Show Asset management refers to the management of assets that could involve investments like equity, fixed income securities, real estate, global investments, etc. Asset management firms are concerned with maximizing returns of client’s assets. Wealth management refers to overseeing all the financial aspects of the client and may include management of assets, taxes, estate, cash flows, and all other possible uses of money. Wealth management thus encompasses asset management and takes a holistic view of the client’s finances. Based on their requirements, investors need to decide whether they require the services of an asset management firm or a wealth management firm, or both. Asset Management vs Wealth Management InfographicsBelow is the top 7 difference between Asset Management vs Wealth Management: Key Differences Asset Management vs Wealth ManagementBoth Asset Management vs Wealth Management are popular choices in the market; let us discuss some of the major differences :
Asset Management vs Wealth Management – Comparison TableLet’s have a look at the Comparison between Asset Management vs Wealth Management:
ConclusionPeople often use the terms wealth management vs asset management interchangeably but there are significant differences between the two. While both are used in managing and growing financial resources, service users may seek financial expertise beyond just their investments. Asset management firms help investors to manage their assets by offering advice on the identification of “suitable” assets for the client through analysis of past and current trends, risk-return analysis, strategy formulation, and appropriate projections in return for a commission. Wealth management is a more comprehensive financial management service providing assistance in tackling all the financial aspects of the client and includes asset management, financial planning, tax planning, retirement planning, and estate planning. An investor seeking such an all-inclusive service may be more inclined towards having a steady relationship with a wealth management firm rather than relying on asset managers only. Some wealth managers provide banking services and guidance on philanthropic activities as well. Of course, wealth management is more expensive and involves a retainer fee along with a fee for an asset under management. In spite of that, it is a less complicated approach for service users wherein a single manager coordinates inputs from financial experts, lawyers, accountants, insurance agents, and others needed for planning the client’s current and future financial needs. Wealth managers assist in prioritizing. If you need help with only your investments, you would need services of an asset manager while if you want somebody to help you with your long-term financial planning aspects apart from asset management, you would need a wealth manager. While we are all working towards earning money in our lifetime, it is equally important to manage that money well so that we achieve our financial goals smoothly. This is equally true for organizations as well. Money management is especially important for those people who have no financial expertise. Individuals/institutions can take the services of finance professionals to advise them on those matters. There are broadly two categories of private banking services that investors can avail viz. asset management vs wealth management. Recommended ArticlesThis has been a guide to the top difference between Asset Management vs Wealth Management. Here we also discuss the Asset Management vs Wealth Management key differences with infographics and comparison table. You may also have a look at the following articles to learn more-
54319,95464,183 What is wealth and investment management?Wealth management is an investment advisory service that combines other financial services to address the needs of affluent clients. A wealth management advisor is a high-level professional who manages an affluent client's wealth holistically, typically for one set fee.
What is the difference between a wealth manager and an investment advisor?Financial advisors manage the financial situation of a client. Wealth managers are a type of financial advisor often associated with clients with a high net worth. Both professionals manage and assist with financial planning, but wealth managers typically specialize in assisting clients with large amounts of wealth.
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