Name of the Program: Bachelor of Commerce (B.Com.

Elective 2: Finance
Course Code: COM F2(DSE)
Name of the Course: Investment Management
Course No. of Hours per Week Total No. of Teaching Hours
Credits
3 Credits 4 Hrs 60 Hrs
Pedagogy: Classrooms lecture, Case studies, Group discussion, Seminar & field work etc.,
Course Outcomes: On successful completion of the course, the students’ will be able to
a) Understand the concept of investments, its features and various instruments.
b) Comprehend the functioning of secondary market in India.
c) Underline the concept of risk and return and their relevance in purchasing and selling of securities.
d) Illustrate the valuation of securities and finding out the values for purchase and sale of securities.
e) Demonstrate the fundamental analysis to analyse the company for purchase and sale of securities
and technical analysis for trading in the share market.

Syllabus: Hours
Module No. 1: Concept of Investment 10
Introduction - Investment: Attributes, Economic vs. Financial Investment, Investment and speculation,
Features of a good investment, Investment Process. Financial Instruments: Money Market instruments,
Capital Market Instruments. Derivatives.
Module No. 2: Fundamental Analysis 12
Fundamental analysis-EIC Frame Work, Global Economy-, Domestic Economy, Business Cycles, Industry
Analysis and Company Analysis.
Module No. 3: Technical Analysis 12
Technical Analysis – Concept, Theories- Dow Theory, Eliot wave theory. Charts-Types, Trend and Trend
Reversal Patterns. Mathematical Indicators – Moving averages, ROC, RSI, and Market Indicators - Market
Efficiency and Behavioural Finance: Random walk and Efficient Market Hypothesis, Forms of Market
Efficiency, Empirical test for different forms of market efficiency
Module No. 4: Risk & Return 12
Risk and Return Concepts: Concept of Risk, Types of Risk- Systematic risk, Unsystematic risk, Calculation of Risk
and returns. Portfolio Risk and Return: Expected returns of a portfolio, Calculation of Portfolio Risk and Return.

Module No. 5: Portfolio Management 14

Portfolio Management:Activities:
Skill Developments Meaning, Need, Objectives, process of Portfolio management, Selection of securities
and Portfolio analysis. Construction of optimal portfolio using Sharpe’s Single Index Model. Portfolio
Performance evaluation(Theoryonly).
1. Collect and compare the data on financial instruments selected for investment from any five investors.
2. Open Demat account, learn how to trade in stock market and submit the report on prospectus and challenges
of stock trading.
3. Discuss with investors on systematic and unsystematic risk analysis, submit report on the same.
4. Calculate the intrinsic value of any five bonds listed on BSE / NSE, making necessary assumptions.
5. 5. Summarise the parameters of ‘Economy Analysis’ of any five countries and give your inference.

Harshitha P
Assistant Professor
Department of Commerce
Books for Reference:

1. Bodie ZVI, Kane Alex, Marcus J Alan and Mohanty Pitabas., Investments, Tata McGraw Hill Publishing
Company Limited, New Delhi.
2. Sharpe F. William, Alexander J Gordon and Bailey V Jeffery, Investments, Prentice Hall of India Private
Limited, New Delhi.
3. Fischer E Donald and Jordan J Ronald., Security Analysis and Portfolio Management, Prentice Hall of
India Private Limited, New Delhi.
4. Kevin S., Portfolio Management, PHI, New Delhi.
5. Punithavathy Pandian, Security Analysis and Portfolio Management, Vikas Publishing House Private
Limited, New Delhi.
6. Prasanna Chandra, Investment Analysis and Portfolio Management, Tata McGraw Hill Publishing
Company Limited, New Delhi.
Note: Latest edition of text books may be used.

Bridge Course

Subject: Investment Management

Income:

Harshitha P
Assistant Professor
Department of Commerce
Income refers to the money or earnings received by an individual or entity from various sources. Income can come in
different forms and can be categorized into two ways:

Earned Income: Earned income is the compensation received in exchange for providing goods or services. This
includes salaries, wages, bonuses, tips, commissions, and any other payments received from employment or self-
employment activities.

Passive Income: Passive income is earned from investments or business activities in which the individual is not
actively involved. Examples of passive income include rental income from real estate properties, dividends from
stocks, interest from savings accounts or bonds, and royalties from intellectual property.

Savings:

Savings refer to the portion of income or money that is not spent on current consumption and is instead set aside for
future use. Savings can take various forms, including depositing money into a savings account, purchasing certificates
of deposit (CDs), investing in money market funds, or acquiring other low-risk financial instruments.

Why Savings are needed?

The primary purposes of saving money include

Emergency Fund:
Saving money to create an emergency fund provides a financial cushion to cover unexpected expenses such as
medical emergencies, car repairs, or job loss.
Short-Term Goals: Future Needs Emergencies Large Expenses
Saving money can help individuals achieve short-term
Unexpectedfinancial
Expensesgoals,
like suchToasmeet
buying a car, going on vacation, or
larger expenses
With savings,
making a down payment on a home. in the future Illness, accident, death like purchasing a house,
Long-Term Goals: you can buy what you marriage, education
cannot buy today
Saving money over the long term can help individuals prepare for major life events, such as retirement, funding a
child's education, or purchasing a home.
Financial Security:
Building savings provides a sense of financial security and peace of mind, knowing that there are funds available to
handle unforeseen circumstances or to achieve important financial goals.

Harshitha P
Assistant Professor
Department of Commerce
Investment:
Investment refers to the allocation of resources, typically money, with the expectation of generating a return or profit
over time. Investments are made with the intention of increasing wealth or achieving specific financial goals. There
are various types of investments, each with its own risk and return characteristics.

Purpose of Investing:

Wealth Accumulation:
One of the primary purposes of investing is to grow wealth over time. By investing money in assets that have the
potential to appreciate in value, such as stocks, real estate, or mutual funds, individuals can increase their net worth
and achieve financial security.
Retirement Planning:
Investing is essential for building a nest egg to fund retirement expenses. By regularly contributing to retirement
accounts such as 401(k), IRAs, or pension plans, individuals can accumulate savings that will provide income during
retirement years.
Achieving Financial Goals:
Investing can help individuals achieve various financial goals, such as purchasing a home, funding education
expenses, or starting a business. By investing strategically and consistently, individuals can accumulate the necessary
funds to achieve these objectives.
Generating Passive Income:
Some investments, such as rental properties, dividend-paying stocks, or bonds, can generate regular income streams.
Investing in income-generating assets can provide individuals with passive income to supplement their earnings or
cover living expenses.
Beating Inflation:
Inflation erodes the purchasing power of money over time. Investing in assets that outpace inflation, such as stocks or
real estate, can help individuals preserve and grow the value of their savings over the long term.
Diversification and Risk Management:
Investing in a diversified portfolio of assets can help spread risk and reduce exposure to any single investment or
market downturn. Diversification is a key strategy for managing risk and protecting wealth over time.
Tax Efficiency:
Certain investment vehicles offer tax advantages, such as tax-deferred growth or tax-free withdrawals. By investing in
tax-efficient accounts or assets, individuals can minimize their tax liabilities and maximize after-tax returns.

Harshitha P
Assistant Professor
Department of Commerce