You might be wondering what the roles of a fund manager, a wealth manager and a stockbroker are. Here are some of the key ways that they differ that might clear up any confusion.
First the role of a fund manager is to research and make stock selections with the goal of ensuring that the value of their managed fund increases. Individual clients don’t own the stocks in the fund under their own name. They instead are units from the fund or shares in an investment trust. A fund manager combines the assets of multiple investors and makes trading decisions on behalf of those investors.
A stockbroker’s role is to select stocks for a client to maximize the return on their portfolio. They may take into account each individual client’s circumstances. Stockbrokers are the link between the individual investor and major stock exchanges and perform buy and sell transactions on behalf of investors. There can be real people or online platforms.
Finally a wealth manager will learn about their clients goals and devise a strategy utilizing appropriate financial products and services, giving advice and help to enhance the overall financial situation of their clients. This could mean devising a strategy that encompasses buying individual stocks or investing in a range of managed funds or investment trusts. I
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