Asset Management vs. Wealth Management
- 11th August 2025
- 06:00:00 PM
- 7 min read
While there are multiple investment options available in the market, taking financial guidance has become the ultimate solution for managing your money. This has led to asset management and wealth management firms playing a role in securing the portfolios of the Indian citizens.
However, as of FY24, investments worth approximately INR 34,63,200 crore are still self-managed or informally managed by the Indian investors.
This blog gives you an understanding of asset vs wealth management, highlighting their benefits and drawbacks.
What Does Asset Management Mean?
Asset management services are financial planning services that manage the assets in your portfolio. These include equities, bonds, mutual funds, real estate, and others. This category of services is typically offered to institutional investors like:
- Sovereign wealth funds
- Pension funds
- Corporations
- High-Net-Worth Individuals (HNWIs)
Asset managers make customised investment strategies depending on your financial goals and risk tolerance. These financial advisors also have to track the performance of the assets. To manage an investor’s portfolio, managers implement various strategies, such as value investing, growth investing, and risk management options.
What Does Wealth Management Mean?
Wealth management companies often serve HNIs and individuals with a substantial amount of wealth. When investing, these individuals require assistance to manage their finances for wealth generation.
The primary benefit of engaging with a wealth management firm is that it can offer a wide variety of financial services. Wealth managers are involved in managing clients’ portfolios, designing retirement planning strategies, tax planning strategies, and insurance.
Advantages of Asset Management Services
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Collecting Funds
Asset management companies (AMC) pool funds from multiple investment sources. These collected funds enable investors to make a diversified portfolio, which is out of their reach.
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In-Depth Market Research
AMCs have dedicated researchers and analysts who are continuously monitoring market conditions and numerous company fundamentals on your behalf.
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Trade Execution
The fund managers of AMCs execute the buying and selling transactions that align with your portfolio goals. Their primary focus is to maximise your returns with these transactions.
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Transparency
Asset management services also ensure transparency by providing comprehensive reports to the investors about their portfolios.
If you want to avail asset management and wealth management services, download the PL Capital Group – Prabhudas Lilladher application. With more than 80 years of market experience, PL offers both services by providing access to exclusive investment opportunities.
Advantages of Wealth Management Services
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Financial Advice
Wealth management services provide financial advice to you, from retirement planning to real estate investment.
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Reduced Tax Burden
Wealth managers help you reduce your tax burden. This helps you to save more money to invest.
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Personalisation
Since wealth management includes offering a variety of services, you can invest in a range of investment options.
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Time Saving
Wealth management services can benefit you by saving time. You can hire wealth management services, like PL Capital, for your business activities, from accounting to investing.
Asset Management vs Wealth Management – Key Differences
Are you still confused about choosing the right financial guidance? Do not worry. The table below highlights the key differences between wealth management and asset management:
| Aspect | Asset Management | Wealth Management |
| Key Objectives | Maximising your profit by growing assets through investments. | Increasing your wealth by growing it across generations. |
| Financial services | Investments in equities, bonds and other assets. | Offering investment advice, tax planning, real estate planning, and retirement planning. |
| Offered by | Asset management firms | Wealth management firms |
| Offered to | Every investors | HNIs, and sometimes even corporates |
| Minimum investment needed | INR 100 | More than INR 5 crore (can vary depending on the wealth management company) |
| Cost Structure | Charges as a percentage of assets under management (AUM), which is typically 0.5%-1.5%. | Higher AUM-based charges, which often exceed 2%. |
| Regulation | Securities Exchange Board of India (SEBI) | Numerous authorities |
| License(s) required | Licences for mutual fund, research analyst, and portfolio manager certificates for PMS. | Numerous licences related to insurance, investing, and banking are required based on the number of services provided. |
Which One is Better Between Asset Management and Wealth Management?
It completely depends on you on the types of service you want, between asset management and wealth management. Based on the above key comparisons, you must choose asset management services if:
- Your focus is to grow your investment portfolio
- You can manage taxes, estate planning, retirement planning and other financial aspects on your own.
- You need expert advice on fund selection, risk management, and diversifying your portfolio.
On the other hand, you can choose wealth management services if:
- You are an HNI and need a financial strategy that aligns with your investment goals.
- Your primary focus is to build and transfer wealth across generations.
- You need services like succession planning and retirement planning.
However, by downloading the PL Capital application, you can get various asset management and wealth management services from a seasoned team of investment professionals.
Drawbacks of Asset Management
While there are numerous benefits, asset management services also have several drawbacks. Some of them are:
- Asset management services are personalised to your investment needs and risk tolerance.
- Your returns might be reduced if the fund manager does not manage the portfolio accurately.
- You lack control over your portfolio as the AMC manages it.
- You must pay a fee to let the firm manage your investments.
Drawbacks of Wealth Management
You need to be aware of availing wealth management services since they also include significant drawbacks:
- Wealth management services are expensive as they may take more than 2% fee.
- These firms act as a single entity for providing multiple financial services. As a result, it might not always act in your interests.
Final Thought
Both asset management and wealth management services can safeguard and grow your money. Understanding the key difference between these two services can help you achieve your financial goals without any hassle.
To avail asset and wealth management services, you can download the PL Capital application and open a Demat account for free.
Frequently Asked Questions
1. Is asset management perfect for small investors?
Yes, small investors can use asset management services since they can invest their money using the AMCs.
2. Can I use both services simultaneously?
Yes, you can use both asset management and wealth management services only if you are an HNI. An asset manager can manage your assets, while a wealth manager can offer additional financial planning services.
3. How are fees structured in asset and wealth management services?
Fees in asset management services are structured and charged as a percentage of AUM. On the other hand, wealth management services fees are charged as flat fees or AUM-based charges.
4. Which service is ideal for achieving long-term financial goals?
Among asset management and wealth management services, wealth management is comparatively ideal for achieving long-term goals as it can address taxes, estate planning, retirement, and other things. Contrarily, asset management focuses only on portfolio performance and its maximisation.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
