| Topic Name: |
Investment Mgmt vs Investment Advisor vs Financial Planner |
| Message Name: |
Advisors... |
| Date Posted: |
12/02/2004 |
| In Reply To: |
also, to respond to earlier postings, I believe the biggest difference between a financial advisor and a portfolio manager is tht I believe that the financial advisor role is extremely sales oriented (coldcalling, seminars, etc.) while a portfolio managers role is performance based.
A brokers compensation is based either on commissions or now its changing to the size of their book. To become successful one must spend a tremendous amount of time building a clietn base. A hedge fund manager in contrast will make a certain percentage based on AUM but also will earn a percentage of performance gains in their fund (not the same for mutual fund managers but many times their bonus will be performance based). |
| Message: |
It would appear to me then that an advisor would have one of the tougher, or maybe even tougher job as a investment professional. From marketing and building and maintaining a market base (I think investment mgmt firms have a seperate department for that) to the analyst work (researching whatever to invest in for that client) and portfolio management work (choosing the investments that best fit x amounts of clients and having good performance to maintain all those clients). On top of that writing different investment policy statements for all those clients and doing reportings of performance and umpteen face to face meetings with those clients.
I don't know, but seems like a lot of roles and jobs to be doing. What do you people think?
DeTekk
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