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.