Basics of Investment
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The document provides an overview of investment concepts including the meaning of investments, investment objectives, asset classes, factors in investment decisions, the investment process, risk and return, diversification and hedging, and ethical investing. It defines key terms like investments, objectives of investments, asset classes including real and financial investments, the investment process, sources of risk, and how to invest ethically. It also discusses risk and return measurement, diversification and hedging as risk management strategies, and the various sources of risk in investments.
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Types of investment
The document discusses different types of investments, including traditional and alternative investments. Traditional investments include bonds, stocks, small saving schemes, mutual funds, fixed deposits, and real estate. Bonds are loans to entities that pay interest. Stocks represent ownership in companies. Small saving schemes are meant for small amounts. Mutual funds invest in different securities. Fixed deposits earn interest. Real estate can appreciate. Alternative investments include hedge funds, private equity, venture capital, structured products, and collectibles. These have complex structures and are less liquid than traditional investments.
Basics of Investment
The document defines investment as sacrificing current consumption for future gain through employment of funds with the purpose of earning additional income or growth over time. It distinguishes investment from speculation based on risk, time horizon, and motives. The objectives, types, and features of ideal investments are described. Risk is categorized as systematic/non-diversifiable versus unsystematic/diversifiable. The portfolio management process including policy, analysis, construction, and evaluation is outlined.
An introduction to investment
Investment involves committing funds with the aim of achieving additional income or growth in value over time. It is characterized by risk, return, safety, liquidity, and tax benefits. The key aspects are committing funds for a future reward, an expectation of returns higher than realized returns due to uncertainty, and balancing risk and return based on one's objectives and capacity. Investment aims to maximize returns while minimizing risk through prudent analysis, whereas speculation takes greater risks seeking short-term capital gains.
investment
1. The document provides an introduction to investments, discussing key concepts like primary and secondary markets, securities, and the objectives and process of investment.
2. It defines investment as the commitment of money or resources with the goal of earning future benefits. Individuals invest by saving money instead of spending it currently to gain larger consumption later.
3. The main objectives of investment are increasing returns, reducing risk, and providing liquidity, protection against inflation, and safety of capital. The investment process involves formulating a policy, analyzing opportunities, valuing assets, constructing a diversified portfolio, and regularly evaluating performance.
Investment Basics
The document discusses various ways that people invest, including putting money into stocks, bonds, and mutual funds. It outlines reasons for investing such as financial goals, income, wealth, and retirement. Key aspects of investing covered include having a budget and savings plan, establishing investment goals, understanding returns, risks, and diversification. The document provides strategies for long-term investing like asset allocation, dollar cost averaging, and following golden rules of fundamentals.
Investment management
The document provides an overview of investment management concepts including the meaning of investment, objectives of investment, and financial markets. It defines investment as committing funds with the expectation of a positive return in the future. The objectives of investment are outlined as maximizing return, minimizing risk, and hedging against inflation. Different types of financial markets are also introduced such as the primary market, stock exchanges, and their functions in facilitating investment activities.
Investment management
This document discusses investment management. It defines investment as committing funds with an expectation of positive return. The two main forms of investment are real investments in assets like land and machinery, and financial investments in contracts. Investment management aims to meet clients' investment goals through activities like asset allocation, portfolio strategy, and monitoring holdings. It also coordinates investments with other financial planning. Risk and return are important considerations in investment decisions, as there is generally a tradeoff between higher risk and higher potential returns.
Types of investment
The chapter discusses the key concepts of investments including defining investments, differentiating types of investments, outlining the investment process and participants, describing steps in investing including establishing goals and managing taxes, examining how investing changes over an individual's life cycle and in different economic environments, and understanding popular short-term investment vehicles. The goal is for readers to understand different aspects of the investment landscape and how to approach investing.
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Types of investment
The document discusses different types of investments, including traditional and alternative investments. Traditional investments include bonds, stocks, small saving schemes, mutual funds, fixed deposits, and real estate. Bonds are loans to entities that pay interest. Stocks represent ownership in companies. Small saving schemes are meant for small amounts. Mutual funds invest in different securities. Fixed deposits earn interest. Real estate can appreciate. Alternative investments include hedge funds, private equity, venture capital, structured products, and collectibles. These have complex structures and are less liquid than traditional investments.
Basics of Investment
The document defines investment as sacrificing current consumption for future gain through employment of funds with the purpose of earning additional income or growth over time. It distinguishes investment from speculation based on risk, time horizon, and motives. The objectives, types, and features of ideal investments are described. Risk is categorized as systematic/non-diversifiable versus unsystematic/diversifiable. The portfolio management process including policy, analysis, construction, and evaluation is outlined.
An introduction to investment
Investment involves committing funds with the aim of achieving additional income or growth in value over time. It is characterized by risk, return, safety, liquidity, and tax benefits. The key aspects are committing funds for a future reward, an expectation of returns higher than realized returns due to uncertainty, and balancing risk and return based on one's objectives and capacity. Investment aims to maximize returns while minimizing risk through prudent analysis, whereas speculation takes greater risks seeking short-term capital gains.
investment
1. The document provides an introduction to investments, discussing key concepts like primary and secondary markets, securities, and the objectives and process of investment.
2. It defines investment as the commitment of money or resources with the goal of earning future benefits. Individuals invest by saving money instead of spending it currently to gain larger consumption later.
3. The main objectives of investment are increasing returns, reducing risk, and providing liquidity, protection against inflation, and safety of capital. The investment process involves formulating a policy, analyzing opportunities, valuing assets, constructing a diversified portfolio, and regularly evaluating performance.
Investment Basics
The document discusses various ways that people invest, including putting money into stocks, bonds, and mutual funds. It outlines reasons for investing such as financial goals, income, wealth, and retirement. Key aspects of investing covered include having a budget and savings plan, establishing investment goals, understanding returns, risks, and diversification. The document provides strategies for long-term investing like asset allocation, dollar cost averaging, and following golden rules of fundamentals.
Investment management
The document provides an overview of investment management concepts including the meaning of investment, objectives of investment, and financial markets. It defines investment as committing funds with the expectation of a positive return in the future. The objectives of investment are outlined as maximizing return, minimizing risk, and hedging against inflation. Different types of financial markets are also introduced such as the primary market, stock exchanges, and their functions in facilitating investment activities.
Investment management
This document discusses investment management. It defines investment as committing funds with an expectation of positive return. The two main forms of investment are real investments in assets like land and machinery, and financial investments in contracts. Investment management aims to meet clients' investment goals through activities like asset allocation, portfolio strategy, and monitoring holdings. It also coordinates investments with other financial planning. Risk and return are important considerations in investment decisions, as there is generally a tradeoff between higher risk and higher potential returns.
Types of investment
The chapter discusses the key concepts of investments including defining investments, differentiating types of investments, outlining the investment process and participants, describing steps in investing including establishing goals and managing taxes, examining how investing changes over an individual's life cycle and in different economic environments, and understanding popular short-term investment vehicles. The goal is for readers to understand different aspects of the investment landscape and how to approach investing.
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This document provides an introduction to investment terminology and concepts. It defines key terms like finance, investment, and different types of financial assets. It also summarizes the major participants in the financial system including households, financial intermediaries like banks and mutual funds, and the markets they interact in such as primary and secondary markets. Different types of financial securities are also outlined including debt instruments and equity instruments.
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Concept of Investment
Investment is the deployment of funds with the goal of generating income or capital gains in the future. There are several types of investment including financial investment in securities, real investment in capital goods, autonomous investment that remains constant, and induced investment that changes with income levels. The marginal efficiency of capital determines the expected return on investment projects and is influenced by interest rates - lower rates make investment more attractive by reducing borrowing costs. Factors that can shift the marginal efficiency of capital schedule include changes in demand, costs, technology, business confidence, and the supply of finance.
Risk and return measurement
This document discusses the concepts of risk and return in investments. It defines risk as the uncertainty of expected returns, which can be caused by factors both related and unrelated to the investment. Systematic risk refers to uncertainty from broader market factors that affect all investments, while unsystematic risk is specific to a particular investment. Standard deviation and beta are introduced as quantitative measures of risk. Standard deviation measures how much returns vary from the average, while beta measures the volatility of a security compared to the overall market. The security market line equation is presented to demonstrate how beta is used to determine the required rate of return based on the risk-free rate and market risk premium.
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This document discusses capital structure and financial markets, specifically the primary market. It defines the primary market as the market for new issuers, where companies can directly issue shares, bonds, or other securities to raise capital. The document outlines the key participants and processes in the primary market in Nepal, including requirements for disclosure, underwriting, and issue procedures that must follow the Company Act and SEBON guidelines. Overall, the primary market provides an important channel for companies and governments to raise funds for investment and growth.
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Mutual funds pool money from investors and invest it in stocks, bonds, and other securities. The money earned through investments and any capital appreciation is shared by unit holders proportionate to how many units they own. The document discusses the history of mutual funds in India from 1964 to present. It describes open-ended and closed-ended funds, as well as growth, income, balanced, and money market funds. The advantages of mutual funds include diversification, professional management, convenience, and tax benefits, while the disadvantages include costs and lack of control. Systematic investment plans allow regular investing of small amounts to achieve long-term goals through rupee cost averaging and the power of compounding.
Introduction portfolio management
noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and online sources
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1. introduction basics of investments.ppt
The document provides an introduction to a course on investments. It outlines the purpose of learning to manage money through investments to maximize benefits. It discusses learning about available investment alternatives and developing an analytical approach. The course will cover topics such as risk and return measurement, modern portfolio theory, equity and debt analysis, portfolio optimization and evaluation. It will use a mix of theory, practical applications and Microsoft Excel. The course will have 30 classes covering these topics and references various investment textbooks and notes.
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This document provides an overview of key concepts related to investment including what investment is, the needs it fulfills, inflation and how it impacts returns, different asset classes and their typical returns, golden rules of investing, steps to take when investing, interest rates and factors that influence them, short-term and long-term financial investment options like savings accounts, fixed deposits, mutual funds, shares, bonds, derivatives and more. The document aims to educate readers on fundamental investment principles.
financial market
The document outlines the key components of the Indian financial system, including financial markets, institutions, instruments and services. It discusses the roles of direct and indirect finance in connecting those with surplus funds and deficits. The main types of financial markets are money markets, which facilitate short-term lending, and capital markets, which enable long-term financing through stock and bond issuance. Financial intermediaries such as banks help reduce costs and risks in the transfer of funds.
Investment management
This document provides an introduction to investment management. It defines investment as committing funds to achieve additional income or growth over time. Investments involve allocating assets, expecting positive returns, and having a long time frame. Investments can range from safe to risky. The objectives of investment include achieving good returns, reducing risk, liquidity, safety of funds, and hedging against inflation. Favorable factors for investment include legal safeguards, a stable currency, financial institutions and services, business organization structures, and choice of investment. The document outlines various investment media including direct, indirect, variable principal, and non-security investments. It also discusses features of an investment program such as safety, liquidity, income stability, and appreciation
Capital Market
Presentation on "Capital Market"
1.definition and characteristics
2.function and players
3.importance/role and types
4.factor and structure
5.reforms and development
Financial system
For Videos use the links below
0 Course Introduction:: https://www.youtube.com/watch?v=9km4aXTus5c
1 Financial system and Environment : https://www.youtube.com/watch?v=BC2bAftm43c
2 Participants in a Financial System: https://www.youtube.com/watch?v=IEv_y7_aR7o
3 Functions of a Financial System: https://www.youtube.com/watch?v=T73-Dd8RM4I
4 Financial System and its components: https://www.youtube.com/watch?v=ovkAjEO8YAw
5 Efficiency of a financial system: https://www.youtube.com/watch?v=8xEUtvKYvPc
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This document summarizes key points about investment analysis and portfolio management. It discusses the module website resources, gains and losses from past investments, markets and security types, brokers, returns and risks, and the investment process. The essential topics covered are types of markets and securities, factors that influence investment returns and risks, and the basic steps in analyzing investments and constructing a portfolio.
Investment process
The document provides an overview of the investment process. It discusses what investment is, why one should invest, when to start investing, what care to take while investing, various types of investments, the investment cycle, client profiling, objective and risk analysis, economic and market analysis, and asset allocation and investment selection and implementation. The key steps in the investment process include understanding investment and risk tolerance, setting goals, diversifying assets, regularly monitoring performance, and rebalancing as needed.
Swaps (derivatives)
A swap is an agreement between two parties to exchange cash flows over a period of time, where at least one cash flow is determined by a variable such as interest rate, foreign exchange rate, or equity price. The most common type is an interest rate swap, where parties exchange interest payments on a notional principal amount at fixed and floating rates. Swaps allow users to align the risk characteristics of their assets and liabilities.
Business risk and financial risk
The document discusses different types of business and financial risk. Business risk includes strategic, financial, operational, and compliance risk. Financial risk considers how business risk correlates with the level of financial risk, which can be low, high, or a balanced combination. The document outlines steps for risk management, including risk identification, assessment, prioritization, and strategies such as avoidance, reduction, transfer, and retention. Various techniques are provided for analyzing and mitigating risk, such as sensitivity analysis and sequential investment decisions.
Investment
This document provides an overview of key concepts related to investment including:
- The meaning and objectives of investment as well as various asset classes and factors considered in investment decisions.
- The concepts of risk and return including sources of risk and methods of measuring and diversifying risk.
- The investment process including defining objectives, analyzing securities, constructing portfolios, and revising portfolios.
- Ethical investing which considers an investor's ethical views when selecting investments.
Introduction to investment
This document provides a lesson plan on investment management. It begins with stories to illustrate investment concepts and then defines key terms like investment, savings, gambling, arbitrage, and speculation. It distinguishes investment from speculation based on factors like risk, time horizon, and objectives. The document outlines different types of investors and investment objectives like yield, choice, capital appreciation. It also discusses motives for saving like precautionary, transactional, and speculative motives. Finally, it covers the investment process and factors that influence investment decisions.
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This document provides an introduction to investment terminology and concepts. It defines key terms like finance, investment, and different types of financial assets. It also summarizes the major participants in the financial system including households, financial intermediaries like banks and mutual funds, and the markets they interact in such as primary and secondary markets. Different types of financial securities are also outlined including debt instruments and equity instruments.
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Portfolio management is a process that aims to optimize investment returns while reducing risk. It involves five phases: security analysis, portfolio analysis, portfolio selection, portfolio revision, and portfolio evaluation. The security analysis phase involves classifying and examining individual securities. Portfolio analysis identifies possible portfolio combinations and assesses their risks and returns. The optimal portfolio is then selected during the portfolio selection phase. Portfolio revision makes changes due to funds or risk adjustments. Finally, portfolio evaluation compares objectives and performance to improve the process.
Capital Market
This Presentation gives a brief idea about the Capital market and the leading Stock Exchange Companies.
Concept of Investment
Investment is the deployment of funds with the goal of generating income or capital gains in the future. There are several types of investment including financial investment in securities, real investment in capital goods, autonomous investment that remains constant, and induced investment that changes with income levels. The marginal efficiency of capital determines the expected return on investment projects and is influenced by interest rates - lower rates make investment more attractive by reducing borrowing costs. Factors that can shift the marginal efficiency of capital schedule include changes in demand, costs, technology, business confidence, and the supply of finance.
Risk and return measurement
This document discusses the concepts of risk and return in investments. It defines risk as the uncertainty of expected returns, which can be caused by factors both related and unrelated to the investment. Systematic risk refers to uncertainty from broader market factors that affect all investments, while unsystematic risk is specific to a particular investment. Standard deviation and beta are introduced as quantitative measures of risk. Standard deviation measures how much returns vary from the average, while beta measures the volatility of a security compared to the overall market. The security market line equation is presented to demonstrate how beta is used to determine the required rate of return based on the risk-free rate and market risk premium.
Primary market
This document discusses capital structure and financial markets, specifically the primary market. It defines the primary market as the market for new issuers, where companies can directly issue shares, bonds, or other securities to raise capital. The document outlines the key participants and processes in the primary market in Nepal, including requirements for disclosure, underwriting, and issue procedures that must follow the Company Act and SEBON guidelines. Overall, the primary market provides an important channel for companies and governments to raise funds for investment and growth.
Mutual fund ppt
Mutual funds pool money from investors and invest it in stocks, bonds, and other securities. The money earned through investments and any capital appreciation is shared by unit holders proportionate to how many units they own. The document discusses the history of mutual funds in India from 1964 to present. It describes open-ended and closed-ended funds, as well as growth, income, balanced, and money market funds. The advantages of mutual funds include diversification, professional management, convenience, and tax benefits, while the disadvantages include costs and lack of control. Systematic investment plans allow regular investing of small amounts to achieve long-term goals through rupee cost averaging and the power of compounding.
Introduction portfolio management
noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and online sources
FINANCIAL MARKET
Financial markets facilitate the buying and selling of financial instruments between savers and investors. They act as intermediaries that allow households to deposit surplus funds with banks or purchase securities from businesses, and allow businesses to access funds from households. Financial markets have several key functions, including mobilizing savings, facilitating price discovery, providing liquidity to financial assets, and reducing transaction costs. The major financial markets in India are the money market, stock market, and bond market. The money market deals in short-term debt instruments with maturities of up to one year and includes sub-markets for call money, treasury bills, commercial paper, and certificates of deposit.
1. introduction basics of investments.ppt
The document provides an introduction to a course on investments. It outlines the purpose of learning to manage money through investments to maximize benefits. It discusses learning about available investment alternatives and developing an analytical approach. The course will cover topics such as risk and return measurement, modern portfolio theory, equity and debt analysis, portfolio optimization and evaluation. It will use a mix of theory, practical applications and Microsoft Excel. The course will have 30 classes covering these topics and references various investment textbooks and notes.
Investment ppt[1].pptx [autosaved]
This document provides an overview of key concepts related to investment including what investment is, the needs it fulfills, inflation and how it impacts returns, different asset classes and their typical returns, golden rules of investing, steps to take when investing, interest rates and factors that influence them, short-term and long-term financial investment options like savings accounts, fixed deposits, mutual funds, shares, bonds, derivatives and more. The document aims to educate readers on fundamental investment principles.
financial market
The document outlines the key components of the Indian financial system, including financial markets, institutions, instruments and services. It discusses the roles of direct and indirect finance in connecting those with surplus funds and deficits. The main types of financial markets are money markets, which facilitate short-term lending, and capital markets, which enable long-term financing through stock and bond issuance. Financial intermediaries such as banks help reduce costs and risks in the transfer of funds.
Investment management
This document provides an introduction to investment management. It defines investment as committing funds to achieve additional income or growth over time. Investments involve allocating assets, expecting positive returns, and having a long time frame. Investments can range from safe to risky. The objectives of investment include achieving good returns, reducing risk, liquidity, safety of funds, and hedging against inflation. Favorable factors for investment include legal safeguards, a stable currency, financial institutions and services, business organization structures, and choice of investment. The document outlines various investment media including direct, indirect, variable principal, and non-security investments. It also discusses features of an investment program such as safety, liquidity, income stability, and appreciation
Capital Market
Presentation on "Capital Market"
1.definition and characteristics
2.function and players
3.importance/role and types
4.factor and structure
5.reforms and development
Financial system
For Videos use the links below
0 Course Introduction:: https://www.youtube.com/watch?v=9km4aXTus5c
1 Financial system and Environment : https://www.youtube.com/watch?v=BC2bAftm43c
2 Participants in a Financial System: https://www.youtube.com/watch?v=IEv_y7_aR7o
3 Functions of a Financial System: https://www.youtube.com/watch?v=T73-Dd8RM4I
4 Financial System and its components: https://www.youtube.com/watch?v=ovkAjEO8YAw
5 Efficiency of a financial system: https://www.youtube.com/watch?v=8xEUtvKYvPc
Investment Analysis and Portfolio Management
This document summarizes key points about investment analysis and portfolio management. It discusses the module website resources, gains and losses from past investments, markets and security types, brokers, returns and risks, and the investment process. The essential topics covered are types of markets and securities, factors that influence investment returns and risks, and the basic steps in analyzing investments and constructing a portfolio.
Investment process
The document provides an overview of the investment process. It discusses what investment is, why one should invest, when to start investing, what care to take while investing, various types of investments, the investment cycle, client profiling, objective and risk analysis, economic and market analysis, and asset allocation and investment selection and implementation. The key steps in the investment process include understanding investment and risk tolerance, setting goals, diversifying assets, regularly monitoring performance, and rebalancing as needed.
Swaps (derivatives)
A swap is an agreement between two parties to exchange cash flows over a period of time, where at least one cash flow is determined by a variable such as interest rate, foreign exchange rate, or equity price. The most common type is an interest rate swap, where parties exchange interest payments on a notional principal amount at fixed and floating rates. Swaps allow users to align the risk characteristics of their assets and liabilities.
Business risk and financial risk
The document discusses different types of business and financial risk. Business risk includes strategic, financial, operational, and compliance risk. Financial risk considers how business risk correlates with the level of financial risk, which can be low, high, or a balanced combination. The document outlines steps for risk management, including risk identification, assessment, prioritization, and strategies such as avoidance, reduction, transfer, and retention. Various techniques are provided for analyzing and mitigating risk, such as sensitivity analysis and sequential investment decisions.
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Basics of Investment
- 1. Investment Concept, Risk, Return & Diversification
- 2. Syllabus • Meaning and concept • Investment objectives • various asset classes • factors in investment decisions • Investment process • concept of risk and return – sources of risk • Measurement of risk and return • Diversification and hedging • Ethical investing.
- 3. What is an Investment? An investment is an asset or item acquired with the goal of generating income or appreciation. An investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit. It is a commitment of funds in monetary assets, made in the expectation of some positive rate of return.
- 6. Characteristics of an Investment • RETURN • RISK • SAFETY • LIQUIDITY
- 7. Objectives of Investment • GROWTH • SAFETY • REGULAR RETURNS/INCOME • TAX BENEFITS • LIQUIDITY • HEDGE AGAINST INFLATION
- 8. Benefits of Investment • Income • Capital Appreciation • Highly Regulated • Tax Advantages • Collateral • Confidentiality • Flexibility • Operating Convenience • Liquidity • Hedge against Inflation • Spreading Risk
- 9. • Higher Risk • Capital Gain in short term • Shorter Period • Lower Risk • Regular returns + Capital Appreciation • Longer Period InvestmentSpeculation
- 10. Asset classes • Real Investments 1. Real Estate 2. Commodities 3. Bullion 4. Art
- 12. Asset classes • Financial Investments 1. Equities 2. Debts 3. Mutual Funds 4. Deposits 5. Life Insurance Policies 6. Govt/Semi-Govt Securities
- 13. Investment process 1. Defining Investment Objectives 2. Analyzing Securities 3. Portfolio Construction 4. Portfolio Evaluation 5. Portfolio Revision
- 14. Risk & Return • Calculating Expected return… • CalculatingTotal Risk… • Calculating Systematic Risk…
- 15. Diversification & Hedging • Diversification aims at minimizing the risk or reducing the magnitude of possible losses by spreading the investment into various asset classes. • Hedging is the process of controlling/offsetting the possibility of loss by bearing a hedging cost. • “A risk management strategy used in offsetting the probability of loss from fluctuations in the prices of commodities, currencies, or securities.” • The most common way of hedging in the investment world is through derivatives.
- 16. Ethical Investment • Ethical investing refers to the practice of using one's ethical principles as the primary filter for the selection of securities investing. • Depends on an investor's ethical views rather than economic motives. • Gives the individual the power to allocate their savings towards companies whose practices and values align with their personal beliefs. • The earliest recorded instance of ethical investing in America was by the 18th century Quakers, who restricted members from spending their time or money in the slave trade. • Example: Islamic banking, which shuns investments in alcohol, gambling, pork and other forbidden items.
- 17. How to Invest Ethically? • Analyzing investments using ethical standards. • Historical, current, and projected performance of the investment should be scrutinized. • It is also important to confirm the company's commitment to ethical practices. • A company's mission statement
- 18. Sources of Risk Market Risk Interest Rate Risk a) Reinvestment Risk b) Price Risk Purchasing Power Risk Regulation Risk Business Risk International Risk Liquidity Risk
- 19. Previous Questions - • Explain Systematic and Unsystematic risk with examples. • Explain the different dimensions of Investment and its contents as a process. • Financial Investments include those instruments and Institutional media into which savings are placed. But general sense it is so different in common man. Make a comment. • Analyzing the life cycle of the Industry may give more clarity on the proposed investment decision of the investor not the trader. Justify the statement. Manu Antony Chachirayil 9567320002