What is discretionary investment management and is it right for you?
15 July 2026
While many investors are familiar with financial advice, discretionary investment management remains less widely understood. Yet for those who want professional support without having to make every day-to-day investment decision themselves, it can provide a valuable solution.
What is discretionary investment management?
Despite being a well-established service, discretionary investment management remains unfamiliar to many people. Only 24% of UK adults correctly identify what it involves, while 33% say they are unsure what it means.
Discretionary investment management, also referred to as discretionary portfolio management, is a service where an investment professional manages investments on your behalf within an agreed strategy. Rather than contacting you before every investment decision, the manager has the authority to buy, sell and adjust investments when necessary, provided those decisions remain consistent with the objectives, level of risk and preferences that have been agreed with you in advance.
The word "discretionary" often causes confusion as it can sound as though complete control is being handed over. In reality, before any investments are made, your Adviser will spend time understanding your circumstances, long-term goals and attitude towards risk. These discussions form the foundation of the strategy that guides all future investment decisions.
Capital at risk
Capital at risk
Please do remember that as with all investments, your capital is at risk. Past Performance is not an indication of future performance.
How does a discretionary investment management service work?
Every discretionary investment management service begins with understanding the client. Before a portfolio is created, your adviser will discuss your financial goals, investment experience, time horizon and attitude towards risk.
Once that framework is established, the portfolio is constructed and the investment manager takes responsibility for implementing and actively managing it. This means they can respond to changing market conditions, manage risks and identify opportunities without needing approval for every adjustment. For many investors, this creates a balance between professional expertise and personal oversight, allowing them to remain focused on their broader financial goals while knowing their investments are being actively managed.
One of the main advantages of a discretionary approach is the ability to act quickly when market conditions change. Because the investment manager does not need approval before every transaction, decisions can be implemented efficiently while remaining within the agreed framework. This may involve adjusting holdings, rebalancing investments or identifying new opportunities when appropriate.
Regular reviews also play an important role. While your investment manager is responsible for the day-to-day running of the portfolio, ongoing conversations ensure your investments continue to reflect your objectives as your circumstances evolve.
How is discretionary investment management different from advisory investment management?
Although the two services are often discussed together, discretionary investment management and advisory investment management are not the same thing.
In the context of investment decisions, with an advisory service an investment manager provides recommendations and guidance, but the client remains responsible for deciding whether those recommendations should be implemented. Every significant investment decision ultimately requires the client's approval.
Discretionary investment management works differently. The investment manager and client agree the strategy at the outset, after which the investment manager is responsible for making day-to-day decisions within that framework.
The difference is not about removing the client from the process. Rather, it is about determining who is responsible for implementation. Some investors enjoy making investment decisions themselves and prefer to remain closely involved in every change to their portfolio. Others value having an experienced professional manage decisions on their behalf while they focus on the bigger picture.
Capital at risk
Capital at risk
Please do remember that as with all investments, your capital is at risk. Past Performance is not an indication of future performance.
Who is discretionary investment management suitable for?
More than a third (37%) of UK adults say they would not feel confident managing and investing the proceeds of a significant financial event themselves, such as an inheritance, business sale, bonus or property sale. For these individuals, professional investment management can provide expertise and support while helping ensure investment decisions remain aligned with long-term goals.
Discretionary investment management can also suit busy professionals who understand the importance of investing but do not have the time to actively manage a portfolio themselves.
Would I still be in control of my investments?
One of the most common concerns about discretionary investment management is whether it means giving up control.
In practice, investors remain in control of the decisions that matter most. The objectives, risk profile and overall strategy are all agreed before the portfolio is managed. Regular reviews ensure these arrangements remain appropriate and provide opportunities to discuss performance, changing priorities and future plans.
What changes is not ownership or oversight, but responsibility for the day-to-day investment decisions.
Is discretionary investment management right for you, and what does Killik & Co offer?
Discretionary investment management is a service designed for individuals who want to grow their wealth but lack time, expertise, or the desire to make daily decisions on their investment portfolio. This means that in reality, it’s a service suitable to many.
It’s often used by busy professionals, high-net-worth individuals, or those who have inherited a sum of money and don’t necessarily have the confidence to make the right investment decisions. With an investment manager they can build a clear long-term strategy in order to achieve their financial goals.
At Killik & Co, our Managed Investment Service is designed for investors who want to delegate day-to-day investment management while benefiting from professional expertise and independent thinking.
The service begins with a detailed conversation about your goals, risk appetite and investment preferences. Your Adviser then works with you to create a portfolio designed to support your long-term objectives. It typically includes a range of investment strategies and also asset classes, such as equities, funds, bonds and alternative investments. This aims to create a diversified approach that reflects individual circumstances.
Rather than relying on a single decision-maker, the service draws on the expertise of dedicated Advisers, Specialist Investing teams and Killik & Co's Independent Research Team. This collaborative approach allows portfolios to benefit from a broad range of perspectives and investment insights while remaining aligned with each client's objectives.
Clients also receive regular reviews, transparent reporting and online access to their portfolio through myKillik, ensuring they remain informed and engaged with their wider financial strategy.
As with all investments, your capital is at risk and the value of investments can fall as well as rise.
The research was conducted by Censuswide, among a sample of 2,000 UK Nat Rep. The data was collected between 17.06.2026 - 19.06.2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. We adhere to the MRS Code of Conduct and ESOMAR principles.
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