Investment Banking and Dealing with Funds

Having an enough capital when you start a business acts as a cushion to take in any kind of financial blow that your business journey might give you. Having a well-planned investment and financial portfolio always keeps you ready for any kind of set back and gives you a buffer to bounce back stronger. For this, you can rely on the investment banking system where the investment bank helps their clients by advising them on correct type of investments. These investments can be of any types, such as shares, bonds, property etc. However, it is important to note that investment banking is a sector that is volatile, which means any thing can happen any time. Although the returns on investment are better than the other two (asset management and wealth management), the risks involved with them are also quite big. Therefore, it is important that you choose your investment bank carefully, one that has a good reputation. Talking about reputation, big businesses have an unspoken responsibility upon them, to give back to the society who they have earned from. This is known as CSR. In this, the money goes out of the business, for welfare of people outside the organization. But there is also something known as the ESG funds that decide the credibility of any business. ESG funds are the Environmental Governance Funds which a company spends on the welfare of people working for them and on the health of the organization. They are equities or bonds. These funds surely give the firm a long-term advantage. So, if you are a corporate or an HNI, it would not be totally inappropriate to invest in ESG funds. Rather, they are bound to increase and enhance the credibility of the company. Talk to your investment banker regarding the same. They will provide you will proper guidance for the same.

What It Takes to Be A Part If Investment Banking!

Investment banking is sure a very glamorous looking career for anybody who is interested and has a knack for finance, numbers, and strategy. But there are some pre-requisites that one may have to consider before getting into the field. First of all, to get a job at one of the topmost investment banking firms in India, one has to have a degree in finance. This can range from a specialization in finance in BBA, or an undergraduate degree in finance and accounts. A person with a degree in economics also qualifies to land a job in one of the investment banking firms in India. However, it is crucial to remember, that along with these academic qualifications, it is also necessary that the individual manages to handle the pressure that the job role is going to bring on to them. Since they will be handling money, and that to in huge numbers, there is always going to be an invisible sword hanging on their heads. They must be available on calls all the time for their clients. When it comes to money, any body would be speculative and concerned. The said investment banker should be able to keep calm for himself and should also be able to assure their client about their finance status. Investment banking firms also deal with hedge funds, asset management and wealth management as well. However, these fields are not as hectic and as risky as investment banking. For someone who loves and is quick to grasp numbers, study them in such a way to anticipate their position in the future, it becomes quite interesting. In investment banking, the numbers can be volatile. The investment banker should be able to gauge the upcoming financial trends of the market and take decisions for their clients or guide them accordingly.

The Role of Asset Management Companies in India

For a business to keep growing, there are many things that become important for this to happen. While choosing the type of work and clients plays a big role in the funds that a company gets, it is also important to see how these funds are managed by the entrepreneur. For any business owner to take bigger and risky decisions, they need to have a good amount of backup of funds in their kitty. Hence, investing the money and the profits wisely is important and vital for the business to run without much of risk. Now, we cannot expect every entrepreneur to know literally everything about investment. Therefore, they might have to turn to any of the asset management companies in India for help. These companies ideally, study the profile of the business. In this they see what the existing assets of the company are, what the liabilities are, how what can be done for the investments to become better and so on. Then, they sit with the client and in a way chalk out their entire financial plan in terms of financial goals. This can include investment in various assets such as shares, bonds, property, long short fund (a type of mutual fund), and if the business is financially strong, then maybe investment in some other business as well. The asset manager explains the benefits and risks (if any) of every investment and then concludes by giving the investor the best options. Many times, these decisions are taken by the asset manager itself. If their client is unavailable, they can take the decision on their behalf and buy or sell the fund if needed. Therefore, this brings us to a point where we stress on the importance of choosing your asset management company wisely. It is a huge amount of your hard-earned money that we are talking about.

How Is Wealth Management Different Form Investment Banking?

When we start a firm of our own, one of the main and primary goals that we have for our company is wealth expansion. This wealth expansion should not be confused with the bank balance that a person has in their bank. This wealth is defined by the number of assets in any form that you may have, and this could also include yours or your business’s credibility. For this, as an entrepreneur, having some basic understanding about wealth management is very important. Of course, it would be unfair to expect from y our to know everything, having some basic knowledge is good. This is so that you know when to invest in what kind of wealth and asset and when to withdraw anything from in. you could also hire an asset management company for your business. When you go to an asset management company, they first hire an asset manager. This asset manager then talks to you or your partners in business (if any), gets to know what kind of service or product you provide, studies the kind of financial profile you already have and then ultimately, with your help chalks out an entire plan of action to expand your wealth. This wealth could be in the form of some bonds or shares or some property. It need not always be hard cash. If you go to any of the investment banking firms in India, you will notice that there is a vast difference between the work nature of wealth management and investment banking. Investment banking is more volatile, and an investment banker is needed to be equipped with information about the gains and losses in the market all the time. Where as a wealth manager can be a little relaxed int eh term. Of course, he will too have to be well informed about the kind of trends that are going on in the market, but the profit or huge losses of a customer foes not totally depend on his or her decision. 

The Big Wide World of Financial Institutions

When we talk about the financial world, there are so many roles and responsibilities that are played by different individuals and financial businesses. For example, if you go to any of the wealth management firms, you will see that they have a specific set of duties to carry out. First, they must place the needs and aspirations of their clients first and make it a point that their financial portfolio is expanding. Plus, the wealth manager also helps them to know that what kind of profit will the incur from what kind of asset. For example, there are some assets that do not give us profit immediately or even in a year. They might start showing you some profit (like mutual funds) after like three years or so. Then there are also some assets that can give you quicker and better returns. So, the wealth manager helps you to understand how to maintain a balance while investing in any of the long term or short-term ones. Plus, there is also a necessity in understanding that these financial institutes that we talk about also help the businesses carry out the hedge fund process and a lot more. Now it totally depends on the entrepreneur or the business owner as to what kind of plans they want to get into. If they want to want to get easier and quicker returns, then they might as well go to an investment banker. If they are not so keen on getting quick returns and want to invest in something safe, then asset and wealth management firms are always going to be there to help them. For all this to happen, you need to ensure that there is some enough profit that is flowing in and that it is consistent in every quarter. 

How and Why Should One Invest in Hedge Funds?

Even with the investment banking industry India booming, hedge funds are one form of investment that are looked upon as too risky. Before you form any opinions, it is extremely necessary to understand exactly what they are, how they function and who should invest in them.

Hedge funds are private investments made with pooled funds that aim towards earning a continuous return for the investor. These generally involve massive funds and a lock down period of at least one year. While investing in hedge funds, one can pool money into the national as well as international markets. However, since they involve investment of a large sum of money, they are accessible to only a certain set of accredited investors.

Hedge funds are generally created for a specific market opportunity and therefore require the use of specific investment banking strategies. These strategies are formulated keeping in mind the objective of investment, market attractiveness, and the financial environment. They directly help in determining the amount of risk involved in investing. While some strategies are not as risky, others are. Therefore, it is extremely crucial to derive them carefully.

Unlike mutual funds, not everyone can invest in hedge funds. There is a specific guideline that one must fulfil in order to be considered eligible for investing in them. Firstly, it is mandatory that one has a net worth of $1 million or more, while having an income exceeding $200,000 for two consecutive years. Further, unlike mutual funds, investment in hedge funds is not limited to stocks and bonds. One can choose to invest in bonds, stocks, land, currencies, etc., both domestically and overseas.

Once you have decided that you are willing to invest in hedge funds, it is advised that you go through a detailed assessment process. This will help you find the hedge fund that suits you well and at the same time offers the least possible amount of risk. The most important tool that comes in handy while assessing hedge funds is the World Government Bond Index (WGBI).  It allows you to compare annual return rates and calculate deviations. Further, other aspects that can affect your choice are the size of the firm that you are choosing to invest in, its track record, the minimum investment required and redemption terms of the fund all together.

Considering that hedge funds give higher returns and are bound by fewer regulations than mutual funds, asset management companies in India believe that the country has a lot of potential of getting international funding for domestic funds. Increasing purchasing power and the Indian instinct to save has resulted in a booming hedge fund market. Early entrants of the market have earned substantial revenue and have predicted that the market would only grow.

Investing in hedge funds has its pros and cons. It is important to not get misguided by bias and invest in plans that work for you and your business.

Roles of an Asset Management Company

When we think of an asset management company, the first thing that comes to mind is- what does it do and how is its role different from managing your own assets? An asset management company is an organisation that collectively invests its clients’ funds into assets like bonds, stocks, hedge funds, property, partnerships, etc. It examines all financial lawsuits, creditors, court judgements and investment opportunities for its clients.

On the other hand, managing your own assets might involve similar tasks, but it can often have a smaller scope, lack expertise and thereby have a higher risk of error.

An asset management company has various roles that it takes care of simultaneously. One of its most important jobs is to extract data, translate it and use it while making any investments. Further, it develops detailed processes, procedures and policies that act as rubrics for the kind of projects its clients choose to invest in. It is essential for the company to understand the requirements of the brands it works for, as the solutions to all their problems can be varied. In addition to all of this, asset management companies must maintain a good database that records trends which have previously prevailed in the market. This helps them forecast the changes that may occur in the financial environment in the coming future.

It has been noticed that asset management as a function is often handled by full-service investment banking firms in India. This is because such a situation allows centralised management of funds and gives the client the power to have a holistic view of their monetary standing. It also ensures that all functions sync towards a common goal and the brand has a single investment plan instead of having several smaller ones. Such a scenario eliminates duplication of research and cuts down on costs, making the whole process even more effective.

Requirement of Top Asset Management Companies

Asset and liability management is something we all have certainly heard about but don’t really find out about it until it becomes necessary for us to do so. But by that time, we are usually very confused and look from information from many different places and end up getting so lost at the end and we end up taking a lot of hasty decisions. However, it is very necessary to know that this is one of the very important aspects of your life as an individual, whether you have a business. We all earn so that we can become financially stable and are able to provide for ourselves and our families very well. for this, money is really very important. And we obviously can’t just rely on the monthly salary that gets credited into your back account every month. Even the top asset management companies in India will vouch for the fact, that asset management is one of the most important features. You need to have an extra source of income coming in other than the regular salary. For this you, you need to manage your assets and invest into assets in such a way that it gives you steady returns and even if one of the assets does not give good returns you have other to rely on. This applies majorly for the HNIs. You can approach an asset management, or any investment banking companies to guide you through the entire process of investing your money into useful assets. They assign an asset manager to you, who after doing a detailed study about all your investments (currently) and the liabilities you have, they chalk out a plan regarding this investment. They help you see which type of investment is better and what can help you expand your wealth more and more. They also provide you with advice and could also take decisions on your behalf. Client’s good will is of primary importance to them and hence they will go to large ends to satisfy that.

Get Good Guidance with An Asset Management Company

Growing up we were told about the importance of having a good career that will give you so many benefits at the end. People good with numbers and who are interested in money matters do end up wither in finance or economics. One of the most glamorous career options for finance students today is that of investment banking. This is because investment banking is a dynamics career option to choose. It involves being hands on with your clients, knowing your faculty of the investment banking and moreover, being able to handle money of bigger and sometimes very reputed plus well-known clients in the country. Also, the returns or the commission one gets in investment banking is quite commendable. However, for any body who aspires to one day work in the leading investment banking companies in India, it is important that you keep in mind the stress that this job type will bring with itself along with the good pay and commission. You can be called and expected to answer your phone calls at any time of the day, there could be lade working hours, and most of all, clients naturally will get anxious when it comes to their money. Handling such situations is a skill that you need to possess. Other than that, having a sharp IQ for numbers, being able to take quick decisions is also one of the skills you need to be a master in. You need to be able to gain the trust of your clients and be able to assure them (especially in economic hard times) that their money is in safe hands and will also be handled carefully. Having a good knowledge is not going to be enough. A good investment banker will have to mindfully keep a watch on all the ongoing trends in the industry.

Expand Your Company’s Wealth with The Help of Different Financial Institutions

When you start a business or a company, one of the biggest motives behind doing it, is to earn lots of money by making profits. Sure, people say that they are doing it to provide to the public better services and products, but let’s face it, it does not mean a lot to us if it is not bringing in any of the money. Also, for any business to run properly and grow, it is very important that they earn profits. Having profits is important because it acts as a shield of a cushion to take any kind of financial blow that may come on to the business. At times when things do not work out for the industry or for the economy in general (as it is happening right now) it is this profit that the company can rely on to pull through the slow phase and grow from it. Otherwise, the business would get doomed and people will also lose their jobs. But just earning the profits and keeping them in the bank is not going to suffice. It is very important that is money is invested wisely. For this, you might need help of any of the investment banking companies in India. Earning the money and keeping it in the bank is like stagnating the money. So what you can do it invest the money in such a way that it keeps giving good amount of returns and also, even if it is a plan where you get returns only after a fixed period of time, it will fetch you good amount of money. Also, it is not compulsory that you must rely only on investment banks. To increase your financial portfolio, you can also go to the asset management firms. The asset management firms help you to decide which assets to buy to gain maximum returns on them. They help you to expand and maximize your assets. Asset management deals many with helping you grow, gradually. Once that is taken care of, you might also want to consult the wealth management firms. These firms mainly keep a close watch over the investments made and management of assets, estate, cash flows etc. of the clients. In wealth management, it is very mandatory that the interest of the client is kept ahead of the want of the institution where as asset management is about providing the suitable solutions.  

How Do Asset Management Companies Turn the Profits of Their Clients?

When you look for the top asset management companies in India, we see a big host of clients that they have in their cap. These clients are usually big names of giant companies or also start ups that seem to be doing well, multiplying their wealth by as the days go by. Thanks to the amazing balance strike by the management in terms of both marketing, finances and the human resource. These top companies certainly know the art of asset and liability management. For any business to grow and flourish, it becomes that they don’t just look at expanding their number of assets in their kitty but also carefully manage the liabilities that their business may bear. Usually the liabilities are in terms of loans or credits or payments to be made. But what do these top performing industry giants do differently? They hire one of the top asset management companies in India, that focuses on how they can possibly help their client increase their scope of wealth by investing in different types of assets. These assets could be mutual funds, shares or bonds or some kinds, land or houses (real estate to put it in simple terms). Further, these asset management companies also keep a close watch on the ongoing trends in the industry. This helps them to be well informed about any kinds of risks that may affect the business in concern, in future. If they find that the investment made by the business is not going to fare very well for them, then they may advice their clients to immediately retract the asset and sell it off, shielding them from any kind of loss. Similarly, if there is any asset that could possibly be growing and be fruitful for their client, then they advise them to invest in it.

Investment Banking as A Career Option

Are you a candidate looking for opportunities in investment banking? Or a student considering investment banking as a career option? You might have wondered every now and then, what does it take to be working in the best of the investment banking firms in India? Well, we’ll be answering all these questions today. Let’s first start with what investment banking is. It is, in simple terms, a division of the financial services provided by a company, that helps to generate capital and helps to carry out other financial transactions, usually on the behalf of their clients. So basically, an investment banker is someone, who in a way takes majority of your financial decisions. So, you are dealing with other people’s money in this case. For this, one of the most important things that you are going to require is your inclination and ease of dealing with numbers. And we do not just mean the day to day arithmetic operations, but the hardcore which can calculate the percentage of return on investment in a jiffy, or instantly anticipate and take decisions of buying or selling an asset for their customer. Then. You also need to have and eye for details along with being highly ambitious and spontaneous. Also, investment banking, although it looks very glamorous from the outside, is a very stressful field. Sure, the pay might be attractive to many, but this will come at a cost of mental peace, many a times. Most importantly, you also need to have a degree which covers the subjects of finance. A simple Bachelor of Commerce would also suffice. After this, pursuing MBA in finance or investment banking is surely going to give an edge over the entire competition. Investment banking is a truly dynamic field and to be working in one of the top investment banking firms in India, you need to be focus and on your tows with the on going trends all the time.

How Does Having Good Amount of Assets Help the Business?

One of the many reasons we start a business is with the dream of earning lots of money in the process. Of course, nobody can expect that to happen just in a year or two, given that we know that for any business to flourish takes time. But once your business starts to do well, what is the next thing you do? Of course, you might invest in the face of the company and improve your office and provide more resources, but you also need to keep in mind that the profits you are earning are going to take time to become stable. Hence, investing in good assets that give good rate of returns is very important. For this, you might want to consult some asset management firms. They will assign to you an asset manager whose role is to give you a detailed report about your current position of assets and how you should invest money further to expand the band of wealth you own. This becomes important especially for HNIs who already a lot must invest but need to channelize the investments they hold. Fund management is also very similar to asset management. Funds can also be of many types and your asset manager can brief you on that. Asset management does not have to be too intense like investment banking. It is not too dynamic and hence can be done over a period. Plus, once you start to see the returns on the investment made in the assets, you will realize the importance of investing your money judiciously. Having a good backing of assets is very important for a business. When the business seeks to expand, these assets can also be kept as a collateral which can be revived once the business starts to make bigger profits.

Trust Your Investment Banker for Smart Investment

We all reach a point in life when we all start to do well enough for ourselves and decide to invest the extra money that is left. Or rather, some of us make a conscious decision of investing this money before we spend it all. This way we take baby steps to secure ourselves for future, for any kind of unforeseen circumstances. Even the biggest of the investment banking companies in India will vouch for the fact that starting to save and invest early is bound to give you better returns in future. This investment could be in any kind of asset such as a house, bonds or shares, mutual funds (which are the hottest running ones right now), land (real estate), gold etc. If you really are clueless on how to go about investing, there are many smaller investment banking companies in the market too who could advice on how you should go about investing. When it comes to decision on investing, the investment banker or the asset manager make the decisions. It is all up to them on how to invest their client’s money in such a way, that it brings into them maximum of returns. For this, they need to have a deep understanding of the financial profile of their client and about the ongoing trends in the market. Considering that real estate is not fairing well in today’s market, it would be wise to advise the client or rather not invest on their behalf in real estate. What do these investment bankers earn from all this? Well, their gain is usually the commission they get on returns. This commission is directly proportional to the weight of returns on investment that the client is getting on the investment. More the returns, more the commission. Therefore, although the job is risky, it certainly is one of the most interesting one.

What Are the Different Ways Through Which A Business Becomes Truly Affluent?

When a business earns profit, they earn credibility. What is this credibility that people talk so much about? Credibility means the level of trust that you can show in the performance of a business. Which means, if you invest in the business, you will not loose anything if not gain huge profits. Therefore, higher the profits your balance sheet shows, higher is the scale of trust in the business for the potential investors. But as a business, you don’t just have to gain investors, but sometimes become a business yourself too. Because it is only when you make the decisions of investing wisely, can you attempt to expand the security of the business. This investment can be in terns of buying assets, investing in other business or anything that can bring the inflow of monetary benefits to your business. Wealth management is not something like arithmetic that we are taught since school. So, the expectation that an entrepreneur or a business leader would know how and where to invest the business money is quite unfair. For this, there are investment banking firms. An investment banker scrutinizes, analyses and studies your business’s profile in depth. This gives him or her an all-round knowledge about where your company stands financially. Once that is done, and once the agreement between you and the finance service provider (the investment baker) in this case is made, you give him the power to invest on your company’s behalf too. Of course, it comes with a certain risk, but if you keep your trust in a good investment banker or a fund management company, you need not worry so much. They also come with guarantee of returns on investments made by your company. Another way of expanding your credibility is by growing the size of wealth you have. For this too, having a wealth management firm by your side will pay off well. Wealth management might not be as risky an investment banking, since the market is not as volatile as the latter, but it is one of the biggest and most proven to be successful ways in ensuring continuous inflow of capital in the business. It is a popular belief and rightly so, that an individual is not affluent by the amount of money they have in their bank account at any given minute. It is by the worth of the assets they own do they become affluent individuals or HNIs.

Ensuring the Inflow of Monetary Benefits in The Business

What is the single driving force behind setting up a business? Money. It is indeed one of the major reasons why someone dreams to become and entrepreneur. It is because of the famous belief that a 9 to 7 job isn’t going to make anybody a millionaire. But is it so easy to start a business? Considering a lot of factors like the angel investment, human resource, the product or the service offered, the marketing strategies and the most important, the motive behind selling the product and service is very important for a business to kick start.

But once this is done, what does it take for the business to sustain, let alone see exponential growth? Innovation. It is the rule of nature that change in constant. Therefore, with changing times and changing demands, every business needs to wrap itself with the blanket of innovation. But what when the business has finally kick-started and the profits start pouring in? Now, just sustaining the business is not the goal but expansion becomes a priority. This expansion comes with growth in wealth of the firm. This wealth can be increased with some sound investment in different asset verticals. But you need not worry if you feel lost in that context. You can always rely on some of the best wealth management firms you know. Getting the list from the internet isn’t much of a task after all. These wealth management firms’ aim to help you grow your business’ wealth.

Wealth management companies are very different from asset management companies in India. Asset management company helps it customers to chalk a plan and make well informed decisions of investing in a particular asset. Assets are anything of high value that can bring in big returns for the company in future. These can be property in land, house, shares and stocks and more.

Choose the Right Investment Bank, Choose Profit for Your Company

When we talk about getting the best for our company at the beginning in terms of capital, there is a lot more than just money that we are talking about. Of course, there are the monetary benefits that every entrepreneur seeks for his company and his or her associates, but along with that there is something else that we see to expand.

The wealth that the company churns out. Again, the term “wealth” is not just restricted to money, but it also includes all the assets and credibility that the company earns over a period. This uphill task sometimes takes more than a decade, and surely doesn’t happen over- night. If you see the report of the leading finance companies in India, you will notice how this is a slow, steady process requiring lots of patience, zeal and determination to keep moving forward even when the times are tough. When the business is doing well, and you as an entrepreneur want to expand the wealth and assets that the company owns, then smart investment options is what you should be looking at.

Now we do not expect you to have full knowledge about every aspect of finance, which is why, you may have to turn to investment banking companies to seek help or advice. An investment baking company thoroughly studies your financial profile (by which we mean the company’s profile) the profitability and credibility (in monetary terms) and then guides you on making investments. They even make these investments on your behalf. This in fact is one of the major and basic roles of an investment banker. They carefully keep a tab on the current market situation, look for an opportunity which would be of profit for your company and then invest in it on the company’s behalf. What is their gain in this? Ideally, a specific percentage amount is charged by them to your company of the profit you make from the investment they made/suggested.

How the Investment Banking Sector Hugely Impacts Investments?

On of the most sought after and discussed topics today in any kind of finance newspaper and discussion in investment banking. But what exactly does investment banking really mean? Let’s look at it today. An investment bank is a company or an institution which plays categorically many roles when it comes to the world of finance and investments.  Some of the major functions that an investment bank indulges in are underwriting of stocks, being the facilitator of mergers and acquisitions and the topmost being the financial advisor to High Net Individuals. High Net Individuals are the people whole net worth runs in millions. Interestingly, HNI’s do not have to be limited to just individuals. They can also be government firms. An investment bank typically helps a firm, or an individual achieve its high financial goals, which also becomes a matter of prestige for the company itself. The investment that we are talking about here, aren’t in small numbers, but in lakhs and crores, that are guaranteed to give them high returns. Some of the big names in investment banking companies are Bajaj Capital, Kotak Mahindra Capital, SCI Capital Markets, Yes Bank, JP Morgan, Chase and HSBC and many more names.

Some of the various functions that are done by the investment banking companies in India in India are Underwritings of Public Offerings, Management of Risk and easing the process of Mergers and acquisitions.

Underwriting of Public Offerings in simple terms is the amount that is raised for investment, by the investment and asset management companies in India on behalf of big corporations and the government of India, that issue securities (both capital and debt capital). Management of risks, as the name suggests is the scrutinizing of the entire financial market and then selecting the best out of the lot for your client by anticipating the risk to come. The look for all the loop holes and risk that the investment may face in future and then accordingly, advice the client, or sometimes, take decision on their behalf regarding some financial plans. In Mergers and Acquisitions the bank can play either of the two roles. One is being the representative of the seller or the representative of the buyer. The investment bank in this transaction helps by overseeing the entire process, ensuring everything is done properly and fairly. Banks could even approach companies with their own marketing tactics.

Thinking to Choose Investment Banking as A Career Option

One of the truly upcoming career options today is investment banking. Its popularity is only growing among the youth of India that is so ambitious. But who is an investment banker? What do the prestigious investment banking firms in India do? An investment baker is a person who in simple words helps their clients who are usually a bank or a financial firm, to invest their money and guide them to such an investment that they get maximum possible returns. However, fascinating this job may sound, it is very risky and full of responsibility too, since it comes with dealing with debt, holding stocks and bonds, mediating mergers and acquisitions and so on.

But even after so many inhibitions put forward, a huge chunk of youth population today is inclining towards joining asset management firms. Why so? Due to many reasons. The money that they get, not just the regular salary, but the incentives that they get are huge, which helps them in their personal and professional growth. This is a kind of job that keeps you on your toes all the time, regarding the current trends in the industries, its ups and downs etc. You must make sure that you are constantly updated by all the news regarding your field, hence providing you a wide scope for learning which is very valuable to anybody’s career. Doing this job can even open doors to entrepreneurship, wealth management and venture capital, eventually.

But does this require a specific qualification? Well most people do say that you need a degree in finance, but what you mostly need is the understanding for numbers and the zeal to learn. You could be from any field like arts, commerce or science and you can still opt for investment banking, as far as you have base of subjects like economics and mathematics, the soul of banking. When it comes to getting degree of the higher notch, you may need to have a degree (typically an MBA) with finance as your specialization. There are some institutes that also provide post graduate diplomas and certification courses and conduct workshops for investment banking. Some of the top colleges for courses of investment banking ate Chartered Financial Analysts of India University and Symbiosis School of Banking Management to working in top asset management companies in India.

Credit Management Firms and Role of Other Finance Institutions in India

Even the top asset management companies in India would vouch for the fact, that early investment decisions are always in the best interest of the firm or an individual. We do not know how the markets and the economy will fluctuate tomorrow. Which is why, having a sound financial backup can act as a cushion in times of financial crisis due to whatever reason it might be. There are various ways in which someone can seek to manage their finances. This could be with the help of asset management or it could be through wealth management. Asset management mainly involves investment in stocks, bonds, shares, land and property. The returns you get are monetary here. Whereas in wealth management, it deals more with the management of the wealth you may possess. As they say, it is not about how rich a person is, it is about how wealthy someone is.

Wealth is not defined just through monetary gains, but also by how much credible a person is. What is their financial status and weather they can take risks or not? Most of the times, a person who world in the credit management team, deals with analyzing the credit worthiness of an individual in case of loan application and further documentation. He or she is hired by that credit institution to monitor or recover the credit whenever it is due. If the profile of the person is clear and has a good credit score, then they are said to be eligible for any kind of loans or waivers. If not, then there could be problems pertaining to profile. If you are an individual looking to expand your business, or if you want to manage your profile and wealth, you can as well approach a wealth or asset management firm, who will help you with all the further process. 

The Rise of Investment Banking Companies in India Over the Years

Investment banking is a huge sector in today’s India. Some of the major investment banking companies in India we know are Axis Bank, Axis Capital, Central Bank of India, Centrum Capital, Chartered Finance Management Ltd., HDFC Bank ltd. Etc. But where did this journey of Invest banking system start in India? For this, we need to trace back to the time when the European merchant banks had first established houses of trading in the Indian subcontinent in the 19^th century. Since then, when it comes to foreign banks, they are the once to have dominated the investment and merchant activities in the country.

It was only in the 1970s that the State Bank of India (SBI) entered the business. It created the Bureau of Merchant Banking, and ICICI Securities, which made it the first Indian financial institution that offered banking services to merchants. A decade later, in around 1980m the number of merchant banks rose to more than 30. This growth then rapidly expanded to commercial banks and many other financial institutions.

However, you would be surprised to know that the merchant banking industry only took off in the 90’s when around 1500 merchant bankers registered with Securities and Exchange Board of India which we popularly know as SEBI. But a system was going to be required to put this new wave of banks that had opened up in governed space. Therefore, the Association of Investment Bankers of India (AIBI) was created. Its duty was to ensure that the members followed follow the rules and banking regulation and their activities are kept in check.

Today, investment banking has become a big source of finance in the country. It deals with many things, from hedge funds, to guiding clients to invest wisely and risk bearing as well. You could look for the list of the ace investment banks in the country.

How is a Hedge Fund Different from Asset Management?

One of the major functions of wealth management firms is not just to help their customer manage their funds and help them decide where to invest how much, but to also help them by providing various other services. They provide you with asset management and provide you guidance when it comes to dealing with credit management and hedge fund. However, it is important to know that there is a vast difference between the two. Let’s explore that today.

In asset management, the company usually takes a strategic approach in managing assets, strictly confining to the investment portfolio of their client just to ensure good returns. But when it comes to wealth management, there is a stark difference between the two. For wealth management firms, the goal is not just to get good returns, but also expand the clients’ wealth. Whereas in asset management, asset allocation becomes a serious factor and service. It needs to vibe with how much risk you can take, the time horizon and the needs of liquidity with the firm’s investment strategy. As opposed to asset management, the portfolio consists of a meticulously chosen balance of fixed incomes and high risk, high reward investment. Mutual funds, private equities, bonds, real estate etc. are very common when it comes to investment options. When the market changes or your personal goals shift, these management aspects come into picture.

But what is a hedge fund that we talked about earlier? It is a pool investment that utilize the strategies of high-risk investments, hoping that they get exponentially good returns. They are usually of limited liability companies or partnerships and acquire financial assistance of individuals. These individuals are almost always HNIs. This is because, they have better risk bearing capabilities that the lower level investors.

The head fund managers usually approach potential clients with a specific investment strategy that they think would be the best to gain success from the funds. In order to show that they are separate, hedge funds often profess to have a well thought strategy, however, t has been found that most of the time it is a repeat of the same philosophy.

These head funds usually charge high rates, which is why, even though this pool of investment may seem attractive (no matter how risky it is), it comes with a lot of precautions. If you wonder about the fees about these hedge funds, then they are usually two parts to these, the management fee and the incentive fee.

What to manage your wealth? Be careful about these things first.

Each of us understands the importance of money and wants to get rich. but there is a lot of difference between being just rich and being wealthy. When you have just money, you aren’t investing in assets. But when it comes to wealth management, it means you manage your money in such a way, to increase your net worth of wealth and ensure good returns in future. The basics on investment of any kind is with the expectations that it will bear some sweet fruit of wealth in the future. But for this to happen, it is very important that you are aware of the basic rules that one needs to follow before starting to invest their hard-earned money to achieve their financial goals.

Knowledge about your net worth

To be able to smartly invest in funds and assets, you will first have to analyze the basic assets and liabilities that you hold. This helps you to get a snapshot of your current financial capabilities and your current financial position also. Realization of this reality is very important if you want to be investing your funds properly. In case you are not heading in the right direction, it acts as a mirror.

Spending judiciously

Our forefathers and our parents have always advised us on this. It may sound redundant, but it can’t be truer. If you want to learn the basics of fund management, then this is what you should learn first. Other than the expenditure that must happen, one should not spend all their income of momentary pleasures and entertainment. We do not suggest that you become stingy but be a little cautious while spending on anything that you might not be needed now. Also, start keeping a track of your monthly spending. This will help you track where you happen to spend your money the most.

Why your business needs Corporate Governance and Credit Management

Raising capital can often be daunting. While you may have a certain flair in offering your business solutions to end consumers, the mismanagement of new capital is something that can derail your business plans entirely. This is where corporate governance comes into play.

Companies with multiple stakeholders such as the public, the investors, the board of directors often have in place corporate governance. This takes care of the framework within which a company conducts its business. The board of directors and others vested in the economic growth of the company will often ensure that there are processes in place that maintains an investors faith in the organization. Why is this important? So that the company can continue to raise capital effectively and over longer periods of time.

The other incidental benefits of corporate governance are the fact that there is ultimate transparency in the way a business conducts themselves on a day to day basis, it also omits the wastages, internal and external corruption, reduces the risk of wasting capital and mismanagement of resources.

Another major factor that forms part of corporate governance is the process of credit management. Credit management involves putting in place all those systems that are responsible for granting credit as well as the process of setting the terms on the basis of which it has been granted. It is ensuring that the customers will be paying for the services that they have availed to. It also sets in place the terms on which the credit will be settled as well as the timelines that are to be followed at each step of the process. The main goal of credit management is to comply with the decided credit policy, amongst all the other credit involving processes and procedures.

When you raise more capital, it is always better to ensure that, together with the board of directors and other decision makers, you have a corporate governance system that has been put together for the smooth running of the organization – and for all the capital and credit that has been raised, there is a credit management process in place as well. 

Some Trends Impacting the Future of Investment Banking Companies in India

Before we get to the rise of investment banking, and the subsequent increase in the number of investment banks in India, we need to understand what investment banking really is. Investment banking focuses on creating capital for other organizations, entities, individuals, governments and more. Investment banking companies have seen a sharp rise in income and relevance in India, mainly because of the growing and striving startup culture that has encapsulated the imagination of the entire nation. However, as is with every aspect of a service industry, there are plenty of factors that can have a telling impact on the future, but moreover the present of the investment banking industry. So, is the future of investment banking all rosy or are we going to see a pause in the go-go period?

As we take a deep dive into factors, both internal and external, that may have an impact on the investment banking, it’s paramount to remember that in an industry as dynamic as this, the factors can constantly change. First up, regulations. The regulations of the banking course in India will result in top asset management companies in India having a flourishing period. However, this growth is expected to be temporary, and a lot of it will depend on the financial abilities of the more noteworthy banks. Another wave that has caught the attention of the investors is new infrastructure. Governments believe that, in order to push domestic financial growth, there has to be a heavy investment in infrastructure. Energy-related and real estate infrastructure spending are bound to make a significant impact on the future of investment banking in India, and the world in general. There are a lot of other factors that will have an impact on this industry, but like we said, these factors can constantly change, and so can their degree of impact.