When you choose a managed solution, it can be made up of an individual or a combination of managed portfolios; your investments will be guided by investment experts who help manage your portfolio through active allocation and rebalancing, with the objective of optimising your returns over time.

These managed portfolios typically comprise a varying combination of assets and potentially funds as well.

Different portfolios can have completely different objectives and can vary from whether you want to achieve regular passive income, or if you want to focus on long-term wealth accumulation and capture the growth of equity markets. They can also be more personalised to anchor on a specific theme or industry which fits with your investment beliefs or outlook. 

In addition, depending on the platform you choose to invest with, a financial advisor may also be available to guide you with an investment plan that’s tailored for you – one that’s defined by your specific needs, goals and time horizon.

Managed portfolios can be attractive to people who may be unfamiliar with managing their own investments, or lack the time and dedication to constantly track the volatility of the markets. They may incur additional fees than a Brokerage to compensate for the active management and guidance provided, so this is a factor you should weigh up against the benefit of the professional advice and potential time saved when deciding which solution is right for you.  

For those who prefer the direct control of their investments and know exactly what they want, buying stocks or ETFs on a brokerage might just be what you’re looking for.

Online brokerages grant individuals the ease of buying and selling equities on their own. This completely self-serve solution provides investors the ability to invest in stocks without going through an intermediary such as a fund and unlike managed portfolios completely rely on your personal research and understanding of the stocks you purchase.

Here are some things to consider if this is your first time opening a brokerage account.

• Reliability
There’s a broad range of stock brokers out there, from the large, more established players to the crop of new platforms that are relatively new to the scene. Some investors might feel more assured about putting their money with a large financial institution while others are fine with a smaller, no-frills investment account. Regardless of the size of the brokerage platform, it's imperative to choose one with a strong reputation for reliability.

• Fees and commissions
While creating an account is usually free, there may be other charges such as trading or withdrawal fees involved when you start investing. In most cases, the best brokerage platforms are always transparent about the fees they charge.

• Research and educational tools
Knowledge is power, especially when it comes to investing.If you’re new to investing, brokerage platforms offering free investing-related educational resources like blogs or events might be worth considering. Such resources are valuable for novices and better equip you to make informed investment decisions.

• Customer support
Investing can be intimidating for beginners, so it's important to get the level of support you need. This may mean support from a live chat function, customer support team or a robust library of frequently asked questions you can refer to. Having someone or resource you can turn to when you have any questions can make all the difference in your investing journey.

• Features
Look out for features on the brokerage platform that you think is helpful when you start investing.

For instance, many platforms allow 'paper trading', essentially allowing users to place practice trades with fake money before progressing to real trades. This feature offers you a great way to dip your toes into the waters of investing and the opportunity to get hands-on experience with different platforms.

Any well considered investment strategy will be built upon your cash needs and so, you should always maintain enough cash in order to cover your day to day expenses and a little extra for a “rainy day”, or any other emergency.

This access to easily available money, can greatly impact your investment approach as having that sense of security can allow you to take bigger risks as you will have the peace of mind knowing that your monetary safety net is there if needed.

While having money in a bank can provide a high degree of security, the trade off is lower returns, thus holding cash typically underperforms against inflation, which can reduce the real value of your savings and their depreciating purchasing power over time.
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So, one way to balance safety and security of a bank against the risk and reward of investing, is through what is commonly called a Cash Management Solution which invests in relatively much safer, and highly liquid money market funds.

In short, money market funds are a type of mutual fund which invests in high-quality, high-credit-rated fixed income-based assets with short-term maturities such as deposits and US treasury T-bills.

While investing in money market funds carries no guarantees, it’s generally regarded as the safest investments outside of savings accounts with the potential for higher returns than a bank and the added benefit of being able to access your money generally within 1 to 2 days.