Asset Management Versus Wealth Management

October 28, 2014Diana Lengerson

Almost all investors all over the world are looking for the best way to find returns in markets after a busy year in which market’s volatibility has been a constant.

Among the investing formulas to find rentabilities in the different international markets, there are some that seem to be opposites: asset management versus wealth management.

But, what do they mean? The best way to understand their differences is going to their definitions.

Asset Management is the way that is called the management of assets such as stocks , bonds and securities but always with very specific goals in terms of investment . Normally, if it is for individuals, when it comes to asset management speaks of mutual funds or exchange traded funds .

Actually, it is more due to asset values within companies or within a portfolio management to investment that would make a particular savings. It is part of existing assets and are managed by professionals who offer traditional investment to get some profit for customers.

On the other hand, wealth management is more about individuals and families who placed their savings in the hands of specialists asking them to manage the planning, investment and also give them support to other levels of global financial services .

If we make a clear definition of wealth management, we should talk about the combination of either financial or investment and simultaneously supplemented with accounting, tax and legal services within the same package paid service advice.

Choosing between one or the other type of investment in case of particulars is difficult as it would depend on the type of investor character of the person. Firstly, the asset management is more traditional and maybe with less profits in shorter terms as it is related to funds and interests. For people with more risky soul who are searching a short term profit, the best alternative seem to be the wealth management, although it is based in changing markets.

The truth is that, if we look carefully to both types of investment during last year, profits from the funds and markets have been in a similar situation because economy has been changing drastically during last year because of economical policy changes and different scenaries both social and political.

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