AKTU Investment and Portfolio Management (BMBF304) Syllabus PDF – MBA (Banking & Financial Services) 3rd Semester

Course Objectives

1. Understand the fundamental concepts of investment theory and their application in portfolio selection and management.
2. Apply appropriate financial models and formulae to solve business problems related to active portfolio management.
3. analyse securities using various tools and techniques to assess risk-return trade-offs and investment performance.
4. Evaluate different investment avenues and portfolio strategies to enhance returns and manage risks effectively.
5. Develop the ability to construct and manage efficient portfolios by integrating theoretical knowledge with practical insights.

Course Content

Module I: Investments (10 Hours)

Overview of Capital Market: Market of Securities; Stock Exchange and New Issue Markets – Nature, Structure, Functioning and Limitations. Trading of Securities: Equity and Debentures/Bonds; Securities Trading – Types of Orders;

Margin Trading; Clearing and Settlement Procedures. Regulatory Systems for Equity Markets: Types of Investors; Aim and Approaches of Security Analysis.

Module II: Portfolio Theory (8 Hours)

Risk and Return: Concept of Risk; Components and Measurement of Risk; Covariance; Correlation Risk; Fundamental Coefficient; Measurement of Systematic Risk. Fundamental Analysis: Economic Analysis; Industry Analysis; Company Analysis. Portfolio Risk and Return: Beta as a Measure of Risk; Calculation of Beta. Selection of Portfolio: Markowitz’s Theory; Single Index Model. Case Studies.

Module III: Capital Market & Asset Pricing (6 Hours)

Technical Analysis: Dow Theory; Support and Resistance Levels; Types of Charts and their Interpretation; Trend Lines;

Gap Wave Theory; Relative Strength Analysis; Technical versus Fundamental Analysis. Nature of Stock Markets:

Efficient Market Hypothesis (EMH) and its Implications for Investment Decisions. Asset Pricing Models: Capital Market Theorem; Capital Asset Pricing Model (CAPM); Arbitrage Pricing Theory (APT); Case Studies.

Module IV: Bond, Equity and Derivative Analysis (8 Hours)

Valuation of Equity: Discounted Cash Flow Techniques; Balance Sheet Valuation; Dividend Discount Models; Intrinsic Value and Market Price; Earnings Multiplier Approach; P/E Ratio; Price/Book Value; Price/Sales Ratio; Economic Value Added (EVA). Valuation of Debentures/Bonds: Nature of Bonds; Bond Valuation; Bond Theorem; Term Structure of Interest Rates. Derivative Analysis: Meaning; Features; Types of Derivatives; Role and Significance of Derivatives in Financial Markets; Participants in Derivative Markets – Hedgers, Speculators and Arbitrageurs; Regulatory Framework of Derivative Markets.

Module V: Active Portfolio Management (8 Hours)

Portfolio Management and Performance Evaluation: Performance Evaluation of Existing Portfolio; Sharpe Measure;

Treynor Measure; Jensen Measure; Finding Alternatives and Revision of Portfolio; Portfolio Management and Mutual Fund Industry; Case Studies.

Suggested Readings

1. Ranganatham; Security Analysis and Portfolio Management; Pearson Education
2. Prasanna Chandra; Investment Analysis and Portfolio Management; Tata McGraw-Hill.
3. Bhatt; Security Analysis and Portfolio Management; Wiley
4. Pandian, P.; Security Analysis and Portfolio Management; Vikas Publishing .
5. Bodie, Kane, Marcus & Mohanty; Investments: Indian Perspective; Tata McGraw-Hill .
6. William F. Sharpe, Gordon J. Alexander & Jeffrey V. Bailey; Investments; Prentice Hall .
7. Donald E. Fischer & Ronald J. Jordan; Security Analysis and Portfolio Management; Pearson Education .
8. Charles P. Jones; Investment Analysis and Management; John Wiley & Sons.
9. Edwin J. Elton & Martin J. Gruber; Modern Portfolio Theory and Investment Analysis; John Wiley & Sons.
10. Sidney Cottle, Roger F. Murray, Frank E. Block; Graham and Dodd: Security Analysis; Tata McGraw-Hill .
11. Elton, E. J., Gruber, M. J., Brown, S. J., & Goetzmann, W. N. Modern Portfolio Theory and Investment Analysis. 8th ed. John Wiley & Sons. Course Outcomes and Bloom’s K-Levels Mappings

Course Outcomes