INVESTMENT ANALYSIS

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INVESTMENT ANALYSISPORTFOLIO MANAGEMENT

• Lecture 1
• Dr. Shahid A. Zia

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The Course

• INVESTMENT
• ANALYSIS
• PORTFOLIO
• MANAGEMENT

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Text book

• PRACTICAL INVESTMENT MANAGEMENT, 3rd Edition,
  (Southwestern/Thomson)
• Robert A. Strong
• ISBN 0-324-17164-1
• INVESTMENT ANALYSIS and MANAGEMENT, 9th EDITION,
  (by Charles P. Jones)

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Investment Alternatives
Assets are things that people own.
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Investment Alternatives
There are three broad categories of securities.
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Three Reasons for Investing
Why invest ???

• People invest to
• supplement their income
• Dividends and Interest.
• earn capital gains
• Appreciation refers to an increase in the value
  of an investment.
• experience the excitement of the investment
  process.

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Investing
To consume, to save, or to invest a rupee that
is earned ?
Both saving and investing amount to consumption
shifting through time.
However, saving involves little, if any, risk,
while investing is a risky endeavor.
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Fundamental Analysis

• Fundamental Analysis include the evaluation of
  the
• Balance Sheet
• Annual Report
• Profit Loss Figures
• Profitability Ratios
• Liquidity Ratios
• Operational Ratios

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Technical Analysis

• Focus on the movement of the share prices
  going up or going down.
• Scenario Analysis

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Investments

• Investment means to invest something in some
  where.

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Uses of Investments

• Three uses of investments
• Consumption
• Savings
• Investing

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Investing

• You consume less than you save and then from
  saving you can always think about investment.

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Savings

• It is very important to see that how you save
  the money.
• You save money in your home at secure place.
• Committees.

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Channels of Savings

• Banking
• Non-financial institutions
• National saving schemes

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Portfolio Management

• How to manage different sectoral things.
• Dont Keep all your eggs in one basket

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Investment Analysis and Portfolio Management

• Mutual fund are also used in the portfolio.
• Collection of eggs.
• Collection of different shares, cash and foreign
  exchange.

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Bonds

• Term Finance Certificates
• Bearer bonds
• Fixed Income bonds
• Euro bonds