Investment Management & Portfolio Analysis

Paper Code: 
MBF-421
Credits: 
4
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 

• To develop an understanding of practices of investment analysis and management in business context.
• To develop the students’ ability to use financial information in business analysis and manage return on investment.
• To understand various practices of capital market research theory and use of information in pricing financial instruments.
• To familiarize the students with the current models of research and evaluation in the Investment market.

8.00
Unit I: 
Investment :

Investment : An introduction
Concept of investment-investment objectives, characteristics of investments, investment avenues, Motives of investment, Types of investors, investment vs. speculation, investment v/s gambling, and gambling v/s speculation.

9.00
Unit II: 
Pricing and Valuation of securities:

Pricing and Valuation of securities:
Valuation of Equity- one year holding period, multiple year holding period, constant growth model, multiple growth model, dividend discount models
Valuation of Bonds: Coupon Rate, Current Yield and Yield to Maturity

8.00
Unit III: 
Introduction to portfolio management

Introduction to portfolio management
Need for portfolio management and Portfolio Management Process & Analysis. Expected Return of a Portfolio, Risk of a Portfolio, Asset allocation process, types of asset allocation

7.00
Unit IV: 
Models for portfolio management

Models for portfolio management
Markowitz model, Sharpe’s Single Index Portfolio Selection Method, Capital Asset Pricing Model, Arbitrage Pricing Theory

8.00
Unit V: 
Performance evaluation

Performance evaluation
Fundamental Analysis- Economic analysis, Industry analysis, Company analysis and Technical analysis- Dow Theory, Support and Resistance Level.

Essential Readings: 

• Kevin. S, Portfolio Management, PHI Learning Private Ltd, 2013
• Avadhani, V.A., Investment Management, Himalaya Publishing House, 2014
• Sharpe F William, Alexander J Gordon and Baily V Jeffery, Fundamentals of Investments, PHI Learning Private Ltd, 2017.
• Fisher E Donald and Jordon J Ronald, Security Analysis and Portfolio Management, Prentice Hall, 6th Edition, 2016.
• ChandraPrasanna, Investment Analysis and Portfolio Management, Tata McGraw Hill Education, 4th Edition, 2012.
• Singh Rohini, Security Analysis and Portfolio Management, Excel Books, 2016.
• Elton & Gruber, Modern Portfolio Theory and Investment Analysis, John Wiley, 2010.
• Hirschey Mark and Nofsinger John, Investments Analysis and Behavior, McGraw- Hill, 2008

References: 

• ZviBodie, Alex Kane, Alan J Marcus, Pitabas Mohanty, Investments, Tata McGraw Hill Education, 9th Edition,2017.
• Gupta Sudhir, Security Analysis and Portfolio Management, Centrum Press,2011.

Academic Year: 
2018-2019
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