How Does Investment Banking Differ from Asset Management?

1. How Does Investment Banking Differ from Asset Management? Those financial institutions providing services on advisory, assets and wealth management that help to raise capital and called investment banks. The clients of investment banking firms in India or anywhere around the world are usually High Net Individuals or corporations with a wide range of assets, who are well established in the commodity game. Investment banks don’t just deal with assets but also in currencies, equities and much more. Investment banking is not a very new concept. It has been around for centuries together with the aim of tackling challenges through innovation and newer financial developments in the financial markets. Investment banks might also perform the duties of asset management firms. However, it is very important to remember that asset management is a very different vertical. Investment banking provides latest solutions to the customers and contribute in developing newer trading methods. It involves raising financial capitals for clients such as companies, or any government organisations so that they can expand their business activities. They obtain this money from entities that are keen to invest in a business and watch their money grow. Whereas in asset management, the institute manages people money and wealth. It also provides all the assistance that is required in marketing and trading equities, fixed income securities, commodities, and derivatives. In asset management, the financial portfolio of the client is carefully studied, and the vehicles of investment are chosen accordingly. When it comes to investment banking, they are the ones more on the sell side, as they advise companies to sell of equities of assets that may seem profitable, in order to raise capital, overlook the mergers and acquisitions, manage hedge funds and hence come on the buy side of the business. Asset management firms manage people’s assets and money by advising them to invest and purchase in certain assets as it may suit their financial portfolio. Hence, coming on the buying side of the game. Investment banking firms are usually involved in the IPO management activities, such as underwriting, public service offering, consultation, forming a company’s MOU and so on. In recent times, there has been a steady growth in the demand for good investment banking firms in India. If you are a business that is steadily increasing in size and is looking to expand their financial portfolio, then going for an investment banking firm to seek advice on this expansion is important. The asset management companies deal with managing these assets for their clients and advising them on expanding their investment in these assets as well. When a growing entrepreneur approaches an investment banking firm, they go through their entire financial profile and make a www.avendus.com

2. financial plan for their client to achieve their goals. They guide you through the entire investment journey as well. Therefore, it is very important that as a business a thorough background check is done before joining hands with any investment banking firm or asset management firms. Afterall, it is huge amount of money that we are dealing with. www.avendus.com