F1 - INVESTMENT ANALYSIS & MANAGEMENT

Sunday, 11 May 2014
Module 1 INTRODUCTION TO INVESTMENTS
Definition — micro & macro economic concepts relating to investment - investment objective — investment process - investment constraints —investment strategy — investment v/s speculation — arbitrage - gambling — types of investors — investor behavior

Module 2 INVESTMENT AVENUES
bonds — debentures - Preference shares — Equity Shares — Real Estate— commodity markets — bank deposit — insurance — mutual funds — foreign exchange - Money market instruments — derivatives — forward - futures — options — swaps

Module 3 STOCK MARKET & INSTITUTION
Dematerialization of securities, Primary Market — P0, Book Building, FPO, Rights Issue, Bonus Issue & Preferential Issue, Secondary Market — Cash & Derivatives Markets, Trading Procedure, Margin System, Settlement process, Market Indices, Role of Stock Brokers, Stock Exchanges & SEBI.

Module 4 RISK MANAGEMENT
Definition, meaning and measurement of Risk — Classification of Risk —diversitification — Statistical tools used in risk management - techniques of risk mitigation - risk return optimization — credit rating - beta coefficient — hedging – Using derivatives in risk management

Module 5 INVESTMENT ANALYSIS
Sources of information on investment — factors affecting investment — Fundamental analysis — Technical analysis — efficient market Hypothesis

Module 6 INVESTMENT EVALUATION
Concept — Time value of Money - various valuation methods & models — bond valuation — equity valuation — futures pricing — options pricing — tangible asset valuation, Tax issues relating to investments
Module 7 PORTFOLIO MANAGEMENT
Concept — Markowita model — Sharpe, Jensen & Treynor Model CAPM — SML and CML — factor model and arbitrage pricing theory — Portfolio construction, revision & evaluation

Module 8 GLOBAL MARKETS
Global Investment benefits, World market indexes, Developed and Emerging Markets, ADRs, GDRs, FCCBs, Foreign Bonds, Global Mutual Funds, Relationship between trends in global markets and the domestic markets

REFERENCE BOOKS:
1. Sudhindra Bhat, Security Analysis And Portfolio Management, Excel Books
2. Fischer And Jordan; Security Analysis And Portfolio Management; Prentice-
Hall,pearson
3. Prasanna Chandra; Investment Analysis And Portfolio Management; Mcgraw-Hill
4. Preeti Singh – Investment Management- HPH
5. Bhalla V K; Investment Management; S Chand & Co
6. Alexender & Bailey, Fundamentals Of Investments, PHI
7. Portfolio Management, Kevin, PHI

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