investment banking process
Not what you're looking for?
Discuss:
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.
Purchase this Solution
Solution Summary
Discuss:
â?¢Describe the, 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.
Solution Preview
Describe the investment banking process, including portfolio construction.
First of all, investment bankers would assess the investment objectives of the investor by asking him several questions pertaining to his age, networth, risk taking ability, previous investing history, longer term objectives and goals, requirements of funds in short and long term, investment size, etc.
On the basis of above mentioned factors, portfolio managers from investment banks will educate investors about the various asset classes available at investor's disposal. The portfolio manager will guide the investor about the potential return and risks associated with each asset class and will also show the historical returns offered by different asset classes in the recent years. After discussing each asset class, the portfolio manager will advise investor on an appropriate mix of different asset classes based on investor's objectives and goals. Once the investor approves, the portfolio manager will start investing in different asset classes.
The portfolio manager regularly updates investor on the status of the portfolio, ie, the current net asset value of the investments and performance of different asset classes. He regularly discusses with investors on changing market conditions and adjustments that need to be made in the portfolio to suit investment climate or to tap on opportunities available in the capital markets and financial world.
Portfolio managers charge a percentage fee based on the total portfolio size or fixed fee or percentage in profits as per agreement between the investment firm and the investor.
Describe factors that must be considered when selecting among asset classes for an investment portfolio.
There are numerous factors that must be considered when selecting among asset classes for an investment portfolio as each investor is unique in terms ...
Education
- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
Recent Feedback
- "Thank you. "
- "Thank you"
- "Thank you. I got 20/20 last week for my discussion you help me out with."
- "Thank you. Great Job. "
- "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Basics of corporate finance
These questions will test you on your knowledge of finance.