Asset management, despite being sub-optimal, because the taxes are paid once a year on the real growth of the assets, compensate the capital gains with the losses of all the instruments included within it, so if you want to create a portfolio composed of funds or ETFs, the advantage of a management compared to a managed account is already such as to justify a management cost (and also the payment of VAT)wealth management solutions.
Ideal tool for active management
Also and not only for the possibility of offsetting the pluses with minuses, asset management is an excellent (perhaps the best) tool for the active management of assets asset management hong kong.
For example, think of using a monthly rotation model according to the logic ofmomentum , or that they buy the securities (or funds) that are growing the most every month, in a managed account is madness; the execution times (which we will talk about later), the execution costs, the impossibility of compensating the losses, prevent in fact from being able to successfully carry out such a strategy on administered accounts.
Asset management, on the other hand, benefits from “institutional” treatments in the purchase and sale of funds, for example, where costs are often zero.
Compensation between purchases and sales
This is also a delicate issue if you want to actively manage, because if I decide, for example, to exit the stock market because the risks increase the operations on a management account and an administered account are completely different: in the first case, the sale of the equity fund and the bond fund purchase can be done on the same day by offsetting the currency.