PGDM 324 INVESTMENT MANAGEMENT (IM)
Course Objectives: A course objective describes what a faculty member will cover in a
course. They are generally less broad than goals and broader than student learning outcomes.
Unit-1: Introduction to Investment Management
Introduction to Investment: What do we mean by the term investment? Where should we
invest? – Various sources of investment; Investment of an individual vs. investment of a firm
– the difference; Type of investor calls: Swing calls, Momentum calls, Delivery calls, and
Positional Calls in the Equity Segment; Indian Financial System; Overview of Capital
Market: Market of securities, Stock Exchange and New Issue Markets - their nature,
structure, functioning and limitations; Trading of securities: equity and debentures/ bonds.
Structure of markets; Classification of Markets; Regulatory Mechanism: Listing requirements
in BSE & NSE – various rules regulations and compliance procedures as per SEBI order
2015; Investor Protection, Saving, investment, speculation. Aim & Approaches of security
analysis.
Unit-2: Risk, Return, Portfolio, and Stock Selection Strategies
Risk & Return: Concept of Risk, Component & Measurement of risk, covariance, correlation
coefficient, measurement of systematic risk. Portfolio Analysis and Selection: Portfolio
concept, Portfolio risk and return, Beta as a measure; Optimum portfolio design. Portfolio
Selection models and usage: Markowitz’s Theory, Single Index Model, Capital market
theorem, Portfolio Selection models and usage: CAPM (Capital Asset Pricing Model) and
APT (Arbitrage Pricing Theory); Portfolio Selection models and usage: Fama-French 3
factor, 4 factors, 5-factor models; and Latest models in practice. Stock Selection Measures&
Tips: CAMEL’s framework; other forms of analysis i.e., Topical Analysis, Fundamental
Analysis: Economic, Industry, and Company Analysis; top-down macroeconomic analysis;
bottom-up research; Impact analysis. Technical Analysis: DOW Theory, Gap Wave Theory,
Type of charts & its interpretations, Trend line, Support and Resistance level, Relative
strength analysis; Technical Versus Fundamental analysis.
Unit-3: Stock Market Theories & Financial instruments Valuation
Nature of Stock Markets: EMH (Efficient Market Hypothesis); AMH (Adaptive Market
Hypothesis). Valuation of Equity: Nature of equity instruments, Equity Valuation Models.
Approaches to Equity Valuation -DDMs; DCF; SOTP (Sum-of-the-parts) valuation;
Valuation of Debentures/Bonds: Bonds vs. Debentures vs, ULIP; nature of bonds, valuation,
Bond theorem, Term structure of interest rates, Duration.
Unit-4: Portfolio Management & performance evaluation
Portfolio Management and Performance Evaluation: Mutual Fund (MF)& MF Performance
evaluation of the existing portfolio, Sharpe, Treynor and Jensen measures; Portfolio
Management and Performance Evaluation: Basis of Selection of Mutual Fund. Portfolio
Management and Performance Evaluation: Revision of portfolio; and Portfolio Management.
Recommended Textbooks:
1. Singh, S., & Yadav, S. S. (2021). Security Analysis and Portfolio Management: A Primer.
Springer Nature.
2. Thomas, S. (2014). Security Analysis and Portfolio Management. PHI Learning Pvt. Ltd.
3. Pandian, P. (2007) Security Analysis & Portfolio Management. Vikas Publication Pvt.
Ltd.
4. Finnerty, J., Lee, C. F., Lee, J. C., Wort, D., & Lee, A. C. (2012). Security analysis,
portfolio management, and financial derivatives. World Scientific Publishing Company.
5. Reilly, F. K., & Brown, K. C. (2018). Investment analysis and portfolio management.
Cengage Learning.
6. Vishwanath, R., & Krishnamurti, C. (Eds.). (2009). Investment management: A modern
guide to security analysis and stock selection. Springer Science & Business Media.
