Investment banking firms in India are either firms or divisions of a financial institution that provides underwriting services (capital raising) and mergers and acquisitions advisory services. Investment banks act as an intermediary between investors who have money to invest and corporations who need financial resources to grow their businesses. In addition, investment banking firms offer sales and trading, equity research and commercial banking. Investment banks help corporations and governments also to make equity and debt issues as a part of their capital raising program. They provide corporate strategy advisory services as a part of their capital structuring models. Equity research, market-making, financial forecast models, asset allocation and portfolio management, and derivatives trading all fall under the umbrella of services provided by investment banking firms in India.
Best Investment Opportunities for an Indian investor in 2022
● Deposits:
Fixed deposits, savings deposits and recurring deposits offer opportunities to invest in low-risk and low-return assets. These assets are at the lower end of the risk-return spectrum. As they provide liquidity to your portfolio, some investments have to be maintained in this asset class as a part of your portfolio.
● Fixed income instruments:
This covers a whole gamut of fixed income instruments which includes NSS certificates and most important fixed income instruments like bonds or debentures. As interest rates climb up in the economy, bonds and fixed income securities and bond mutual funds are becoming more attractive as investment destinations. Plus, they are low-risk investments offering interest payments and capital repayments on maturity, provided you buy instruments with a good credit rating.
● Equity instruments:
This includes within its ambit all listed equity universe that is available in the Indian stock market. The recent downturn in the stock markets provides opportunities for value investing or even otherwise you can do rupee-cost averaging and bring down the weighted average cost of your portfolio. Equity investments and equity research is provided by investment banking firms in India like Pantomath Advisory Services. Also, remember that equity investments provide the maximum return during the medium to the long-term holding period.
● Precious metals, Commodities, real estate, currency and cryptocurrency:
From a portfolio diversification perspective, you can look at select opportunities in any of the asset classes listed. They have higher risk parameters but offer lower correlations to bonds and equities.
● Alternative investment assets:
These include opportunities to invest in private equity or venture capital, and an opportunity to invest in the startup universe. Even though the holding period is relatively long, you can be the beneficiary of potentially large gains when the company is listed in IPO or if there is a strategic buyout.
Whatever the nature of the investment, you must ensure that your portfolio is optimally diversified. Diversification should be among different asset classes, different industry segments or sectors and different types of securities. In short, you should avoid any kind of concentration risk which will accentuate volatility when the markets are trending lower. Investment banking firms in India will aid you in this process by available equity and company research, avenues to buy and sell and also provide alternative investment opportunities. They help to make sure that your portfolio is structured according to your risk-return profile.
Conclusion
Investment banking firms help in the maximum value accretion and wealth building in your portfolio in the long run. Investment banking firms like Pantomath Advisory Services have seasoned investment banking professionals who make sure that you make the right portfolio decisions. With 5000 companies and 30 industry segments under their umbrella, Pantomath Group will ensure an optimal portfolio adjusted in line with your risk-return profile.
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