Your Quick Guide To Investment Banking

 

Investment banking (IB), as the name goes by, is about taking care of investments for bank’s clients that offer various such financial products. IB is often availed by high net worth individuals, private as well as government corporations. Wealthy individuals and businesses work with investment banking firms in India to manage their big projects, saving themselves time as well as money. These IB firms do the hard work of identifying the right financial deals, assessing the risk, ultimately fetching you higher financial gains.

 

To put it simply, investment banking is a dedicated segment of banking operations that helps you build capital and offers you personalized advice for making complex or big financial transactions. This blog is your quick guide to IB, sharing insights about IB itself, its types, benefits and so on.

 

Different types of investment banking

 

·         Mergers and acquisitions (M&A) – merger, as the name suggests, is when two companies tie-up and come together to develop a new entity, with shared financial goals.

 

·         Corporate finance – this is where you get to raise a capital for your business’s future as well as current needs. It begins by gauging your current net worth, repayment capacity and estimated growth. And it’s achieved via means like IPOs, loans and underwriting, etc.

 

·         Apart from M&A and corporate finance, other aspects of investment banking involves equity research, asset management, sales & trading and so on.

 

Key advantages of investment banking 

 

·         Investment bank manages their client’s wealth effectively by investing their money in other entities to get more value in return.

 

·         It helps investors raise the financial foundation they need. Some ways to raise capital are underwriting, sale, merger & acquisition.

 

·         Another key advantage of investment banking is reducing the risk involved and avoiding any loss of your capital. It ensures that you are fulfilling all the compliances of the concerned deal and gets rid of any potential roadblocks.

 

To sum up

 

That’s all you need to know about investment baking to get started. As a high net worth individual, you can consider working a financial advisory that offers investment banking services. And it will indeed help you meet your financial goal.