What Are the Different Types of Investment Advisor Services?

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  • Written By: Geri Terzo
  • Edited By: PJP Schroeder
  • Last Modified Date: 14 October 2018
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There is no lack of resources available in the financial markets as a result of the plethora of investment advisor services offered by the economic community. From individuals seeking help with financial planning to large institutional investors receiving guidance from a registered investment advisor, options in the financial services arena abound. Some investment advisor services focus on consulting and advising clients on the types of investments to make as well as estate planning. Other advisory services include asset management, where financial professionals invest in traditional and complex securities in an attempt to grow the wealth of investors.

Financial planning can mean different things to different people, and it is the job of the investment advisor, such as a financial planner, to decipher the needs of each individual client. A professional who provides these types of investment advisor services must achieve some level of certification and may be a Certified Financial Planner, for instance. This professional can advise clients on wealth management, which includes being financially prepared for different stages of life, even extending to death. Financial planners can help with modest tasks, such as creating a budget, and complex financial transactions, such as leaving an inheritance through estate planning. Clients are advised on investing in real estate, buying insurance, and investing in the stock market in addition to tax implications surrounding any of those products.


Investment advisor services also extend to money management. Professional asset managers who oversee money on behalf of individuals and institutions are paid to grow the wealth of investors by buying and selling securities in the financial markets. Some of these roles are more sophisticated than others, with the most basic being to buy and sell stocks at the client's direction. More sophisticated money managers, such as mutual fund managers, make the buying and selling decisions on behalf of clients after researching investment opportunities. These professionals could invest in a breadth of securities from regions around the world.

Financial consultants provide other types of investment advisor services too. Consultants are mostly reserved for large institutional investors, including pension funds. This type of investment advisory provides clients with advice and direction on the way that assets should be distributed. When an investor such as a pension needs to place assets with an investment manager, the consultant helps to locate the best possible firm that can manage the pension's assets and is most likely to provide the expected returns or profits.



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