INVESTMENT MANAGEMENT

4/2/2010

1

DIMENSIONS OF INVESTMENT
Element of sacrifice Element of futurity Element of risk Expectation of gains

4/2/2010

2

PURE INVESTMENT
It is carefully thought of It is well planned It is based on the study of fundamental factors about investment avenues It is generally for long-time horizon longIt is assumed that expected returns will commensurate with risk Low risk or policy of risk avoidance Investors are those who do not tend to borrow money for investment purpose

4/2/2010

3

SPECULATION
Comparatively for a shorter duration Based on market related information Investor has an attitude to take risk as compared to risk aversion Sometimes, the speculator tends to borrow money for making investment with the expectation to gain more than what he has borrowed Has a positive attitude towards losses
4/2/2010 4

OBJECTIVES OF INVESTEMENT
Safety Regularity of income Capital gain Tax savings Liquidity Speculation Hedging Arbitrage
4/2/2010 5

RISK ASSOCIATED WITH INVESTMENT
Systematic Risk NonNon-systematic risk

4/2/2010

6

RETURNS FROM INVESTMENT
The behavior and magnitude of returns depend upon several factors such as: Type of investment avenue Level of risk Market trends Financial performance Premises of expected returns
4/2/2010 7

YIELD
Holding period yield Current yield

4/2/2010

8

Investment Avenues
Equity Bond Mutual Funds Real Estate Gold Insurance and Pension Scheme Small Saving Schemes Fixed Deposits of Companies and Banks
4/2/2010 9

Sign up to vote on this title
UsefulNot useful