THE INVESTMENT CONSULTANT
An investment bank is a financial institution that helps cooperation’s, governments and individuals in raising funds for their businesses and investments in the capital market by serving as a go between or agent. An investment back also assists companies In mergers and acquisitions, issuance of securities and fixed income instruments such as currencies and commodities. Investment banks and commercial/retail banks operate differently, although your local bank presents investment and fund raising opportunities they have their differences. Commercial and retail banks accept deposits and it’s from the deposits in their position they invest from. Commercial and retail banks offer investment services targeted at specific customers with large deposits at the bank. For a beginner in investing, the commercial bank offers financial advice and guidance on investment and planning. The type of investment you make with your bank largely depends on the amount of money you have in your account and how much of it you are willing to invest. Money invested through your banks are not risk free as deposited money as invested money are prone to the volatility of the stock market while deposited money are insured by the central banks. To successfully invest through your bank, you should find a financial consultant that you are comfortable with and let the consultant know what you expect and they will guide you on the best way to achieve it. Most consultants at your local banks
offer investment services for free, while other financial firms may charge an hourly rate for consultation or a percentage of invested funds. Liaising with a financial consultant is more than just a business relationship, it has to be one were you are in constant communication and you are kept updated on market conditions and investment opportunities as the present themselves. Choosing a financial consultant is best done by referrals, ask friends and colleagues about their experiences and the benefits they get, it’s up to you to then compare and select that which best suites your needs. Consultation with your bank towards investing does not mean you invest exclusively with the bank. You can utilize a brokerage recommended by your consultant to purchase stocks and bonds. Investing in mutual funds for beginners offers a low risk investment opportunity because the investment is not limited to one company but several companies, so in the event one company performs poorly the others might be doing well so overall you get a healthy profit on investments made. Before investing your money, be sure that the money you plan on investing is money you can do without for a very long time. It is very risky to merge your savings account and your investment account. For individuals it is advised that they invest through their local banks, while companies, large corporations and individuals that have a lot of money can go through the investment banks.