Watch this video for comprehensive details on the difference between wealth and investment management. Investment and wealth management are some of the most popular career choices in the financial sector. While there is considerable interaction between these areas, they are different.
An investment manager advises corporate entities and provides financial services to corporate institutions instead of individuals. Investment management focuses on managing business restructuring, acquisitions and mergers, stock splits, spinoffs, initial public offerings, share buybacks, and secondary bond or stock issues. Further, investment managers can manage the short-term investments of their corporate clients.
Wealth management is a broader field where managers focus beyond assets to integrate insurance, taxes, and the entire estate in the planning process.
In investment management, the broker or advisor often assesses a client's risk tolerance before choosing the ideal portfolio. Wealth management experts evaluate assets, expenses, income, and estimated annual growth. They also focus on college savings and retirement goals. In wealth management, investments are a means of accomplishing particular goals. Wealth managers can help clients evaluate and compare these factors alongside their objectives and timelines to create an extensive plan. The status of an individual's estate determines whether they hire an investment or wealth manager. Wealth managers are ideal for managing large estates. Individuals should define their financial goals before choosing their preferred advisor.