ABOUT THE COURSE: Investment management is one of the main finance functions for both corporations and individuals. Investor managers face situations that require understanding of quantitative tools and qualitative assessment before a decision is arrived at. This course provides a broad overview of investment management, focusing on the application of finance theory to the issues faced by portfolio managers and investors in general. Course participants shall learn about various assets that can be considered to form an investment portfolio, their valuation, and measurement of performance. At the end of the course, students are expected to be able to (a) analyze the intrinsic value of traded assets using fundamental valuation theories as well as technical analysis (b) set investment goals and accordingly construct efficient portfolios, and (c) evaluate performance of the portfolio.INTENDED AUDIENCE: Senior Undergraduate and Postgraduate students: Management, Economics, Finance, Commerce, Business AdministrationPREREQUISITES: Understanding of basic statistics, economics, and financial markets (Ouantitative Investment Management, Financial Institutions 8 Markets)INDUSTRY SUPPORT: Investment advisory and research firms
Overview
Syllabus
Week 1: Introduction to financial markets, institutions, and assets;Investment as a process; and Investment philosophiesWeek 2:Fixed income securities: Term structure of interest rates; Bonds, their valuation, pricing, yield and duration, convexity, and their inter-relationshipsWeek 3:Equity as an asset class: risk-return tradeoff; Valuation approaches, DCF versus multipliers; Equity investment strategiesWeek 4:Pricing of equity assets: Index models; Capital asset pricing model (CAPM) and arbitrage pricing theory (APT)Week 5:Mutual funds as investment; Advantages and disadvantages of investing in mutual funds; Hedge funds, index funds, ETFs, and other categoriesWeek 6:Security Analysis and portfolio management; Fundamental and technical analyses; Portfolio theory and asset allocation; Investment strategiesWeek 7:New asset classes and alternative investments; Introducing new-age assets in a portfolio; Cryptocurrencies as an asset classWeek 8:Portfolio performance evaluation; Factors driving portfolio performance; Investment strategies and market timing
Taught by
Prof. Abhijeet Chandra
