Is there a Difference Among Portfolio Managers, Investment Advisors and Financial Advisors?

On the surface, a portfolio manager, an investment advisor and a financial advisor are difficult to tell apart. Once you dig a little deeper, the difference becomes more apparent. Knowing the difference between these three types of advisors can make a huge difference for your investment needs and it’s important to take some time to learn. As an investor, you know how important it is to remain educated and up to date to remain competitive in the field and see your assets grow. When you look for a portfolio manager, a financial advisor in Toronto or an investment advisor in Ontario make sure you keep all this in mind.

Financial Advisor or Investment Advisor:

A financial advisor or investment advisor is typically a broker who buys or sells securities for themselves or others. They have a duty to their clients to work in their interest. There’s a key difference between their interest and their best interest though and that’s something to note. A financial advisor or investment advisor is only held to the suitability standard. This means that the actions they take have to be suitable for their client. The best advisors avoid conflicts of interest and always are guiding clients towards decisions that will be best for their personal financial goals. However, there are some exploitative practices out there.

Portfolio Manager:

A portfolio manager, on the other hand, is held to the fiduciary standard, so a portfolio management or investment counsel firm of Ontario always has a baseline set of best practices. This means that they must always take the route that is in the best interest of their client, even if that action is not in their own best interest. The fiduciary standard means that you, as the client, have a huge advantage over the suitability standard. You want a portfolio manager that will put you first, no matter what, and when you put your trust in a portfolio manager or investment counsel, that’s exactly what you get. The fiduciary standard is one of the most important things in your corner as an investor and something you should not overlook in your investment journey.

So What Should You Do?

When you are looking for somewhere to invest your money, it’s important to ask yourself who is going to have your best interest in mind. A lot of factors go into this, and the individual firm is going to be a huge part of that, but you want to have as many legal protections as you possibly can and that will come from the portfolio management or investment counsel firm of Ontario. That means you want to be protected by the fiduciary standard when you make your next investment. And that means you need to go with a portfolio manager in Toronto or Ontario instead of an investment advisor in Ontario or a financial advisor in Toronto. Enriched Investing Incorporated is a portfolio manager, and you can find more information on our website.

2021-08-03T12:46:43+00:00Categories: Advisor|Tags: , , |
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