InvestorQ : InvestorQ-Ask,Answer & Share All About Finance!
Manisha Mehta made post

What is the real difference between wealth management and Asset Management?

Answer
user profile image
3 weeks ago


To understand the difference between the two, it is important to understand the concepts individually. Asset management is the management of assets including real estate, stocks, bonds, etc. The term “asset management” refers to the financial service of managing assets by means of financial instruments with the aim of increasing the invested assets.

Asset management facilitates investment in the most profitable assets and offers risk analysis as well as identify which assets offer the highest returns. Asset management services are quite expensive and are, therefore, only used by high net worth individuals, governments, corporations, etc. who possess a diversified portfolio of assets.

Investment management, on the other hand, is more related to the trade of stocks and bonds and other types of investment vehicles in order to make a profit and grow investor’s wealth. More simplistically, it is defined as the professional asset management of financial securities. Investment management is carried out by private investors such as mutual funds and exchange-traded funds or institutional investors such as corporations, insurance funds, pension funds, etc. As can be seen from these explanations, there are few distinct differences between asset management and investment management, even though these terms are often used interchangeably. The primary differences between the two are-

The term asset management is used to refer to the collective management of investments and is, therefore, requested by larger high net worth investors with a large portfolio of assets at a significantly high cost. Investment management, on the other hand, can be carried out by large or small investors and can either be conducted by the investor himself or can be delegated to a professional financial services firm.

Asset managers may concentrate on a specific type of asset investment, such as real estate, and develop a long-term plan to ensure their client's investments appreciate in value. Investment managers may oversee daily transactions related to a client's investments or they may be responsible for focusing on specific types of investments, such as stocks.

In addition to finding investment options for clients, asset managers also determine ways to save clients’ money or maximize their profits on existing investments. Investment managers, on the other hand, come up with an investment strategy to meet a client’s goals, then use that strategy to decide how to divide the client’s portfolio among different types of investments, such as stocks and bonds. The manager buys and sells those investments for the client as needed, and monitors the portfolio’s overall performance.


user profile image
ALI ASGER NAJMI answered.
3 weeks ago


BASICALLY WEALTH & ASSET IS SAME THING, BUT DEPENDS ON YOUR PLANNING THAT HOW TO MANAGE YOUR WELATH AND SO CURRENT or FIXED ASSETS