What is the Difference Between Wealth and Investment Management?

What Is Wealth Management?

What Is Investment Management?

What Are the Differences Between Wealth and Investment Management?

The following table shows the difference between wealth and investment management:

Parameters

Wealth Management

Investment Management

Purpose

The main purpose of wealth management is to maximise your net worth.

The main purpose of investment management is to improve the financial profitability generated from your investments.

Functions

It includes managing investments or assets portfolios along with tax planning. This also helps in managing education planning, estate planning, legacy planning, insurance, retirement planning and charitable contribution.

Investment management includes managing investments or assets and analysing past and current data. Furthermore, it covers the management of risk-return analysis, formulation of assets, projection and recognition of suitable assets for you.

Responsibility

The main responsibility of wealth management is that they should put forward your interest before their own.

Its main responsibility is to offer suitable products to you.

Management Approach

Management has a process-driven approach that involves coordinating with financial experts for inputs. They also approach lawyers, insurance agents and other specialists in this field to give you the correct inputs of wealth management.

Investment management has a creative and delicate approach since they provide in-house products. They do it through their financial expertise and direct participation in the market.

Registration

Wealth managers are usually registered as investment advisors.

They are registered as broker-dealers.

Now that you have a clear idea of wealth vs investment management from the above-discussed parameters, you should know when you need these managements.

When Do You Need Wealth Management?

When Do You Need Investment Management?

What Does a Wealth Manager Do?

What Does an Investment Manager Do?

FAQs About Wealth and Investment Management: What Are the Main Differences

What are the stages of wealth management? up-arrow

Wealth management includes the process of gathering financial data, making goals according to the data and auditing and analysing the portfolio. It is followed by proposing a financial plan, implementing that plan and monitoring and reporting the plan.

What are the factors to consider before selecting a wealth management agency? up-arrow

While selecting an agency for wealth management, you must consider the following things:

The competence and experience of the agency, the durability of the agency in the long run, the resources the agency provides, like different services and products, and the agency's performance.

What is a quantitative investment? up-arrow

Quantitative investment refers to techniques that depend on algorithms to examine data such as quality, liquidity and valuations. It then makes trades based on this analysis.

How important is wealth management for young professionals? up-arrow

Wealth management is necessary for every individual who wants to have financial stability in their life. It is significant if you have just started your career or saved part of your income.