Describe the investment banking process including portfolio construction.© BrainMass Inc. brainmass.com October 16, 2018, 6:38 pm ad1c9bdddf
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
Understanding the need or objectives of client
It could be growth, income or both.
Understanding the risk profile
Stocks are more volatile, on the other hand buying fixed income securities are less.
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 ...
This discusses the investment banking process including portfolio construction
Capital Markets and Investment Banking Process Paper.
â?¢Describe the investment banking process, including portfolio construction.
â?¢Describe factors that must be considered when selecting among asset classes for an investment portfolio.
â?¢Describe capital market instruments used in portfolio construction.
â?¢Make general recommendations for the composition of an investment portfolio. Include rationale for your recommendations.