AM vs IM

What is the difference between Asset Management and Investment Management? Does the nature of the work differ and if so, how does pay differ? What are the lifestyles like as well regarding WLB? What are relative prestiges of different careers within each (or the sector in general if they're the same) and how do exit ops look for someone getting in? What should I know in the skills/knowledge aspect before diving into a career here?


A lot of questions, but literally anything will help. Thanks.

 

Based on the most helpful WSO content, Asset Management (AM) and Investment Management (IM) are often used interchangeably in the finance world. However, there can be slight differences in the roles depending on the firm.

In Asset Management, there are essentially two main areas: Managing money (which includes Portfolio Managers, Research teams, etc) and the Distribution of the managed money. Everything else is largely operations based. The crossover between these two areas would be limited to distribution having a deep understanding of the firm's investment process, products, etc. Distribution could be dealing with institutional clients and their CIOs, so they have to know a lot more about actual investing than the retail advisor who is dealing with kitchen table clients.

In terms of lifestyle and work-life balance, it can vary greatly depending on the firm and the specific role. However, in general, Asset Management tends to have a better work-life balance compared to Investment Banking.

As for the skills and knowledge aspect, a deep understanding of financial markets, investment strategies, and financial instruments is crucial. Depending on the role, you might also need strong analytical, problem-solving, and interpersonal skills.

In terms of prestige and exit opportunities, it can also vary greatly. Some might argue that Investment Banking offers more prestigious roles and better exit opportunities, but it really depends on your career goals and personal preferences.

Remember, it's important to choose a career based on the work itself and whether it aligns with your interests and long-term goals. Hope this helps!

Sources: Difference between Asset Management vs Investment Management?, Asset Management vs Investment Banking 101

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

As above has mentioned, AM and IM are typically used interchangeably. Still, IM is also slightly broader in the sense that you see IM used on both the institutional and UHNW side. I’ve seen AM used more strictly on the institutional side, which I guess is the minor difference. But typically, AM and IM means the same thing.

 

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