Wealth management and investment banking are two of the most popular career choices within the financial sector. While there is a significant amount of overlap and interaction between these fields, the two jobs are distinctly different.
Wealth management refers simply to money management, in all its aspects. Wealth management firms make money by charging fees for the various services they provide. In the area of investments, clients are often sold managed account services, discretionary investment accounts that are traded on behalf of the client by one of the investment professionals at the firm.
It is a discipline which incorporates structuring and planning wealth to assist in growing, preserving, and protecting wealth, whilst passing it onto the family in a tax-efficient manner and in accordance with their wishes.
Wealth management brings together tax planning, wealth protection, estate planning, succession planning, and family governance.
Private wealth management is delivered to high-net-worth investors. Generally, this includes advice on the use of various estate planning vehicles, business-succession or stock-option planning, and the occasional use of hedging derivatives for large blocks of stock.