What is define discretionary?

Discretionary refers to the ability or power granted to someone or an organization to make decisions based on their own judgment or discretion. It gives them the flexibility to choose what needs to be done, how it should be done, and when it should be done.

In finance, discretionary refers to the funds or assets managed by investment managers who are given the freedom to make buy and sell decisions based on their own judgment. These decisions are guided by the investment mandate, investment objectives, risk targets, and other criteria set by the investor or the fund managers.

Discretionary spending is the amount of money individuals and businesses spend on non-essential goods or services. These expenses are not mandatory and can be adjusted or eliminated as needed or desired.

Overall, discretionary is a term that embodies choice, flexibility, and freedom to make decisions based on one's judgment, preferences, and circumstances.