A managed account is a portfolio that is owned by a single investor but is controlled by a professional wealth manager hired by that investor.
Wealth managers may require a six-figure minimum investment to manage accounts and are compensated with a commission calculated as a set percentage of assets under management (AUM).
Robo-advisors offer algorithmically controlled accounts at a lower cost for everyday investors with small starting balances.
A mutual fund is a type of managed account, but it is open to anyone with the funds to buy its shares, rather than being personalized to a specific investor.