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.
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