Differences Between Portfolio Management and Wealth Management

What Is the Meaning of Wealth Management?

What Is the Meaning of Portfolio Management?

What Are the Differences Between Portfolio Management And Wealth Management?

Following are all the significant differences between portfolio management and wealth management:


Portfolio Management

Wealth Management


Portfolio management helps individuals become observant about investment instruments.

Wealth management lets individuals enhance their financial security by staying aligned with their total assets and obligations.

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In this process, they need to identify which investments can perform sluggishly or negatively. Then, they can restrict their loss by reducing or completely liquidating the units of those investments.

In this service, the experts help individuals find the area of action to address financial issues. This ensures that they will not face legal or financial difficulty in future owing to their obligations.


Through portfolio management, individuals manage their bonds, stocks (exchange-traded funds), ETFs, mutual funds, etc.

Individuals make informed plans about taxation, estate management, accounting, and retirement expenses through wealth management.

Now that you understand the differences between portfolio management and wealth management, you can grasp the importance of each of them. If you want to obtain higher returns on your investments and grow your money quickly, you should manage your portfolio proficiently.

You can take the assistance of a portfolio manager for this. On the other hand, wealth management will allow you to oversee all your assets and finances properly. So, it is a holistic approach to managing your overall finances.

FAQs about Portfolio Management vs Wealth Management

What are the different types of portfolio management?


Based on its approach, portfolio management can be categorised into four types, as stated below:

  • Active Portfolio Management: Individuals actively buy and sell assets according to the market situation.
  • Passive Portfolio Management: Individuals allocate money in almost a fixed investment portfolio according to the market situation.
  • Discretionary Portfolio Management: Individuals give their money to a portfolio manager who invests on their behalf.
  • Non-Discretionary Portfolio Management: Individuals only get advice from portfolio managers and invest accordingly.

How does a wealth manager help their customers in taxation?

You need to pay taxes on the income generated from different types of assets. Wealth managers can help you position your wealth in such a way that can reduce your tax obligations. They also oversee taxation on business, inheritance and other personal properties.

Why is the coverage of a life insurance policy essential for wealth management?

A life insurance policy is essential for safeguarding the financial interest of your family. In case of your premature death, your family will get an assured sum to cope with their financial requirements. As a result, they will not have to liquidate your assets.

What are the basic things that I need to look for while choosing a wealth or portfolio manager?

Before choosing a wealth or portfolio manager, you need to see their experience in the service, their qualifications, and the charges you will have to pay. This will help you get the best service for your needs.