B. Com: Semester VI
Paper B.C. 6.2 (c): FUNDAMENTALS OF INVESTMENT
Internal Assessment -30
Term End Exam - 70
Marks: 100
Lectures: 65
Objective: To familiarize the students with different investment alternatives, introduce them to the framework of their analysis and valuation and highlight the role of investor protection.
Contents
Unit 1: The Investment Environment
10 Lectures 20
The investment decision process, Types of Investment – Commodities, Real Estate and Financial Assets, the Indian securities market, the market participants and trading of securities, security market indices, sources of financial information, concept of return and risk, impact of Taxes and Inflation on return.
Unit 2: Fixed Income Securities
Lectures 15 20
Bond features types of bonds, estimating bond yields, Bond Valuation types of bond risks, default risk and credit rating.
Unit 3: Approaches to Equity Analysis
Lectures 15 20
Introductions to Fundamental Analysis, Technical Analysis and efficient Market
Hypothesis, divided capitalization models, and price-earnings multiple approach to equity valuation.
Unit 4: Portfolio Analysis and Financial Derivatives
Lectures 15 20
Portfolio and Diversification, Portfolio Risk and Return; Mutual Funds; Introduction to
Financial Derivatives; Financial Derivatives Markets in India
Unit 5: Investor Protection
Lectures 10 20
Role of SEBI and stock exchanges in investor protection; Investor grievances and their redressal system, insider trading, investors’ awareness and activism.
Suggested Readings:
1. C.P. Jones, Investment Analysis and Management, Wiley, 8 thed.
2. Prasanna Chandra, Investment Analysis and Portfolio Management, McGraw Hill Education
3. R.P. Rustogi, Fundamentals of Investment, Sultan Chand & Sons, New Delhi
4. N.D. Vohra and B.R. Bagri, Futures and Options, McGraw Hill Education
5. Mayo, An Introduction to Investment, Cengage Learning.
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