Self-Directed Portfolio

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Self-Directed Portfolio

An investment portfolio in which the account holder has a great deal of control over the investments made on the account. That is, the holder has the ability to make investments with the capital in the account because he/she has not delegated the power to an investment adviser.
References in periodicals archive ?
Their asset mix consists of less than 50% equity, whereas self-directed portfolios allocate almost 70% to this asset class.
The results in Panel A of Table III indicate that, although the average aggregated portfolios of advised investors are associated with lower returns than the average self-directed portfolios in terms of raw returns, none of the return differences are significantly different from zero.
Table I already reported that risk in advised portfolios is lower than that in self-directed portfolios.
However, this trend is even more evident among self-directed portfolios (Columns 4 and 5, Table VI).
These asset classes represent 87% and 89% of advised and self-directed portfolios, respectively.
In terms of diversification, advised portfolios perform much better than self-directed portfolios, thus reducing avoidable risk.
Self-Directed Investors This table presents return differences (in%) and factor loadings of advised and self-directed portfolios.