Because small mistakes often trigger large problems, advisors adopt processes and systems to prevent mishaps. They harness technology, provide staff training and create procedural safeguards to ensure accuracy and manage compliance tasks.
While mutual funds and exchange-traded funds offer convenience, they have drawbacks, including lack of customization and transparency. And some are downright tax-inefficient. Investors who crave a more personalized approach but still want professional management might want to consider separately managed accounts.