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Managed account risks
The risks you take when you invest in a managed account depend on the: |
| Type of account |
| Securities in the account |
| Manager's investment style |
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Broadly speaking, accounts in which you own stocks
are more volatile — and more risky — than those in which you own bonds,
though you can make or lose money with any managed account. Bond
accounts can lose value, for example, if interest rates rise.
A managed account can fail to meet its investment
objective, either because a particular asset
class in which the account is invested is in a slump,
or because the manager chooses securities that fail to meet expectations.
Aggressively managed accounts, accounts that concentrate
on more volatile investments — such as small-company
stocks — and accounts whose managers'
investment styles are suffering in the current market are likely
to fall more sharply in value under certain market conditions
than conservatively managed accounts. But they also have the potential
to gain more in rising markets. |
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