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Security Analysis AND Portfolio Management

The document discusses security analysis and portfolio management. It provides directions for students to think about if given $100 million to invest, including return expectations, risk tolerance, investment horizon, and factors to consider when making investment decisions. It outlines various investment avenues and their attributes like return, risk, liquidity, tax benefits and convenience. It evaluates different investment options and discusses the difference between investing and speculating. Topics to be covered are also listed, along textbooks, suggested readings and useful websites.

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Bhoomesh Chandola
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© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
169 views

Security Analysis AND Portfolio Management

The document discusses security analysis and portfolio management. It provides directions for students to think about if given $100 million to invest, including return expectations, risk tolerance, investment horizon, and factors to consider when making investment decisions. It outlines various investment avenues and their attributes like return, risk, liquidity, tax benefits and convenience. It evaluates different investment options and discusses the difference between investing and speculating. Topics to be covered are also listed, along textbooks, suggested readings and useful websites.

Uploaded by

Bhoomesh Chandola
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 12

SECURITY ANALYSIS

AND

PORTFOLIO MANAGEMENT
Why: Security analysis & portfolio management

Best Investment
Case

Suppose, Rs.100,00,000 are given to each of


you, and asked to use this money, the way you
want/ think to earn more and more return on it.
So start thinking and tell how will you work out
this assignment.
DIRECTIONS TO THINK

Return Expectation (How much return)

Regular return or capital appreciation or both

Fixed return and Variable return

Risk Disposition (risk averse, risk neutral and risk seeker)

Planning Horizon (Investment for short term or long term period)

Basis for Decisions

Selection of a security and a group of securities (Portfolio)

Fund Allocation (How much in which security)

From which market and how

Consider opportunity cost of capital and income tax

International factors

Other factors
INVESTMENT ALTERNATIVES

Investment
Avenues

Non-
marketable Equity
Financial Shares
Assets
Money Market
Bonds Instruments

Mutual Fund
Life Insurance
Schemes
Policies

Real Estate
Precious
Objects
Financial
Derivatives
INVESTMENT ATTRIBUTES

• RETURN

• RISK

• LIQUIDITY

• TAX SHELTER

• CONVENIENCE
EVALUATION OF VARIOUS INVESTMENT AVENUES

Capital Marketability/
  Current yield Risk Tax Shelter Convenience
appreciation Liquidity
Equity Shares Low High High Fairly high Moderate High
Non-convertible
High Negligible Low Average Nil High
Debentures
Equity Schemes Low High High Average High Very high
No tax on
Debt Schemes Moderate Low Low High Very high
dividends
Bank Deposits Moderate Negligible Negligible Average Nil Very high
Public Provident Section 80
Nil Moderate Nil Average Very high
Fund C benefit
Life Insurance Section 80
Nil Moderate Nil Average Very High
Policies C benefit

Residential House Moderate Moderate Negligible Low Moderate Fair

Gold and Silver Nil Moderate Average Average Moderate Average


INVESTMENT VS. SPECULATION

  INVESTOR SPECULATOR

PLANNING HORIZON LONG SHORT

RISK DISPOSITION MODERATE HIGH

RETURN EXPECTATION MODEST HIGH

BASIS FOR DECISIONS FUNDAMENTAL TECHNICAL

LEVERAGE NO/ MODERATE HIGH


TOPICS TO BE COVERED

Alternative Investment Instruments


Risk and Return
Valuation of securities
Stock Market in India (SEBI)
Security Analysis
Fundamental Analysis (Economy, Industry and
Company Analysis)
Technical Analysis (Different Charts and Theories)
Portfolio Selection or Construction (SML, CML
and CAPM)
Portfolio Revision
Evaluate the performance of the portfolio
TEXT BOOK:
 Prasanna Chandra (P.C) (2010): Investment Analysis and Portfolio Management, TMH.

SUGGESTED READINGS:
 Jordan & Fischer (J &F) (2008): Security Analysis and Portfolio Management, Pearson Education.
 Prasanna Chandra (P.C) (2005): Investment Analysis and Portfolio Management, TMH.
 Sharpe & Alexander (S& A) (1999): Investments, Pearson Education.
 V. K. Bhalla (V.K.B): Investment Management, S. Chand.
 S. Kevin (S.K.): Security Analysis and Portfolio Management, PHI.
 Punithavathy, Pandian (P.P) (2003). Security Analysis and Portfolio Management, Vikas.
 Sudhindra Bhat (S.B) (2008): Security Analysis and Portfolio Management, Excel Books

• V. Raghunathan (2009): Stock Exchanges, Investments and Derivatives, TMH


• Gupta & Jain (1998): Indian Stock Market P/E Ratio

1– 10
SOME USEFUL WEBSITES
www.nseindia.com
www.bseindia.com
www.sebi.gob.in
www.ipohome.com
www.equitymaster.com
www.moneycontrol.com
www.icicidirect.com
www.smcindiaonline.com
www.indiainfoline.com
www.icra.in
www.crisil.com
www.careratings.com
www. onicra.com
www.google.com/finance
1– 11
SOME USEFUL WEBSITES
www.myiris.com
www.valuenotes.com
www.capitalideasonline.com
www.amfiindia.com
www.capitalmarket.com
www.nsdl.co.in
www.centraldepository.com
www.bondmarkets.com
www.bond-online.com
www.debtonnet.com
www.stcionline.com
www. trendwatch.com
www.motilaloswal.com
www.chittorgarh.com
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