Investment management

3. Meaning of Investment
Investment is putting money into something with the
expectation that it will generate income or the value will
appreciate in future or profit.

4. Financial Meaning of Investment
Financial investment involves of funds in various assets,
such as Stock, Bond, Real Estate, Mortgages etc.

5. Characteristics of Investment
• Return
• Risk
• Safety
• Liquidity

6. Objectives of investment
• Maximization of return
• Minimization of risk
• Hedge against inflation

7. Role of a Bank in Investment
Management

8. Importance of Investment Banking
 Helps the corporations in raising capital. It facilitates
the trading of securities thereby, increasing the
liquidity of the securities.
 It provides investment opportunities to the
individuals or entities.
 Most of the corporations get advisory services from the
investment banks regarding the mergers, acquisitions
and divestiture.

9. Structure of Investment Banking
Investment banks are organized into 3 categories.
Front Office
 Helping customers raise funds in the capital markets
and advise on mergers and acquisitions.
 Buying and selling financial products with the goal of
making money on each trade.
 Creating and marketing financial products.

10. Middle Office
 Analyzing credit and market risk for the bank.
 Making sure operations are complying with regulations.
 Responsible for capital management and risk monitoring.
Back Office
 Making sure the bank runs smoothly by submitting trades,
maintaining databases, and transacting required money
transfers.
 The information technology department.

11. THANK YOU!!!!!