Understanding Wealth Management & Investment Management – Differences & Similarities

Managing your finances involves a wide range of aspects, from budgeting to accounting, investing, legal matters, estate management and so much more. Before hiring a professional to manage your finances, it is important to understand the different aspects of asset management and how it fits into your needs. However, for many clients, wealth management and investment management are often confused to mean the same thing. These two financial planning services work hand in hand but focus on two different aspects of your finances. In this article, we’ll look at their differences, how they function together and which is better for you to consider. 


Wealth management and Investment management defined

Wealth management refers to the professional handling of financial assets on behalf of a high-net-worth individual and involves holistic financial advisory and management services including investment management, financial planning, tax & accounting, retirement and estate planning. 


Similarly, investment management is a professional asset management service that focuses on the acquisition and disposal of various securities like stocks, bonds, and real estate. It also includes executing short- or long-term strategies to help a client’s portfolio meet their investment goals.


Difference Between wealth management and investment management

While wealth management and Investment management involve the professional management of assets, the latter focuses only on managing a client’s portfolio and is only a subset of wealth management. Wealth management on the other hand involves a much broader approach to asset management, taking into consideration every aspect of your personal finance from investment to taxes, insurance and estate management. Investment management can be handled by only a broker or investment advisor, however, wealth management usually includes other experts like an attorney, accountant, etc. 


Investment Management Vs Wealth Management – Which is Right for You?

Investment management and wealth management serve different financial needs of clients. If you’re wondering which of these two asset management services is right for you, here’s a checklist for each option to help you identify which aligns best with your financial goals.


Do you need to hire different firms for your wealth management and investment management?

Many professional asset management firms specialize only in investment advisory and management services. In this case, you will need to hire a different company if you wish to extend professional handling to other areas of your finances. A firm like FBNQuest however offers full-service investment and wealth management, giving you access to the experts and advisors your finances require at any time. With holistic asset management like this, you do not need to hire a different firm for your investment management and wealth management needs.


Your primary financial goal is to maximise your earnings and improve your portfolio. Your priority is to find an administrator for your assets and financial matters.
You have the time and financial skills to handle your accounting and tax planning. You desire professional oversight for all aspects of your finances, including investments and beyond.
You are focused on the short-term and are busy building your portfolio and growing your assets. You are planning for a big financial event, e.g. retirement, estate transfer, a trust fund set up, etc.


FBNQuest Leading Wealth & Investment Management in Sub-Saharan Africa

FBNQuest is a reputable asset management firm in Africa established in 2006 to deliver the best value in investment management and wealth management to clients. With best-in-class financial experts and a wide offering of financial and asset planning solutions, you can trust FBNQuest to help you maximise your earnings while adjusting your finances to enable you to reach your financial goals at every stage of life.

Learn more about our investment and wealth management services at fbnquest.com/merchant-bank/solutions/wealth-management/

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