Investment Banking vs. Wealth management- What Are The Key Differences

If a person is interested in the finance field and is willing to make a career in this field, they face two trendy choices, i.e., investment banking and the other ios wealth management People confuse these two fields with each other, and there is extensive overlapping in the concepts and subjects of both the areas, but they are different from each other in many ways.

 

They both are considered as two different arms in the field of finance.  As per definition, wealth management is a field that deals with the activities related to the buying side of the finance, and on the other hand, investment banking is a field that is related to the selling side of the finance.

The overlap in functioning is that both are related to the management of assets, and their primary purpose is to achieve the goal that a person sets for the company. So, lets us discuss in detail what is the meaning of both terms and the skills required for pursuing a career in these fields.

 

Wealth management

 

The field of wealth management primarily focuses on providing financial services to companies and individuals and focuses on managing their overall assets and wealth. In simple words, we can say that a wealth manager works the money and all the concepts related to money, such as liabilities, assets, insurance policies, and risks.

 

They access all the clients’ information and the goal which the client wants to achieve in some years. Based on it, wealth management advisors tailor a strategy to help the company achieve its goals. They will give consultancy to the client and recommend them the tips about how they can dissolve their liabilities and increase the company’s wealth.

 

Also, they provide some investment advice to the company, which helps them in tax saving. If you are thinking of a career in wealth management, you can opt for the option of either a relationship manager or an investment professional.

 

Investment Banking

 

An investment banker’s role in a company is to manage financial deals and negotiate over multi-billion deals from its side and close them for the benefit. An investment banker requires understanding specific factors that affect the industry that will result in the success or failure of a company.

 

The investment banker needs fundamental expertise in evaluating business and aims to steady growth in its valuation. An investment banker needs to have a stronghold in accountancy and must think creatively about creating possible ways for arranging finances and structuring beneficial deals for the business.

 

There are two types of job opportunities you will get if you want to pursue a career in investment management. They are accounts manager ( Person who takes care of the company’s account as well as handle the relationships with the clients ) and operational specialists( These are specialists that execute various investment banking services like IPO launching and stock buyback).

 

The Final Saying

 

Both the wealth management and investment banking are essential for running the finances of the company smoothly. If you are thinking of pursuing a career in any of the above fields, then these are the available options for you. So choose according to your interest and help in a company’s growth.

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