Complete Information and Solutions about Investment and Return’s
Investment banker could be an institution or an individual who issues securities for government, corporations or other entities. Investment banker mainly acts as an agent for these sectors. Some other works done by an investment banker are…
Maintenance of previously issued bonds and securities.
Providing consulting services to the investors.
Maintain the operations of a broker or a dealer.
An investment banker can also be involved with a large bank division which is often recognized as Investment bank. Investment bank also issues securities for these individual sectors. Clients can utilize some other services such as mergers and acquisition advice, corporate restricting or guidance on specific transactions, like reorganization. Mostly in smaller organizations these services are provided by corporate finance staffs because they don’t have any particular investment banking arm.
If you want to venture into index funds then you can take the advice of an investment banker. But before investing one should understand that risk is the key factor of all major investments. High return investments always include high risks. If you about to retire or your child is about to enter into a collage then you can not afford to take high return investments. The simple reason behind that is you don’t want to see huge drop in market just before taking money from your investment account. If capital preservation is the key reason for your investment then you need to rely on lower risk investments where you will be assured that the value of your account won’t drop more than 25% in a year or throughout your investment. But you just have to keep in mind that low risk investments always deliver low return.
Some of the mutual funds to invest in to get high return:
A mutual fund investment is a collective investment schemes which is professionally managed and particularly the money is collected from the investors to buy bonds, stocks, securities and short term money market instruments. So before investing you need to contrast on bonds and stocks and also about foreign stocks. High return index funds are always long term investment funds and you need to adjust it according to you goal changes. Sufficient experience is needed to understand mutual fund index and to guess almost exact return from that investment. Investment bakers are really helpful in that case.
Some investment worthy funds for regular investors which gives top performances continuously in their individual categories are:
Equity funds have several types. You can invest in moderate risk funds which will generate inflation to give you high return. The holding period of these funds are five years. Apart from that you can also invest in high risk funds which can generate high returns. The holding period is also five years.
Tax-saving funds have also moderate risk fund and high risk funds. It is equity related fund which has the lock in period of three years. And in the year of investment under sec 80C you can get the deduction up to 1.5 lakhs.
If you have a risk appetite and willing to get high return then you can invest in theme funds. You have to wait for 2 to 3 years and continuously monitor your fund you check the fund performance.
Hybrid Equity-oriented funds:
It is an equity oriented fund in which two third of the investment are invested in equity and rest in debt. If you want to invest in a moderate risk fund then the holding period will be three years. Hybrid Equity-oriented fund has a low risk profile also which has a lock in period of one to three years. In this particular fund one third of the investment is invested in both equity and derivatives and again rest in debt.
Debt oriented funds:
Hybrid debt oriented funds has high risk and high return. Lock in period will be two to three years and in this fund 70% to 80% is invested in debt and rest in equity.
If you want to venture into low risk debt oriented fund then you can choose an investment of six months to one year. It is an ultra small lock in period and the investment based on money market instrument and commercial papers.
Debt fund is also involved with a lock in period of two to three years and investment will be in government bonds and money market instruments.
Some long term funds are also there which has a lock in period of two to three years. You can choose between high risk and moderate risk funds.