How do advisory services differ from portfolio management? In comparison, an Advisor (Investment Advisor Representative) is the broader term and includes portfolio managers. Advisors work with you to understand your overall financial standing, financial goals, investment preferences, life stage, risk tolerance, etc., and accordingly, seek to offer sound and comprehensive financial advice. Portfolio managers do not offer professional support in these other important financial matters as they make day-to-day trading decisions on a portfolio of assets.
Advisors help you:
Usually, an advisor offers all or most of these services. Some advisors also offer portfolio management services. Each type of advisor holds different degrees, certifications, and professional licenses. Moreover, advisors use different fee structures to charge for their services in advisory relationships.
All Advisors follow a fiduciary duty, in advisory relationships, which means that the investment advisor will place your needs before their own. Fiduciary advisors follow an ethical code of conduct. Hence, they lawfully pledge to act in your best interest at all times.