What Is the Difference Between Wealth Management and Asset Management?

What Is Wealth Management?

What Is Asset Management?

Wealth Management Vs Asset Management - What Are the Differences?

The difference between asset and wealth management is as follows:

Criteria

Wealth Management

Asset Management

Meaning

This indicates the holistic approach to managing the overall finances of an individual.

It mainly suggests the management of different investment assets of an individual.

Objective

It takes into account both investments and expenses.

It primarily focuses on wealth creation.

Registration

The managers are usually registered as investment advisors.

The managers are registered as dealers or brokers.

Responsibility

Designs the perfect strategy to manage finances effectively so that you do not have to compromise on your current lifestyle.

Studies the money market fluctuations and makes investments so that you can reach your financial goals.

Functions

Manage investments, insurance, tax planning, legacy planning, retirement planning, education planning, estate planning, and charitable contribution.

Analyses the performance of the stocks and fluctuations in the money market and accordingly makes investments.

Mode of Payment

Usually, there is a fixed rate. At times, it can also be a percentage of investments as a commission.

Usually, a percentage of the profit is commission.

How to Select the Best Wealth Management Service?

What to Expect from Wealth Management Services?

How to Find Asset Management Services?

What to Expect from Asset Management Services?

FAQs About Wealth Management vs Asset Management

What are the pros of wealth management? up-arrow

The main pros of wealth management are as follows:

  • You can save sufficiently for retirement
  • It ensures financial security for your family in case of your untimely demise
  • It Helps in wealth creation and provides protection against risks

What are the cons of wealth management? up-arrow

The main cons of wealth management are as follows:

  • The managers can charge a certain percentage of your investments that can sometimes become quite large.
  • If the manager lacks experience, they can put your investments at stake when complexity arises.

What are the pros of asset management? up-arrow

The main pros of asset management are as follows:

  • Saves your time from conducting stringent market research before investing
  • Promptly reduces the chances of encountering financial losses
  • Ensures that the investments would provide you with guaranteed returns

What are the cons of asset management? up-arrow

The cons of asset management are as follows:

  • It involves higher risks as the investment funds are highly volatile.
  • If the manager cannot analyse correctly, you can suffer substantial losses.