How Investment Banking Became the Biggest Thing in India?

1. How Investment Banking Became the Biggest Thing in India? Investment banking firms in India or anywhere else in the world is not quite latest. It goes way back to the 19th century among some American traders during the civil war. The financial and the investment banks came into existence ever since and have continued to gain a lot of momentum across the world. So much so that investment banking is now a separate industry with one of the highest paying jobs in the world. The work involved is obviously very demanding hence the renumeration is in sync with it too. But why do we need investment banks for our big corporations? Why has investment banking become what they are today? The answer lies in the fact that no matter how risky investment banking can be, it sure churns out a large amount of profit for the companies that invest smartly. This investment, on their behalf, is done by some of the ace investment bankers. The money that is put into investment banking by the companies, is very meticulously handled by the investment bankers to gain their clients maximum returns. Their renumeration lies, usually, on how much profit the client makes. They get a percent of the profits and that’s how they function. India is a developing nation and the financial markets are also in sync with it. So, when the world started to embrace the idea of ESG funds, that is, the environmental social and governance funds, ESG funds in India started to gain popularity and momentum amongst the investment banking firms too. These funds have become important in terms of the stake holders and potential investors for any firms. It is like a parameter that is set, after looking at which, the investor decides on investing in a company. ESG funds focus on how well are the above mentioned three factors integrated in the entire process of investment. Along with the motive to expand the financial boundaries of their clients, it is also necessary that the assets that they acquire in this entire process is also handled with care. For this, hiring one of the top asset management companies in India is what most firms do. Just piling up on the assets and getting rid of the liabilities is not what these companies are used for. The assets need to be managed well as well. Should an asset be kept or sold, is an asset really going to get the customer anything in future or is it just going to become a responsibility, managing of taxes on assets, are somethings that asset managers do for their clients. Asset management may not require as much spontaneity as much investment banking does, however, to maintain the driving force and capital back up of every firm is what asset management does. With asset management, high performing entrepreneurs do not have to mull over where to invest and how to invest in. they have their asset managers who they can trust to provide them with correct advice on the same. www.avendus.com