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Most of the times, the investment bank does the job of the asset management company as well. In asset management companies or the HNIs are advised by their designated asset manager to invest into assets that could yield them profits in the future.
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Managing Your Funds and Assets with The Help of Asset Management Company There is always a lot of speculation when we talk about the role of investment banking companies in a country. Investment banking is a dynamic field that revolves around investing smart on behalf of your clients. The investment banker should always be informed about everything happening in the field, being updated with the currents market trends and news and making quick decisions in case of financial emergencies for the clients. An investment banker is typically a finance graduate who holds a knack for not just numbers but also anticipating the movement of the market much before it happens. For example, if there is an investment banker who has invested into a huge number of shares on behalf of his or her clients, and they see that the market is going to go down, then they have to be quick and withdraw those shares so as to avoid any kind of loss that may occur to the client. Usually, it is the bigger companies with a large capital and investment that go for investment banking and seeking help from bankers. Therefore, when we talk of money, it is a huge sum of money that we talk about and hence making mistakes would be a huge cost for both the investment bank and the investment banker as well. But sometimes people don’t look for volatile and a dynamic sorts of investment options. They would rather go for asset management than for investment banking. Most of the times, the investment bank does the job of the asset management company as well. In asset management companies or the HNIs are advised by their designated asset manager to invest into assets that could yield them profits in the future. This is done after a careful study of the client portfolio and understanding their financial needs and requirements. After this, the asset manager sits with the client and makes an asset management plan according to the client budget. This usually involves investing in tangible assets such as housing property or land and intangible assets such as shares, stocks and bonds. Other type of bigger investment includes investing in a growing company and investing in a said plan or project that is bound to give good returns. Once the returns start coming in, the asset management company is paid based on percentage share from the profit that the company is getting. Managing ESG funds (Environmental Social Governance) funds is also very important for big sized firms. This is the fund that is made keeping in mind the environmental, social and legal factors in mind. For example, if a company is coming up with a new product vertical, they need to invest in it in such a way that it does not hurt the environment, is fair to the human resource they www.avendus.com
already have and is in sync with the legal requirements that have been set by the government on such businesses. Therefore, an investment bank also provides these services to its customers if required. www.avendus.com