Wealth Management vs. Investment Management: What’s the Difference?

The main difference between wealth management and investment management is that wealth management involves creating a comprehensive financial plan for the client whereas investment Management focuses on implementing the investment strategy.

Before we move to more differences, let’s first understand Wealth Management and Investment Management:

  • Wealth Management: Wealth Management refers to a comprehensive financial service that involves managing the financial affairs of high net worth individuals or families.
  • Investment Management: Investment Management is a specialized financial service that focuses on managing investment portfolios of clients.

Now, let’s get to Wealth Management vs Investment Management:

Major differences between Wealth Management and Investment Management

Wealth Management Investment Management
Wealth Management provides a range of financial services. Investment Management only deals with investment-related services.
Wealth Management considers the client’s entire financial situation. Investment Management only focuses on the investment aspect of a client’s financial situation.
Wealth Management involves developing and executing a comprehensive financial plan. Investment Management involves managing a client’s investment portfolio in line with their investment objectives.
Wealth Management often involves a personal relationship between the client and the Wealth Manager. Investment Management can be a more impersonal relationship between the client and the Investment Manager.
Wealth Management typically requires a higher minimum investment amount. Investment Management can be available for smaller investment amounts.

So, these are the main differences between the entities.

Also see:

You can see other “differences between…” posts by clicking here.

If you have a related query, kindly feel free to let me know in the comments below.