UNIQUE SERIES AKTU Syllabus
BMBF304

Investment and Portfolio Management

L-T-P3-0-0 Credits3 Session2025-26 TypeTheory
Appears in 1 semester

MBA Banking & Financial Services · Sem 3 (Core)

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Syllabus

5 units · 40 lecture hours
Unit1

Unit 1: Investments

10 hrs

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.

Unit2

Unit 2: Portfolio Theory

8 hrs

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.

Unit3

Unit 3: Capital Market & Asset Pricing

6 hrs

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.

Unit4

Unit 4: Bond, Equity and Derivative Analysis

8 hrs

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.

Unit5

Unit 5: Active Portfolio Management

8 hrs

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.

Course Objectives5 points
  • Understand the fundamental concepts of investment theory and their application in portfolio selection and management.
  • Apply appropriate financial models and formulae to solve business problems related to active portfolio management.
  • analyse securities using various tools and techniques to assess risk-return trade-offs and investment performance.
  • Evaluate different investment avenues and portfolio strategies to enhance returns and manage risks effectively.
  • Develop the ability to construct and manage efficient portfolios by integrating theoretical knowledge with practical insights. Course Contents
Course Outcomes (COs)5 outcomes

After completion of the course student will be able to:

  1. CO1Understand the concepts of investment avenues, capital markets, and security analysis. K2: Understanding
  2. CO2Apply valuation techniques and portfolio management principles to manage investment portfolios effectively. K3: Applying
  3. CO3Evaluate investment models and asset pricing theories for informed investment decisions. K5: Evaluating
  4. CO4Develop appropriate investment strategies based on different market conditions and portfolio objectives. K6: Creating
  5. CO5Apply risk measurement techniques to assess the riskiness of individual securities and investment portfolios. K3: Applying

Suggested Readings (Latest Edition)

  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.

Official AKTU syllabus

This subject is on page 7, 8 of the original AKTU PDF.

Official AKTU syllabus PDF ↗