Which of the following statements about having a financial planner manage your investment portfolio is TRUE?

Having a manager often costs less than managing the portfolio yourself.

The manager will charge fees that will decrease the profits you gain.

You don't have a say in how you want to manage your portfolio.

Financial planners are guaranteed to beat the market all the time.

Question

Business

Matteo Brooks

19 June, 06:10

Which of the following statements about having a financial planner manage your investment portfolio is TRUE?

Having a manager often costs less than managing the portfolio yourself.

The manager will charge fees that will decrease the profits you gain.

You don't have a say in how you want to manage your portfolio.

Financial planners are guaranteed to beat the market all the time.

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Answers (1)

Know the Answer?

Ben Brown · Answer 1

The correct answer is letter "B": The manager will charge fees that will decrease the profits you gain.

Explanation:

Financial planners are individuals who are in charge of assessing the investment of others. In cases such as managing mutual funds, the fees they charge could be really high which affects the net gains to receive from the investment. However, investing in assets without proper knowledge and strategies can be even more costly.