SECURITY ANALYSIS AND PORTFOLIO

Course Title Credits 4

MANAGEMENT
Course Code MGT 1161 Course category OE L-T-P 3-0-1
Learning
Version 1.0 Approval Details ACM BTL-4
Level
• The course provides an overview of various financial assets and a foundation for
students entering the fields of Security Market analysis along with portfolio
management.
• Security Analysis and Portfolio Management course is about investing in securities.
This course is of great importance to business students for their professional career as
well as managing their own investments.
• This course is designed to introduce, discuss and apply various concepts, tools and
Course techniques related with security analysis and portfolio management and equip the
students with a coherent framework of analysis that will enable them to create and
Description manage investment portfolios.
• Topics include basics of investment, important investment alternatives, fundamental
analysis & technical analysis, and valuation of different securities.
• The focus would also be on constructing portfolios using Markowitz and Sharpe’s
Single Index Model. Evaluation of performance of portfolios will also be covered in
detail.
• They are also expected to understand relevant Indian and global investment scenario.

•To provide an understanding of the issues, challenges, and complexities an investor

faces in deciding where to invest
• To analyse various securities for the purpose of investments
• To enable the students to have working knowledge on risk and its measurement and
Course facilitate them to understand fundamental and technical analysis
Objective • To familiarize them with the equity valuation process
• To understand various tools, techniques and models that help in security analysis and
portfolio management
• To construct an optimum portfolio and evaluate its performance with the help of
relevant models
Upon completion of this course, the students will be able to: BT Level
1. Demonstrate knowledge of various investment alternatives and their
L2
features.
2. Assess the risk and return associated with different kinds of securities. L3
Course
3. Conduct valuation of various securities. L4
Outcome
4. Apply the concepts, tools and techniques related to security analysis and
L3
portfolio management.
5. Construct, evaluate and manage investment portfolios. L4
CO, PO and PSO Mapping
PSO- PSO- PSO-
CO PO -1 PO-2 PO-3 PO-4 PO-5 PO-6 PO-7 PO-8
1 2 3
CO-1 3 - - 2 - 2 - - - - -

CO-2 - 3 - 2 - - - - - - -
CO-3 - 3 - - - 2 - - - - -

CO-4 2 3 - 3 - - - - - - -

CO-5 3 3 - - - - 2 - - - -

1: Weakly related, 2: Moderately related and 3: Strongly related

Outline Teaching Schedule

Unit Topics No. of Sessions
MODULE 1: Introduction to Investment
Investment objectives, Speculation, Gambling, and arbitrage mechanisms.
1 7
Securities Market, Regulatory framework of securities market, Investors
and stock exchanges, Investment Information. (Qualitative)
MODULE 2: Investment Avenues and Attributes
Company shares, debentures/bonds, G-securities, Mutual funds deposits,
2 7
postal schemes, insurance, real assets. Investments attributes: risk, return,
security, maturity. (Qualitative and Quantitative)
MODULE 3: Financial Market
Features of Securities markets and functioning, new issues market, IPO’s,
Issue Process, Intermediaries, Pricing of Issue, Investor Protection in
Primary and Secondary Market.
3 7
Secondary Market: Stock Exchanges, Depository Services, History,
Function, Segment and Regulatory Framework, Online Trading, Margin
Requirement, Listing of Securities. Stock Market Indices, Stock market
terminologies. (Qualitative and Quantitative)
MODULE 4: Security Analysis
Concept of risk, systematic and unsystematic risk, risk measurement.
Security analysis: Fundamental Analysis: Economic, Industry and
Company Analysis. Technical analysis of securities, Efficient frontier, risk
4 8
& return, minimum variance portfolio, Efficient Market Hypothesis,
Capital Market Line, Security Market Line, Factors influencing investment
decisions: financial positions, tax positions, risk perception and attitude.
(Qualitative and Quantitative)
MODULE 5: Security Pricing & Valuation
Calculation of present and forecasted price of the stock, Factors influencing
5 valuation - methods of equity valuation - Earning Valuation model - use of 8
P/E ratio, Dividend model - Zero and Constant growth models, Intrinsic
value method (Qualitative and quantitative)
MODULE 6: Portfolio Management
Concept, Approaches in Portfolio Construction and Selection of Portfolio.
Computation of risk & return on portfolio, portfolio managers, portfolio
6 management services. William Sharpe and Harry Markowitz Model, 8
Capital Asset Pricing Model and Arbitrage Pricing theory. Portfolio
Evaluation: Mutual Funds, Sharpe, Treynor and Jensen’s Performance
Index (Qualitative and quantitative)
Total Sessions 45
Recommended Resources

Essential Readings:
• Punithavathy Pandian – Security Analysis & Portfolio Mgmt. –Vikas, 2/e, 2013
• Bhalla, V. K. Fundamentals of Investment Management, S. Chand & Co
• Preeti Singh, Investment Management: Security Analysis and Portfolio Management
 Additional Readings:
• Chandra, Prasanna (2017), “Investment Analysis and Portfolio Management”. 5e. McGraw Hill.
• Fischer, Donald E. and Jordan, Ronald J. (2018). “Security Analysis and Portfolio Management”.
7e. Pearson Education.
• Sharpe, William F. Alexander and Bailey, Investments, Sixth Edition Prentice - Hall, India
• Ranganatham and Madhumathi (2011). “Security Analysis and Portfolio Management”. 2e.
Pearson
• V.A. Avadhani – Securities Analysis & Portfolio Mgmt. – HPH
• Haugen, Robert. Modern Investment Theory, Fifth Edition, Prentice Hall

Websites:
• www.moneycontrol.com
• www.nseindia.com
• www.bseindia.com
• www.equitymaster.com
• www.marketwatch.com
• www.valueresearchonline.com
• www.bloomberg.com

Assessment Method (Mapped with CO’s)

SL. Assessment Description of Weightage in Course Outcomes to be Assessed Duration
No. method assessment method Marks
CO1 CO2 CO3 CO4 CO5
During Semester 10 Throughout the course
1 DSE ✓ ✓ ✓ ✓ ✓
Exam
2 CP Class Participation 5 ✓ ✓ ✓ ✓ ✓ Throughout the course

3 AS Assignment 10 ✓ ✓ ✓ ✓ ✓ Throughout the course

Mini project with 20 Throughout the course

4 MP ✓ ✓ ✓ ✓ ✓
presentation
5 AT Attendance 5 ✓ ✓ ✓ ✓ ✓ Throughout the course

Semester End- Throughout the course

6 SEE 50 ✓ ✓ ✓ ✓ ✓
Examination 100 marks (3 Hours)