Top 10 Investment Banking Companies In World: Performance & ROI Wise

To find the best investment company to invest, it is utmost important to decide first what type of return you expect. The objective of everyone’s investment is never the same. People have different goals, different risk- reward tolerances and different time frames in mind. The issue is that investing is a complicated task and no one answer fits all. Choosing an ideal investment company completely depends on what you want to achieve. The more your expectations are clarified more you will be close to the success. However, there are few common key steps, discussed here, can assist one to find the right place to invest.

The first step is “finding the right goal”.

In other words, determine what you plan to do with the money you want to invest—what is your financial goal? Do you want regular income or more interested in wealth maximization, or both at a time?

The second step is determining your “tolerance on risk-benefit scale”.

The investments with higher risks yield higher benefits. First, identify your risk bearing capacity, before you proceed for a higher income yielding investment. A safe place will give you much less benefit than one with aggressive growth.

Once you figure out these two above steps, calculate the return you are expecting with your money within your time horizon and begin your research work to pick the best investment company that can feed your appetite. Identify the sectors with maximum growth potential within your time frame, look at their financial statements, backgrounds and reputation, compare them with others in the same sector or segment. If you are not expert in these job consult experts or take advice from someone you trust.

Here are few quick tips to shortlist the best companies to invest in equity shares:

  • Sales Revenue gives good idea on the volume of business and the financial position of the company.
  • Check the earning of the company for past few years and the percentage of net profit on sales turnover. Check whether it is above the industry average.
  • Know about the obligations and financial liabilities of the company.
  • Check its assets and liabilities of the company from its Balance Sheet. It is a good indicator about the company’s financial strength.
  • Check the Price to Earnings Ratio of the company. A too high P/E ratio means the stock is too heated, over-priced. On the other hand P/E ratio below industry average indicates the share is bearish, its price is not like to go up in near future.

An investment company is primarily engaged in the business of investment. They collect money from many investors and invest the fund received so to stocks and securities. They make profit by buying and selling such investments and distribute the income made thereon after deducting their costs and expenses to the individual investors. The performances of such investment companies are mainly dependent on the performance of the different kinds of assets and the securities they own.

Investment Management companies are firms specialized in managing assets of investors. They allow an investor to pool money together with other investors and such pooled assets (corpus of funds) are distributed to various forms of investments. They allow investors to receive return with minimum risk. There are thousands of asset management or investment companies around the world but not all of them are successful to provide profitable return to their clients. A good investment company must be a master in picking the right form of investment in most of the time. It is “most of the times,” because nobody can ever be 100% perfect in highly uncertain, volatile investment world.

Below is the list of 10 top investment companies in 2012:

Name of the Investment Company What the Investment Company is About Total Revenue/

Assets

The Vanguard Group A privately owned investment manager it offers mutual funds and other financial products and services to retail and institutional investors; it is world’s largest pure no-load mutual fund company. The firm also provides individual retirement account, college variable annuities, savings account, and personal advisory services to its clients. $2.0 trillion in assets under management as of January 2013
State Street Global Advisors The world’s second largest asset manager, managing investment strategies for non-profit businesses, foundations, associations, corporations, educational institutions, governments, and religious organizations and investment vehicle for retail market. Revenue $ 8.953 billion ; Operating income $2.086 billion; Net income $1.556 billion (2010)
Northern Trust Corporation An international financial services company that provides investment management, asset and fund administration, fiduciary and banking services

Asset Under Management US$ 749.7 billion (2012)

 

Revenue            $3.81 billion; Operating income US$ 883.7 million; Net income $ 603.6 million (2012)
Barclay’s Global Investors A British multinational banking and financial services company, has operations in over 50 countries and territories and has around 48 million customers. Barclays had total assets of US$2.42 trillion (2011).The seventh-largest of any bank worldwide. Revenue £24.691 billion (2012);

Operating income £0.246 billion (2012)

JP Morgan Chase & Co
  1. Total asset US$ 2.509 trillion; it is the largest bank in the United States by assets, second in the world. They provide  full spectrum of financial services.

 

Revenue $ 97.03 billion, Operating Income$ 28.91 billion, Net income$ 21.28 billion (2012)
Alliance Bernstein A US-based, global asset management firm, controlled by the French insurance conglomerate, AXA. Assets Under Management $437 billion as of January 31, 2012. Revenue $758 million (Q3-2010)
Fidelity Investments An American multinational financial services corporation. The largest mutual fund and financial services groups in the world. Products include investment management, mutual funds, online brokerage; they also provide trading and stock market investing, investment funds, and retirement planning provisions.

 

 

Asset Under Management US$ 1.7 trillion (2013)
Deutsche Bank A German global banking and financial services company. The largest foreign exchange dealer in the world with a market share of 21 percent.

Total assets €2.012 trillion (2012)

Revenue €33.70 billion; Operating income  €784 million; Profit €237 million (2012)
Allianz A German multinational financial services company, world’s 12th-largest financial services group, Its Allianz Global Investors division ranks as a top-five global active investment manager with €1,443 billion of assets under management. Revenue €106.451 billion; Operating income €8.243 billion; Profit €5.053 billion(2010)
UBS AG A Swiss global financial services company, the biggest bank in Switzerland, operating in more than 50 countries, provides asset management, investment banking and wealth management services for private, corporate and institutional clients worldwide. It suffered among the largest losses of any European bank during the subprime mortgage crisis. Total Asset Under Management $2 trillion  

Operating income CHF (-)1.774 billion; Net income CHF(-) 2.511 billion

(2012)

About the Author

Sandra
I am working as Editor in Chief for Financeninvestments.com. Writing on Financial Topics is my passion. You can find me on , Seeking Alpha Instablogs or join our Facebook Community, s. FNI is a great Community for financial bloggers and writers. Get everything you wanted to know about your finance and investment related matters such as mutual funds, banking, retirement, economics and much more.

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