| Definition |
Professional management of investment portfolios on behalf of clients to maximize returns. |
Comprehensive advisory service that manages all aspects of an individual's or family’s financial life. |
| Scope |
Focuses primarily on managing investment assets like stocks, bonds, and mutual funds. |
Broader scope including investments, tax planning, estate planning, retirement, and more. |
| Client Type |
Typically serves institutions, corporations, and high-net-worth individuals. |
Primarily targets high-net-worth and ultra-high-net-worth individuals and families. |
| Services Offered |
Portfolio construction, asset allocation, risk management, and performance monitoring. |
Investment management plus financial planning, tax advice, estate planning, philanthropy, and concierge services. |
| Personalization |
Investment decisions based on client’s risk profile and goals, less personalized beyond investments. |
Highly personalized, tailored to the client’s entire financial situation and life goals. |
| Goal |
Maximize investment returns and manage portfolio risks. |
Preserve and grow wealth across generations while addressing client’s overall financial needs. |
| Advisory Relationship |
Usually a transactional or ongoing portfolio management relationship. |
Long-term, holistic advisory relationship covering multiple financial areas. |
| Fee Structure |
Fees usually based on assets under management (AUM) or performance fees. |
Fees may include AUM, fixed fees, or a combination of financial planning and advisory fees. |
| Regulatory Oversight |
Regulated as investment advisors or fund managers under securities laws. |
Regulated under financial advisory and wealth management guidelines; may include broader fiduciary duties. |
| Risk Management |
Focused on portfolio and market risks. |
Addresses financial, estate, tax, and succession risks. |
| Investment Focus |
Focused mainly on financial asset classes and market instruments. |
Includes investments plus real estate, private equity, insurance, and alternative assets. |
| Client Interaction |
Interaction centered on investment performance updates and reviews. |
Frequent interaction covering broad financial planning and personal advisory services. |
| Technology Use |
Uses portfolio management systems and analytics. |
Uses integrated financial planning software and wealth dashboards. |
| Customization |
Standardized investment strategies adapted to client risk profiles. |
Fully customized financial plans based on client’s unique needs and aspirations. |
| Tax Planning |
May include basic tax-efficient investing strategies. |
Comprehensive tax planning and optimization strategies. |
| Estate Planning |
Generally not included as part of core services. |
Integral part of service, including wills, trusts, and succession planning. |
| Retirement Planning |
Investment strategies aimed at retirement goals. |
Holistic retirement planning covering income, lifestyle, and legacy. |
| Philanthropy |
Usually not covered. |
Often includes charitable giving and foundation advice. |
| Examples of Providers |
Fund managers, asset management firms, mutual funds. |
Private banks, wealth management firms, family offices. |
| Reporting |
Focus on investment performance and portfolio analytics. |
Comprehensive financial reports covering all wealth aspects. |
Asset Management vs Wealth Management