UNIT 1

BBA 214
INTRODUCTION TO INVESTMENT
MANAGEMENT
CREDIT 4
 INTRODUCTION
• The study of Investment is concerned with purchase and sale
of various types of assets in order to earn income or return on
them.
• A person who has more money than he needs for immediate
consumption can be said to be a potential investor.
• Investment is the employment of funds with the aim of
achieving additional income or capital appreciation.
• In the process of Investment the present consumption is
sacrificed to get a return in the future.
• The amount that has to be invested is certain but the return in
the future may be uncertain.
• Investment refers to the allocation of money or resources in an asset or project with the expectation of
generating income, profit, or appreciation in value over time. It involves committing capital with the goal
of achieving future financial benefits.
• Examples of Investment
1. Stock Market Investment – Buying shares of companies like Reliance, TCS, or Infosys with the hope of
earning returns through price appreciation and dividends.
2. Fixed Deposits (FDs) – Depositing money in a bank for a fixed period to earn a guaranteed interest rate.
3. Real Estate Investment – Purchasing land or property with the expectation that its value will increase over
time.
4. Gold Investment – Buying gold in the form of jewelry, coins, or ETFs (Exchange Traded Funds) to benefit
from price appreciation.
5. Mutual Funds – Investing money in professionally managed funds that pool resources from multiple
investors and invest in stocks, bonds, or other assets.
6. Government Bonds – Lending money to the government through bonds like RBI Bonds or Sovereign Gold
Bonds, earning interest over time.
7. Business Investment – Investing in a startup or expanding an existing business to generate future profits.
 KEY TERMS AND CONCEPTS
1. Principal
Definition: The initial amount of money invested in an asset.
• Example: Suppose you invest ₹1,00,000 in a fixed deposit (FD)
at a bank. This ₹1,00,000 is your principal amount. After a
year, if you earn ₹6,000 as interest, your total balance becomes
₹1,06,000.
• Real-Life Scenario: Your parents buy gold jewelry worth
₹50,000. The ₹50,000 they paid is the principal, and if gold
prices rise, the value of their investment increases.
2. Return on Investment (ROI)
• Definition: The percentage of profit or loss on an investment relative to its initial cost.
• ROI=Profit or Loss​/Investment cost×100
If you invest ₹50,000 in stocks and sell them after a year for ₹60,000:
ROI=(60,000−50,000)/50,000​×100=20%
3. Risk
• Definition: The probability of losing money on an investment. Investments with higher
potential returns often have higher risks.
Example:
• Investing in a fixed deposit is low-risk because banks guarantee returns.
• Investing in cryptocurrency is high-risk because prices fluctuate significantly.
Real-Life Scenario: Suppose you invest in a startup. If the company becomes successful,
you may get 10 times your money. But if it fails, you may lose everything.
4. Liquidity
• Definition: The ease with which an investment can be converted into cash without
significant loss in value.
Example:
• High Liquidity: Stocks, mutual funds (you can sell them quickly).
• Low Liquidity: Real estate (selling a house takes time).
Real-Life Scenario:
• You can withdraw money from a savings account instantly (high liquidity).
• Selling an old car may take weeks or months (low liquidity).
5. Capital Appreciation
• Definition: The increase in the value of an asset over time.
• Example: If you bought a plot of land for ₹5 lakh five years ago and now it’s worth ₹12
lakh, the capital appreciation is ₹7 lakh.
• Real-Life Scenario: If you buy an iPhone today, its value will decrease over time
(depreciation), but if you buy gold, its value will likely increase (capital appreciation).
6. Dividend
• Definition: A portion of a company’s profit paid to shareholders.
Example: If you own 100 shares of TCS, and the company declares a
dividend of ₹30 per share, you will receive ₹3,000.
Real-Life Scenario: Some students invest in dividend-paying stocks to
earn passive income while studying.
7. Interest
• Definition: The money earned on fixed-income investments like bonds,
fixed deposits, or savings accounts.
• Example: If you deposit ₹1,00,000 in an FD at 6% interest per year,
you earn ₹6,000 annually.
• Real-Life Scenario: Banks lend money at higher interest rates than
they pay on deposits, earning profits from the difference.
8. Compounding
• Definition: Earning interest on both the principal and previously earned
interest, leading to exponential growth.
• Example: If you invest ₹10,000 in a mutual fund that grows at 10% per
year, in 10 years, it becomes ₹25,937, not just ₹20,000.
• Real-Life Scenario: Warren Buffett, one of the world’s richest investors,
built his wealth through the power of compounding.
9. Inflation
• Definition: The rise in the price of goods and services over time, reducing
the value of money.
• Example: If a cup of tea costs ₹10 today and ₹15 next year, inflation
has reduced your money’s value.
• Real-Life Scenario: If you keep ₹1,00,000 in cash at home for 10 years,
its purchasing power will decrease due to inflation.
10. Diversification
• Definition: Spreading investments across different assets to reduce risk.
• Example: Instead of investing all your money in stocks, you invest in
stocks, gold, and real estate. If the stock market crashes, other
investments can balance the loss.
• Real-Life Scenario: Your parents may invest in real estate, gold, and
FDs rather than keeping all money in one place.
11. Market Capitalization
• Definition: The total value of a company’s shares in the market.
• Example: If Reliance Industries’ share price is ₹2,500 and it has 7
billion shares, its market cap is:
• 2,500×7,000,000,000=₹17.5 lakh crore
• Real-Life Scenario: Companies like TCS and Infosys are large-cap stocks,
while new startups are small-cap.
12. SIP (Systematic Investment Plan)
• Definition: A method of investing a fixed amount in a mutual fund at
regular intervals.
• Example: If you invest ₹1,000 every month in a mutual fund, over 10
years, your investment will grow due to compounding.
• Real-Life Scenario: Many working professionals use SIPs to build
wealth gradually.
13. Hedge Fund
• Definition: A high-risk, high-return investment fund for wealthy
investors.
• Example: Hedge funds use strategies like short selling, leverage,
and derivatives to maximize profits.
• Real-Life Scenario: Billionaire investors often invest in hedge funds
to diversify their portfolios.
14. Exchange-Traded Fund (ETF)
• Definition: A fund that tracks an index and trades like a stock
on the stock exchange.
• Example: If you want to invest in NIFTY 50 stocks, you can
buy a NIFTY 50 ETF instead of buying individual stocks.
• Real-Life Scenario: Investors who don’t have time to
research individual stocks invest in ETFs for diversification.
 Importance of Investment in Personal and
Institutional Finance
• Investment plays a crucial role in both personal finance (individual wealth-building) and
institutional finance (organizations managing funds for growth and sustainability).
Understanding its significance helps individuals secure their future and enables
businesses to expand efficiently.
• 1. Personal Finance
Personal finance deals with managing individual wealth, ensuring financial security, and
achieving long-term goals.
1.1 Wealth Creation
• Why Important? Investment helps individuals grow their money over time, increasing
financial stability.
Example:
• Ramesh, a young professional, starts investing ₹5,000 monthly in a mutual fund.
• Due to compounding, in 20 years, his investment grows to over ₹50 lakh, ensuring
financial freedom.
• 1.2 Retirement Planning
• Why Important? Investments provide financial security after retirement when there is
no active income.
• Example:
• Suppose an individual invests in Public Provident Fund (PPF) and pension funds
throughout their career.
• At retirement, they receive a large corpus, ensuring a comfortable life.
• Real-Life Case: Many government employees invest in the National Pension System
(NPS) to secure post-retirement income.
1.3 Beating Inflation
• Why Important? Inflation reduces the value of money over time. Investments help money
grow faster than inflation.
Example:
• 10 years ago, ₹1,000 could buy more groceries than today.
• If a person keeps ₹1 lakh in cash for 10 years, its purchasing power decreases.
• But if the same amount is invested in stocks or mutual funds, it grows, beating inflation.
• 1.4 Achieving Financial Goals
• Why Important? Investments help in achieving long-term financial goals like buying a
house, children’s education, or foreign trips.
• Example:
• Aman wants to buy a car in 5 years.
• Instead of saving ₹5,000 per month in a savings account, he invests in a SIP
(Systematic Investment Plan).
• After 5 years, his money grows faster than in a regular savings account, allowing him to buy
the car earlier than planned.
1.5 Passive Income Generation
• Why Important? Smart investments create passive income, reducing dependency on active
work.
• Example:
• Investing in dividend stocks like Reliance Industries or TCS generates regular income.
• Buying a rental property gives a steady monthly income.
• Real-Life Case: Many retirees live on dividend income, rental income, or interest from
bonds instead of a salary.
• 1.6 Tax Savings
• Why Important? Certain investments help reduce tax
liabilities under government tax-saving schemes.
• Example:
• Investing in Equity-Linked Savings Scheme (ELSS)
provides tax benefits under Section 80C.
• Contributions to Provident Fund (PF) and Life Insurance
Policies also save tax.
• Real-Life Case: Many professionals invest in ELSS, PPF,
and NPS in March to reduce income tax liability.
 2. Importance of Investment in Institutional
Finance
• Institutions, including corporations, banks, insurance companies, and
mutual funds, invest to ensure growth, profitability, and sustainability.
• 2.1 Business Expansion and Growth
• Why Important? Corporations need investments to expand operations,
open new branches, or launch new products.
• Example:
• Tata Motors invests in electric vehicle (EV) technology to expand its
market presence.
• Reliance Industries invests in 5G technology for future growth.
• 💡 Real-Life Case: Companies like Amazon and Tesla invest billions in
R&D to innovate and remain competitive.
2.2 Capital Allocation for Profitability
• 📌 Why Important? Companies invest surplus funds in financial instruments to generate
profits.
• 📌 Example:
• Infosys keeps surplus cash in fixed-income securities to earn interest.
• Banks invest in government bonds to maintain liquidity and earn safe returns.
• 💡 Real-Life Case: Apple holds billions in marketable securities instead of keeping cash idle.
2.3 Job Creation and Economic Growth
• 📌 Why Important? When businesses invest in expansion, they create jobs and boost the
economy.
• 📌 Example:
• When Flipkart invests in new warehouses, it hires thousands of workers.
• When Zomato expands to new cities, it creates jobs for delivery executives and restaurant
partners.
• Blinkit,zepto , swiggy instamart.
• 💡 Real-Life Case: Government infrastructure investment in highways, railways, and
airports creates millions of jobs.
2.4 Risk Diversification
• 📌 Why Important? Companies invest in multiple assets to spread risk and ensure financial
stability.
• 📌 Example:
• HDFC Bank invests in loans, real estate, government securities, and foreign markets to
minimize losses.
• Tata Group invests in IT (TCS), steel (Tata Steel), and automobiles (Tata Motors) to reduce
risk.
• 💡 Real-Life Case: Mukesh Ambani diversified Reliance Industries from oil to telecom (Jio)
and retail (Reliance Retail) to balance risks., TATA( zudio, Westside, Starbucks.)
2.5 Maintaining Liquidity
• 📌 Why Important? Institutions must maintain liquidity to handle emergencies, pay debts, and
fund operations.
• 📌 Example:
• Banks invest in short-term government bonds to ensure liquidity.
• Insurance companies invest in safe bonds to meet customer claims.
• 💡 Real-Life Case: During economic crises, companies with liquid assets survive better than
those with only physical assets.
• 2.6 Research & Development (R&D) Investment
• 📌 Why Important? Companies invest in R&D to develop new
products and stay ahead of competitors.
• 📌 Example:
• Pfizer invests in R&D to develop new vaccines and
medicines.
• Google invests in AI and quantum computing for future
innovation.
• 💡 Real-Life Case: Apple’s investment in iPhone technology
helped it dominate the smartphone industry.
• Covi shield and co-vaccine to beat corona.
• Conclusion
• ✅ For Individuals: Investment is essential for wealth
creation, retirement planning, passive income, and
financial security.
• ✅ For Institutions: Investment is necessary for business
growth, risk management, liquidity maintenance, and
long-term success.
• 💡 Final Thought: Whether it’s an individual investing in
mutual funds or a company investing in expansion,
investment is the key driver of financial success.
 Financial investment vs. Real investment
• Financial investment refers to the allocation of funds into
financial assets such as stocks, bonds, mutual funds, and
derivatives with the primary objective of earning returns. These
investments are typically intangible, existing in paper or
electronic form, and their value is influenced by market
conditions, economic factors, and investor sentiment. Financial
investments offer liquidity, as they can be easily bought or sold
in financial markets. However, they also carry risks such as
market volatility and interest rate fluctuations. Investors engage
in financial investments to generate income through interest,
dividends, or capital appreciation over varying time horizons,
from short-term trading to long-term wealth accumulation.
• On the other hand, real investment involves the allocation of capital into
tangible assets such as real estate, factories, machinery, and infrastructure.
These investments are primarily focused on enhancing production capacity
and contributing to economic growth. Unlike financial investments, real
investments are less liquid, meaning they cannot be easily converted into
cash without significant time or effort. They also require maintenance and
may depreciate over time. However, they provide long-term benefits, such as
income generation through rental income or increased production efficiency.
Businesses and governments often engage in real investments to develop
infrastructure, expand operations, or improve productivity.
• In summary, financial investment is about generating returns through
financial instruments, while real investment focuses on creating tangible
assets that contribute to economic development. While financial investments
offer higher liquidity and market-driven returns, real investments provide
long-term value and production capabilities, making both essential for
economic growth and personal wealth management.
 Difference between financial
investment vs. real investment
Financial investment Real investment
• Financial investment is • Real or Economic investment is
investment of funds in investment in real assets or
financial assets such as physical assets. Real assets are
those long term (or fixed) assets
shares,bonds,mutual funds
which are used in the production
etc.The return of financial process. Examples are
investment is in the form of plant,machinery,equipments,build
interest,dividend and/or ings.
appreciation in value.
 Objectives of Investment
1. Return
2. Regular income or stability of income
3. Capital appreciation
4. Tax benefits
5. Safety of capital- The investor must secure his principal
amount which he invests.That is he should not be very
impressed by very high rate of returnon an investment if the
amount invested is not safe.For this credit rating agencies
play an important role in providing bond-ratings.Generally
bonds which have lower than AAA ratings are considered to be
not so safe.
 Speculation
• Speculation is investment in an asset that offers a potentially large return
but is also very risky; a reasonable probability that the investment will
produce a loss.
• It can be defined as the assumption of considerable risk in obtaining
commensurate gain.
• Considerable risk means that the risk is sufficient to affect the decision.
• Commensurate risk means that the risk is sufficient to affect the decision.
• Commensurate gain means a higher risk premium.
• Speculative assets are high risk –high return assets and hence should be
invested in with caution.
• Generally large investors hold speculative assets so as to make quick gains.
• Stock market is identified with two types of speculators– bulls
and bears.
• Bull speculators expect increase in stock prices while bear
speculators expect decline in prices.
• Speculation is not bad.
• It is essential for smooth functioning of stock market and to
maintain price continuity and liquidity.
• However,excessive speculation is bad as it takes the prices
away from their true fundamental values.
• Therefore,SEBI keeps a check on excessive speculation in
Indian stock market through various rule and guidelines under
SEBI ACT,1992.
• Example of Speculation in the Stock Market
• Suppose an investor believes that the stock price of XYZ Ltd., a
technology company, will rise sharply in the next few weeks due
to rumors of a groundbreaking new product launch. Without
any solid financial analysis or long-term investment strategy,
the investor buys a large number of XYZ Ltd. shares at ₹500
per share, expecting to sell them at a much higher price soon.
• After a few days, due to increased market excitement and
media coverage, the stock price jumps to ₹600 per share. The
investor quickly sells all their shares, making a profit of ₹100
per share. However, if the product launch fails or the news
turns out to be false, the stock price could drop significantly,
resulting in heavy losses.
• This short-term, high-risk approach, based purely on market
speculation rather than company fundamentals, is a classic
 Difference between Investment and speculation
Investment Speculation
• To earn steady returns over the • To make quick profits from short-
long term term market movements
• Lower risk, as investments are • High risk, as it relies on market
based on fundamental analysis speculation
• Long-term (years to decades) • Short-term (days, weeks, months)
• Based on company fundamentals, • Based on market psychology,
financial health, and market technical analysis, and price
trends speculation
• Generally moderate and stable • Potentially high but uncertain
• Contributes to market stability • Can lead to market volatility
and growth
 GAMBLING
• Gambling is the act of risking money or valuables on an event
with an uncertain outcome, primarily based on luck, with the
hope of winning a prize. Unlike investment and speculation,
gambling does not involve systematic analysis, ownership of
assets, or productive economic activity.
 DIRECT INVESTING AND INDIRECT INVESTING
Definition:
Direct investing involves purchasing and managing assets personally without relying on
intermediaries. The investor has full control over investment decisions and owns the asset directly.
Examples:
• Buying stocks directly from stock exchanges (e.g., buying Reliance shares on NSE).
• Purchasing bonds from companies or governments.
• Investing in real estate by directly owning property.
• Buying commodities like gold or silver.
Advantages:
✅ Full control over investment decisions.
✅ Potentially lower fees (no intermediary management charges).
✅ Transparency in portfolio holdings.
• Disadvantages:
❌ Requires market knowledge and expertise.
❌ Time-consuming to monitor and manage investments.
❌ Higher risk if the investor lacks diversification strategies.
2. Indirect Investing
Definition:
Indirect investing involves investing through intermediaries like mutual funds, exchange-traded
funds (ETFs), or hedge funds, where professional managers handle investments.
Examples:
• Investing in mutual funds, which pool money from multiple investors to invest in stocks and
bonds.
• Buying exchange-traded funds (ETFs), which track an index or sector.
• Investing in Real Estate Investment Trusts (REITs) instead of directly buying property.
• Participating in pension funds or hedge funds managed by professionals.
Advantages:
✅ Professional management reduces the need for expertise.
✅ Diversification lowers risk exposure.
✅ Less time-consuming for investors.
• Disadvantages:
❌ Management fees reduce overall returns.
❌ Limited control over individual asset selection.
❌ Performance depends on the fund manager’s expertise.
 Types of Investment vehicles
1. Stocks (Equities)
Definition: Stocks represent ownership in a company. When you buy a stock, you
become a shareholder and gain a claim on a portion of the company’s assets and
earnings.
• Example: Suppose you buy 10 shares of Reliance Industries at ₹2,500 per share. If
the stock price increases to ₹3,000 per share, you earn a profit of ₹5,000 (₹500 × 10
shares). Additionally, if the company pays a dividend of ₹50 per share, you receive
₹500 as passive income.
2. Bonds (Fixed Income)
Definition: Bonds are debt instruments issued by governments, municipalities, or
corporations. Investors lend money in exchange for periodic interest payments
(coupon) and the return of principal at maturity.
• Example: If you invest ₹1,00,000 in a 10-year government bond at a 6% annual
interest rate, you receive ₹6,000 per year as interest. After 10 years, you get back
your ₹1,00,000 principal.
3. Mutual Funds
Definition: Mutual funds pool money from multiple investors to invest in
a diversified portfolio of stocks, bonds, or other assets, managed by
professional fund managers.
• Example: Suppose you invest ₹10,000 in the SBI Bluechip Fund,
which primarily invests in large-cap stocks. If the fund grows by 15%
in a year, your investment value increases to ₹11,500.
4. Exchange-Traded Funds (ETFs)
Definition: ETFs are similar to mutual funds but trade on stock
exchanges like individual stocks. They offer diversification and low
costs.
• Example: The Nippon India ETF Nifty 50 tracks the performance of
the Nifty 50 index. If Nifty 50 rises by 10%, the ETF's value will
increase similarly, providing market-linked returns.
5. Real Estate
Definition: Investing in real estate involves purchasing residential,
commercial, or rental properties for capital appreciation and rental income.
Investors can also invest in Real Estate Investment Trusts (REITs),
which are companies that own and manage properties.
• Example: If you buy an apartment in Lucknow for ₹50 lakh and its price
rises to ₹70 lakh in 5 years, you earn ₹20 lakh as capital appreciation. If you
rent it out for ₹20,000 per month, you get ₹2.4 lakh annually as rental
income.
6. Commodities
Definition: Commodities include physical assets like gold, silver, crude oil,
and agricultural products. These are often used as a hedge against inflation.
• Example: If you buy 10 grams of gold at ₹60,000 and its price increases to
₹65,000, you make a profit of ₹5,000. Investors can also trade commodity
futures on platforms like MCX (Multi Commodity Exchange).
7. Certificates of Deposit (CDs)
Definition: A CD is a time deposit where you invest money with a bank
for a fixed period at a guaranteed interest rate.
• Example: If you invest ₹5 lakh in a Fixed Deposit (FD) with HDFC
Bank at 7% for 5 years, you receive ₹35,000 annually in interest and
get back your ₹5 lakh at the end of the term.
8. Hedge Funds
Definition: Hedge funds are investment funds that use aggressive
strategies like leverage, derivatives, and short selling to maximize
returns. These funds are generally for high-net-worth individuals and
institutions.
• Example: A hedge fund like Tiger Global might invest in high-risk
tech startups and global equities to achieve outsized returns. However,
they charge high fees (typically 2% management fee and 20%
performance fee).
9. Private Equity
Definition: Private equity refers to investments in private
companies that are not publicly traded. Investors usually buy
stakes in companies to improve operations and later sell them at
a higher valuation.
• Example: A private equity firm like Blackstone may buy a
struggling retail chain, restructure it, and sell it for a profit
after a few years.
10. Annuities
Definition: Annuities are financial products that provide a steady
income stream, often used for retirement planning. They can be
fixed, variable, or indexed.
• Example: If you buy a LIC Jeevan Akshay VII annuity for ₹10
lakh, you may receive a monthly pension of ₹8,000 for life,
11. Options and Futures (Derivatives)
Definition: These are financial contracts that derive their value
from an underlying asset, such as stocks, commodities, or
indices. Futures obligate the buyer/seller to execute the
contract, while options provide the right but not the obligation.
• Example: If you buy a Nifty 50 call option at 20,000 for a
₹100 premium, and Nifty 50 rises to 21,000, your option value
increases, allowing you to sell it at a profit.
12. Cryptocurrency
Definition: Digital currencies that use blockchain technology.
They are decentralized and highly volatile.
• Example: If you buy 1 Bitcoin at ₹40 lakh and its price rises
to ₹45 lakh, you make a ₹5 lakh profit. Cryptos are traded on
platforms like CoinDCX and Binance.
• Each investment vehicle has different risk and return profiles.
Investors should choose based on their financial goals, risk
tolerance, and time horizon. Would you like a comparison chart
for these investment vehicles? 🚀
 Major participants in the investment industry
• The investment industry consists of various participants, each playing a crucial role in
the financial ecosystem. Here are the major participants in the investment industry:
1. Individual Investors
• These are retail investors who invest their personal money in stocks, bonds, mutual
funds, real estate, and other assets.
🔹 Example: A salaried professional investing in a Systematic Investment Plan (SIP) in
mutual funds.
2. Institutional Investors
These are large organizations that invest significant amounts of money in financial markets
on behalf of others.
🔹 Examples:
• Pension Funds (e.g., EPFO in India, CalPERS in the USA)
• Insurance Companies (e.g., LIC, HDFC Life)
• Hedge Funds (e.g., Bridgewater Associates)
• Sovereign Wealth Funds (e.g., Norway's Government Pension Fund)
3. Asset Management Companies (AMCs)
These firms manage mutual funds, ETFs, and other investment vehicles
for investors. They pool funds and invest based on their strategy.
🔹 Examples:
• SBI Mutual Fund
• BlackRock
• Vanguard
4. Banks and Financial Institutions
Banks offer various investment products like fixed deposits, bonds, and
wealth management services.
🔹 Examples:
• Investment Banks (e.g., Goldman Sachs, JPMorgan)
• Commercial Banks (e.g., HDFC Bank, ICICI Bank)
5. Stock Exchanges
Stock exchanges facilitate the buying and selling of securities like stocks,
bonds, and derivatives.
🔹 Examples:
• National Stock Exchange (NSE), India
• Bombay Stock Exchange (BSE), India
• New York Stock Exchange (NYSE), USA
6. Regulatory Bodies
Regulators oversee and enforce financial laws to protect investors and ensure
market stability.
🔹 Examples:
• Securities and Exchange Board of India (SEBI)
• U.S. Securities and Exchange Commission (SEC)
• Reserve Bank of India (RBI)
7. Brokerage Firms
These firms act as intermediaries between investors and stock exchanges, executing buy
and sell orders.
🔹 Examples:
• Zerodha, Upstox (India)
• Charles Schwab, Robinhood (USA)
8. Financial Advisors & Wealth Managers
• Professionals who provide personalized investment advice and wealth management
services.
🔹 Example: A certified financial planner (CFP) helping clients build a diversified
portfolio.
9. Credit Rating Agencies
They assess the creditworthiness of companies and governments issuing debt securities.
🔹 Examples:
• CRISIL (India)
• Moody’s, Standard & Poor’s (USA)
10. Venture Capitalists & Private Equity Firms
These firms invest in startups (VCs) or established private
companies (PE firms) for growth and profit.
🔹 Examples:
• Sequoia Capital (VC)
• Blackstone (PE)