For an Investment Manager managing risk & return of investments is the key question. That decision DOES NOT not change based on WHOSE money it is. The investor could be a single parent or a wealthy household.
On the other hand for a Financial Advisor, the client’s financial situation, aspirations and social circumstances are MORE pertinent than anything else.
Helping the client take good financial decisions is the key question. WHERE to invest is only one of the by products of many such decisions.
An Advisor’s role is to give you a solution to your problem and also guide you on how to implement it. In more advanced professions such as Medicine, this distinction is more obvious i.e. the difference between a doctor and a pharmacist or a pathologist, between a physician and a surgeon.
In the financial advisory profession the same distinctions apply between an advisor and an Investment Manager. Mutual Funds, Portfolio Managers are Investment Managers. They are experts at understanding Market Risks and the behaviour of asset classes in which they specialize. The Advisor, on the other hand, understands and define’s the INVESTOR’s risk and requirements.
An Advisor also has a far bigger role to play than just helping you make investment decisions. No two of us have the same dreams, aspirations AND financial circumstances. He or she has the expertise to help plan your financial resources so that you can make the most of your circumstances to accomplish what is important to you in your life.