What do the terms Do It Yourself, Do it With Me and Do it For Me mean?
‘Do it yourself’, ‘do it with me’, and ‘do it for me’ are terms commonly used in the investment industry to describe different levels of involvement that investors have in managing their investments.
Do it yourself (DIY)
‘Do it yourself’ (DIY) refers to an investment approach where the investor takes full control of their investment decisions and actively manages their portfolio. DIY investors conduct research, choose investments, and monitor their portfolio’s performance. This approach is suitable for investors who have a good understanding of the financial markets and are comfortable making investment decisions on their own.
Do it with me (DIWM)
‘Do it with me’ (DIWM) is a hybrid approach where investors work with a financial adviser. DIWM investors may receive investment recommendations from their adviser, but ultimately make the final decision themselves. This approach is suitable for investors who want some guidance and support from an expert but still want to retain some control over their investment decisions.
Do it for me (DIFM)
‘Do it for me’ (DIFM) is a fully managed investment approach where investors hire a professional to make investment decisions on their behalf. DIFM investors hand over the responsibility of selecting and managing their investments to a professional, who typically charges a fee for their services. This approach is suitable for investors who don’t have the time, interest, or expertise to manage their investments on their own. There are also algorithm-based investment providers (also known as robo-advisers or online digital investment managers) that are DIFM.
In summary, DIY is a hands-on approach where the investor makes all investment decisions, DIWM is a collaborative approach where the investor works with an advisor or robo-advisor, and DIFM is a fully managed approach where the investor delegates all investment decisions to a professional.