond, and fund transactions. Usually, these portfolios are managed through a broad allocation approach. They may also provide financial services for non-security assets, such as property and artwork.

Separately Managed Accounts

Separately operated accounts are an alternative to high net worth investors looking to invest capital in targeted portfolios operated by qualified money managers.

Discount Advisory Accounts

Discount investors find a multitude of advisory accounts, which charge a small advisor fee for services. Some Robo-advisors also deliver programs that do not require a minimum investment.

The fee schedules are tiered and integrated with the investment platform in the account management process. Accordingly, it offers a low-cost digital advisor account fee of a nominal percentage. In contrast, the premium account may cost a pinch higher.

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