How do asset management companies help a business?

If you aim for your business to grow well, then it is important that you looking into investing your money, the profit that you get securely and with a strategy. If you feel that you cannot really manage the investment part or do not have enough knowledge for the same, then you can take help from any of asset management companies that can help your business to reach its target goal ultimately. It is very important for a business owner to have a meaningful investment. A meaningful investment means investing the money in such a way that you get higher returns in future.

To be able to have a flourishing business later you need to cautiously invest your money and not rely on just the liquid savings that you possess. What we mean to say is that it is essential to mindfully invest your money into assets and businesses that will give you a steady return in future. To help you decode which investment or which kind of business will actually suit your business profile, you could talk to an asset management company. They also help companies to figure ESG funds in India.

An asset management company is a firm that invests pooled investments from the clients and puts the capital to work through different investments. This applies to both tangible and non-tangible assets. Tangible assets are those that you can see and touch or those than can be physically measured. Intangible assets are those that cannot be touched or felt, and are mostly on papers. Example of tangible assets include property, gold, etc. Examples of intangible assets include bonds, shares, funds, ESG funds India etc.

Make sure that you choose your asset management firm wisely. When you visit an asset management firm, you will be enquired about your current company portfolio and your future goals for the company to get a better picture on strategizing.

Picking investment banking as a career

You should know, investment banking is one of the most prestigious jobs you could have on Wall Street. Along with being a coveted and rewarding position, it is also known to be equally challenging and stressful. So, what exactly does an investment banker do? As one, you’re expected to help clients raise capital to fund their activities and expand their businesses while acting as a corporate financial adviser.

 

If you’re interested in picking investment banking as a career choice, here’s what you need to keep in mind -

• Make sure it is the right job for you.

An investment banker comes from several different, with experience in different fields that exist in the financial service sector, and may use their transferable skills to join other related professions down the line, possibly moving into an analysis, trading or a structuring/development post. However, certain traits are common among young appliers, usually graduates - that is the ability to handle a potentially stressful job.

• Pick the right i-banking career

Even in the field of investment banking, it is further divided into certain aspects that require different skill sets and personal attributes. On the operational side, you’ll need to be good with numbers for processing and settlement of transactions. Whereas on the corporate side, you’ll be providing financial services to other companies and organizations. The services include asset and wealth management, mergers and acquisitions etc.

• Degrees, Internships and Networking Events

Once you’ve picked the right career for you, it’s time to act on it. Most investment banking firms in India would look for and expect a Bachelors degree. While this doesn't necessarily have to be in a subject related to finance, it does require a strong maths focus - like in a subject such as economics or business/management. Once you’ve gotten your degree, you should start looking for firms you can intern at, gain experience. Find out everything you need to know about the top investment banking firms in India and what they require in your CV, and apply accordingly. You should also attend possible events that revolve around investment banking and finance, as they’re a great place to network and keep in touch with your peers.

 

What you need to know about investment banking

Investing banking refers to that division of the banking industry, that assists the government, institutions, and corporations by providing underwriting and several advisory services. They are like intermediaries between investors (who have money to invest) and corporations (who require capital to grow and run their businesses). 

There’s a significant difference between investment banking companies and the investment banking divisions of banks. The full-service investment banking companies offer a broader range of services that include underwriting, Merger & Acquisition, sales and trading, equity research, asset management, commercial banking, and retail banking. Whereas, the investment banking divisions of a bank provide only the underwriting and Merger & Acquisition advisory services.

A few key takeaways are that investment banks are large financial institutions that help global and local businesses with capital financing, and also engage in trading. These companies offer assistance to help companies go public, underwrite bond offerings, and several other advisory services, including proprietary investment and trading for funds such as mutual funds, hedge funds or long-only funds. They also aid in the broader financial markets and the economy by matching sellers and investors, therefore adding liquidity to markets. The operations of these banks also make financial growth and development more efficient and promote business growth, which in turn helps the economy.

As a company looking to expand your business and your capital, acquiring services from an investment banking company would deem quite helpful for your company or organization’s future. Even an individual investment banker in your ranks would bring about quite a positive change in the business, but you got to remember - the best investment banks are usually the largest. The more and deeper connections the bank has within the market, the more likely it is to profit because as you may have thought, the largest investment banks have clients around the globe.

The financial services offered by firms in India

The financial services industry in India has seen massive growth over the past few years, and it just keeps on going. This is also due to the increase in demand drivers such as higher disposable incomes, customized financial solutions, etc. and supply drivers including new service providers in existing markets, new financial solutions and a vast array of new products. And so, the finance companies in India have massive availability of business through the financial services industry comprising of several key subsegments. 

The services are provided to a diverse client base that involves individuals, private businesses and public organizations. 

 

Out of all the services offered, the key 4 ones include - 

• Banking  

Banking forms the backbone of the financial service sector of the country. With 12 public sector banks and 95,000+ urban/rural cooperative banks, the financial services offered include individual banking (savings accounts, debit and credit cards etc.), business banking (merchant services, treasury services, business accounts etc.) and loans (business loans, personal loans, home loans etc.).

• Wealth management

The financial services administered within this section of service involves managing and investing customers’ wealth across various financial instruments- including debt, equity, asset and liability management, insurance products, derivatives, structured products, commodities.

• Mutual Funds 

These service providers offer professional investment services across funds that are composed of different asset classes, primarily debt and equity-linked assets. Mutual funds are generally cheaper to buy into, compared to the stock market and debt products. Consequently, this investment plan has witnessed double-digit growth in assets under management over the last five years, owing to its popularity as a low-risk wealth multiplier.

• Insurance 

Insurance helps safeguard individuals and organizations against unforeseen accidents and circumstances. The services offered in this segment are generally around two categories, general insurance (automotive, medical, home etc.) and life insurance (pension plans, term-life etc.).

 

 

Everything You Need To Know About Venture Capital

 Innovation drives the Indian economy. What’s more, it has a powerful grip on the nation’s collective imagination. The popular press is filled with against-all-odds success stories of entrepreneurs. And so for such entrepreneurs and their companies, venture capital investments are without a doubt the backbone behind innovation as they support the company they may invest in, from the early stages, all the way to their up and running business models in action. 

So what exactly does a VC do. The definition says it is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and developing companies that have been considered to have large growth potential or which have already demonstrated tremendous growth. This investment generally comes from well-off investors, investment banks and any other financial institutions.

The financial advisory services the company hires to manage their finances and help them grow their business, will also help you identify the VC that might be investing within your vertical.

Once the VC needs have been identified, the next step is to introduce themselves and how different and innovative their business is. And most importantly, the company needs to highlight why they’re the VC firms best bet at making a return on their investment. We all know how much a first impression matters, so making sure it’s a great one is essential. The better the impression, the more the chance the company has of getting funded.

VCs get a return on their investments through their investing company’s success, through management fees and carried on interest. Carried interest basically refers to a percentage of the profits, lying anywhere between 20%to 25%.

You also need to understand and identify if your company well and truly need a VC investment, as at the end of the day, it’s just a sum of funds that help you start and run your business.