Investment consulting is a bigger and more neutral paradigm of gathering information and market data and navigating the best prospects to implement an investment strategy. Investment banking is almost exclusively targeted at selecting financial institutions, issuing products, and arranging a transaction.
While an investment consultant may offer product recommendations and an investment banker may offer consulting services, the key differences between the professionals are in approach, methods, cost, and objectives.
Inbest is a leading investment consultant in Kolkata, where we render a comprehensive solution for investors to start or diversify their portfolios and also recommend the finest investment products based on their needs. We bear the crucial responsibility of enlightening inexperienced investors about the dynamic financial landscape of India. If you are newly embarking on your investment journey, you must know your best professional ally.
This article is part of that concept, which delves into the distinctions between the analogous professionals—investment consultants and investment bankers—to give you a general idea of selecting the right kind of financial expertise at the right time.
Investment consultants are financial professionals who focus on providing essential guidance and advice for planning investment decisions, managing portfolios, and classifying financial goals. Below are the fundamental services that these professionals provide:
Assess the financial goals of investors
Recommend suitable financial products to invest in
Develop personalized investment strategies based on market volatility, the investor’s risk tolerance, asset allocation, and many other criteria.
Assist investors in the various stages of portfolio diversification, establishing asset classes, and diversifying and managing their investment portfolios to achieve maximum returns and long-term success.
Investment consultants have a broader area of application, where they work with beginners as well as seasoned investors and help them navigate different kinds of investment vehicles, products, schemes, stocks, and bonds with an all-encompassing approach. The most pivotal resource offered by an investment consultant is guidance on simplifying finance and all the technical complexities associated with it to organise the investment cycle and financial life.
The International Advertising Association (IAA) has produced data and statistics showing that in recent years, many seasoned investors have begun to provide professional advising services to novice investors. Perhaps it stems from a fiduciary duty to reroute congruous recommendations.
Investment bankers are financial professionals who focus on executing financial deals and raising capital and are primarily associated with large-scale transactions involving big corporations, industries, and governments. Below are the fundamental services offered by these professionals:
Act as intermediaries and offer financial expertise in large-scale transactions, which may involve debt & equity placements, mergers & acquisitions (M&A), initial public offerings (IPO), sales & trading, and asset management.
Underwrite security offerings for corporate debt
Connecting entities with potential investors or acquirers for funding and raising capital.
Provide expert analytics for investment banking to access
Corporate Restructuring
Enhancing value creation and mediating transactions between buyers and sellers
Investment bankers are heavily involved in the execution of financial transactions. They don’t only work with investors but also with entities looking to raise money through debt, selling stocks and bonds, or restructuring their organisation. The focus is on analyzing and supporting financial decisions, bridging gaps between transactions, and closing deals with ultimate fruition.
The bottom line is that investment consulting is about planning and navigating financial opportunities and setting a financial goal, while investment banking is about strategizing and closing deals for an already devised financial plan. While the former is involved with the conveyance of information about complicated or confusing financial information, the other is about taking big financial decisions to the next level. So the paradigms, applications, and objectives are greatly different between the two professionals.
If you are in the starting point or middle of a pivotal financial decision, you may find the most actionable resources of a financial advisor in Kolkata, offered by Inbest. We offer a wide range of financial services related to investments, taxes, and insurance. Contact us to get a personalised tour of the best financial solutions we have in store for you.
