1. INVESTMENT ANALYSIS & PORTFOLIO MANAGEMENT
Lecture # 1
Dr. Shahid A. Zia

2. The Course
INVESTMENT
ANALYSIS
PORTFOLIO
MANAGEMENT

3. Text book
PRACTICAL INVESTMENT MANAGEMENT, 3rd Edition, (Southwestern/Thomson)
Robert A. Strong
ISBN
INVESTMENT ANALYSIS and MANAGEMENT, 9th EDITION, (by Charles P. Jones)

4. Investment Alternatives
Assets are things that people own.
Assets
Financial Assets
Real Assets
e.g. bond, stock
e.g. land

5. Investment Alternatives
There are three broad categories of securities.
Securities
Equity
e.g. common
stock
Derivative Assets
e.g. futures,
options
Fixed Income
e.g. bonds,
preferred stock

6. 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.

7. 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.

8. Fundamental Analysis
Fundamental Analysis include the evaluation of the;
Balance Sheet
Annual Report
Profit & Loss Figures
Profitability Ratios
Liquidity Ratios
Operational Ratios

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

10. Investments
Investment means to invest something in some where.

11. Uses of Investments Three uses of investments; Consumption Savings
Investing

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

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

14. Channels of Savings Banking Non-financial institutions
National saving schemes

15. “Don’t Keep all your eggs in one basket”
Portfolio Management
How to manage different sectoral things.
“Don’t Keep all your eggs in one basket”

16. Investment Analysis and Portfolio Management
Mutual fund are also used in the portfolio.
Collection of eggs.
Collection of different shares, cash and foreign exchange.

17. Bonds Term Finance Certificates Bearer bonds Fixed Income bonds
Euro bonds