Scribd
Upload
35 views

Chapter 03 & 04 SAPM

This document outlines the topics that will be covered in a course on security analysis and portfolio management. The course is divided into four units. Unit 1 discusses different types of financial and real assets as well as investment opportunities. Unit 2 covers risk and returns, including different types of risks and ways to manage risk. Unit 3 discusses fundamental analysis, including analyzing the economy, industries, and companies. Techniques for economic forecasting and factors considered for fundamental analysis of economies, industries, and companies are provided. Unit 4 focuses on fundamental analysis at the company level, including financial statement analysis and use of ratios.

Uploaded by

Devleena Bhattacharya
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
35 views

Chapter 03 & 04 SAPM

This document outlines the topics that will be covered in a course on security analysis and portfolio management. The course is divided into four units. Unit 1 discusses different types of financial and real assets as well as investment opportunities. Unit 2 covers risk and returns, including different types of risks and ways to manage risk. Unit 3 discusses fundamental analysis, including analyzing the economy, industries, and companies. Techniques for economic forecasting and factors considered for fundamental analysis of economies, industries, and companies are provided. Unit 4 focuses on fundamental analysis at the company level, including financial statement analysis and use of ratios.

Uploaded by

Devleena Bhattacharya
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 20

Security Analysis and

Portfolio Management
Dr. Kaustubh A. Sontakke
{M. Com (Gold medalist), MBA (Finance), MA (Eco), M. Phil, Ph.D. (B. Mgmt)}
Professor of Finance
Pillai’s Institute of Management Studies and Research,
New Panvel, Navi Mumbai
UNIT 02: Financial Assets, Real Assets and Investment Opportunities
(SELF STUDY MODULE)

• Distinguish between financial assets and real assets.


• State and explain various non-marketable financial
assets.
• Explain various money market instruments.
• Describe various capital market instruments.
• Explain various derivative market securities.
• Define Mutual Fund and explain various schemes of
mutual fund.
• Explain various real assets.
UNIT 03: Risk and returns

• Explain the concept of risk and returns.


• Describe various types of risks.
• Explain the ways to manage risk.
Understanding Risk and Return
• In finance it is simply understood that “higher
the risk, higher the returns & lower the risk,
lower the returns”.
• If returns are expected by the investors then they
have to take underlying risk in proportion to the
expected returns.
• Thus, risk-return proportion is the major
component of security analysis and it is major
determinant of portfolio management.
Types of Risks
1. Capital risk
2. Inflationary risk
3. Interest rate risk
4. Market risk
5. Liquidity risk
6. Legislative risk
7. Default risk
8. Currency risk
Ways to manage the risk
• Diversification
• Asset allocation
• Hedging
• Detailed research and analysis
UNIT 04: Fundamental analysis – Economy – Industry – Company Analysis

• Explain economy analysis and various macroeconomic


factors affecting stock prices.
• Describe the meaning of forecasting along with various
forecasting techniques.
• Describe various aspects of industry analysis.
• Explain company analysis through fundamental factors.
• Elaborate financial statement analysis as basis for
company analysis.
• Explain various ratios for company analysis.
Economic Forecasting Techniques
• Surveys
• Economic indicators
• Diffusion indices
• Econometric model building
• Opportunistic model building
Fundamental Analysis

Economy Analysis
Industry Analysis

Company Analysis
Economy - Macroeconomic factors
1. Potential output of the economy
2. Corporate tax rate
3. Fiscal policy
4. Total spending
5. Price level
6. Real money
7. Corporate earning
8. Interest rate
9. Real output
10.GNP
11.Population
12.Research and technical development
Cont….
13.Raw material and infrastructure facilities
14.Monsoon and agriculture
15.Savings and investments
16.General business conditions
17.Economic and political stability
Industry Analysis
1. Product and Services
2. Sensitivity of economy
3. Industry life cycle
4. Competitive analysis
5. Historical performance
6. Government regulation
7. Labour condition
8. Performance
9. External shocks
10.Financial issues
11.Industry share-price analysis
Company Analysis
• Promoters
• Board of directors
• Product and services
• Market position
• Competitive advantage
• Financial analysis
• Stock market indicators
• Company news
Financial Statement Analysis
• Intra firm analysis – trend and common-size
and comparative
• Inter firm analysis – comparative & common-
size
• Ratio analysis
• Cash flow analysis
dfffff
Thank you

You might also like