Learn More About Investment Banking Services
Investment Banking Services consist of financial bodies that act as mediators between an investor and a borrower. The principal function of an investment management firm is to raise debt and equity funds to facilitate their client’s business expansions. Apart from raising capital, these companies also offer various financial services related to merger and acquisition (M & A), security trading, custodian services, new issues and IPOs, corporate restructuring, asset management, and other financial services. Investment Bankers Clients These professionals advise on capital raising and M & A needs to a wide range of clients including:
Governments: Investment bankers work for the governments and help them raise funds, trade securities, and assist them to buy or sell government-owned corporations (GOC), state-owned enterprises (SOE), or government business enterprises (GBE). Corporations: Investment management firms work with private and public companies to help them go public (IPO) while providing them general corporate finance advice. Institutions: Investment bankers work with institutional investors who further manage other people’s money. They also assist private equity firms to help them acquire portfolio companies.
Investment Banking Services These services include:
Underwriting: Underwriting the transaction of an issue placement, for the companies looking to raise funds or go public via the IPO process, is a key service of an investment banker. Merger and Acquisitions: They manage the M&A process from start to finish by advising both buyers and sellers. Sales and Trading: They act as financial agents for a client and trade on their behalf. Equity Research: They also help the investors to make proper investment decisions and support them while trading stocks. Asset Management: This service includes managing investments of institutions and individuals across a wide range of investment styles.
Key Tasks of Investment Management Companies In simple terms, investment banking services include an investment of their client’s money. They choose the right selection of investments ranging from fast-growing risky stocks to safe slow-growing bonds. Their ultimate goal is to provide the best ROI to their clients at a risk level that a client is more comfortable with. 1.
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Assess Client’s Financial Goals: Investment bankers work on the client’s investment capabilities, and the return they are expecting. They discuss with the clients to understand their financial background, goals, and investment risk capabilities. Moreover, they also calculate when a client will need their money back, and try to understand their specific goals, like funds required for children’s college education, or at the time of marriage. Monitor Most Potential Investments: Investments may range from cash deposits to government bonds, or shares and bonds for various private companies. As the financial landscape is on a constant change, a good investment manager calculates the investment risks and returns and provides solutions accordingly. They ensure to stay on top of fluctuations and provide the best returns on investments for their clients. Investment Strategies: Most people want a portfolio to match their future goals. A diversified portfolio with investments across multiple investments helps reduce risks. Thus, the basic job of investment banking services includes effectively managing investment funds, by building a robust investment strategy, as per the unique requirement of an individual client. Managing Taxes: Financial strategies come with various complicated tax laws. Investment managers hold the expertise to help a client with the best-formulated tax reduction strategies. Thus they can minimize the tax burden. These strategies include: Replacing an investment with lost value with a similar investment to counterbalance gains. Selling securities to neutralize capital gain taxes. Investing in government bonds that are free from taxes.
Conclusion All the investors strive to maximize their returns on investments. Pantomath Advisory Service Group can be a trusted financial partner to help provide investors and business owners with the best tailor-made solutions for their various financial needs. investment banking services, investment management firm