Investment banking involves managing pools of asset such as closed and open- end mutual funds. Investment bankers act as agents on a fee basis or a principal, purchasing the securities from the issuer at one price and seeking to place them with public investors at a slightly higher price. The objective in funds management is to select asset portfolio to beat some return-risk performance benchmark. Since this business generates fees that are based on the size of the pool of asset managed, it tends to produce a more stable flow of income than does either investment banking or trading.
Investment banking refers to activities related to underwriting and distributing new issues that can be
either first-time issues of debt or equity is already trading
seasoned issues. Finally, in addition investment banker operates with corporate
securities markets that may participate as an underwriter (primary dealer) in
govt., municipal and mortgage-backed securities.