The basics of Investment Banking


What Is Investment Banking?

A number of financial advisory activities that are provided by a bank to individuals or singular organizations

What are the services provided here?

Various services provided under Investment Banking entail mergers, acquisitions, dealings in securities, managing assets and underwriting.

Who is an Investment Banker?

A person, well versed with the financial language and can very well analyze a company and help in boosting the creation of its financial assets and capital.

What does a Career in Investment Banking take?

Goal orientation, determination, perseverance and a knack for numbers, risk management and analyzing.


What Is A Hedge Fund?

hedge-fundIn the world of Finance, Hedge Funds are popularly known as, ‘Investment Vehicles With A Twist’. The latter holds quite a lot of truth when it comes to the concept of hedge funds, mainly because they are mighty complicated. There is a very interesting analogy about them, which has become quite popularly in the finance circles, lately. It goes something like, hedge funds are those entities, to invest in which one would require as much money, as Bill Gates, while to manage these, a professional would be required to have the brains similar to that of Einstein. Now you must have gotten the general idea about these entities and their nature. Hedge funds in particular shot to fame, as a result of certain clever financial strategies that were put to use, in order to generate great returns and they have remained in the limelight ever since. Very different from the traditional ways of the industry of funds, its basically the media coverage and the surmounting interest of the others, that has led to the Hedge Funds coming to fore and becoming so popular among finance enthusiasts.

Let’s move on to more substantial attributes of these concepts. Hedge Fund, in simple words refers to a certain type of pooled investment. But then again, this definition falls short, mainly because it is similar to that of a mutual fund. The major difference that sets Hedge Funds apart from the rest is, that these are open to only a certain number of investors, like a very exclusive clique and their performance is measured in absolute return units. Let’s take a look at the two terms, Hedge and fund. According to their nomenclature, hedging is basically referred to lowering the overall risk. Hedge Funds basically take up an asset position in any firm, which then results in offsetting the existing risk. These funds or the professionals working in this area, basically go on to reduce risk by using a number instruments and strategies. Apart from this, they are also known to be extremely flexible in the options of their investments. The various other functions of a hedge fund include taking of both Long and Short positions, using Arbitrage, buying and selling of undervalued securities, trading of options or bonds. With their basic aim, to reduce the risk and at the same time, try and preserve the capital; the professionals here are supposed to in any opportunity that exists in the market.

Hedge Funds have their very own, independent characteristics, which basically include the ability to deliver, non market correlated returns. Apart from that, the major investors, in these funds are pension funds, endowments, insurance companies, private banks and high net worth individuals and families. Hedge Funds are basically liquid investments, with little to no regulations and the professionals working herein, are known to make use of Aggressive Investment Strategies. These funds are usually managed by a professional, who has a considerable experience in the field of Investment Banking. This is another reason as to why, a number of Investment Banking aspirants, choose to go into Hedge funds, due to their great returns aspect. Apart from the experience, one is also required to have a professional certification in Hedge Funds, from an esteemed institute, like Imarticus Learning, if one wishes to work with top high net worth individuals.

Its the Small Data that Matters!

Big Data, surely everyone knows all that it is about, but do you know that the future revolves all around making this big data, smaller? While there may be a lot many people stating that big data is the next big thing, but those people tend to oversee the fact that everything related to big data, is entirely machine based and you would most likely require the human eye, to look at the big picture as it gradually forms. While it is no news, that the importance, evolution, analyzing and collection of everything related to big data, depends on its tools, which are commonly known as data analytics tools. These tools are basically used by Data Scientists or Data Analysts, to make smarter strategic decisions, to reduce costs, to target the right kind of audience, to optimize offerings and on the whole, in order to ensure that your business runs as efficiently as possible. Studies show that by the year 2019, the value of the data analytics industry is bound to reach about $187 billion. Its reason enough to become a part of this industry as early as you can.

Let’s start with the basics here, big data is basically a term, used to refer to the enormous amount of structured as well as raw data, which is generated by a number of businesses today. This data refers to every kind of online record of information, now that could be anything related to social media, or a machine to machine relation. The basic concept is, to be able to deal with all of this data, floating all around you in the virtual world, for which, one would need to develop certain technologies, which would help in analyzing the data, thereby resulting into various decisions that would prove beneficial to the growth and development of various companies.

In the recent times, the concept of big data has come to be the center of attention of the world of technology. There are many who believe that just storage of massive amounts of data would be able to get their work done. This is not really the case, as big amounts of data does not necessarily mean that the data would be useful. The most important point here is, how a business or a firm is able to analyze this data, while at the same time be able to draw practical conclusions from the same, in order to bettering their chances of success. Big Data being a very new concept, many companies have chosen to prioritize over the quantity of data, as opposed to the quality of it. The general idea of this field is so generic, that it becomes quite difficult for various companies to figure out which data should be analyzed, or how to conduct the analysis, or for that matter what attributes it must have. On the other hand, small data is rapidly gaining more importance, mainly because of its very specific attributes, which make it possible to analyze large sets of data. In other words, small data is able to bring about timely and more meaningful insights in shorter amounts of time, which is why more and more data scientists are rooting for it. This is also the reason institutes like Imarticus Learning have become popular, as they offer industry relevant training courses, in various data analytics tools like Hadoop, SAS, R and so on.