Fundamentals of Investment

Paper Code: 
FSG 617 B
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

To familiarize the students with different investment alternatives, introduce them to the framework of their analysis and valuation and highlight the role of investor protection. Learn about financial markets and instruments, investment strategies.

Course outcome (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

FSG 617 B

FUNDAMENTALS OF INVESTMENTS

 

 

CO225 Acquire knowledge about the Concept of Savings and investment, various investment avenues available and Risk and return associated with them.

CO226 Create awareness about Role of SEBI in investor protection.

 

CO227 Build ability to comprehend various techniques of Fundamental Analysis and Technical Analysis of securities.

 

CO228 To understand various methods of valuation of securities for effective investment decision making .

 

CO229 Obtain knowledge of portfolio construction and risk diversification in investment.

 

 

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, demonstrations , Team teaching.

 

Learning activities for the students:

Self learning assignments, Effective questions, Seminar presentation, Giving tasks, simulations , Chart Preparations, Role plays .

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

9.00
Unit I: 
Investment and Savings

• Concept of Savings and investments, Elements of investments, sources of investment information,
• Types of investments, Investment Avenues, Basic concept of Risk & Return, measurement of risk and return

9.00
Unit II: 
Security markets in India and Investors protection

• Primary and secondary market, Functions of stock exchange on India.
• SEBI: Role of SEBI in investor protection, investor grievances and their redressal system,
• Insider trading, Investor awareness activism.

9.00
Unit III: 
Valuation of Shares and Bonds/debentures

• Features of equity shares & Preference shares. Features of debentures & bonds.
• Valuation of equity shares, preference shares, debentures and bonds.

9.00
Unit IV: 
Analysis for Investment

• Fundamental Analysis (EIC approach),
• Technical Analysis- (Chart, Pattern and Oscillators) Bar chart, Line Chart Candle chart, Trend Head and Shoulders, support and Resistance , Dow and Elliot wave theory
• Efficient market hypothesis

9.00
Unit V: 
Portfolio Construction and Risk diversification

• Portfolio and diversification meaning, Portfolio risk and return.
• Portfolio construction: Traditional and modern portfolio approaches. Portfolio construction process.

Essential Readings: 

1. Jones, C.P. Investments Analysis and Management. Wiley.
2. Chandra Prasanna, Investment Analysis and Portfolio Management, TMH.
3. Rustogi, R.P. Fundamentals of Investment, Sultan Chand & Sons, New Delhi.
4. Vohra, N.D. and Bagri, Futures and options, Mc Graw hill Publishing.
5. Mayo. An Introduction to Investment. Cengage Learning.
6. M.R. Agarwal, Security Analysis and Portfolio Management, Garima Publications.

Academic Year: 
2020-2021
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