INVESTMENT AND PORTFOLIO MANAGEMENT

INVESTMENT AND PORTFOLIO MANAGEMENT

Investment:
The employment of funds for the purpose of getting something extra.

Types of investment

• Real Assets
• Financial Assets

Real Assets:
The investment in the real assets like purchasing of land,building,gold etc.

Financial Assets:
The investment in different securities like bonds, share, T.bill, Commercial paper.

Features of investment / Process of investment
What factors will be analyze before investment.

step 1: Return
Return = Dividend + Capital Gain

before investment to be checked dividend and capital gain in the past balance sheet or income statement.

Return: how much will gain extra return on investment
Capital Gain: how much value of assets will increase or decrease with the passage of time.

step 2: Risk

Before investment you have to check the risk on investment face by the investor on investment and check in future the company grow or decline.

Risk: fluctution on return is called risk and also check the risk on investment for example if company have two available securities for investment one is from old well known and other is new and have not goodwill in the market the old company securities will be less risky than new.

Risk taker:
The person who take the maximum risk is called risk taker person.

Risk Averse:
The person who avoid to take the risk

Rules of Finance:
"High risk high return low risk low return"

step 3: Safety (principal Amount)

Before investment you have to check the safety of principal amount. Only try to invest in those company that have goodwill in the market.

step 4: Liquidity
How quickly we convert the securities or Assets into cash.

T.bill:
Govt. issue the t.bill when going on Budget deficit and its period time is one year.


INVESTMENT AND PORTFOLIO MANAGEMENT
INVESTMENT VS SPECULATION AND GAMBLING
TYPES OF INVESTOR
INVESTMENT COMPANIES
TYPES OF MUTUAL FUNDS
TYPES OF BONDS FUNDS
MONEY MARKET FUNDS
SECURITIES MARKET
TYPES OF INDEX
TYPES OF BROKERS
BROKER'S ACCOUNT
MARGINAL ACCOUNT
ORDER AND ITS TYPES
RISK AND ITS TYPES
RETURN PORTFOLIO ANALYSIS
RISK PORTFOLIO ANALYSIS
RISK AND RETURN OF AN INDIVIDUAL SECURITIES
ANALYSIS OF COMMON STOCK VALUATION
CAPM MODEL (CAPITAL ASSET PRICING MODEL)
MARKOWITZ MODEL


MBA NOTES INVESTMENT AND PORTFOLIO MANAGEMENT