In Canada, different types of financial experts have titles like wealth managers, portfolio managers, and investment advisors. While these titles might seem similar, they actually have other jobs, qualifications, and responsibilities for people who invest their money.

Wealth Managers vs. Portfolio Managers vs. Investment Advisors: What Makes Them Different?

When you hear about wealth managers, portfolio managers, and investment advisors, you might think they do the same thing. But they’re quite different in what they do and how they help you with your money.

Wealth managers offer various services to help with all parts of your financial life. They can help with things like investing your money, planning for what happens to your money after you die, giving advice on taxes, and sometimes even helping with legal stuff. They’re suitable for people who want help with all aspects of their money, whether they live in Toronto, Calgary, or anywhere else in Canada.

Investment advisors in Canada mainly focus on advising about investing your money. They can help you choose stocks, bonds, mutual funds, or other investments. Some investment advisors get paid by selling products which might only sometimes be the best for you.

Portfolio managers in Canada have a more specific job. They decide where to invest your money based on what you want to achieve with it and how much risk you’re comfortable with. The big difference is that portfolio managers have a legal duty to do what’s best for you, not just what makes them money. This is important because it means they must look out for your interests above all else.

The Duty of Portfolio Managers

Portfolio managers have a big responsibility to their clients. They must follow strict rules to ensure they’re always doing what’s best for you. When you look up your portfolio manager’s name, you’ll see if they’re registered as a “dealing representative,” which means they’re just selling stuff, or an “advising representative,” which means they have to do what’s best for you.

Why This Matters

Understanding the differences between these financial professionals is important if you want to find someone you can trust with your money. Knowing whether your advisor must look out for your interests can make a big difference in the advice you get. It’s not just about the investments themselves but ensuring your whole financial plan works for you.

At Avenue Investment, we’re an independent firm that focuses on helping our clients reach their financial goals. We’re trusted always to put our clients first, and we’re owned by those who work here. Our main goal is to help you feel secure about your money in the long run.