Investment Banking

Don’t let your spare cash, inheritance or lottery win sit in a current account going nowhere- put it to work to make more money.

Investment banks usually deal with large corporations and groups of exceptionally wealthy individuals, but investment banking is open to everyone with cash to spare, whether you do it through a financial adviser, your local bank, or a private bank. Either way, make your spare money go further!

Now is possibly a great time to get into investment banking. As a private investor, you cannot underestimate your importance to the financial markets. It’s true that the majority of investments are made by investment banks and the financial directors of large companies with money sloshing around in pension funds and other cash pots. But private investors are not only great barometers of shorter-term financial thinking, they are also often fastest to react to market trends.

Opinion on investing is divided right now. We stand on the brink of either further economic decline (as some analysts believe), or at the bottom of a small trough which will right itself in the next few years. Personal investment banking now gives you options to account for both scenarios according to your bullish or bearish outlook. If you’re a pessimist, you might invest in bonds- a predictable but low return. If you’re an optimist, you might put money in hot AIM-listed companies. Or if you just want a punt, you could go for tracker funds, which will follow the market whatever it does. Similarly if you’re considering tax efficiency, perhaps an ISA is the route to go.

Either way, if you have spare cash, don’t let it rot in your current account- get some financial advice from your local bank, or if you have lots of it a private bank. The purpose of spare money is to make more money!