INVESTMENT AND PORTFOLIO MANAGEMENT

Paper Code: 
CBFS 502
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

On the completion of this course, the students will be able to :

  1. Identify and evaluate the key characteristics and features of different investment options and various factors that influence investment decisions.
  2. Explore the relationship between risk and return in investment decisions. and Analyze investment portfolios and assets to evaluate their risk-return profiles.
  3. Calculate the present value and future value of an investment, students will be equipped with valuable tools for analyzing investment opportunities, evaluating projects, and making informed financial decisions.
  4. Will develop the skills necessary to construct and manage investment portfolios effectively in alignment with investors’ financial goals and risk tolerance.
  5. Explore the relationship between portfolio diversification and risk management. Gain the skills necessary to analyze and manage portfolios effectively.

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.    

 Learning activities for the students:                              Self learning assignments, Effective questions, Seminar presentation, Live practical problems analysis

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

 

12.00
Unit I: 
Introduction to investments

• Investment-meaning & Definition
• Process of investing
• Investment objectives
• Investment attributes
• Factor influencing Investment decisions,
• Importance of investment management

12.00
Unit II: 
Risk and Return on investments

• Measures of Returns and Risk ( Measuring historical risk and return)
• Relationship risk and return
• Classification of risks: Systematic & Unsystematic Risk

12.00
Unit III: 
Investment valuation

• Time value of money-Time lines & Notations
• Present and Future Value of single amount,
• Present Value and Future value of annuity,
• Techniques of discounting and compounding.

12.00
Unit IV: 
Portfolio management

• Meaning of portfolio
• Portfolio management process
• Objective of Portfolio management
• Types of portfolio management-Active portfolio management, Passive Portfolio Management, Defensive Portfolio management, Aggressive Portfolio Management, Income portfolio Management; Portfolio construction
• Approaches: An Overview of Capital Market Theory, CAPM, Markowitz Portfolio Selection Model

Unit V: 
Portfolio Analysis

• Concept of portfolio analysis and diversification of risk.
• The Benefits of Diversification,
• Diversification and Portfolio Risk,
• Portfolio Return and Risk-Return of portfolio (Two assets), Risk of portfolio ( two assets) , Risk and Return of Multi Security.
• Concept of Beta

Essential Readings: 

• Security analysis and portfolio management , M.R Agarwal , Garima Publication, 2011
• Strategic Investment Decision, Laurence Krantz and Ailan Thomason, F.T. Prentice Hall, 2000.
• Investments: An Introduction, Herbert B. Mayo, South – Western College Publishing, 2005.
• Investments and Valuation, Aswath Damodaran, John Wiley & Sons Inc., 2001.
• Security Investments, David L. Scott, Rowman & Littlefield, 1981.
• Model Investment Theory, Haugen, Holden and Nofisinger, Prentice Hall, 2003.
• Investments Spread Sheet, Sharpe, Prentice Hall, 2001.
• Essentials of Investments, Bodie, Irwin, 1997.

References: 

SUGGESTED READINGS :
• Basic Investments, Herbert B. Mayo, South-Western College Publishing, 2005.
• Sound Investments, Larry Burkett, RICS, 1995.
• Investment: Principles and Practices, Ben Branch, Dearborn Financial Publishing, 1990.
• Investments: Analysis and Management, Charles P. Jones, John Wiley & Sons Inc., 2006.
• Investments (Shaum’s outline), Jack Clark Francis, McGraw Hill, 2000.
• Understanding Finance, Prentice Hall, 2004.
• Quantitative Methods for finance and investments, John L. Teall and Iftekher Hasan, Black Well Publishers, 2002.

E- Resources:
• Swayam: https://swayam.gov.in/
• NPTEL: http://nptel.ac.in/
• DIKSHA: https://diksha.gov.in/
• E-Skill India: https://www.eskillindia.org/
• National Digital Library: https://ndl.iitkgp.ac.in/
• E-Pathshala: https://ndl.iitkgp.ac.in/
• e-PG Pathshala: https://epgp.inflibnet.ac.in/
• Sakshat: https://www.education.gov.in/en/technology-enabled-learning-1
Journals:
• Journal of Investment management
• Financial Analyst Journal
• Journal of Financial Economics
• Journal of Finance

Academic Year: 
2023-2024
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