This document is a presentation on investment analysis and portfolio management by Ms. Jagjot Arneja of the Department of Management Studies at Gateway Institute of Engineering and Technology. The presentation defines investment, outlines the investment process including establishing goals and objectives, determining risk tolerance, creating a portfolio, and ongoing monitoring. It also discusses various financial and non-financial investment avenues, sources of investment information, intermediaries in capital markets, and the regulatory framework of the Securities and Exchange Board of India.

1. Gateway Institute of Engineering and Technology
Department: Department of Management Studies
Program: MBA
Semester: IV
Subject: Investment analysis & portfolio
management
Sub. Code: FM - 06 - C
Presented By:
Ms. Jagjot Arneja
Assistant Professor
Department of Management Studies
Gateway Institute of Engineering and Technology,
Sonepat, Haryana 1

2. Table of Contents
1. Investment – Concept, Objectives
2. Process of investment
3. Financial & non financial avenues of investment
4. Sources of investment information
5. Financial market and instruments
6. Services of intermediaries
7. Regulatory framework in financial market
2
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

3. Introduction to investment management
• Meaning: An investment is an asset or item acquired with the goal of generating income or
appreciation. Appreciation refers to an increase in the value of an asset over time. When an
individual purchases a good as an investment, the intent is not to consume the good but rather
to use it in the future to create wealth.
• An investment always concerns the outlay of some resource today—time, effort, money, or an
asset—in hopes of a greater payoff in the future than what was originally put in. For example,
an investor may purchase a monetary asset now with the idea that the asset will provide
income in the future or will later be sold at a higher price for a profit.
3
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

4. Key takeaways
• An investment involves putting capital to use today in order to increase its value over time.
• An investment requires putting capital to work, in the form of time, money, effort, etc., in
hopes of a greater payoff in the future than what was originally put in.
• An investment can refer to any medium or mechanism used for generating future income,
including bonds, stocks, real estate property, or alternative investments.
• Investments usually do not come with guarantees of appreciation; it is possible to end up with
less money than with what you started.
• Investments can be diversified to reduce risk, though this may reduce the amount of earning
potential.
4
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

5. Features
1. Safety
2. Liquidity
3. Regularity & stability of income
4. Stability of purchasing power
5. Capital appreciation
6. Tax benefits
7. Legality
8. Tangibility
5
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

6. Objectives
1. Income
2. Capital appreciation
3. Conservative Growth
4. Aggressive Growth
5. Speculation
6. Capital Gain
7. Liquidity
8. Tax considerations
6
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

7. Process of investment
1. Establishing investment goals & objectives
Investment Objectives: During our initial discussion we will spend time discussing your short and
long-term financial goals and objectives. Understanding the role that your investments play in
your current and future cash flow, and where you are in the 'accumulation-income generation-
preservation-distribution' cycle is essential to matching your investment goals to your investment
portfolio.
2. Determining risk tolerance & appropriate asset allocation
Risk Profile. Using a model risk analysis profile questionnaire we will have a discussion regarding
risk-reward, time horizon for investments and return expectations.
Asset Allocation. The results of the risk analysis model will provide information that I will use to
develop a suitable investment portfolio. A portfolio comprised of investment asset categories
that will provide you with an investment portfolio designed to help you achieve your investment
goals and objectives.
7
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

8. Process
3. Creating the investment portfolio
Portfolio Design. Whether your portfolio is being designed for long term capital appreciation or
the generation of income, selecting the investments to build your portfolio is an important step
in developing a suitable investment strategy. There are a number of alternatives that will be
discussed and explored as a part of this process, and the planner will help you to determine
which is suitable for your needs. Mutual Funds, Managed Accounts, Wrap Accounts, Individual
Securities, Bank Products, Annuities, Insurance Products may all have a place in your portfolio. It
is at this step in the process that we focus on which is suitable for your specific needs.
4. Monitoring & reporting
Portfolio Review and Reporting. Performance of the investment portfolio relative to your stated
objectives and the investment marketplace and the broad economy helps you to keep your
investment portfolio and decisions in perspective. We establish a timeframe to meet and discuss
whether you are on track and making strides to achieve your investment objectives.
8
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

9. Financial forms of investment
1. Stocks
2. Debentures
3. Bonds
4. Mutual Funds
5. Cash & cash equivalents
6. Fixed deposit
7. Provident fund
8. Insurance
9
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

10. Non financial forms of investment
1. Land
2. Buildings
3. Motor Vehicles
4. Gold
5. Patents
6. Intellectual Property
10
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

11. Sources of investment information
1. Stock market
2. Industry
3. Company
4. National affairs
5. International affairs
6. Business news channels
7. Bulletins
11
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

12. Intermediaries in Capital market
1. Merchant bankers
2. Registrar to issue
3. Share transfer agents
4. Bankers to the issue
5. Brokers to the issue
6. Advertising agents
7. Underwriters
8. Debenture trustees
9. Depositories
12
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

13. Regulatory framework
• SEBI is a statutory body and a market regulator, which controls the securities market in India.
The basic functions of SEBI is to protect the interests of investors in securities and to promote
and regulate the securities market. SEBI is run by its board of members. The board consists of
a Chairman and several other whole time and part time members. The chairman is nominated
by the union government. The others include two members from the finance ministry, one
member from Reserve Bank of India and five other members are also nominated by the Centre.
The headquarters of SEBI is situated in Mumbai and the regional offices are located in
Ahmedabad, Kolkata, Chennai and Delhi.
• The Securities and Exchange Board of India was constituted as a non-statutory body on April
12, 1988 through a resolution of the Government of India.
• The Securities and Exchange Board of India was established as a statutory body in the year
1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992)
came into force on January 30, 1992.
13
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

14. Functions and responsibilities
The Preamble of the Securities and Exchange Board of India describes the basic functions of the
Securities and Exchange Board of India as to protect the interests of investors in securities and to
promote the development of, and to regulate the securities market and for matters connected
there with or incidental there to.
SEBI has to be responsive to the needs of three groups, which constitute the market:
• issuers of securities
• investors
• market intermediaries
14
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

15. Powers of SEBI
• to approve by−laws of Securities exchanges.
• to require the Securities exchange to amend their by−laws.
• inspect the books of accounts and call for periodical returns from recognised Securities
exchanges.
• inspect the books of accounts of financial intermediaries.
• compel certain companies to list their shares in one or more Securities exchanges.
• registration of Brokers and sub-brokers.
15
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET

16. Thank
You…
16
MBA 4th Sem IAPM Ms. Jagjot Arneja GIET