Module 4 - Investment & Risk Management

Course Objective

This is primarily practiced by leading money managers. It will also study the risk management techniques employed by financial institutions and industrial companies and/or advocated by consulting firms. Warren Buffett’s particular approach to risk management will also receive attention.

Syllabus

1  –  Review of Investments

• Concept of Investing
• Risk and Return
• The Market Place / Professional Conduct

2  –  Setting portfolio Objective

• Appendix Mutual Fund Evaluation
• Investment Policy
• Market Mechanics: Diversification
• Why Diversification is good
• International Diversification

3  –  Market Efficiency

• Capital Markets and Efficiency
• Picking Stocks
• Stock Screening
• Bond Duration
• Selection
• Revision of the Equity Portfolio
• Revision of the Fixed Income Portfolio

4  –  Bond indexing

• Performance evaluation

5  –  Final Revision

• The Role of Derivative Assets
• Option Overwriting
• Principles of the Futures Markets
• Benching the Equity Players
• Removing Interest rate risk
• Integrating Derivative Assets and Portfolio Management
• Contemporary Issues in Portfolio Management