Investment Analysis and Portfolio Management

Course Duration - 6 Months

Week 1 : 


Skills Assessment

For the first week we will go over all the pre-training curriculum in depth. We will understand each topic right from the beginning and enter the world of finance professionals.

Week 2 : 


Investment Analysis

Understanding the valuation of an investment by analysing Financial Statements and Financial Ratios: Making Sense of Debits and Credits, Profit and Loss Statements, Balance Sheets, Liquidity, Solvency, Profitability, and Growth Financial Ratios.

Week 3 : 


Portfolio management

In this week we will learn about Portfolio Management , review portfolio strategies for a variety of asset classes including fixed income, equity, and alternatives

Week 1 : Skills Assessment of Pre-Training Resources

1. Objectives of Investment Decisions(decision made for the fund that is to be deployed for investment opportunity)

1.1 Introduction

1.2 Types of Investors (Individuals and Institutions)

1.3 Constraints(set of guidelines by which financial funds are managed)

1.4 Goals of Investors.

2. Financial Markets(where financial securities are traded)



2.2 Primary and Secondary Markets (types of capital market)

2.3 Trading in Secondary Markets (buying and selling of financial securities)

2.4 Money Market (financial market for short-term borrowing and lending)

2.5 Repos and Reverse Repos (short-term borrowing instruments are bought and sold)

2.6 Bond Market 

2.7 Common Stocks(represents ownership in a corporation) 

3.Fixed Income Securities(provide regular and fixed interest on the principle , repayment of principle on maturity) 

3.1 Introduction-Time Value of Money

3.2 Simple and Compound Interest Rates (methods of calculating rate of return)

3.3 Real and Nominal Interest Rates (Relationship between interest rates and inflation)

3.4 Bond Pricing Fundamentals (understanding cash flows , clean and dirty prices)

3.5 Bond Yields 

3.6 Interest Rates (spot and forward rate)

3.7 Macaulay Duration(duration of financial asset that consists of fixed cash flows)

3.8 Modified Duration(adjusted version of Macaulay duration consist of changing yield to maturity) 


Week 2 : Investment Analysis

4. Capital Market Efficiency (the degree to which present assets price accurately reflect current information in market price)

4.1 Introduction

4.2 Market Efficiency (the extent to which the financial markets digest the relevant information into thr prices)

4.3 Departures from the EMH (a price series where all subsequent price changes represent random departures from previous price) 

5. Financial Analysis and Valuation(a process of evaluating business worth in financial terms)

5.1 Introduction

5.2 Analysis of Financial Statements (Profit and Loss A/C , Balance Sheet and Cash flow Statement)

5.3 Financial Ratios (Return, Operating and Profitability Ratios)

5.4 Valuation of Common Stocks (Calculation of Intrinsic Value)

5.5 Technical Analysis ( a trading discipline employed to evaluate investment and identify trading opportunities in price trends and pattern seen on chart) 

6. Modern Portfolio theory (a mathematical framework for assembling a portfolio of assets such that the expected return is maximised for a given level of risk)

6.1 Introduction

6.2 Diversification and Portfolio Risks( diversification will help to lower the volatility of a portfolio because not all assets categories, industry and stock      a together)

6.3 Equilibrium Models : The Capital Asset Pricing Model ( CAPM) &

Multi factor Models(they are assets pricing models that can be used to estimate discount rate for the valuation of financial assets)

6.4 The Arbitrage Pricing Theory ( a general theory of asset pricing that holds that the expected return of a financial asset can be modelled as a linear function of various factors or theoretical market indices, where sensitivity to changes in each factor is represented by a factor-specific beta coefficient)

Week 3: Portfolio management

7. Valuation of Derivatives (Derivative valuations are based on three components: future cash flows, present value of future cash flows and the valuation model used) 

 7.1 Introduction

7.2 Forwards and Futures (Agreements to exchange an underlying security at an agreed rate on a future date)

7.3 Call and Put Pricing (A call option is bought if the trader expects the price of the underlying to rise within a certain time frame. A put option is bought if the trader expects the price of the underlying to fall within a certain time frame)

7.4  Black- Scholes Formula(a model of price variation over time of financial instruments such as stocks that can, among other things, be used to determine the price of a European call option) 

8. Investment Management(Investment management is the professional asset management of various securities and other assets in order to meet specified investment goals for the benefit of the investors)

8.1 Inntroduction

8.2 Investment Companies

8.3 Active vs. Passive Portfolio Management(Active portfolio management focuses on outperforming the market compared to a specific benchmark, while passive portfolio management aims to mimic the investment holdings of a particular index) 

8.4 Cost of Management –Entry/Exit Loads Fees

8.5 Net Asset Value ( NAV describes the per unit value of thr fund's net assets)

8.6 Classification of Funds (open ended , close ended , equity funds , bond funds , index funds , money market funds , fund of funds)

8.7 Other investment companies (Unit Investment Trusts , Real Estate Investment Trusts , Hedge Funds)

8.8 Performance assessment of managed funds (Sharpe Ratio , Treynor Ratio , Jensen's Measure)


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