Investment, types and Factors affecting

1. INVESTMENT MANAGEMENT
UNIVERSITY SCHOOL OF BUSINESS
COURSE CODE -21BAT-756
COURSE NAME – INVESMTMENT MANAGEMENT
COURSE TYPE- ELECTIVE
Faculty Name: Mr. Rachit Agarwal
Assistant Professor
USB, Chandigarh University
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2. INVESTMENT MANAGEMENT -21BAT756
COURSE OBJECTIVES
a. To acquaint students with the theoretical and practical aspects
of investment management.
b. To give a practical exposure of analyzing the available
investment options for investment through different valuation
methods.
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3. INVESTMENT MANAGEMENT-21BAT-756
UNIT -1
Investment, Investment Avenues and Risk & Return
Course outcome covered in Unit 1-Lecture- 3&4
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CO Number Item Bloom’s Taxonomy
Level
CO1 To demonstrate knowledge of investment
management and investment avenues
Remember &
Understand ( Level 1
& 2)

4. INVESTMENT MANAGEMENT-21BAT-756
Unit 1- Lecture -3 & 4
• Meaning of investment decision
• Investment Process
• Factors affecting investment decision
• Features of good investment
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5. Investment Decision
Investment decision
refers to financial
resource allocation.
Investors opt for the most
suitable assets or
investment opportunities
based on risk profiles,
investment objectives,
and return
expectations.
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6. Investment Process
Analyze
Financial
Position
Define
Investment
Objective
Asset
Allocation
Select
Investment
Products
Monitor
and Due
Diligence
 Investing in an asset,
security, or project
requires a lot of patience;
ideally, the decision-
making process should
be analytical.
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7. Factors Affecting Investment Decision
Investment
Objective
• The purpose behind an investment determines the short-term or long-term
fund allocation.
Return on
Investment
• Managers prioritize positive returns—they try to employ limited funds in a
profitable asset or security.
Return
Frequency
• The number of periodic returns an investment offer is crucial.
Risk
Involved
• An investment may possess high, medium, or low risk, and the risk appetite
of every investor and company is different.
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8. Factors Affecting Investment Decision
Maturity
Period
• Investments pay off when funds are blocked for a certain period.Thus, investor decisions
are influenced by the maturity period and payback period.
Tax
Benefit
• Tax liability associated with a particular asset or security is another crucial deciding factor.
Safety:
• An asset or security offered by a company that adheres to regulatory frameworks and has a
transparent financial disclosure is considered safe.
Volatility
• Market fluctuations significantly affect investment returns and, therefore, cannot be
overlooked.
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9. Factors Affecting Investment Decision
Liquidity
• Investors are often worried about their emergency funds—the
provision to withdraw money before maturity.
Inflation
Rate
• Investors look for investment opportunities where returns surpass the
nation’s inflation rate.
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10. CHARACTERISTICS/FEATURES OF GOOD INVESTMENT
 Objective fulfillment: An investment should fulfill the objective of
the investors.
 Safety of principal : The first and foremost concern of any
ordinary investor is that his investment should be safe. That is he
should get back the principal at the end of the maturity period of the
investment.
 Capital Appreciation: Capital appreciation is an important feature
of every investment tool. Every investment is expected to rise in its
value over a period of time which is a key determinant for making
deploying funds in it.
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11. CHARACTERISTICS/FEATURES OF GOOD INVESTMENT
 Return: The return from any investment is expectedly consistent
with the extent of risk assumed by the investor. Risk and return go
together.
 Liquidity: Given a choice, investors would prefer a liquid
investment than a higher return investment.
 Hedge against inflation: Investors, who save for the long term, look
for hedge against inflation so that their investments are not unduly
eroded; rather they look for a capital gain which neutralizes the
erosion in purchasing power and still gives a return.
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12. CHARACTERISTICS/FEATURES OF GOOD INVESTMENT
 Tax Benefits: Tax implications on the income provided by
investment programs are seriously taken into consideration by
investors. The real return earned by people is one that is left after
paying income tax.
 Legality: Investment securities must be evaluated from legal aspects
before selecting them. Only such securities which are approved by
law should be chosen as illegal securities will land investor in
trouble.
 Marketability: Marketability refers to the ease with which the
investment securities can be purchased and sold or can be transferred
in the market.
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13. THANK YOU
For queries
Email: rachit.e13225@cumail.in
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