What is asset management and wealth management
The terms “wealth” and “assets” can be used interchangeably in general conversation, which is why many of us tend to confuse asset management and wealth management. Both asset management and wealth management are used when describing the process of managing financial resources and growing investments. They are usually offered as a part of private banking services. While the main aim for both asset management and wealth management is to maximize profits from investments, they are different in term of scope. Let us take a detailed look at both asset and wealth management:-
· Wealth Management – is a wider financial management concept which includes asset management. It includes services such as tax planning, asset management, investment advisory services, portfolio management, real estate planning etc. Since wealth management is a broad concept, the services vary largely from one customer to another.
· Asset Management– Asset management, on the other hand, specializes in managing the assets of investors such as stocks, bonds, real estate, etc. Unlike wealth management, asset management services are usually opted by high net worth individuals and large businesses that possess a large portfolio of assets. It includes services like strategy creation for maximizing returns, risk analysis, identifying assets with the highest possible returns, etc.
Hope this provides clarity.