Syllabus (COMMERCE)

Course Type: MAJ-14

Semester: 8

Course Code: BCOMMAJ14T

Course Title: Fundamentals of Investment Management

(L-P-Tu): 3-0-1

Credit: 4

Practical/Theory: Theory

Course Objective: The course aims to help the students: 1. To understand the various investment products and markets available to investors. 2. To analyse and evaluate a portfolio of investments using different risk-return profiles. 3. To develop portfolio selection strategies tailored to the investment goals of a particular investor. 4. To understand the dynamics of different types of markets and investments.

Learning Outcome: After completion of the course, learners will be able to: 1. Understand the financial products and investment strategies used in the financial markets. 2. Learn how to diversify portfolios to achieve asset allocation goals and minimize risk. 3. How to build integrated asset allocation models and determine the optimal mix of investments. 4. Develop and analyse strategies to manage portfolios. 5. Gain knowledge of capital markets, investment instruments, and securities regulations.

Subject: Fundamentals of Investment Management

Unit 1: The Investment Environment and Investor Protection (Lectures: 20)

The investment decision process, Types of Investments - Commodities, Real Estate and Financial Assets; the Indian securities market; Market participants and trading of securities; Security market indices; Sources of financial information; Concept of return and risk; Impact of Taxes and Inflation on return.

Role of SEBI and stock exchanges in investor protection; Investor grievances and their redressal system; insider trading; Investors’ awareness and activism.

Unit 2: Fixed Income Securities (Lectures: 10)

Bond – features and types; Estimating bond yields, Bond valuation, Types of bond risks, Default risk and credit rating.

Unit 3: Approaches to Equity Analysis (Lectures: 20)

Introductions to Fundamental Analysis, Technical Analysis and Efficient Market Hypothesis; Dividend capitalisation models and price-earnings multiple approach to equity valuation.

Unit 4: Portfolio Analysis and Financial Derivatives (Lectures: 10)

Portfolio and Diversification; Portfolio Risk and Return; Mutual Funds; Unit Introduction to Financial Derivatives; Financial Derivatives Markets in India

Reading References:

Avadhani, V.A., Capital Market Management, Himalaya Publishing House.

Avadhani, V.A., Investment Analysis and Portfolio Management, Himalaya Publishing House.

Bhalla, V.K., Investment Management, S. Chand & Co.

Bhat, Sudhindra, Security Analysis and Portfolio Management, Excel Books, New Delhi.

Bodie & Mohanty, Investments, Mc-Graw Hill Education.Chandra, Prasanna, Investment Analysis and Portfolio Management, McGraw Hill Education.

Don M. Chance & Robert Brooks, An Introduction to Derivatives and Risk Management, Cengage Learning.

Fischer and Jordan, Security Analysis and Portfolio Management, PHI Learning.

Herbert B. Mayo, Investments: An Introduction, Cengage Learning.

Hirt, Fundamentals of Investment Management, Mc-Graw Hill Education.