The financial services industry comprises a diverse range of specialized fields, with investment management and investment banking standing out as two of the most prominent and distinct sectors. While both operate within the broader realm of finance, they serve different purposes, cater to different client bases, and demand different professional skill sets. Key Differences in…
Article:Investment banks are specialized financial institutions that provide a wide array of services focused on capital raising, mergers and acquisitions (M&A), and strategic financial advisory. Unlike commercial banks that primarily deal with retail banking services such as deposits and loans, investment banks are involved in complex financial transactions and capital market activities. 1. Capital Raising…
Investment banks are broadly classified into three main categories: bulge bracket, middle-market, and boutique banks. Among these, bulge bracket banks, often referred to as full-service investment banks, are the largest and most comprehensive in terms of service offerings, global reach, and client base. Classification of Investment Banks Full-Service Investment Banks Notable Examples: Foreign Banks: Goldman…
OverviewInvestment banks are typically organized into three principal functional areas: the front office, middle office, and back office. Each plays a distinct and critical role in supporting the bank’s operations, from revenue generation and client services to risk management and administrative support. Additionally, investment banks follow a structured hierarchy of roles, progressing from junior to…
Investment management is the structured process of planning, organizing, and controlling the allocation of financial resources to achieve defined financial objectives. A successful investment strategy requires a clear understanding of several core elements—namely risk, return, time horizon, liquidity, tax efficiency, asset allocation, diversification, and continuous portfolio monitoring. India’s expanding financial markets offer a wide array…
A wealth management assessment is a detailed and personalized process aimed at understanding a client’s financial position, preferences, and long-term objectives. This evaluation serves as the foundation for developing a tailored wealth management strategy, which encompasses investment planning, risk mitigation, estate planning, and tax optimization. The assessment involves a holistic review of the client’s financial…
Diamond Dollar Accounts (DDAs) are specialized current accounts denominated in US dollars, maintained with banks in India. These accounts are exclusively available to firms and companies engaged in the import and export of rough or cut and polished diamonds, coloured gemstones, and precious metal jewellery, whether plain, enameled (minakari), or studded with diamonds or other…
The Reserve Bank of India (RBI), vide its circular dated June 6, 2025, has issued a comprehensive and harmonized set of guidelines for lending against gold and silver collateral, applicable to all Regulated Entities (REs). These directions aim to address macroprudential concerns and harmonize prudential and conduct norms across lending institutions. The new framework shall…
Definition of Personal Financial Planning (PFP)Personal Financial Planning (PFP) is a dynamic and comprehensive process of managing an individual’s financial resources—including assets, liabilities, income, and expenditures—with the objective of achieving personal and family life goals. This integrative approach involves formulating strategies and taking informed financial decisions based on one’s unique circumstances. While holistic planning considers…
In the realm of personal financial planning, nomination is a widely recognized mechanism governed under various statutory frameworks including the Life Insurance Act, the Employees’ Provident Funds and Miscellaneous Provisions Act, the Payment of Gratuity Act, the Co-operative Societies Act, and the Banking Regulation Act. Individuals often assume that by merely executing nominations for their…
