Beruflich Dokumente
Kultur Dokumente
PORTFOLIO
MANAGEMENT
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Krupanidhi School of Management
REFERENCES:
Bodie, Kane, Marcus and Mohanty, Investments, TMH.
Frank.k.Reily and Keith Brown, Investment analysis and
management, TMH.
V.K.Bhalla, Investment Management, S.Chand.
Charles.P.Jones, Investments, Wiley.
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DEFINITION:
Investment is the current commitment of money for a
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DEFINITION:
Investment involves employment of own funds or
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Nature
and
Scope
of
Investment
Decision:
Higher the Risk, Higher is the Expected Return.
A well diversified Portfolio reduces Unsystematic
uncertainties of Investment.
Investor prefers among securities which yield
higher return for the same risk or lower risk for the
same return.
Investment decisions are based on Investment
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INVESTMENT
OBJECTIVES/GOALS:
Based on Time period and Priority, Investment
Objectives can be classified into:
Near term high priority goals.
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INVESTMENT
OBJECTIVES/GOALS:
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INVESTMENT Vs
SPECULATION:
Investments are carefully thought out decisions
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INVESTMENT Vs
SPECULATION:
Investments
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INVESTMENT Vs
SPECULATION:
Investor generally invests in a well diversified portfolio
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INVESTMENT Vs GAMBLING:
Gambling is defined as an act of betting on an
uncertain outcome.
The outcome of gambling is largely a matter of luck.
The risk that gamblers assume is highly
disproportionate to that of their expected return.
Gambling generally involves an entry fee.
Gamblers show a sign of addiction and fun loving.
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INVESTMENT Vs GAMBLING:
Gambling does not involve a bet on economic
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INVESTMENT CONSTRAINTS:
Risk levels.
Liquidity.
Need for regular income.
Age.
Time horizon.
Tax liability.
Other sources of income.
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INVESTMENT
CLASSIFICATION:
Real Vs Financial.
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INVESTMENT AVENUES OR
ALTERNATIVES OR CHANNELS
Bank Deposits
Debentures.
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INVESTMENT AVENUES OR
ALTERNATIVES
Real estate.
Provident fund.
Derivative market.
Commodity market.
Currency market.
Gold.
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INVESTMENT
ATTRIBUTES:
Expected Return.
Risk.
Marketability.
Tax benefit.
Convenience.
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INVESTMENT PROCESS
Setting up of Investment Objectives.
Portfolio Evaluation.
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CAPITAL
MARKETS
:
It comprises of both New
Secondary markets.
The number of stock exchanges have raised to 23
till date.
All of these exchanges are regulated by SEBI.
New issue market also known as Primary market
supplies fresh or additional capital to the
companies.
The securities already issued on the new issue
market are traded on the secondary market.
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Established in 1857.
BSE
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based trading system sponsored by IDBI and cosponsored by other term lending institutions
such as LIC, GIC and other insurance
companies, commercial banks and other
financial institutions.
NSEI has 2 separate segments namely:
a) The whole sale debt market segment.
(WDMS)
b) The Capital market segment. (CMS)
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OBJECTIVES OF NSEI:
To provide national wide equal access and fair,
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OBJECTIVE OF OTCEI:
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CAPITAL MARKETS:
Capital markets instruments include:
a) Equity Shares.
b) Preference Shares.
c) Debentures.
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ORDINARY SHARES:
These shares are ownership shares of the
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PREFERENCE SHARES:
dividend.
They have preference over equity shareholders
on payment of dividend and on repayment of
Capital.
Cumulative Vs Non Cumulative PS.
Convertible Vs Non Convertible PS.
Redeemable Vs Irredeemable PS.
Participating Vs Non Participating PS.
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DEBENTURES:
Debenture or Bond is a creditor ship security
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