Types of Funds Profitable for A Business to Grow

1. Types of Funds Profitable for A Business to Grow There are different categories among which the profit of a business gets distributed. From the stake holders, to the employees of the company, everyone needs to get their own share of the profit. Once that it done, the amount of money that is left in the hands of the entrepreneur, will be the money left for them to use, at their disposal. They can use this to invest in the betterment of the company structure, or they can invest it into some mutual or long only funds, creating assets or wealth for the company. Having a good back up of assets is very important for a business as it makes a good cushion to take any kind of blow that the market would have on them. Another alternative is investment banking, which means creation of wealth and fund for a specific company and guiding the issuer with the issuing and placement of stock. While investment banking may seem risky with all the investment done in the stocks involved, it however manages to bring out maximum profit for the company and for the investment banker as well. The investment banker is someone who studies the client’s financial portfolio in detail and then accordingly guides them to make a plan that will ensure goof returns on the investment they are putting in stocks and funds. For a company to earn profit, they need to expand their sales. But for a company to become credible and a well-known brand, they need to take their share of responsibility towards the betterment of the society. This is known majorly as corporate social responsibility (CSR). Bigger firms such as Tata, Reliance, Infosys are all involved in a great number of social works. Doing this might not be profitable for them in terms of money, but it brings in the goodwill and helps to gain trust of the people in their said brand. It is the company’s way of giving it back to the society who they earned from. Just like the company has responsibility towards the outside world, it has a responsibility to the inner sphere of its organization as well. For this, it is necessary that business owners invest in something called the ESG funds (Environmental, Social, Governance) of the business. ESG funds in India are nothing but a collection of all the bonds and equities for which the three mentioned factors have been unified in the investment process. It ensures that all the bonds and equities involved in a particular investment has qualified and passed in all stringent tests over the sustainability of the ESG criteria followed by the company. All this is very crucial for the smooth functioning of a business. When a business firm chooses to approach a company dealing with investment banking, they have to know that it means that they entrust the investment banker with the funds and the money to expand www.avendus.com

2. and this might also involve risk of loosing some funds from time to time. Therefore, business being the risky rope walk, ensures fruitful benefits at the end if balanced well. www.avendus.com