Differences Between An Asset Manager And A Financial Advisor

The terms “financial advisor” and “asset manager” are often used interchangeably, but these terms are not the same thing. These two financial professionals have different responsibilities in the financial world, and it’s important to know the difference between them before deciding which one is right for you.

An Asset Manager Is A Professional Who Manages Assets

An asset management professional is the one who manages assets, such as stocks and bonds, and can work for investment firms or themselves. An asset manager is not a financial advisor because they don’t give advice about your personal finances.

Instead, they focus on helping you invest in securities such as stocks or bonds so that you can have the funds available when you need them to meet your goals. An example of an asset manager would be someone who works at an investment firm and helps clients buy and sell stocks through their company’s brokerage accounts.

Asset Managers Are Often Employed By Investment Firms

Asset managers are often employed by investment firms to manage the funds of their clients. They may also be responsible for a specific asset class, such as stocks or bonds.

For example, an equity asset manager will be responsible for managing the firm’s stock portfolio, while a fixed-income asset manager manages its bond portfolio. Also, some asset managers may have additional responsibilities such as risk management or research analysis on specific areas within the company’s operations.

An Asset Manager Does Not Have A Fiduciary Duty To You

A fiduciary duty is a legal obligation to act in the best interest of a client – and a financial advisor has this duty, but an asset management professional does not. If you want someone who will always act in your best interest and provide unbiased advice, then an independent financial planner may be better suited for you than an asset manager.

A Financial Advisor Has Obligations Different From An Asset Manager

A financial advisor can provide the most suitable financial planning services but does not have the same obligations as an asset manager. This type of advisor will help you develop a financial plan and make recommendations on how to achieve your goals.

Other than that, financial advisors may also help you understand your investment options and select an investment strategy that’s right for you. However, they don’t manage your assets or make buying or selling decisions on behalf of clients, as those responsibilities fall to their clients themselves (or their brokers).