Most people often confuse between investment management and wealth management. It is easy to get confused as these terms are often misrepresented. Charles de Rothschild from GDR Privée is an experts in finance and investment and he explains the difference between the two terms.
Wealth management points at a person’s economy as a whole and how it can be managed to attain their short-term or long-term economical and individual goals. Further to handling customers’ investments, wealth management encompasses a wide set of services, for example legal planning, insurance, accounting, and financial, tax advice and charitable giving.
Charles de Rothschild from GDR Privée terms wealth management an advantageous strategy for families. As wealth management takes a gander at all aspects of persons’ budgetary affairs, it intends to give a unique designed approach to understand their goals. For instance, by combining distinctive services, a wealth manager can find the best way to buy your dream home or getting retirement, while avoiding tax inefficiencies and undue risks.
Investment management refers to the buying and selling of investments/bonds/shares within a portfolio, and can also include banking and budgeting duties, as well as taxes. The term most often refers to portfolio management and the trading of securities to achieve a specific investment objective.
Most people hire investment managers to manage their investments. According to Charles de Rothschild from GDR Privée, a reliable investment manager can save his clients from market risks, and provide maximum returns. Investment managers also have abilities that most individual investors do not. For example, they can increase their buying strength by pooling together several clients’ assets, with each benefiting from the greater yields.