20MBAFM303 Investment Management syllabus for MBA



A d v e r t i s e m e n t

Module-1 Introduction to Investment 7 hours

Introduction to Investment

Investment Avenues, Attributes, Investor V/s speculator, Features of a good Investment, Investment Process. Financial Instruments: Money Market Instruments, Capital Market Instruments, Derivatives.

 

Securities Market:

Primary Market, Secondary Market. Stock Market Indicators- Indices of Indian Stock Exchanges (only Theory).

Module-2 Return and Risk Concepts 7 hours

Return and Risk Concepts:

Concept of return, individual security returns, rate of return, Concept of Risk, Causes of Risk, Types of Risk- Systematic risk- Market Price Risk, Interest Rate Risk, Purchasing Power Risk, Unsystematic Risk- Business risk, Financial Risk, Insolvency Risk, Risk-Return Relationship, Concept of diversifiable risk and non-diversifiable risk. Calculation of Return and Risk of Individual Security (Theory & Problems).

Module-3 Valuation of Securities 9 hours

Valuation of Securities

Bond features, Types of Bonds, Determinants of interest rates, Bond Valuation, Bond Duration, Bond Management Strategies. Preference Shares- Concept, Features, Valuation. Equity Shares- Concept, Valuation, Dividend Valuation Models, P/E Ratio valuation model. (Theory & Problems).

Module-4 Macro-Economic and Industry Analysis 7 hours

Macro-Economic and Industry Analysis:

Fundamental analysis-EIC Frame Work, Economy Analysis, Industry Analysis, Company Analysis- Financial Statement Analysis.

 

Market Efficiency:

Efficient Market Hypothesis, Forms of Market Efficiency, Empirical test for different forms of market efficiency.

 

Technical Analysis –

Concept, Theories- Dow Theory, Eliot Wave theory. Charts-Types, Trends and Trend Reversal Patterns. Mathematical Indicators –Moving Average Convergence-Divergence, Relative Strength Index (Theory only).

Module-5 Modern Portfolio Theory 11 hours

Modern Portfolio Theory

Markowitz Model- Diversification, Portfolio Return, Portfolio Risk, Efficient Frontier. Sharpe’s Single Index Model, Capital Asset Pricing Model: Assumptions, CAPM Equation, Capital Market Line, Security Market Line, CML V/s SML. Sharpe’s Optimum Portfolio Construction. Arbitrage Pricing Theory: Equation, Assumption, CAPM V/s APT (Theory & Problems).

Module-6 Portfolio Management Strategies and Performance Evaluation 9 hours

Portfolio Management Strategies and Performance Evaluation

Portfolio Management Strategies:

Active and Passive Portfolio Management strategy. Portfolio Revision: Portfolio Revision Strategies – Objectives, Performance plans.

Mutual Funds:

Concept of Mutual Funds, Participants in Mutual Funds, Advantages of Investment in Mutual Fund, Measure of Mutual Fund Performance.

Portfolio performance Evaluation:

Measures of portfolio performance (Theory & Problems).

 

Course outcomes:

At the end of the course the student will be able to:

1. The student will understand the capital market and various Instruments for Investment.

2. The learner will be able to assess the risk and return associated with investments and methods to value securities.

3. The student will be able to analyse the Economy, Industry and Company framework for Investment Management.

4. The student will learn the theories of Portfolio management and also the tools and techniques for efficient portfolio management

 

Practical Components:

• Each student will be given a virtual cash of Rs.10 Lakhs and they will be asked to invest in equity shares based on fundamental analysis throughout the semester. At the end the best investment will be awarded based on the final net worth. Virtual on line trading account can be opened for the student and every week 2 hours can be allotted to invest, monitor and evaluate. • Students should study the stock market pages from business press and calculate the risk and return of selected companies.

• Students can do a macro economy using GDP growth. • Students’ are expected to do Industry analysis for specific sectors.

• Students can do Company analysis for select companies using profitability and liquidity ratios.

• Practice technical analysis using Japanese candle sticks.

 

Question paper pattern:

The SEE question paper will be set for 100 marks and the marks scored will be proportionately reduced to 60.

  • The question paper will have 8 full questions carrying equal marks.
  • Each full question is for 20 marks.
  • Each full question will have sub question covering all the topics under a Module.
  • The students will have to answer five full questions; selecting four full question from question number one to seven and question number eight is compulsory.
  • 40 percent theory and 60 percent problems in the SEE.

 

Textbook/ Textbooks

1 Investment Analysis and Portfolio management Prasanna Chandra Tata McGraw Hill Education 3/e, 2010

2 Investments ZviBodie, Kane, Marcus & Mohanty Tata McGraw Hill Education 8/e, 2010

3 Security Analysis & Portfolio Management J Kevin Tata McGraw Hill Education 2014

 

Reference Books

1 Analysis of Investments & Management Reilly & Brown Cengage Publications, 10e/2017

2 Security Analysis & Portfolio Management Punithavathy Ehavathy Pandian Vikas Publications 2/e, 201/8

3 Investment management (Security Analysis and & Portfolio Management) Bhalla V.K. Vikas Publications 19/e, 2018

Last Updated: Tuesday, January 24, 2023

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