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Investment banking process including portfolio construction

Describe the investment banking process including portfolio construction.

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Investment banks assist public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions. (Wikipedia).

The process is

Step I
Understanding the need or objectives of client

It could be growth, income or both.

Step II
Understanding the risk profile

Stocks are more volatile, on the other hand buying fixed income securities are less.

Step III
Planning and Setting Goals:
This is done according to the need and risk profile. Here the time horizon is also considered.

Time horizon is the time period between the age at which you would like to start investing and at the age by which you would need a consolidated amount of money for any said purpose of yours.
One should also find out if there are there any short-term financial needs,

Devising various options of the investments
Bonds and stocks are the two major asset classes that ...

Solution Summary

This discusses the investment banking process including portfolio construction