Money. Wealth. Funds. Assets. Capital. Finances. All these words refer to the same thing, right? Right, and wrong. Depending on the context in which we use these words, their meanings change. In a broad sense, they all can be used interchangeably. But in the context of investment services and wealth management, we must understand their exact interpretations.

While both investment advisors and wealth managers work in the same field of handling money, and the main purpose of both is to grow and multiply income and maximize profitability for their customers, there are a few differences too.

Investment advisors advise clients on the type, timing, and mode of making investments, and may try to sell specific products, but the eventual decision whether to act on the advice rests with the client, without whose permission the investment advisor cannot operate.

A wealth manager, on the other hand, is given more power to use the client’s assets in their custody to increase their value, based solely on the client’s long term financial goals and needs. In fact, it is the responsibility of wealth managers to ensure that there are positive returns on the wealth managed by him. Wealth managers’ functions encompass all that investment advisors do, and in addition to that, they also handle accounting and tax outlining and preparation, asset allocation, affecting financial plans for retirement life and, managing the estates of their clients after their passing.

Whoever you hire to help with your investments, whether it is an investment advisor or a wealth manager, it is important first to make a decision.