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.