Role Of Investment Bankers And Asset Management Companies In India

By Author: Avendus Group
Total Articles: 121
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You must have heard people say that investment banking is a very risky business. Yes, that is right. It is. But it also is one of the most financially satisfying one. Sure, it comes with its own risks. But the returns that you get at the end or the returns that you keep gaining at fixed intervals are surely worth it. Although A< href="https://www.avendus.com/india/investment-banking">investment banking is one of the major booming industries today, it does come with its own rules and restrictions that obviously everybody are expected to adhere to. Now, not every entrepreneur might be well versed with these rules or have time to study them properly. What they can do then, if their profit margin permits (by which we mean if they can afford it), to hire an investment banking company. An investment banker will be assigned to you who will neatly study your financial portfolio, look at all the current assets and investments you already have and can guide you on how to invest it further. They will gauge your needs and requirements and develop a plan or a road map to expanding your investment. This is totally with the goal to help ...
... you increase the bandwidth of your financial worth (your businesses’ financial worth). Other way of expanding your financial portfolio is by taking the help of asset management companies in India. Asset management is very different from investment banking. They are two entirely different verticles. First, the risk in asset management is far less than that in investment banking. Plus, investment banking is one of that requires the bankers to be able to handle high amounts of pressure. This does not really hold the same for asset managers. The role of asset managers is to guide their clients in managing their assets (literally). In this too, the asset manager will have to first have a good and detailed understanding of your financial status. This includes, how much you already own, what kind of business you business is doing or if you are into service, what job role do you play and what pay do you get, how capable you would be of handling future bigger liabilities and how much of risk can you bear, financially. Once this is done, they are much equipped to advice you on the investment front. It could be into anything that is an asset, such as, the real estate, investing in a company, shares, bonds, gold, gold bonds, land, and so much more. They help you to have a diversified profile so that you are at the lowest risk possible. They also deal with questions of hedge funds. An asset management is required to be updated with all possible trends going on in the market, which might affect the returns your client gets on their investment. Also, they need to be able to anticipate if any major asset is going to incur loss. If so, they can advise their client to immediately with draw from the asset to save them from losses.