What kind of approach best suits your company? Taking a job in any of the wealth management firms comes with a lot of responsibilities. First of all, as an asset manager, you need to be on your toes all the time about the current status of your client’s financial profiles. When you take up a new client as an asset manager, you need to sit down with them and understand what their current scenario of finances are, how much of assets or liabilities they have, calculate or analyze their risk taking abilities, get from them where they see their finances in the next 10 years. Once this is done, you chalk out a financial plan for your client that will help them achieve their financial or retirement goals in the years to come.
The functioning of the asset management firms and wealth management companies might seem to be similar, but they aren’t. While both firms involving helping their clients make a ton of profit in the coming future, however, their motives do differ a little. In wealth management, the companies generally focus on the preservation and handling of the client’s finances, whereas asset managers focus on expanding the returns on tangible and intangible assets of their clients. As they are known to be experts in the investment scenarios, the asset managers usually offer in-house services and products, giving a little sophisticated approach towards maximizing the asset potentials of their clients. In case of wealth managers, on the contrary, they involve themselves more in the process and work towards striking a synergy between the gains and provide credit solutions with the help of a combination of inputs that they may have through various industry experts, attorneys of the clients, accountants and so on.
If you look closely, you would notice that the asset management companies are usually registered as broker dealers and are expected to offer only those products to their clients that they think might be suitable for them. On the other hand, the wealth management companies are usually registered with the clients as investment advisors who have a duty to take care of the financial interests of their clients even before their own. Therefore, if you look at it from the broader perspective, wealth management deals with personal dealing of client’s assets and liabilities where as asset management is more about expanding them.
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