Tuesday, April 26, 2022

Types of investment banking

Investment banking is a distinctive segment of banking that facilitates individuals or organizations in providing financial consultancy services and in raising capital. They function as intermediaries between security issuers and investors as well as help new firms to go public.



  1. Bulge Bracket

Voluminous and multi-national, Bulge brackets is the biggest category of investment banking companies. They provide full-fledged underwriting services,asset management, sales and trading, advisory and other related services. More often than not they deal in crores. We’re talking Deutsche Bank, Goldman Sachs, Morgan Stanley,  Barclays Capital and the likes.



2.                   Elite Boutique

Relatively smaller but yet very large, Elite Boutiques handle multi-billion-dollar transactions across many regions or even countries. However, they mostly have comparatively lesser employees than the bulge bracket banks and will a lot of times choose to focus on a specific sector and/or service; not that they can’t or wouldn’t provide a full range of services.



3.                   Regional Boutique

Regional bouquets are smallest investment banks that operate in concentrated regions. Even with a small size and the lack of full-fledged services, they assist in humongous deals. These usually provide their services to smaller firms. However, they may be called upon by large corporations with headquarters in their geographic area.



4.                   Middle Market

 

They are financial institutions or intermediaries that deal mostly with mid-market firms, specifically for raising debt or equity capital, as well as mergers and acquisitions.Some middle market banks are full-service, while others specialize in one particular service. Although the line between regional and middle market can at times be indistinct because middle market banks will handle regional deals.

 

Avendus is a leading financial services firm, offering bespoke solutions in the areas of investment banking among services. Its wide range of clients is a testimony to its ability to serve its corporate clients throughout their life cycle – from growth stage funding to complex, large sized transactions later in the cycle.

Monday, April 25, 2022

Asset and liability management, finance companies in India

 

Asset and liability management is very important for the person because it helps them to reduce unnecessary expense and give them the chance to earn more money. In asset and liability management, one uses his management skill to reduce the liability of the individual or company. So that expenses can be reduced, and unnecessary cash flow would not happen. For example, one can use his management skills to remove the liability due to which, individuals or companies have to pay more taxes. Whereas in assets management, one uses his skills to increase the assets for the individuals or for the companies. So that the individual or companies earn more from them.

One can also use finance companies in India to increase his assets and decrease his liabilities. An Indian company can reach the Indian finance companies to get a loan for its assets. There are many finance companies in India that help individuals or companies to get loans by collateral their assets to the company. Finance companies in India are a very good option for that who has very bad credit score to get a loan from the bank.

Friday, April 22, 2022

A short intro about ESG funds in India and more

A long-short fund is a type of hedge fund that takes both long and short positions in investment, typically from a specific market segment. These funds sometimes use several alternative investing techniques such as derivatives, leverage and short position to buy undervalued securities and sell overvalues securities.

In general, long-short funds generally seek to enhance the returns from investing in specific market segments. Long-short funds mostly take long and short positions in securities to maximize profit. The long short-funds are very risky and very active management portfolios. To maximize the profit it may also use leverage, derivatives, and short positions which can increase the risks of the fund as well as the fund's potential total return. Long-short funds are similar to hedge funds or mutual funds but are riskier than both, and it has higher liquidity than most hedge fund and mutual funds. Long short funds are more closely regulated than hedge funds due to this it has limitations on the use of leverage and derivatives, but this is not applicable for hedge funds

ESG funds in India, are the investment product that should contain only those securities whose business does not affect the environment or damage the environment. ESG funds in India or anywhere else have only those securities in it which do not harm the environment and do not produce any kind of pollution to nature. Survey has shown that the use of ESG in security selection leads to a better wise decision. These funds perform better than non-sustainable funds because of better risk management over contentious issues. The ESG funds in India are very new in concept, but they get attention very quickly. Because ESG funds in India have only securities that do not damage the environment in any manner and due to this fact it gives a good impression to the investor.