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    Security Analysis & Portfolio Management Dr. Anirban Ghatak

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    Aditya Varma
    This document discusses investment alternatives and attributes, evaluates various investment avenues, distinguishes between investors and speculators, classifies financial markets, outlines the portfolio management process, identifies common errors in investment management, and lists qualities for successful investing. It provides an overview of key concepts in security analysis and portfolio management.

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    Security Analysis & Portfolio Management Dr. Anirban Ghatak

    Uploaded by

    Aditya Varma
    45 views11 pages
    This document discusses investment alternatives and attributes, evaluates various investment avenues, distinguishes between investors and speculators, classifies financial markets, outlines the portfolio management process, identifies common errors in investment management, and lists qualities for successful investing. It provides an overview of key concepts in security analysis and portfolio management.

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    This document discusses investment alternatives and attributes, evaluates various investment avenues, distinguishes between investors and speculators, classifies financial markets, outlines the portfolio management process, identifies common errors in investment management, and lists qualities for successful investing. It provides an overview of key concepts in security analysis and portfolio management.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    45 views11 pages

    Security Analysis & Portfolio Management Dr. Anirban Ghatak

    Uploaded by

    Aditya Varma
    This document discusses investment alternatives and attributes, evaluates various investment avenues, distinguishes between investors and speculators, classifies financial markets, outlines the portfolio management process, identifies common errors in investment management, and lists qualities for successful investing. It provides an overview of key concepts in security analysis and portfolio management.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 11

    Security Analysis & Portfolio

    Management
    Dr. Anirban Ghatak

    Investment Alternatives
    Investment
    Avenues
    Nonmarketable
    Financial
    Assets

    Equity
    Shares
    Money Market
    Instruments

    Bonds

    Mutual Fund
    Schemes

    Life Insurance
    Policies

    Real Estate

    Precious
    Objects
    Financial
    Derivatives

    Investment Attributes
    RETURN

    RISK
    LIQUIDITY
    TAX SHELTER
    CONVENIENCE

    Evaluation Of Various Investment Avenues


    Return
    Current yield
    Capital
    appreciation
    Equity
    Shares
    Nonconvertible
    Debentures
    Equity
    Schemes
    Debt
    Schemes
    Bank
    Deposits
    Public
    Provident
    Fund
    Life
    Insurance
    Policies
    Residential
    House
    Gold and
    Silver

    Risk

    Marketability/
    Liquidity

    Tax Shelter

    Convenience

    Low

    High

    High

    Fairly high

    High

    High

    High

    Negligible

    Low

    Average

    Nil

    High

    Low

    High

    High

    High

    High

    Very high

    Moderate

    Low

    Low

    High

    No tax on
    dividends

    Very high

    Moderate

    Nil

    Negligible

    High

    Nil

    Very high

    Nil

    Moderate

    Nil

    Section 80 C
    benefit

    Very high

    Nil

    Moderate

    Average

    Section 80 C
    benefit

    Very High

    Moderate

    Moderate

    Negligible

    Low

    High

    Fair

    Nil

    Moderate

    Average

    Average

    Nil

    Average

    Nil

    Average

    Investment Vs. Speculation


    INVESTOR

    PLANNING
    HORIZON

    RISK
    DISPOSITION
    RETURN
    EXPECTATION
    BASIS FOR
    DECISIONS
    LEVERAGE

    LONG

    SPECULATOR
    SHORT

    MODERATE

    HIGH

    MODEST

    HIGH

    FUNDAMENTAL

    TECHNICAL

    NO

    HIGH

    CLASSIFICATI ON OF FINANCIAL MARKETS


    DEBT MARKET
    NATURE OF CLAIM
    EQUITY MARKET
    MONEY MARKET
    MATURITY OF CLAIM
    CAPITAL MARKET
    PRIMARY MARKET
    SEASONING OF CLAIM
    SECONDARY MARKET
    CASH OR SPOT MARKET
    TIMING OF DELIVERY
    FORWARD OR FUTURES MARKET
    EXCHANGE-TRADED MARKET
    ORGANISATIONAL
    STRUCTURE

    OVER-THE-COUNTER MARKET

    PORTFOLIO MANAGEMENT PROCCESS


    SPECIFICATION OF
    INVESTMENT OBJECTIVES
    AND CONSTRAINTS
    CHOICE OF ASSET MIX

    FORMULATION OF
    PORTFOLIO STRATEGY
    SELECTION OF SECURITIES

    PORTFOLIO EXECUTION

    PORTFOLIO REVISION

    PORTFOLIO EVALUATION

    Common Errors In Investment Management


    INVESTORS APPEAR TO BE PRONE TO THE FOLLOWING
    ERRORS IN MANAGING THEIR INVESTMENTS.
    INADEQUATE COMPREHENSION OF RETURN AND RISK

    VAGUELY FORMULATED INVESTMENT POLICY


    NAVE EXTRAPOLATION OF THE PAST
    CURSORY DECISION MAKING
    SIMULTANEOUS SWITCHING
    MISPLACED LOVE FOR CHEAP STOCKS
    OVER-DIVERSIFICATION AND UNDER-DIVERSIFICATION
    BUYING SHARES OF FAMILIAR COMPANIES
    WRONG ATTITUDE TOWARD LOSSES AND PROFITS

    TENDENCY TO SPECULATE

    Qualities for Successful Investing


    CONTRARY THINKING
    PATIENCE
    COMPOSURE
    FLEXIBILITY AND OPENNESS
    DECISIVENESS

    SUMMING UP
    A bewildering range of investment avenues is available.
    For evaluating an investment, the following attributes

    are relevant: rate of return, risk, marketability, tax


    shelter, and convenience.
    A financial market is a market for creation and
    exchange of financial assets.
    Financial markets can be classified by the nature of
    claim, maturity of claim, seasoning of claim, timing of
    delivery, and organisational structure.

    Portfolio management is a complex activity which can


    be broken down into a series of steps.

    The stock market is thronged by investors pursuing


    diverse investment strategies.
    Investors are prone to various errors

    The qualities of contrary thinking, patience,


    composure, flexibility, and decisiveness are required to

    succeed in the investment game.

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