What are hedge funds and how are they different from investment banks?

Time and again we have a heard about hedge funds when it came to investment. Let’s try and understand what hedge funds are and how it is different from an investment bank. Well first of all, the main difference lies in the focus or the main thing that they concentrate on. Hedge fund is an avenue of investment where the pools of investments from the investors is formed and invested in many financial products, by putting risk management techniques to good use. On the other hand, investment banking is a financial institution that provides advising services to different business in order to raise capital and provide credit solutions.

Hedge fund technically uses a lot of varied proprietary strategies and trades or also invests in compound products, which also include unlisted and unlisted derivatives. To put it in simple terms, it is basically a pool of money that takes both long and short positions, sells and buys equities, trade bonds, currencies etc. to generate products at reduced risks. It lives up to its name, by which we mean, the fund in concern tries to put or ‘hedge’ the risk against the volatility of the market by giving alternative investment approaches.

Hedge funds are not available to just anyone. They are made for people who are high net worth individuals and institutional investors too, because it contains high risk. It is, in fact, considered as an alternative investment.

The management style of Hedge funds is quite aggressive since it requires to offer more returns to investors. Also, hedge funds are more open ended, by which we mean that the investors get an advantage of withdrawing capital depending on the net value of the funds. Another important point to remember is that hedge funds are not bounded by any kind of limitations, though they were put under certain regulation frameworks in 2007 and 2008 economic crisis.

What is the importance of knowing the asset company you are hiring before-hand?

If you look at the top asset management companies in India, you will notice that most of them have a specific criterion of choosing the clients that they world with. To be able to hire a specific asset management company, you need to give them a good business or you need to be able to invest a huge amount of money in the assets that they suggest. Asset management companies deal with not just investing in different kinds of assets, but also in things that come after it. For example, asset management companies take care of whether or not the asset is performing well. If not, then they either advise their investor to withdraw their money or they do it on their own if they have the authority to do so. They also introduce different types of funds to their investors such as the long short funds in India. The job of choosing the right kind of fund totally depends upon the asset manager. The investor is not expected to have knowledge about the functioning of all the funds all the time. When you go to choose an asset management company in India or anywhere in the world, make sure you do a good enough back ground check on them to make sure that they are liable and trustworthy and that they deliver what they promise. This is huge amount of money that we are talking about and hence, there is no harm in finding our information about them on your own. It is also necessary to know if you are trusting the right people. If they have a website, check out the services that they provide. If not, you could find out more through grapevine. The top asset management companies in India do not really require a background check, but you can surely check their performance in the same.

The emerging concept of ESG funds in India

ESG funds in India is still a newer concept and slowly catching up with the investment banks, wealth management firms and the investors as well. But what exactly are ESG funds? ESG funds are those funds that let the investors judge the corporations or business that they may want to invest in on the basis of the performance of the corporations and also on how they deal with environmental, social and governance issues or how they address them. ESG funds India, although a newer concept is slowly making its way into the world of finance. ESG funds are especially important for bigger corporations that have a big employee size and a chain of clients. Also, when you explore deeper, you will see what the significance of each of these factors of governance, social and environmental ones is. In the environmental perspective, the investors like to see what the firm does to contribute to the conservation and the sustenance of the environment. For example, if the business deals with a lot of chemicals, then it is ascertained what the company does to dispose of the chemical waste. Or how much they contribute to the goodness of the environment, or whether or not what they do directly affect the eco-system directly or not. The social factors look into the checking the relation that the business has with the suppliers, traders and most importantly, how happy their employees are with the company they are working for. And lastly, the governance factor, the potential investors would like to know if the company follows reliable and transparent accounting practices and methods and also whether or not the shareholders are given a chance and a say in voting on important issues. Here, they also see how they deal with major conflict of interests withing the firm and their business.

The importance of investment banking companies in India

Investment banking is a concept that is not very new to the Indian subcontinent. Investment banking is in fact one of the fastest growing industries in the market. But what do these investment banking companies in India and across the world actually do that makes them so important? Let’s find out today. The investment banking firms in India are majorly located in the tier 1 cities of the country such as Mumbai, Delhi, Bangalore, and Hyderabad which are the major ones. The major ones are however located at the financial capital of India and that is, Mumbai. The investment banks that these cities boast about are actually a link between the investors, and big size enterprises. One of the key roles that go without any doubt is that these investment banking companies in India and around the world advice big enterprises and government corporations on how to meet their financial needs and goals in the stipulated time. They also advise and guide them towards procuring enough funds from the companies. Let’s face it, for any organization it is a little tedious task to raise capital and funds. This is when the investment banks come into the picture. A good investment bank actually helps an organisation or a business sell the shares of the company. How do they do that? They determine the better price for the shares using sophisticated financial models. The major things and major points that are looked at is the potential of earning by the share, the strength of the management team. Investment banks also play a major role in advising people in mergers and acquisitions as well, by giving them a clear picture of whether or not the said organization or business is worth investing or not. They carefully scrutinize the offer before letting their client invest in it.

The real challenge of hiring asset management companies in India

Some of the top asset management companies in India, right now, will bank on the fact that post COVID-19 has left the world of finance and economy in shambles in most of the countries. With the number of people that have lost jobs, it has become increasingly difficult to revive the world of asset management the way it had earlier. Asset management is one of the main aspects of any business. not just for business, asset management is very important when it comes to individual finance as well. Assets are commodities that only add to the value of your wealth and appreciate as the time goes by. These are commodities that make your wealth base and capital stronger and also make you capable of taking decisions regarding expansion. There are different kinds of funds that your fund manager may advice you to invest into. Such as, mutual funds, long short fund, the ESG funds and so on. It is important to note that once you get on the journey to increase and expand your business, you are going to have to dive into it with a lot of research. It is not always important or extremely necessary to hire the top asset management companies in India, but be sure of the firm that you hire since you will be handing them your money. Also, you will also be giving your financial details and background to the asset manager who gets assigned to you. Therefore, it is extremely important that you be careful and do a little background check of the investment or asset management company that you want to hire. For this, you can visit the website, or check out their performance for the previous clients as well. This way, you will be able to decipher whether to hire them or not.

Why you should seek external investment guidance for your business

One of the key learnings to understand from wealth management is that it is a slow process. You are not going to get results immediately when you talk about building wealth. It is a step by step process that gives you a chance to cumulatively reap the benefits in the long run. Wealth management requires strategy and vision on part of the wealth manager. A good wealth manager will be the one who takes into account all factors that make a difference regarding the growth of the client’s wealth and then placing their decisions about their client’s investment strategically.

There are many well-known asset management companies in India that work towards providing their clients a wholesome service regarding their investments. Seeking guidance of an asset management company is really important especially if you are a business owner and want your business to grow. Also, noting the fact that not all business owners are going to be savvy with investment decisions and hiring an external help would actually seem like a smart choice too.

Wealth management is something that is better started early. It lowers the burden of having to reach any specific investment goal of finance for the business in short time and also gives ample amount of planning time. The wealth manager will also have to make sure that he or she explains to the investors the pros and cons of investing in a specific type of asset. For example, although property is the least risky type of asset to invest into, it will take a lot of time for its value to appreciate and the ultimately good returns. Similarly, if you are investing in mutual funds, they will give you quick returns but the risk in investing into these kinds of assets is too high. Therefore, your asset manager should be able to create a good balance between the two.

How businesses need to keep up with trends!

ESG funds in India is a relatively newer concept when compared to other kinds of funds. ESG funds are those that set a benchmark for the investors and also for the companies who are taking the investment. This benchmark is in terms of the quality they are bringing to the table with regards to their contribution to the environment, their relationship with the suppliers and also their conduct in terms of the governance and adherence to government rules, laws and restrictions. Here, we also talk of the ethics that they are bring with them self in the way they carry out business.

As the world around is evolving, be it in financial aspects, or anything else, it is becoming a little more complex for the newer businesses to keep up with the ongoing trends in the financial markets. For this, it becomes necessary for them to hire some financial advisory services, that will help them and guide them through the entire journey of making profits, building assets, raising capital and taking care of liabilities that they might have on them. Therefore, a proper asset management or wealth management firm will take note of the financial goals that the business owner has, and work towards protecting and growing the assets and the business for them over the set period of time.

As a business owner, it is always a good idea to have a future plan ready. This plan helps you take decisions in present in a simpler manner than before. However, make sure that the company you are hiring it worthy of it/ although you cannot always be 100 percent sure about the ultimate results that you will get, but checking our reviews of their present customers of checking out how is worked out for their customers, both present and past, helps.

What are the newly emerging ESG funds?

ESG funds is comparatively a newer concept in India. These funds are known to be as though a benchmark for investors potential or existing ones to judge whether the said company deals in any kind of business or whether or not it takes measures to contribute to the betterment of the environment, how they treat their employees, what their relationship with their suppliers are and moreover, if they carry our business in the most legal manner. It is also necessary to understand that although ESG funds are a part of fund management, it is a specialized concept in itself.

Another reason that businesses, especially the growing ones will need to inform themselves about the concepts of ESG funds so that when the time comes, they aren’t caught totally off guard. This concept of the ESG funds is also being applied to figure out the possibility of material risks and any growth opportunities.

ESG, which stands for environmental, social and governance funds is also alternatively known as socially responsible investing or sustainable investing. In the environmental factors, the ones that are covered usually deal with scrutinizing air emissions and air quality or energy usage and conservation. Plus, there is also the land use and use of natural resources, assessing waste management and quality of water, and also gauging whether or not in making the product, there is usage of any hazardous materials.

In the social factors, as said earlier, the relationship with employees, suppliers, clients and communities are judged. Here they see if the labour standards are met and followed, production quality and safety is taken care of and there are equal employment opportunities provided at the job.

In the governance bit, shareholder rights, risk controls, and company leadership is assessed. While investing in any business, the company judged if there are ethical business practices, proper voting rights in place for the shareholders, and independence of board and diversity in it.

What are long-only funds?

Until a couple of months ago, the overall aspects of growth in terms of the economy and the capital markets were quite high, until the COVID-19 hit the economy world wide and the markets came crashing. Back then, it was clear that the investments in stock market could go through many frequent ups and downs, turning sharply in some major sectors too. This lesson remains valid even right now, with the economy slowly opening up. The long short funds in India or anywhere else in the world are actually and alternative to the investing.

The usual investment philosophies that were deemed to be a sure shot method of gaining returns did miss many targets that were set. So, what could risk takers do in such a situation? Well, they chose the long-short style of alternative investing.

With investments in the long short funds in India or anywhere else in the world, is the biggest strategy in hedge funds and 3^rd category of the AIF, that is, the Alternative Investment Fund. With the help of this strategy, the fund or asset manager expects to participate in and profits with the rise and fall we see in some stocks. In this long-only funds strategy, the said fund or the asset manager chooses to either take a buy position or goes long in the stocks we referred to before, that he or she thinks has the potential to go, and sells or goes short on stocks, without actually having the delivery in stocks which are high-priced with sole same of making a profit. It is important to remember that the asset managers can take the wrong decision and go in the wrong direction of the strategy or sometimes even while selecting the stock which can cause losses. Strategies like these can form a part of the process of asset allocations of the portfolio of investment on the basis of the volatility and concentration of risk in the funds.

Why do you need an asset management company?

Which asset management company to choose is the biggest question when we have to choose the financial advisory services for our business. When you set up a business, you first do it with the intention of not just earning profits, but to have a steady growth along the way. While the initial capital needed might be put in through investors, eventually, you have to start earning profits for your business. The profits that you get is the money that is left once you have paid your employees, suppliers, dividends to the investors, and the rent (if applicable). This profit you have can be put to either of the two uses. Initially, it has to be about managing the business and putting it to use for the betterment of the business. Second option is to be put in for investment, to secure the functioning of your business, so that you have something known as the back up capital.

To strategically raise this capital, it is important that you hire some great financial advisory services. These services help you understand the journey for your business ahead in terms of the finances. When you meet an asset or a wealth manager, your profile is judged on the basis of the goals that you want to achieve for your business in the future. Your present margin of profits and tentative growth is then analyzed. Having a back up capital is very important for any business, especially since it could be required during the time of expansion, or if and when the business goes into any crisis. The backup capital is what will save the business from falling and will keep it floating, at least sufficient enough to keep the business running well.

Therefore, this is house a company that deals in financial advising helps their customers become self sufficient in times of crisis.

What are the ESG funds?

What do you recognize about the ESG funds in India? ESG funds is a comparatively newer concept in India and also to a certain extent around the world. ESG stands for Environmental Social and Governance funds. These funds are like a measuring stick that help the potential and current investors to get a better understanding about the company’s contribution towards the betterment of factors involved in each of these funds. For example, when it comes to dealing with the environment factors, we talking about the company’s position in taking care at the sustainable growth, keeping the environment norms in mind. If it is a factory owned business, then there needs to be an estimate of the emission being generated from the factory, the usage of the resources that are used in order to make the produce and also a detailed account of what happens to the leftover resources later. Are the recycled or reused? If it is a total corporate sector business, then the maintenance of the premise towards creating a better nature experience and so on. Similarly, for the social part of the ESG funds, it is closely scrutinized how happy the employees and the staff that works for the company is, what and how the relationship between the company and the suppliers is and so on. Lastly, as pointed out to be one of the most important factors by the asset management firms is governance. This aspect deals with all the law-abiding activities that are carried out by the business. They see whether the tax and credit score are good, whether or not there are any discrepancies, and everything that is done in the business is done keeping all the lawful rules and regulations in mind, adhering to every rule. For more information, you could ask your wealth or asset management company.

Why is fund management so important?

What is fund management and why is it important that you work on your fund management for yourself and your business (if any)? In simple terms, as the name suggests, fund management is the process of actually managing the present funds that are available to us and working towards making these funds stronger. Which means, fund management is a process of taking into account whatever funds you currently have and working on a plan that is chalked out to get higher returns in near future. It is also important to not forget that fund management is a part of wealth management ultimately. In wealth management, the company or the wealth manager (if operating independently) scrutinizes your entire profile, to gauge the number of assets and the number of liabilities that you have. Along with that they also question you about the goals that you have for your business in future and what the financial goals are. They also figure what you risk taking capabilities are, financially, and then decide where to actually put in the money so that you there is some kind of security maintained along the way. When it comes to fund management, one also needs to understand that it is not a process that will give you the fruits only in a few months. It is something that will take time. The wealth manager ensures that your money is invested in different kinds of assets and funds so that if one of the asset values falls, in one type of asset, then there is no harm done to the other asset type. In fact, it is a huge red flag if your wealth management company does not follow this basic principle. A good wealth manager will have a close eye on the movements of all funds and invest your money in those funds accordingly.

Why are asset management companies important for a business?

 

When it comes to the top asset management companies in India, what is the first thing that comes to your mind regarding what goes on behind the shiny glass doors in their offices? Well, a typical asset management company has a lot of functions to play when it comes to guiding their clients towards achieving their business financial goals. In asset management, the company helps the said business to make a pool of funds and then invest accordingly, in order to gain maximum profits on these returns. A wise asset manager would know that the money which is to be invested should be invested diversely. Which means that the money that the investor is ready to invest can be invested in different kinds of assets (volatile and non-volatile assets). Volatile assets are those assets whose value changes drastically over a few days’ time. These kinds of assets have the power to gain you immense profit in little amount of time and also has chances that it may go down. For this reason, it is important that the asset manager invests the money into stationery assets as well. These assets are those that gain its value over a certain period of time. When it comes to selling these assets, it could fetch you a neat value over certain periods. Some common examples that come in volatile assets or current assets are shares and stocks where are those for fixed assets are property, bonds, and land. In recent years, ESG funds in India have become very popular. These funds let the potential investors of a business know how much dedicated a business is in contributing towards the betterment of the environment, keeping the relationship proper with the employees and suppliers, catering to their needs and also, whether or not they are working while abiding the laws of the government.

What are the duties of investment banking companies towards clients?

 

When you look to hire any of the investment banking companies in the city or in the country, it is important that your company meets specific requirements of funds and assets. When it comes to investment banking companies, they provide services that help your company’s investments grow by helping you raise venture capital to further expand your business. The role of investment banking companies is not limited to just this. In fact, they also deal with hedge funds, mergers and acquisitions, shareholdings, underwriting and moreover, making sure that you have sufficient amounts of funds in the business to keep running. Investment bankers also work towards bringing you the opportunities to invest in some businesses that have great potential to grow. They help their esteemed clients sell equities in the company and issue debt in order to raise capital. It is very important to establish a solid relation between the client and the bank, since both work in a synergy where they both need each other to benefit from each other. Investment banking companies also come into the picture when there is some conflict of interest between two parties of the mergers. Along with this, recognizing new opportunities for their clients, convincing them to invest in them by carefully weighing the pros and cons, making good financial models that will be beneficial to the clients, and forming a negotiation of funds in various deals is also a responsibility that the investment bankers have to take. The investment banker who works with these high-end clients needs to have a thorough analytical skill, an eye for detail and most importantly, the ability to gauge the current market trends and accordingly seize the opportunity for their client to invest in. This art of accurately predicting how the market trends would turn is something that takes many years and experience to master.

Role of asset management firms in business growth

When it comes to choosing the right firm from the set of brilliant asset management firms, for the company, it does seem like a tedious task to do. You first of all need to shortlist the ones that actually have good reviews in the market and also maybe meet with a set of asset managers from the different asset management firms to be sure which one would suit the business the best. The role of an asset management firm is very crucial to any business and for personal finance as well. an asset manager is the key player who guides the investor’s finances towards growth and achieving the goals that have been set.

To get a good understanding about the goals that the investor has for himself or herself, the asset manager first does an elaborate discussion with the investor, analyzing their current assets, debts, and risk-taking capabilities. Based on this it is ascertained how much of money is needed to be invested by the investor or the client in order to reach the financial goal set for themselves and how much of leap of faith will they have to take for bigger expansions.

Asset management firms deal in assets that are fixed and variable, tangible and intangible. Fixed and tangible assets are those that do not change in value over few months and only appreciate in value if they are to be sold in the future. Property, gold bonds are some example for the same. Variable and intangible assets are those that keep changing in value, are a little risky but highly liquid when it comes to selling those. Long short fund, mutual funds, stocks and shares are some of the examples.

A talented and knowledgeable asset manager knows that the wisest thing to do it to advice in investing in combination in both types. 

What is investment banking and wealth management?

Investment banking is that process or part of the banking operations that helps high net-worth individuals and corporations raise capital and involves providing good guidance and consultancy in financial matters to them. The investment bankers are individuals who act as the mediators and intermediate link between the issuers of security and the investors. They play a huge part in the growth of a business and helps the firms go public too. They do one of the two things. The either sell shares on behalf of the person who has issued the shares and take commission on each of the share or the buy shares that are available at the assessed price and then resell these to the public. In short, investment banks are a major influence in the growth of a business. The investment banker needs to posses a quick-thinking temperament so that he or she can make instant decisions in times of high fluctuations in the market. Their main functions include, underwriting, providing key advice in big firm decisions, and helping in distribution of new issues to investors.

Just like investment banking, wealth management too plays a key role in the grow and nurturing of a business. In simple terms, wealth management is that branch of finance, that takes into consideration the client’s goals and requirements in the long term and chalk out a plan or strategize a pathway, tailormade that will lead the investor or the business in question to the path of progress.

Hiring a good wealth management firm or a good manager can take some time. It could some time need you work on a little trial and error too. A wealth manager can affect the growth of a business and a firm in a pretty huge manner. Therefore, make sure that you choose your wealth management firm carefully after putting in a good amount of research.

What do fund management companies do?

 

When it comes to finance companies in India, there are a lot of terms that we connect to them. Debt, equity, wealth, asset, shares, stocks, investment, hedge funds and so on. But what exactly do these finance companies in India do? Well, different firms deal in different services. While some finance companies provide just asset and fund management services, while others provide investment banking or some are those that provide all of the three. The fund management firm that a customer chooses has the power of really changing your financial portfolio totally. Which means that they can either make it or break it.

Therefore, taking sound decisions regarding what kind of wealth management or asset management firm to choose, is very important. The asset manager that is assigned to you by the finance company then studies your entire current financial portfolio in detail. They calculate your current asset and liabilities, what type of risk your current income can take, and with that, he or she also determined how much you need to invest before you retire. They also take care of the kind of insurance you should be taking. In short, they help you plan your retirement in a way.

But how these asset and fund management firms earn? Well, for every profit that you make, they have a fixed percentage of commission on it. This way, they will also be more motivated to carry out your investment journey smoothly. A good fund manager needs to have a sharp eye for at the on going market trends. He or she needs to be able to predict what the future of their client’s current investment can be. In case they sense some kind of loss in the funds, then they need to immediately take out the funds on behalf of their customers. Vice versa, if they accurately predict that a particular fund might do well, they can direct their customer’s money there.

Why is it important to choose your wealth management firm wisely?

Wealth management is a term that is used very frequently. I am sure you must have heard about wealth management from ample sources such as board-meetings, finance and trade articles and of course, through financial advisors. Yet, the real definition of wealth management, in a way, does remain a little ambiguous. Reason? Because wealth management is viewed differently by different people, depending on which end they stand. For an investor seeking advice from the one of the topmost wealth management firms, wealth management is the process of enhancing or tackling their own or their business’s financial situation. Whereas from the point of view of a wealth manager or financial advisor, wealth management is the ability of herself/himself or their team to provide a wide range of financial services to their affluent customers, willing to invest in assets that will help them upscale their wealth through their consultation.

The role and responsibility of a wealth manager has many folds to it. It is not limited to just advising their clients on financial services and products available. They have a huge responsibility of directing the funds of their clients in the right direction, managing their client’s investments in this way. Plus, they also equip their clients by providing them credit solutions, which is important in running a business with high credibility. In addition to this, the wealth management firms also provide tax and estate planning service to their customers.

Wealth managers play a very important role in the client’s journey to enhancing their client’s wealth strength and financial portfolio. A competent and a dedicated wealth manager has the ability to turn around the face of a business or someone’s personal financial portfolio through rightly timed decisions by recognizing the underlying opportunities of various financial products. To put it in simple terms, the wealth manager has the ability to make or break and person’s financial portfolio. Hence, it is important that they are chosen wisely.  

Role of investment banking and ESG funds in India

Investment banking is a term we are all familiar with. From time to time, we must have read this term in the newspapers, heard on news channels or simply must have heard on some TV show. But what exactly is investment banking? Investment banking, in simple terms is the process of raising funds and capital for clients that can either be big corporates or government sector institutions, and some other entities too. Their primary functions include aiding their clients in underwriting new debt, selling securities and also help in facilitating mergers and acquisitions. Along with this, they are also involved in reorganizations for private sector investors and some institutions as well. Another very important function of the investment banks is helping and guiding firms (the bigger ones) with investment in ESG funds in India, or wherever they might be. ESG funds are the kind of funds that tells potential investors about a company’s position and credibility through their investments in environmental, social and governance factors. The major focus is on those businesses that resort to having environment-friendly conduct, deliver services or products that have a positive impact on the society and give a great importance to ethical business conduct.

So why exactly is ESG funds in India or anywhere else important today? To put it in simpler words, it is a belief that companies would invest in ESG only when there is some pressure from bigger and larger investors, who have the power to hold them accountable for their environmental, social and governance ethics. Plus, we cannot rule out the fact that in today’s world, any business that could potentially harm the climate, societal beliefs, and governance conduct can be a greater risk for any business and hence, the investors too. Those companies that follow the ESG guidelines and norm are always in safe zone in terms of losses with reference to the above-mentioned factors.

What functions do investment banking firms perform?

At some or the other time, we have all heard about investment banking. But what does investment banking really mean? We shall find out today. Investment banking is that branch of banking operations that provides aid to organizations and even individuals in order to raise capital. Along with that, the investment banker appointed also provides them with detailed financial consultancy as well.

As a field in the banking universe, investment banking is known to be as one of the most complicated financial systems. Be it investment banking firms in India or anywhere in the world, all these firms provide a wide array of service. Their role in helping their clients is in more than one way. Along with that, the type of clients they deal with are also different. Investment banking firms provide services such as trading securities or proprietary, assisting and overlooking mergers and acquisitions that they clients might be dealing with (usually work as advisory), lend money to firm in need so as to enable them in purchasing assets and also settle some liabilities, help businesses in restructuring making them more business efficient and ultimately, helping businesses or their individual clients make more profit. They also help private businesses in going public.

Most investment banks also provide the wealth management service. Wealth management in this century has become a wholesome concept, where it is no more about investing money in assets that were deemed to be safe earlier such as fixed deposits or property. While property is still one of the most valuable of assets, it does not provide liquidity. When investing your money to gain profits, it is important that the money is divided across different kinds of assets, those who have good liquidity and others that are stable. Risk factors also need to be taken into consideration on the above two types.

Why choosing a good asset management company is important?

If you consult with any of the top asset management companies in India today, you are bound to here many stories of investors’ panic selling when the market goes down and also of those investors that kept their patience at the time of crisis, did not sell their shares which also formed a major part of their assets, and reaped high benefits over a period of time. The difference between these types of investors is not just about their patience, but also the type of guidance that they have been receiving from their asset or wealth manager. Time and again, it has been said that market being down is an opportunity for investors to invest more (as the shares are cheaper) so that they can enjoy the gains at a later stage. However, unfortunately, some wealth managers fail to make their clients, the investors, understand this. Ultimately, the investor looses out on the profits that he or she would have gained only if they would have been guided and explained the meaning of remaining steady, properly. This brings us to the main point of this blog, the importance of having a good wealth manager. A wealth manager is not someone who you just hire so that they manage your wealth for you and ultimately give you good fruits. A wealth manager is more than just your wealth guide. For a wealth manager to churn our good results for your wealth, you need to trust them. But all this comes only after verifying that the wealth manager has produced good results for other clients in the past. Be it about long short funds in India, different types of mutual funds or any other financial portfolios, the wealth manager should explain the investors benefits and cons of each type of investment and lead them to a better progress and profit.

The role of an asset management company in brief

While both investment banking and asset management are important for the financial growth of a firm and of any business, both these verticals have some key differences. We shall be exploring the same today, although stressing more on the functions of any asset management company. One of the major functions of the asset management companies is that they become an intermediate not just for individual clients and households, government or big business firms. But they also help other categories, more specifically insurance companies and pension funds. As the financial companies or institutions that direct or influence the decisions for investors who choose to get professional help in managing their clients, the asset management company becomes an important buy side institution type.

Another major function of the asset management company is allocation of funds and assets. The mutual funds that everybody talk about comes with a specific aim in the financial terms, which would help the asset manager (on behalf of the client) to decide by shortlisting the best assets to invest in in terms of the returns they are known to give. They are so many funds that are debt oriented that do not put any more than twenty percent of assets in any inequities of undermanagement. A fund that is balanced, could invest 60 percent of asset inequities. This forms one of the crucial decisions that an asset manager you hire needs to make. On the other hand, when it comes to investment banking, the investment banking companies focus on raising capital or finance for their clients, who may be individual, governmental, large sized private firms or so on.

Asset management also involves a lot of R&A, that is, Research and Analysis. The asset manager needs to carefully study and analyse the current market situation, micro plus macro-economic aspects and even the performance of various funds that they advise their clients to invest in.

What is credit management and how does it help a business?

Credit management is a very old concept in the financial history. Its literal definition means a process or a function that puts together, a company’s activities and aims at making sure that the customers in reference pay their respective invoices within the said terms and conditions. Basically, it is a way of granting credit, plus making sure that the said payment is collected as an when an invoice is due. A credit management that is reliable and good is often the one that encourages a dialogue between the sales and finance teams in order to strike a balance between minimalised risk and maximised opportunities. It is a very common practice amongst businesses that deal with other businesses to have trade on credit, not just for the convenience attached to it, but also because it is broadly accepted that offering credit is necessary for building good businesses relationships and at the same time, developing new ones. Most businesses state that having trade of credit is more convenient.

You could hire a professional financial service provider, who would look into hedge funds, your credit management, asset management and wealth management too. From the above stated discussion, it is clear that trade credit is a very important business too. to customers, companies allowing a payment window of 30 days after delivery are more attractive than those who demand on the spot payment. However, the businesses should remember that more the number of days given of extended credit, greater is the risk of non-payment, which could actually prove a tough sport between the growth and downfall of a business, if the payment doesn’t occur on time. therefore, it is very necessary that the business finds a good balance on the extended credit period and function accordingly. They should not get into risks by the mere purpose of looking attractive to customers.

How do asset management firms guide a business in investment?

Every growing company at some or the other time in their journey need financial advisory services. These financial services help them navigate through their journey of investment, tackling liabilities, acquiring new businesses and so on. You can hire these services basis the size of your company, and your business. For example, a mid-sized firm or an MSME might not be able to hire the top most financial company. 

However, on doing a good research and gathering reviews, you might be able to find out some good and decent firms. If growing your assets is what you are looking for specifically, then you can go to hire one of the best asset management firms as per your business requirements. The firm will then assign an asset manager to you, who will be responsible for guiding you through further investments as well. They do a thorough study of your financial portfolio, figure your current state of assets, liabilities and credit. 

Then, they enquire of you the goals that you have set for the coming years. Once all this is done, they then help to chalk out a very reasonable plan for your business’s financial journey ahead, especially the investments that are to become assets in near future. Some assets are tangible (which can be seen and felt) and others are intangible (one that is only seen on paper in numbers). The investments that an asset manager does on your behalf could be a combination of these two types of assets. These assets could be either long term or short term assets. Long term assets reap benefits after a couple of months or years. The short term assets such as stocks and shares show us results in just a few days or so. Therefore, assets can be of various types. What matters is how they are well invested and what they get for your business.

What next for your business after the pandemic?

Credit management is a subject that has been doing many rounds lately. The global pandemic of COVID-19 has made it very difficult for even the top asset management and investment banking companies in India and all over the world to actual carry out their day to day operations. Plus, with every industry currently only seeing a downfall in their profits and their earnings as well, the world is bracing itself for the tough recession that is going to follow. It has also become very crucial for investors to keep their spending and investment limited, so that there is no further damage done to their business. When the lockdown around the world lifts at a gradual pace, we are going to witness the slow emergence of the world economies and how they cope up from the hit and blow that hit them. Investment too, is going to see a dry state in most industries for a very long time. So, what can you do, as a business owner to be ready to face what is coming? Firstly, having faith in the business is very important. You might even have to take some tough decisions for the sake of your business but remember that it is all going to be to keep your firm running. Secondly, start venturing out of your business’s comfort zone, once your profits become steady, so that, if at all in future, go forbid, such a situation arises, you are ready to face it. This means that you need to increase your backbone, investment in your assets and also invest smartly in other businesses. You may hire an asset management firm that will help you in this venture. An asset management company would also help you to navigate through all the investment decisions you plan on taking and advice you on what would be more profitable for your business.

What role is asset management playing in keeping businesses afloat?

Even the top asset management companies in India cannot provide a solution to you, if you do not seek to invest your money in a responsible way. For the flourishing of your business, you cannot rely on just liquid savings that are dying to come out from your bank account. You will have to cautiously invest that money into something more meaningful that will give you the benefits in future. We are talking about investing in assets. An asset is a priced possession that can be redeemed or lied back on in worst case scenarios for the business. If you consider the current situation of COVID-19, you will notice that most business all over the world are going to take a hit in their earnings for a pretty long time. This in turn is going to affect their long-term savings as well. But on the contrary, those businesses that were far sighted for any such kind of business calamity to arise, had already planned their investments in assets. These assets can prove to be life jacket, if not a life boat to the business that’s just going down. Bigger businesses too are taking great hits and these hits are in hundreds and thousands of crores. Naturally, the focus on ESG funds in India and around the world would be shaken right now. However, the companies should as a moral obligation and duty, not forget about it. ESG funds are the Environmental, Social and Government funds, that help a business gain credibility and gives the investors a peek into how the business is being carried out, whether or not ethics are being followed and if it would be fruitful for them to invest in the business now. Although the top most asset management companies require their clients to bring in big business, there are other companies that deal with midsized businesses too.

Investment in mutual funds

We have all heard about mutual funds some or the other time. we were either taught about it in our economic class, got call from a bank’s call centre to invest in them, read about it in the newspaper and some magazines, heard it as a radio jingle or watched it on TV with the usual “Mutual funds are subject to market risks…”.  But what exactly are these funds that people keep talking about? Are there any other funds that are available to the business to invest in? let’s find out today.

First of all, mutual funds are no second to assets. How much money you invest in the mutual fund depends completely on you. It is like a pool of money from many investors (small to big sized) which is invested in some fluctuating market players like shares, bonds and securities, money market instruments and so on. This is not just a single fund in itself. There are seven different types of mutual funds too which are available. 

Long short fund is also one of the rest. Others include equity funds, money market funds, fixed income funds, index funds, balanced funds, and speciality funds.

For businesses, there are ESG funds, that a business invests into, for better functioning of their staff, establish strong relations with the buyers and suppliers, and also to ascertain investors or potential investors that every transaction that is being carried out in the business is only through ethical means.

In the long run, funds become a huge asset for any individual or a company that owns a business. Although their value hugely depends on the status of the market. For example, due to COVID-19, most businesses are seeing their shares to be down, as a result, the current valuation of mutual funds isn’t that great a picture. But eventually, when markets start to rise, this picture will slowly change and show benefits too.

What after COVID-19?

The investment banking companies in India and all around the world are facing a large problem of COVD-19. The pandemic has hit not just the health care around the world but has largely affected the economy around the world. Countries having to take loans from the International Monetary Funds as an extra aid to the health care facilities and to keep the economy floating for a bit. With tons of businesses in lockdown, most people aren’t even getting paid. There is no cash flowing in the economies. In such a scenario, there can’t be any focus on ESG funds in India or anywhere else in the world. 

Once the lockdown if lifted gradually, it is going to be a great uphill task for investment banking companies to get their client’s business back on track. For a long time, there won’t really be mergers or acquisitions, since most businesses (if the giant ones), would be looking to sustain themselves and get most out of their present human resource. With such great recession foreseen in near future, the investment banking companies are going to have to find new ways of actually helping their clients in getting through these financially tough times. A pandemic that the world did not see the decades, has hit business corporations all around the world. A lot of industries are going to be vastly affected in the near future. Industries such as travel and tourism, hotel, entertainment are going to be some of the worst hit. With people reluctant to travel and go anywhere out, it is going to be extremely difficult and a long journey towards normalising all of the above once again. In such times, the businesses and the business owners will have to keep a lot of patience and brace themselves for the blow that is bound to come their way.

Your role as a client to asset management companies

In what way does an asset management company help their client in strengthening and expanding their financial portfolio. As the name suggested, an asset management company helps the client in achieving their financial goals over a period of time. To hire asset management companies, the company needs to meet certain fund expectations first. There is no restriction on the size of the firm, but definitely a bar for the amount of money that should be invested in it. This could involve existing property, mutual funds, hedge funds, bonds and shares. Anything that fetches money and interest on the same in the long run can be viewed as a potential growth asset. Also, while hiring an asset management company, the business should certainly look for the past records of the firm. 

The client portfolio and their performance would give you an idea on whether you should go ahead with the said company or not. it is also advisable to remember that you give the asset management company some time, before it starts to show you good results. Investment is a tricky business. Returns cannot be expected in a jiffy. Certain amount of patience needs to be maintained from your part as a client or a business owner as well. But this does not mean that you hand in the entire reins to the manager and not keep a check on where the money goes. Although trust plays a huge role in a good client and firm relationship, but keeping y our eyes open and keeping yourself informed about your money’s movement is important too. if you think your business is ready to go for an investment or to expand the boundaries of your investment, then you should definitely go for an asset management company. Having a strong backbone of assets is very important in any kind of business. Markets are volatile and assets give a security.

Investment banking and wealth management in India

When any business flourishes, we see that it looks to expand with all the profits it makes. But before expanding, it is important for the business owner to think of possibilities of good investment. Investments help you garner stability for your business. With the markets fluctuating all the time, we never know when our profits or income flow could see a dip. That is when the savings and investments come into use. 

For big giants in the business, investment banking firms in India provide some great services to expand their horizons of investments in assets. Assets add to the credibility of the business and proves the business’s ability to take care of the liabilities if any. Once this is taken care of, one may also seek help from the wealth management firms in the city. Wealth management firms are different from the typical asset management ones. 

Wealth management firms help the businesses in their day to day activities such as tax payment on the current assets, filing them, taking care of legal assistance. It is majorly for high net worth businesses and individuals. Wealth management is an aspect that makes a business what it is. When your business is assigned as wealth manager, he or she needs to study every bit of your business, which includes an account of assets and liabilities, and the aim of reaching the set goal. 

One needs practice caution while choosing wealth management firms for their businesses, because after all, we are dealing with a huge amount of money on a daily basis, and we of course, do not want to risk that. There is also a necessity for you to do a little background check before hiring. You can gain reviews of study the other clients that the firm might have had in the past and find out their experiences.

How Does an Investment Bank Affect A Business?

For a company to flourish and expand to become one of the biggest enterprises in the country, they need to focus on not just bringing the business in and retaining it, but also on how they are going to manage the profits and the money that they are getting. Investment plays a major role in the growth of any business. With right investment, you get the returns that you have been anticipating and with that, it will lead to growth of your business too. But how do you know, in the corporate world, what kind of investment will fetch your company the profits and the returns that you want to see?

The answer is, through investment banks. Investment banks are financial corporations that help to raise capital for a company with investment from another company, manage long short funds in India and every where else in the world. These investments are done by the investment banker on behalf of their clients, in order to gain maximum benefit from it for them. Investment banking is a sector that needs the investment banker to be agile about all the on goings in the financial market, have an analytical capability and have good decision-making skills.

Investment banking involves a very volatile market. Which means anything can change drastically very quickly. The investment banker should be able to anticipate these changes before they happen and divert the funds of their clients accordingly. ESG funds in India, although a comparatively newer concept, has garnered a lot of attention from the investment bankers and investors across the country. ESG funds basically tell us about how particular business is being handled and whether ethical measures are followed in running the business. So, as a company owner, you must know the deep impact that an investment bank can have on your business.

Role of Investment and Asset Management Firms in Raising Company’s Capital

Every firms, big or small at some point in their journey needs financial advisory services. Now they may do it from a small private firm or they could go for a big sized investment and asset management firm, depending on the size of the business. If yours is a business that is achieving its goals of growth and seems to be doing promising numbers, then the idea of going to a company that is deals with budding entrepreneurs could be a good option. We are not disparaging the performance of small sized firms, but with the bigger ones, you get access to resources that you may not get with the smaller ones.

As your firm grows, financial advice that you will need on is usually on asset and wealth management. Fine management of assets helping in building a good back up of capital. But this investment also needs to be done very wisely. Your asset manager first studies the requirements and goals that you company has in the short term and long term and then decides on what kind of investment combination is suitable for your company to grow. They also take into consideration the liabilities that your company already holds.

For bigger conglomerates and big sized firms, their assigned investment bankers or asset managers too advice on investing in ESG funds in India. ESG funds means the environmental, social and governance funds that helps the investors of the business and stake holders scrutinize a firm and estimate whether investing into the business would be worthy or not. This is done on the basis of their dealings of their staff, relations with their suppliers and service providers and how much ethically and legally they proceed worth their work. ESG funds in a way work to increase the good will of the company and trust of their investors.

What Do Asset Management Firms Do for Their Customers?

If you are a new budding entrepreneur whose business has just started to take off, then you probably need to focus on what kind of investment you are going to make with the profits that your business is making. This investment can be of any kind. Spending money in improving the infrastructure of your business is also a form of investment. Or you could also channel this profit into putting money in funds such ad the long short funds. However, it is advisable for any business owner to hire an investment bank for this purpose.

When you hire any of the investment banking firms in India, you get served with multiple services in finance such as, not just advise on investing your money, but also on how to expand and manage your assets. Many investment banks also perform functions of asset management firms in India. The job of an asset manager is to help their client achieve their financial goals in the time frame mentioned. For this, they first study the entire profile of their client and then make or chalk out a plan to reach there.

The money that the entrepreneur gives the asset manager access to, is invested after deep calculations and understanding. Asset managers are required to have thorough knowledge of every kind of investment opportunities and what gain will it bring their customer. This is called smart investment. Investment where you put in a limited amount of money and manage to get maximum returns out of it. Asset managers then intimate their clients about the gains or losses. If an asset manager foresees any kind of big loss coming their way, then the ideal thing to do is withdraw the investment from the asset well before it goes down. This gives the investor a buffer period to save what’s in hand and figure where else to invest.

Why Is It Important to Choose A Good Asset Management Company?

Most top asset management companies in India, dealing with clients who are big in size, in terms of wealth. These could be corporate giants who are looking to expand their financial boundaries in newer industries, government run bodies looking to invest in the private sector, companies that are growing at a fast rate and are going to need advice on investing in assets, smartly, or High Net Individuals, who have are very strong, monetarily, but do not have the correct resources to guide them to it.  Asset management companies do that for them.

When you sign up with an asset management company, they assign you to one of the most competent asset managers, who study your profile (your current assets and liabilities) in order to be able to advice you wisely on how to invest your assets. Before doing that, they also discuss with you where you see your company standing in future and according map a plan for you to reach there. An asset manager walks with you or your company through this journey, investing the money where they know will gain a lot of value in future. They take care of investing in long short funds in India, mutual funds, stocks, shares and bonds.

Asset managers also advice bigger clients on ESG funds in India. ESG funds are the environmental, social and governance funds that the stakeholders or investors or potential investors in a company look at and judge before investing into it. It gives them an idea about the ethical practices of a particular firm and an assurance that the money they would be putting into the business would be well taken care of and is going into safe hands. Which is why, one needs to choose their company’s asset management company very carefully and very meticulously.

What Working with An Investment Banking Company Is Like?

If your dream is to be working with one of the leading investment banking firms in India, then there are probably some things that you might want to consider and have the pre-requisites for it to happen. First, you need to have an understanding that working with an investment banking firm can be very taxing. It demands not just your time and attention to details in on the market trends, but also demands a lot of your energy too. In the initial years as an investment banker, you might have to slog for more than 12 hours a day sometimes, just to make sure everything is going in the right direction and you keep up with the race. As you go up the ladder, the number of hours you need to put in might lessen. You also need to have a degree in finance or subject related to investment banking, to get working into it. You might also need to clear a specific exam or a take a test before you are recruited in the top investment banking firms in India or anywhere outside in the world. You also should be able to do the number crunch fast and have knowledge about all the ongoing trends. the job at an investment bank is very different from that of wealth management firms. In wealth management, you need to focus on taking care of your client’s wealth and assets, taxes, filing for returns, and managing them overall. Whereas in investment banking, you focus on the financial performance of the company as well. As an investment banker, you must be a part of the financial growth of a company, mergers and acquisitions, underwritings and more. You need to be actively involved in the decisions take by the firm and advice your client about the same.

How Does ESG Funds Increase A Business’s Credibility?

ESG funds in India surely caught a lot of attention when they were first introduced to the mass investment bankers in the country. Even though the broader explanation does make it look like it is a form of CSR (Corporate Social Responsibility), it wasn’t. ESG funds are the environmental social and government funds that a big corporate invests in to show their credibility to their investors. ESG funds are the portfolio of bonds and equities for which the above three mentioned factors have been integrated for the process. In short, it is like a checklist to see whether, the process of investment considers and integrates the environment, social and governance factors or not.

Usually, an investment banking company that is hired by the large corporate advices their client on the same. In a way, ESG funds are the funds that determine the corporate behaviour of a company and evaluates whether the company’s future financial performance will be up to the mark or not. ESG is also important because it helps the investors to determine whether they should invest in the company or not. For existing investors, it is like a report card to decide continuation of their corporate relationship. The investment banking companies also help the corporates with the long short funds in India.

ESG funds also form the credibility of the company. For this, you need an investment banking company that it true to its words and dedicated only for the betterment of their clients. Therefore, when you choose an investment banking company for your cig firm, make sure that this firm has a credible board and the returns you will get on paying them would reap your business big benefits in the future. This is also a form of smart investment after all.

How Duties of Investment Banks Have Changed Over the Course of Time

The company that generally go to investment banking companies for their financial advisory services are companies that are either big corporates with a staff strength of more than 300, or those that are largely growing in business. It does not just have to be intangible entities but also high performing entrepreneurs or High Net worth Individuals (HNIs), featuring in the fortune list. This is because to be a part of the investment game that these investment banks deal with, you need to be a big player, a shark in the game as well. Investment bankers do not just see to increase yours or your company’s net worth, they strive to expand the boundaries of your business to wider scales.

Other than performing functions like the mergers and acquisitions, underwriting, taking care of the shares and equities, one of the newest responsibilities that have been given to the investment banks are the ESG funds in India. These funds are not like any regular funds, this is an investment that every giant corporation is required to make to keep their good will in standing as a proof of doing their bit in doing business ethically. It is important for the investors and the stake holders to see that the business they have put their money into, cares about the environment and the human relations as well. ESG funds which are the Environmental, Social and Government factors, make the company invest in betterment of their business internally.

So, the responsibility of the investment banks are no more restricted to advising their clients about stocks and shares, mutual funds and long only funds, but to also make sure that their client is following the guidelines laid down by the ESG mandate. Investing in this type of fund will get their client the goodwill they deserve and gain trust of other investors.

Seek Professional Help with Asset Management for Corporations

Long short fund is a type of mutual funds, that holds investments that are foreseen to go up, and sell securities that are anticipated to go down, these securities are the ones that the company does not own. It advises us to invest in both types with an anticipation of gaining returns on both types. Now, this does sound to complicated to be understood, and hence, bigger firms or budding entrepreneurs usually rely on investment bankers or asset management firms for this to be taken care of. Nobody wants to lose money or invest without having the basics right. But in case they aren’t sure about the types of investments they should make in order to make the backbone of their company stronger, then it is advised that they go to one of the investment banking firms or asset management firms to do that for them. Trust is a key issue in this entire process. Therefore, if you are a someone who is looking for such a firm who can help with something as complicated as the ESG funds, which has already gained momentum in India, or the long short funds we just discussed about, then you need to choose a firm with good name and reputation over the years. Sure, you can google names of one of the highly performing asset management firms in India, but with that, you also need to see the clientele that they have handled and get more information on them. Because, ultimately, this is money that we are talking about and we do not want to loose it just because we did not do a background check on the asset management firm that we hired to expand our assets and take care of the liabilities. The key role of asset managers, after all, is to live up to the trust of their clients and help them meet their asset goals in future.

What Do Investment Banks Really Do?

We have all heard about the big investment banking companies in India and may have even wondered to ourselves, what does it take to work for one? What other duties do they perform for their clients that are majorly highly performing entrepreneurs or HNIs that trust them with so much of their money, to invest it in the right place? Is it as glamorous as they show on popular sitcoms or is it just a boring job which brings with it a lot of stress? Let’s answer all these questions here today.
Investment banking firms are companies that help an organisation, private or government, in understanding smart investment and in return doing it for them. They become the mediators when there has to be any kind of merger or acquisition deal going on, perform underwriting services and act as a broker or financial advisor to huge corporations. Yes, the money earned by investment bankers, as shown on television is most of the time at par with what is in reality. There are expensive galas, meetings over high prices dinner with clients and other privileges too. but at the same time, the stress and the demand to be spontaneous is very true too.The work done by investment banking companies is many a times confused with asset management companies in India. However, the clear line between them, is that asset management companies are more involved in fund management, whereas investment bankers race to make these investments on behalf of their clients and making sure nothing that they do is risky or will out the business into jeopardy. While asset management deal with taking care of the existing assets and liabilities, investment banking is more about fighting on ground battles, making sure that there is more coming in, in the business than going out.

Why Is ESG Fund Important to A Business?

ESG funds in India is an emerging concept which is slowly paving its way into the investment mandate of big corporations. It might not be a compulsion on all the big industry players yet, but it certainly has become a silent need for any business to invest into ESG fund, so that they can be on the good will side of their traders, customers and other investors. Investment banking corporations providing financial advisory services generally advice in favour of these funds. With ESG, potential investors understand the management quality, corporate purpose and strategy of a particular business.

ESG funds in India or elsewhere in the world may not have direct impact on financial performance but will have deep impact on financial relevance of the firm. They cover issues and facts in broad spectrum that might not be a part of the financial analysis (by investors) traditionally, but do certainly matter when it comes to investing in the same company.

ESG (the Environmental, Social and Governance) funds are not to be confused with CSR (Corporate Social Responsibility). While CSR is more about the corporates giving it back to the society through good deeds and charity, ESG funds is more about the internal matters and what the bigger companies are doing about them. It really matters whether or not the employees of the firm are faring well and are getting fair compensation, if the produce or service of the company is doing any harm to the environment, or how the company is contributing to the betterment of it and whether or not the relationship between the firm and suppliers, buyers, investors etc are taken care of, and also, whether all the proceedings of the firm are legal.

This is important today for the firms to maintain a good image in front of the world, ensuring it that they believe in betterment of the society as a whole.

What Do Investment Banking Companies in India Look for While Hiring?

If you are a finance aspirant whose dream is to work in one of the top investment banking companies in India, then you have landed on just the right piece of blog for you. In India, banking is one of the most sort after careers for students in finance. The over all demand in this sector has led to public sector, foreign and nationalised banks in India to recruit more and more graduates in finance, economics, MBA (finance and investment banking), CAs and CFAs as well. For any company to grow, finance is the backbone, without which, nothing falls in place. In India or anywhere around the globe, investment banking career is one of the most challenging yet exciting for fresh graduates in finance. Even thought he associate level of banking might seem very straining and draining, the over-all career prospective as you go up the ladder is very promising too. Investment banks, as we know, are those banks that deal with raising capital for different corporates through different sources. They deal with mergers and acquisitions, underwriting, debt and equity and long short funds in India and wherever investment banks might be present. To be working in an investment banking company in India, you require to have talent to crunch big numbers faster, have the ability to think critically and take quick decisions, and also have the knack for predicting markets of the future. All this is very important if you want to be a successful banker in this industry. Usually, the topmost investment banking companies in India hire graduates from prime institutions of the country. So, if you are someone who has just started their journey of finance and want to get into the big game directly after graduation or post-graduation, then it is advisable that you aim at the prime institutions of the country first.

Do You Have the Right Skills to Be an Investment Banker?

Having a career in investment banking is a goal and dream that many finance aspirants look forward to. It takes a lot of zeal and hard work to be working in any of the topmost investment banking firms in India. The prestige and the money earned attached to it brings more glamour to the career. However, it is very important to know that this career path, although has fruitful results at the end in terms of the payment, is a road of lots of thorns. Having just a knack for numbers is not going to suffice. You need to have the passion, aggressiveness, persuading power, and quick wit to become a successful investment banker. You need to have a lot of patience since you will be dealing with high profile clients who have invested a huge amount of money. Any bachelor’s degree holder in finance can get into it, given that they have the above-mentioned pre-requisites.

When you deal in investment banking, you deal with everything right from long only funds, mutual funds, shares, stock exchange, assets and liabilities of the clients etc. This is going to demand you to work for longer hours. To put it straight forward, a study has shown that an average investment banker working at higher position does not work less than 60 hours a week, which is around 12 hours a day in a five-day working week (although this is usually in the first few years of their job). As an investment banker, you will be needed to have all the ongoing market trends on your fingertips. To get into investment banking, you might also have to clear certain tests or exams as required by the investment banking company. This test is usually to testify that you possess the skills and knowledge required to become a successful investment banker.

The Growing Popularity of ESG Funds in India

ESG funds in India is a rapidly growing concept. But what is it about them that is garnering so much attention from investors and investment banks worldwide? This is a concept which almost every fund and asset manager is talking about and advising their client on the same. These are nothing like the CSR or the hedge funds and are more about internal investment from the company. It is a theory and a concept widely spread in developed markets. ESG stands for Environmental Social Governance are three pillar that determine the sustainability and ethical impact of a particular investment in a company. 

The ESG funds is what actually determines that sustainability of any company’s project and it automatically eliminates those companies from the list that who have poor records in terms of controlling pollution from their premise, do not have a good score on ethical human practices and also the ones that do not adhere with the rules and regulations laid down by the particular government of the country. It is all about how much care a company is taking of the environmental, social and governance factors when making any kind of profitable investment for the business.

There is a rise in popularity of ESG funds in India among the investors who want to make an impression of contributing in lowering the global warming and pollution, have an impact in contributing to the human development especially within their firm, and are not indulged in any kind of malpractices when it comes to sticking to rules and regulations set by the governing body. these type of funds in a way help to keep the functioning of various large sized companies in check and encourage other HNIs and firms in making a good and positive impact on those firms. The result will surely be worth for the world and a whole.

What Is A Fund Manager’s Duty?

Fund management is a very important financial aspect.be it in business or as personal investment, managing funds is more or less like an art that not everybody can master. Hence, you take help from outside. This outside help could be an asset management firm, or wealth management firm that studies the profile of the client thoroughly and guides them in investing the money into proper assets. They also help their clients in managing these funds. Fund management is basically overseeing and regulating the cash flow of the said party.

A typical fund managers duty is not just to guide the investors on investment of funds but it is also to make sure that the investor abides by the rules and laws laid down in case of investment. The rules that we are talking about, whether it be about long short fund, mutual fund or anything else, are set by SEBI (the Securities and Exchange Board of India). The fund manager also needs to be careful about the funds that have been invested in by the investor. They need to protect the investor’s money.

So, in case there is some kind of threat to the property or the fund that the investor has invested in then the manager should advice the investor to immediately withdraw their money or the asset and play safe. They need to constantly oversee the growth and transition of the fund. How well the fund performs depends on factors such as inflation, interest rates and so on. To decide what kind of investment is suitable for a particular investor, the fund manager needs to analyse and study the on going and past trends, in order to be able to gage whether a particular fund is risky to invest in or whether the risk is going to be worth the investment with good returns. 

The History of ESG Funds

ESG funds in India is a comparatively new concept. In this article, we shall discuss about ESG funds and its applicability in your business. Investing in ESG funds is also known as responsible investing. If we are to look closely, ESG funds or the responsible investing actually dates back to the time since investment concept actually came into the picture, in the 18th century. Back then, there were clear guidelines about the rules and the kind of investment that were to be done in a company or a business. Back then, the responsible or social investment also included investment in a wide range of religious groups. However, the more formal form of investment banking and responsible investment came into the picture only in the 1960s, when the mutual industry was spreading quite fast across the world. This started gaining pace when questions about public welfare, civil right movement and social issues of the present times started to gain light. However, it wasn’t until around the 1970s, that pressure had started to build on the corporates by the stake holder to invest in the betterment of the society and for the world. Today, if you consult any asset management companies in India, they are sure to enlighten you about the importance of responsible investing and what positive effects it can have on the business. For example, in the 70s and 80s fund managers were advised to not invest in any company of South Africa as a show of condemn regarding the apartheidism that South Africa was going through back then. Also, a lot of light was thrown since the late 80s on the importance of sustainable growth in business, keeping in mind the threat of climate change and environmental factors that effect all of us in some way or the other. 

The Role of Asset Management in Business Growth

One of the smartest decisions that you can take for your business as an entrepreneur is of investing the money and profits that you earn smartly. If yours is a business that has started to make enough money to pay all dues of the employees, suppliers and are still left with some amount of money, then just investing in some asset isn’t going to make any difference. You must take decisions for investing the money smartly. Which is why, consulting asset management firms for the same is advisable. With an asset management firm, you get all the adequate guidance towards smart investing. An asset manager will thoroughly go through your entire financial portfolio and then discuss with you all the possibilities of making your investment profitable. The goal of an asset manager is to help you gain your financial goals and give you exceptional results in the same. The assets type that you can invest in could be property, real estate, long only funds, mutual funds, shares, stocks, bonds and so on. Investing smartly means investing the capital you have in more than one of these. It could be risk putting all your money in just one of the assets. For an entrepreneur, it is necessary to have a good back up of money and capital plus assets. We never know how the market could turn around and we might require money for the same. Sometimes, capital is also required to expand the business. Asset management firms make sure that you have a diversified portfolio, with least risk and more profits. Once the investment is done, asset managers keep a close watch on the unfolding of the assets into something more fruitful. In case of any kind of risks that comes up, asset managers must be informed and cautious enough to take the decision of pulling back the investment in a particular asset.