Course Name: Investment Analysis and Portfolio Management Course Code: 18JBS208

Number of credits: 3 Number of Hours: 30

Course Outcomes
1. To understand the benefits and importance of investment.
2. Analyze the investment opportunities prevailing in the financial market
3. Demonstrate knowledge of the dynamics of investment and underlying tools & techniques
of investment decision making and
4. Apply the knowledge in construction and management of portfolios.
5. Understand the good practices of successful investors.

Module 1: Overview of Investments 7 Hours

Meaning of investment and securities, investment attributes, understanding concepts
and application of risk and return: Systematic risk and Non-Systematic Risk for investment
alternatives, Overview of Indian and world equity markets. Types of Investors: Individual,
Pension funds, Mutual funds, Institutions, Banks, Insurance Companies, Endowment funds.
Constraints in investment. Interest rates Real and Nominal. simple and compounding. Market
Indices: Security market indexes
- Stock market indexes; Bond market indexes, Foreign Market Indices
Learning Outcome: Identifying different types of investment options and uses of market index in
investment.

Module 2: Fundamental Analysis 9 Hours

Understanding of Profitability Ratio (RoA, ROE) Fundamental analysis: Balance sheet
techniques, Discounted cash flow technique, dividend discount model, zero growth model,
Constant growth, two stage growth, earning multiplier approach, CAPM. P/E ratio.
Learning Outcome: Examining the concepts of fundamental analysis and to calculate intrinsic
value of stocks using different modules.

Module 3: Technical Analysis 5 Hours

Technical analysis of stocks, Dow Theory, charting techniques, trend reversals, chart patterns,
Eliot wave theory SMA, EMA, ROC, RSI analysis, Japanese Candlesticks, William %R (Brief)
Learning Outcome: To distinguish between technical and fundamental analysis and to use
charts to identify buy and sell opportunities.

Module 4: Portfolio Theory & Management 7

Hours Capital Market Theory-Portfolio theory, risk and return of individual stock, risk
and return of portfolio, Markowitz mean-variance model and Efficiency Frontier, CAPM, CML,
SML, Characteristic Line, Alpha and beta, APT, EMH, stock market anomalies, unruly factors
Construction of portfolios, execution, and revision and performance evaluation, Treynor,
Sharpe and Jensen measures, Fama model, strategic asset allocation.
Learning Outcome: To examine theories involved in risk analysis and evaluate theories to
build portfolio.

Module 5: Legendary Equity and Commodity Investors’ Approaches 2

Hours Approaches and portfolio of legendary investors like Warren Buffet, Templeton, Peter
Lynch, George Soros, Jim Rogers and Benjamin Graham.
Learning Outcome: Able to describe the strategies followed by successful investors
Basic Texts
1. PrasannaChandra, (March 2017), Investment Analysis and Portfolio Management ,Tata
McGraw Hill Education 5th Edition

Reference Books
1. ZviBodie, Alex Kane, Alan J Marcus, Pitabas Mohanty (2009), Investments, Tata McGraw -
Hill Education,8th edition
2. Frank K. Reilly | Keith C. Brown (2012), Investment Analysis and Portfolio Management
10th Edition,

Other reading material

Self-Reading Material and subject related Videos are uploaded in LMS

Websites
www.nseindai.com,
www.bseindia.com
www.moneycontrol.com
www.icharts.com
www.smctradeonline.com

Evaluation Pattern

Continuous End term

Attendance Total
Evaluation Examination
100%
45% 50% 5%