Types of Investment Banks

An investment bank is a financial organization that assists companies, individuals and governments in increasing capital by underwriting and acting as the consumers agent in the issuance of securities. An investment bank may also help companies involved in merger and acquisition and provide auxiliary services such as market making, trading of derivatives and equity securities, and FICC services.

If a company size is not a matter is engaged in at least one of the front office business areas that we outline here, classify it as an investment bank. This is simply because in terms of your career in investment banking, the most important thing is what your team does rather than what the rest of the company does or doesn’t do!

Investment banks range from the largest companies in the world with thousands of employees spanning all the major financial centers around the globe, to the smallest advisory boutique with just a handful of employees.

The thousand’s of investment banks that operate in the world into three groups they are

                                         1) Multinational banks
                                         2) Mid-market banks
                                         3) Advisory firms

Source: gradnav.com

Principles of Stock Investing

Investing in stocks is the best way to generate wealth. Many of us would have taken chances based on tips, recommendation, advisors etc. And, would have had hits and misses.Like everything else in life, stock investing also governed by certain basic principles. And it is not rocket science. Each and every investor can easily learn and apply these principles and produce personal wealth, by following these basic principles of Investing.

1. Invest in things you know. 
2. Avoid fads
3. Don’t let a market slump change your long-term investment 
4. Don’t check the price of a stock (or mutual fund) after you've sold it. 
5. Dollar-averaging (continuing to invest the same amount of money every month) really works
6. Don’t panic.
7. Pay attention to what's going on with your investments. 
8. Hold onto your winners and sell your losers
9. Take your losses quickly and your profits slowly. 
10. Stick to your plan. 
11. Be realistic about your tolerance for risk.
12. Get the best investment advice you can--and then think for yourself.

Source: http://www.swapmeetdave.com/Bible/Invest.htm

The Benefits of Investment Banking

An investment bank is a financial organization that assists persons, companies, and governments in improving capital by underwriting  and/or  acting as the consumer’s agent  in the issuance  of  securities.  An investment bank may also lend a hand companies involved  in  mergers and acquisitions  and  provide  auxiliary services such as market making, trading of derivatives and equity securities.

Investment banks have played and will continue to play a very crucial role in market transactions on behalf investors, government and corporations. There are so many advantages for investing in investment banks some of the benefits are

1. Wide range of finance-oriented functions 
2. Control in issuance of stock and oversee its sale to the public 
3. No limitations on income
4. Assured returns
5. Capital protection
6. Tax advantages (long term FD has tax advantages) 
7. No downside risk

Source: http://www.quora.com/Investment-Banking/What-are-the-advantagaes-and-disadvantages-of-fixed-deposit

Monetary Planning and Wealth Management - An Extensive Guide

The first thing that is required is a substantial financial plan. This is necessary for individual investors to make sure that all financial activities proceed smoothly during the year. 

The Most important steps involved in the financial planning Process are:

1. Cash Flow Managing:

Income and expenditure can be better coordinated through the Plan. It assists in identifying whether borrowings are within prudent limits.

2. Insurance Planning:

It usually takes care of fickle needs and as these needs can arise at anytime, insurance is extremely important.

3. Investment Planning:

Investment planning needs to be done at the beginning of the year. Increased volatility in capital markets, there is a surge in demand for small saving schemes as a safe haven. Schemes like PPF, NSC, KVP, RBI bonds, Senior Citizens Savings Scheme, Post office MIS need to be part of asset allocation for investors. Although, it is good to keep some risk free investment in the portfolio as a part of overall asset allocation.

4. Retirement Planning:

Due to increase in durability in life and growing operating expense due to inflation sustaining the living standard during post departure stage is a difficult task, so a wise outlay of a nest egg during working life helps in coating comfortably during retirement stage.

5. Tax Planning:

The monetary plan should help client in minimizing its tax legal responsibility and also maximizing its after-tax returns from your investments.

6. Estate Planning:

Estate planning is arranged for the transfer of property to officially permitted heirs and to other beneficiary, in a way that will, as much as possible, achieve its objectives.

Source: http://montezumaproperties.com

Booming - Investment Banking

Many investment experts feel though stock markets did take a beating, India was not disturbed deeply by the fall. According to Robin Roy, associate director, PWC, the fact that investment banking and asset-based security market are in a growing stage in India, has strengthen the impact that was felt overseas. "We are in safe hands because we simply lack boulevard to trade," says Abizer Diwanji, head, financial services, KPMG.

While there is a general atmosphere of ruin and doom after the fall, most experts denies that the future of investment banking in India will be bleak. "For the moment, however, the fall in the prices of oil and commodities and the pulling out of hedge funds may put bearish pressure on the economy.

However, experts feel that demand pull will ensure that investment banking will continue to flourish in India. "Just because there have been some failures does not mean it is the end, in fact the need for advisory services increases all the more with these fallout," says Alpesh Shah, partner and director, Boston Consulting Group.

But if investment banking has to succeed in India, there are certain safeguards that need to be put in place. "India needs a robust credit rating mechanism and infrastructures that will help us trace credit history. A strong retail mechanism for the recovery of debts is also required.

                                                                                                Source: economictimes.com