Investmet lecture#1
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This document discusses key concepts related to investments including: 1) Investments are defined as committing funds to financial and real assets with an emphasis on holding marketable securities. 2) The primary objectives of investments are safety of principal, income, and growth of capital while secondary objectives include liquidity and tax minimization. 3) Possible constraints for investors are legal, moral, emotional factors like risk tolerance, minimum income needs, and understanding unrealistic objectives.
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steps involved in Investment process
Investment is putting money into financial assets with the goal of earning a profit in the future. There are four main steps to the investment process:
1. Develop an investment policy by determining financial objectives and creating an emergency fund.
2. Analyze potential investment securities by evaluating industry type, risk level, and expected returns.
3. Value securities by estimating their future benefits and comparing to current market prices to determine attractiveness.
4. Construct a portfolio by selecting a diverse mix of assets that balance safety, growth, liquidity and meet the investor's goals. The portfolio should be regularly evaluated and adjusted if needed to keep optimizing performance.
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financial services - Finance - Bcom hons. - 1st year - 1st semester
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2) Functions
3) Characteristics
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5) Major Financial Services exporters (2010)
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8) Various Financial Services companies are:
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steps involved in Investment process
Investment is putting money into financial assets with the goal of earning a profit in the future. There are four main steps to the investment process:
1. Develop an investment policy by determining financial objectives and creating an emergency fund.
2. Analyze potential investment securities by evaluating industry type, risk level, and expected returns.
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1) Introduction
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This document provides an introduction to strategic asset and portfolio management. It discusses the objectives of financial investment including return, risk, liquidity, and safety. It outlines the investment process of developing an investment policy, analyzing opportunities, valuation, portfolio construction, and evaluation. Finally, it describes various investment alternatives categorized by return type (fixed or variable income), source (corporate, government, etc.), and tangibility (real or financial assets). The alternatives include stocks, bonds, deposits, insurance, mutual funds, real estate, bullion, money market instruments, and money market funds.
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Mutual Funds are one of the means by which a marketer can help the investor to create a diversified portfolio that can suit diverse risk appetite.
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2) Deciding on an asset allocation across classes like fixed income, equity and real estate based on macro conditions.
3) Selecting a portfolio strategy that conforms to the client's investment policies and objectives.
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Part 2 covers portfolio construction including diversification and asset allocation.
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Stable Current Return
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Liquidity
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The document summarizes the key topics covered in a textbook on portfolio management. It discusses the six steps of portfolio management: learning principles of finance, setting objectives, formulating an investment strategy, having a plan for revisions, evaluating performance, and protecting the portfolio. It also outlines the four parts of the textbook: background/principles, portfolio construction, portfolio management, and protection/contemporary issues. Key concepts discussed include risk management, diversification, security analysis, and active vs. passive management.
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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 onlin
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This document discusses investment fundamentals, securities analysis, and portfolio management. It covers topics such as understanding investment, risk and return, securities analysis concepts, fundamental analysis framework, intrinsic and relative valuation, portfolio theory, and portfolio performance measurement. The key points are:
- It defines investment, risk, sources of risk, and different types of securities. It discusses the risk-return tradeoff between different securities.
- It covers the concepts of securities analysis, fundamental analysis framework using top-down and bottom-up approaches, and intrinsic valuation using discounted dividend models.
- It provides an overview of portfolio theory including modern portfolio theory, capital market theory, portfolio construction, and performance measurement.
investment analysis_and_portfolio_management
The document outlines an investment analysis and portfolio management syllabus. It includes 7 units that cover topics such as investment concepts and goals, financial investment avenues, investment analysis approaches, portfolio construction and choice, capital asset pricing models, and portfolio performance measures. The syllabus aims to teach students about analyzing investments, constructing diversified portfolios to optimize risk and return, and evaluating portfolio performance over time.
Personal finance[edit]Main article Personal financeQues.docx
Personal finance
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edit
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Main article:
Personal finance
Questions in personal finance revolve around:
Protection against unforeseen personal events, as well as events in the wider economies
Transference of family wealth across generations (bequests and inheritance)
Effects of tax policies (tax subsidies or penalties) on management of personal finances
Effects of credit on individual financial standing
Development of a savings plan or financing for large purchases (auto, education, home)
Planning a secure financial future in an environment of economic instability
Warren Buffett
is an American investor, business magnate, and philanthropist. He is considered by some to be one of the most successful investors in the world.
Personal finance may involve paying for education, financing
durable goods
such as
real estate
and cars, buying
insurance
, e.g. health and property insurance, investing and saving for
retirement
.
Personal finance may also involve paying for a loan, or debt obligations. The six key areas of personal financial planning, as suggested by the Financial Planning Standards Board, are:
[1]
Financial position
: is concerned with understanding the personal resources available by examining net worth and household cash flow. Net worth is a person's balance sheet, calculated by adding up all assets under that person's control, minus all liabilities of the household, at one point in time. Household cash flow totals up all the expected sources of income within a year, minus all expected expenses within the same year. From this analysis, the financial planner can determine to what degree and in what time the personal goals can be accomplished.
Adequate protection
: the analysis of how to protect a household from unforeseen risks. These risks can be divided into the following: liability, property, death, disability, health and long term care. Some of these risks may be self-insurable, while most will require the purchase of an insurance contract. Determining how much insurance to get, at the most cost effective terms requires knowledge of the market for personal insurance. Business owners, professionals, athletes and entertainers require specialized insurance professionals to adequately protect themselves. Since insurance also enjoys some tax benefits, utilizing insurance investment products may be a critical piece of the overall investment planning.
Tax planning
: typically the income tax is the single largest expense in a household. Managing taxes is not a question of if you will pay taxes, but when and how much. Government gives many incentives in the form of tax deductions and credits, which can be used to reduce the lifetime tax burden. Most modern governments use a progressive tax. Typically, as one's income grows, a higher
marginal rate of tax
must be paid. Understanding how to take advantage of the myriad tax breaks when planning one's personal finances can make a significant impact in which it can later save you money in .
41681421 kotak-mahindra
This document introduces some key concepts about investments including:
1) The reasons for investing include earning returns on idle resources, generating funds for specific goals, and providing for an uncertain future.
2) There are three main types of investments - economic, financial, and general investments.
3) Some important characteristics of investments are potential returns, risk level, safety, and liquidity.
4) There are several important reasons for individuals to invest, such as retirement planning, tax benefits, inflation protection, and income generation.
RFP-Financial Market Analysis Course.pdf
This document provides an overview of a financial markets analysis course presented by Jonathan L. Ravelas. It includes biographical information about Ravelas, noting his experience and credentials in financial markets spanning over 25 years. It also outlines the course modules which will cover various topics including equities, fixed income, currencies, and the relationship between financial markets and the economy. Risk factors associated with investments such as price risk, income risk, and interest rate risk are defined.
Ritika Sonar IAPM.pdfgghjjjjvvghhhhhjjjjj
This document compares different types of investments based on their risk factors. Stocks generally carry higher risk than bonds but also higher potential returns. Mutual funds provide diversification and thus less risk than individual stocks. Real estate investments vary in risk depending on location and property type. Cryptocurrencies are highly speculative investments with significant risk of loss. Savings accounts and CDs are considered very low risk but also provide lower returns. Overall, higher risk investments like stocks offer greater return potential while lower risk options like bonds and savings accounts provide more stability but also lower returns.
risk and return assigment.pdf
This document discusses risk and return in the context of a group assignment for a project cost accounting and financial management course. It begins by listing the names of the 8 students in the group and their professor. The bulk of the document then defines risk and return, discusses different types of risk and how to adjust for risk, and strategies for managing risk such as diversification and hedging. It provides examples and formulas to illustrate concepts around expected return, risk adjustment methods, and the relationship between risk and return for different investments.
Investment management
Investment management refers to handling financial assets by buying and selling them to achieve investment objectives over short or long term time horizons. It involves devising investment strategies, managing investment portfolios, and providing additional services like banking, budgeting, and taxes. The main goals of investment are safety of principal, income generation, growth, and maintaining liquidity. Common types of investments include stocks, bonds, and cash equivalents. The investment process involves assessing one's financial situation, setting objectives, allocating assets, selecting strategies, and ongoing monitoring.
lec1.ppt
This document provides an overview of the investment decision process. It defines key terms like investment, financial assets, and marketable securities. It explains that investors expect to earn a return by investing today and increasing future consumption. If they do not invest, their savings will not grow and will lose value to inflation over time. Investment involves risks like sacrifice of current consumption, inflation risk, and financial risk. Investors require compensation for these risks in the form of expected returns. The investment decision process involves security analysis to value individual assets and portfolio management to construct an optimal portfolio. Portfolios can be managed passively or actively over time.
investment analysis and portfolio management
The document discusses investment and the investment process. It defines investment as committing funds with the expectation of a positive return. The main characteristics of investment are return, risk, safety, and liquidity. The objectives of investment are maximizing return, minimizing risk, maintaining liquidity, hedging against inflation, and increasing safety. The investment process involves framing an investment policy, analyzing opportunities, valuing assets, constructing a portfolio, and evaluating performance.
Portfolio management
The document discusses portfolio management and Markowitz portfolio theory. It defines a portfolio as a combination of securities like stocks and bonds that are blended together to achieve optimal returns with minimum risk. Portfolio management aims to maximize returns and minimize risk through activities like monitoring performance, evaluating investments, and revising the portfolio. Markowitz portfolio theory introduced diversification to reduce unsystematic risk and developed algorithms to minimize portfolio risk by measuring the standard deviation of returns and considering the expected returns and covariances between securities. The theory assumes investors are risk-averse and can reduce risk by adding diversified investments to their portfolio.
Similar to Investmet lecture#1 (20)
Module 1 -Intoduction to Securities and Investment
Module 1 -Intoduction to Securities and Investment
INV MANAGEMENT IT IS ABOUT PPT AND ITS DATA RELATED TO INVESTE,EMY
INV MANAGEMENT IT IS ABOUT PPT AND ITS DATA RELATED TO INVESTE,EMY
Personal finance[edit]Main article Personal financeQues.docx
Personal finance[edit]Main article Personal financeQues.docx
Investmet lecture#1
- 2. Lecture #1 Understanding Investments
- 3. Investments Defined Investments is the study of the process of committing funds to one or more assets – Emphasis on holding financial assets and marketable securities – Concepts also apply to real assets – Foreign financial assets should not be ignored
- 4. Investment Objectives Primary Objectives – Safety of principal – Income – Growth of capital Secondary Objectives – Liquidity – Tax minimization
- 5. Investment Constraints Possible constraints for investors include: – Legal – Moral / Ethical – Emotional – including investment knowledge and risk tolerance – Basic minimum income to be provided by the portfolio – Realism – an understanding that some objectives are unrealistic (e.g., high returns with low risk) – Other (e.g., illness, pending divorce, etc.)
- 6. Primary and Secondary Objectives Objectives and constraints must be related to the three primary investment objectives of safety, income, and growth, and to the secondary objectives of liquidity and tax minimization. – The importance of safety relates to: risk, market timing, inflation, return, and emotion – The importance of income relates to: taxation, return, risk, inflation, and basic minimum income – The importance of growth relates to:
- 7. Why Study Investments? Most individuals make investment decisions sometime – Individuals need sound framework for managing and increasing wealth Essential part of a career in the field – Security analyst, portfolio manager, investment advisor, financial planner, Chartered Financial Analyst