THIS PPT FILE CONTAINS THE INTRODUCTION TO THE INVESTMENT MANAGEMENT

1. INTRODUCTION TO
INVESTMENT
MANAGEMENT
Dr. S. Raj Bino

2. INTRODUCTION
Investment is the employment of funds with the aim of achieving additional income are
growth in value.
The financial meaning of the investment means, it is the allocation of monetary resources to
assets that are expected to yield some gain or positive return over a given period of time.
These assets range from safe investments to risky investments. Investments in this form is
also called as financial investments

3. INVESTMENT AND SPECULATION
Traditionally, the investment is distinguished from speculation in three ways which is based
on the factors
Risk
Capital Gains
Time Period

4. DISTINCTION BETWEEN INVESTMENT AND
SPECULATION
Investment Speculation
Investment is an long time framework beyond 12
months
Speculation is short term in nature and it is even
for a one day
It has limited risk There is high profits and gains
It is consistent and moderates over a long period High returns, though risk of loss is high
Own funds through savings Own and borrowed funds
Safety, Liquidity, Profitability & Stability and the
main consideration
Market behavior information, judgements on
movement in the sock market.

5. WHY ARE INVESTMENT SO IMPORTANT
Longer Life Expectancy
Taxation Benefits
Interest Rates
Inflation
Income

6. FACTORS FAVORABLE FOR INVESTMENT
Legal Safeguards
Stable Currency
Existence of Financial Institutions
Forms of Business Organization
Choice of Investment

7. INVESTMENT MEDIA
Investment media means, that the investment channels available for marking an investment.
It may be classified as:
Direct Investment Alternatives
Indirect Investment Alternatives
Variable Principle Securities
Non- Security Investments

8. DIRECT INVESTMENT ALTERNATIVES
Cash
Savings Account
Savings Certificates
Government Bonds
Corporate Bonds and Dibentures

9. INDIRECT INVESTMENT ALTERNATIVES
Pension Fund
Provident Fund
Insurance
Investment Companies
Unit Trust of India and Other Trust Funds

10. VARIABLE PRINCIPLE SECURITIES
Equity Shares
Convertible Debentures
Convertible Preference Shares
Securities

11. NON- SECURITY INVESTMENTS
Real Estate
Mortgages
Commodities

12. FEATURES OF AN INVESTMENT PROGRAM
Safety to Principal
Liquidity
Income Stability
Appreciation and Purchasing Power Stability
Legality and Freedom from Care
Tangibility

13. STAGES IN INVESTMENT
Investment Policies
Investment Analysis
Valuation of Securities
Portfolio Construction

14. Thank You