FAQ

What is the difference between investment management and asset management?

People often hear about investment management and asset management. What is the difference between investment management and asset management? Investment management refers to the process of managing an individual’s or an institution’s investment portfolio. It involves making decisions on behalf of clients to buy, sell, and hold various financial assets, such as stocks, bonds, mutual funds, and other securities. The primary objective of investment management is to generate returns for the client based on their investment goals and risk tolerance. Investment managers analyze market trends, perform research, and employ investment strategies to optimize portfolio performance.

On the other hand, asset management has a broader scope and encompasses the management of both financial and non-financial assets. It involves overseeing all aspects of an entity’s assets, including tangible assets like real estate, infrastructure, and equipment, and intangible assets such as intellectual property, patents, and trademarks. Asset management focuses on maximizing the value and utility of assets over their entire lifecycle. It includes activities such as maintenance, acquisition, disposal, and strategic planning.

While investment management primarily deals with financial assets and aims to generate returns, asset management is a more comprehensive discipline that involves the holistic management of an organization’s assets to enhance efficiency, productivity, and profitability.

Investment management is a subset of asset management. It specifically focuses on the management of financial assets to achieve investment objectives, whereas asset management encompasses a broader range of assets and involves various strategies to optimize their value and utilization.

Services

This site is registered on wpml.org as a development site.