Dr.

RENUKA SHARMA

Program Name : MBA (Dual Semester: IV

Specialization)/MBA(HA)
Course: Investment Management Code:06090444/06130424
Teaching Scheme Evaluation Scheme
Classroom Session/ Practical/ Tutorials Credit Continuous Term End Examination
Lectures Group work Evaluation (TEE)
40 - - 4 40 60
Course Rationale:
The purpose of this course is to familiarize the students about investment scenario, application of
risk and return of securities, bond valuation is necessary to understand for rational investing. New
paradigm of investing such as behavioural investing and how to overcome biases in investment
decisions is an emerging topic in the field of investing. It is important to know about the financial
markets, instruments and participants of investors. Investment has a close relation to the fields of
business management, finance as well as economics.

Course Objectives:
1. To acquaint students about the fundamentals of investments and various investment avenues.
2. To familiarize students regarding measuring risk and return related to investment.

3. To understand how behavioural biases impacts the investment decisions

4. To known various financial institutions and financial markets.

Learning Outcomes:
After completion of the course, students would be able to:
1. After completion of the course students will learn about the investment scenario

2. Understand risk and return on securities.

3. Understand biases impacting investment decisions to overcome irrational decisions.

4. Learn about financial markets

Prerequisite(s):
Knowledge of investment scenario and financial institutions,markets.

Pedagogy:
The pedagogy will be a mix of Lectures, presentations, Class Room Discussion and Projects/Assignments.

Syllabus:
Unit-I
Investment: Concept, Nature, factors of sound investment ,investment objectives ,factors influencing
investment decisions ,investment decision process, Type of investments –Commodities, Real estate
and Financial assets, Investment avenues, common errors in investment management, qualities for
successful investing, Investment : Speculation and Gambling.
Unit II
Investment Risk and return: Concept of Risk, Return , Sources of risk, Types of risk –Systematic and
Unsystematic risk, Measurement of risk – Range as a measure, Standard Deviation, Coefficient of
Variation ,Beta as a measure of risk.
Investment Risk Management- A case study
Sharon Smith – Barnett Corporation Risk –Return trade off case study.
Unit –III
Securities Analysis and Valuation:
Valuation of Fixed Income securities: Bonds or Debenture- features, types of debt instruments, types of
yields, valuation principle, bond pricing and valuation.
Unit IV
Behavioural Investing- Difference between Standard Finance and Behavioural finance, evolution of
Behavioral Finance, Prospect Theory, Introduction to various types of behavioural biases.
.Behavioral Finance “Mind Over Market” – A Case Study of Techno Bubble.
Unit V
Introduction to Financial Markets, Participants and Instruments –Financial system –Functions, components
Financial markets- Primary and Secondary market., Indian Capital market- Structure and emerging
trends ,Players and Participants in Financial markets, Investors’ Protection ,unfair trade practices and
Insider Trading.

Textbook:
 Rustagi R.P. ,Investment Management Theory and Practice, Sultan Chand & Sons Educational Publishers
,New Delhi, 2018
 Frank K .Reilly, Keith C .Brown , Analysis of Investments & Management of Portfolios ,Cengage, 10 th
edition,2016.

Reference Books:
 Pandian P, Security Analysis and Portfolio Management, Vikas Publishing House Pvt. Ltd., 2 nd
edition,2018.
 V.A . Avadhani Securities Analysis and Portfolio Management’, Himalaya Publishing House, 12 th revised
edition , 2016.
 V. K.Bhalla , Investment Management Security Analysis and Portfolio Management ,V.K. Bhalla, S
Chand ,13th edition, 2007.

Journals:
 Investment Analysts Journal
 Journal of Investment and Management

Links to websites:
 www.bseindia.com
 www.nseindia.com
 www.sebi.gov.in
Evaluation Scheme:
 Class participation and attendance 05marks
 Mid Term Exam20marks
 Assignment05marks
 Team Project Presentation 10marks
 Term-End Exam60marks
Total 100marks