Investment Management

Introduction: The objective of the course is to impart knowledge to the students regarding problems faced and techniques used in investment decision making process. further to acquaint the students with the theories and practices of Security Analysis and prevailing scenario in the security markets in the important countries like U.S.A., European Union and Japan, in general, and India in particular. Basic Text:
Security Ananlysis & Portfolio Management, P Pandian, Vikas Publications Investment Management, V.K.Bhalla.

Reference Book: Bodie, Kane Marcus, Investment Management

No. of Topics Readings Sessions* from BT Concept of Investment, Investment Objectives, Investment Vs. 2 4
Speculation, Investment Vs. Gambling, Primary Market Pricing of New Issues, Important Parties Involved in A New Issue. Secondary Market Functions of Stock Exchanges, Investment Companies, Market Indexes, Security Credit Ratings, Capital Market Reforms, Listing of Securities

Readings from RB

3 4 3

Concept of Risk and Return, Components of Investment Risk, Interest Rate Risk, Market Risk, Inflation Risk, Management Risk, Liquidity Risk, Business Risk and Financial Risk. Security Valuation.
Fixed Income Securities, Preference Shares and Equity Shares. Practical Problems on Risk & Return Analysis and Valuation of Securities. Bond Valuation and Analysis Common Stock Analysis - Fundamental and Technical Analysis. Economy Analysis - Analysis of Macro-Economic Factors, Economic Forecasting. Industry Analysis - Industry Life-Cycle Analysis, Structure and Characteristics of Industry etc. Company Analysis - Financial Analysis, Size and Ranking, Growth Record, Quality of Management etc. Technical Analysis - Dow Theory, Market Indicators, Individual Security Analysis, Chartism etc. Random-walk Model. Concept, Effects of Combining Securities - Two and Three Securities Case. Concept of Diversification, Markowitz RiskReturn Optimization, Sharpe Index Model, Capital Market Theory - Capital Asset Pricing Model (CAPM). New Economic Policy and Foreign Portfolio Investment, NonResident Deposit, Depository Receipt (ADR, GDR and IDR): Players and Issue Mechanism, FCCB, FII and FDI, Taxation of Dividend and Interest Income, Tax Deductions under section 80 of Income Tax Act, Capital Gains Taxation, Postal Investment, Taxation of NRIs and FIIS in India.