What is discretionary investment management and is it right for you?

The Chiswick Calendar is pleased to share Killik & Co’s guest blogs on how best to plan and save to acquire the wealth to achieve your goals.

Killik & Co is Chiswick’s local wealth manager, based on Devonshire Road, recognised as a 5-Star Wealth Manager at the 2025 Investors’ Chronicle and Financial Times Celebration of Investment Awards.

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 known as discretionary portfolio management, is a service in which an investment professional manages your investments on your behalf and 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. These decisions must remain consistent with the objectives, level of risk and preferences agreed with you in advance.

The word “discretionary” can sometimes cause confusion, as it may sound as though you are handing over complete control. 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 basis of the strategy that guides future investment decisions.

How does discretionary investment management 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 has been 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 having to seek your approval for every adjustment.

For many investors, this offers a balance between professional expertise and personal oversight. They can 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 require approval before every transaction, decisions can be implemented efficiently while remaining within the agreed framework.

This might involve adjusting holdings, rebalancing investments or identifying new opportunities where appropriate.

Regular reviews also play an important role. Although the investment manager is responsible for the day-to-day running of the portfolio, ongoing conversations help to ensure that your investments continue to reflect your objectives as your circumstances evolve.

How is it different from advisory investment management?

Although the two services are often discussed together, discretionary and advisory investment management are not the same.

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 concerns who is responsible for implementation.

Some investors enjoy making investment decisions and prefer to remain closely involved in every change to their portfolio. Others value having an experienced professional manage those decisions on their behalf while they focus on the bigger picture.

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 to ensure that investment decisions remain aligned with their long-term goals.

Discretionary investment management can also suit busy professionals who understand the importance of investing but do not have the time to manage a portfolio actively 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 that 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 day-to-day investment decisions.

Is discretionary investment management right for you?

Discretionary investment management is designed for people who want to grow their wealth but lack the time, expertise or desire to make the daily decisions involved in managing an investment portfolio.

It is often used by busy professionals, people who have inherited a significant sum, or those who would simply feel more confident having an experienced investment manager oversee their portfolio.

The process should begin with a detailed conversation about your goals, appetite for risk and investment preferences. From there, a portfolio can be constructed to support your long-term objectives and reflect your individual circumstances.

Regular reviews and clear reporting should help you remain informed and involved in your wider financial strategy, even though the investment manager is responsible for individual investment decisions.

As with any financial service, it is important to understand how the arrangement works, what it costs and whether it is appropriate for your circumstances before proceeding.

The research referenced in this article was conducted by Censuswide among a nationally representative sample of 2,000 UK adults. The data was collected between 17 and 19 June 2026. Censuswide is a member of the Market Research Society and the British Polling Council, and is a signatory to the Global Data Quality Pledge.

Killik & Co

Killik & Co is an award-winning, independently owned wealth manager that has been advising clients on how to grow their wealth through saving, planning and investing since 1989.

Whether you are thinking about retirement, supporting the next generation, or simply want to make your money work harder, we provide clear, straightforward guidance across investing, pensions, tax planning and more. There’s no need to book ahead, and there’s no charge for an initial conversation. To find out more, visit us at 13 Devonshire Road, or email chiswick@killik.com.

The value of your investments may go down as well as up. Tax treatment depends on individual circumstances and may be subject to change in the future.

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