In the world of institutional portfolio management, the role and responsibilities of the clients - the pension funds, endowments, foundations, and high net worth individuals – and those managing the assets are very distinct and separate. The client hires discretionary money managers and delegates all investment decision-making to them. In this model of investment management, the client and the money manager work together to ensure the underlying assets are effectively managed.

In the world of individual investors, investors have either a collaborative working relationship with a financial advisor or they do it themselves. Although the above roles are not as well defined, they are nonetheless just as important. In this article we'll explain how long-term investing success will be depends on the effectiveness of the client and the money manager and the role each of them plays in the management of the investment portfolio.

Responsibilities of the Client
The client has the most important role to play; without the client, the other roles become superfluous. As a client, your first responsibility is to set clear financial goals and objectives. It is important that these goals are both realistic and achievable. In the end, you want to be assured that your future assets will match your future financial liabilities.


Source : Investopedia