ROLE OF FINANCIAL ADVISOR IN VENTURE CAPITALS

1. ARTICLE KEYWORDS FINANCIAL ADVISING Financial advising is one of the most sought jobs in recent years in India. It is a lucrative job, but it is important for one to learn up until the very end and deliver because of the mass sum of money involved in this job. In hindsight, financial advisors will be providing financial advice or guidance to the customers for hefty compensation. Lesser compensation money could be involved sometimes, but it is pivotal to manage it properly nevertheless. A wide range of licenses and certifications might be required depending on the services provided by the respective financial advisor. On the other hand, financial advisors must hold series 65 in order to conduct business with the public. Financial advisors might not necessarily work for companies, but they can also be alone as an agent. Besides, financial advisors can work in different sectors such as banking, taxes, stockbrokers, and investment managers. As already mentioned, financial advisory services are also needed in venture capital firms and hedge fund firms. ROLE OF FINANCIAL ADVISOR IN VENTURE CAPITALS: Venture capital is an equity investment provided by a big firm to a start-up or small firm that has the ability to grow big on a long-term basis. Venture capital usually comes from a well-off person or a rich company - aiming to help small firms. It is not necessary to hand the cash or cheque at one go, but they can also be done with the technical or managerial expertise. Although it can be risky, the return on investment is too big to ignore. For the growing and upcoming companies, venture capital has become a huge thing. With the use of financial advisory services, it is easy to close the gap between the venturer and the entrepreneur. By participating in writing documents and participating in investment negotiations, one can cut down too many to and fros between the venturer and the entrepreneur. Although it is not 100% sure to obtain a venture capital with a financial advisor, the chances of obtaining the same increases with the assistance of the financial advisor. ROLE OF FINANCIAL ADVISOR IN HEDGE FUND: Under the class of investment vehicle that uses pooled funds and deploy numerous strategies to earn an active return for their investors. Unlike a common mutual fund, hedge funds focus on higher net-worth individual investors and organizations that may invest in several assets. On the other hand, a hedge fund analyst is someone who does thorough quantitative research on the trade with the fund's money that adheres to trading and its regulations. Following this step, the analysis is then passed on to the trading team or portfolio manager. These two work and execute the trade finally. A financial advisor will always be aware of the latest updates in the hedge fund. Since hedge funds are updated on a minute-to-minute basis, it is important for the financial advisors to keep track of the efficiency of the financial state. Even though it is mainly identifying the potentially

2. attractive investment in a company’s stock, detailed securities are also taken into consideration for the hedge fund to raise.