what is discretionary investment management 
discretionary investment management is a form of investment management in which buy and sell decisions are made by a portfolio manager or investment counselor for the client s account the term discretionary refers to the fact that investment decisions are made at the portfolio manager s discretion this means that the client must have the utmost trust in the investment manager s capabilities discretionary investment management can only be offered by individuals who have extensive experience in the investment industry and advanced educational credentials with many investment managers possessing one or more professional designations such as chartered financial analyst cfa chartered alternative investment analyst chartered alternative investment analyst caia chartered market technician cmt or financial risk manager frm understanding discretionary investment managementservices and transactions under discretionary investment management are tailored to high net worth individuals hnwi and institutional investors such as pension funds since discretionary accounts have higher minimum investment requirements often starting at 250 000 the investment manager s strategy may involve purchasing a variety of securities in the market as long as it falls in line within the client s risk profile and financial goals for example discretionary investment managers can purchase securities such as stocks bonds etfs and financial derivatives 