Separately Managed Accounts details

Separately Managed Accounts (SMA) are tailored to the parameters agreed by the investor and the asset manager. Therefore, unlike mutual funds, such investments are not pooled. This structure allows a higher level of control for the investor, including customization of the fee and portfolio structures.

Mutual funds vs SMA

There are a number of differences between mutual funds and SMAs. Investors can
choose between the two options depending on preferences.


Mutual fund fees are set by the regulator and are typically a % of the assets under management. Separately managed accounts can however be structured in any way deemed logical by the investor and the fund manager.

IPO allocation

Mutual funds have guaranteed IPO allocation. Separately managed accounts do not have this quota benefit unless the investor is an eligible institutional investor.

Portfolio structure

Mutual funds are subject to specific constraints. i.e. single stock exposure cannot exceed 10% and single sector exposure cannot exceed 25%. SMAs are not limited by these constraints.

Who invests in separately managed accounts?

Only institutional investors are eligible for separately managed accounts.


Commercial banks are starting to outsource their equity fund management.

Insurance Companies

Insurance companies have long liability durations and can allocate funds to equity

Provident Funds

Provident funds are allowed to invest in mutual funds if the trust deed allows.

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