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By

,
Kaushal Mandalia
Certified Personal Financial Planner (CPFA)
Associate Financial Planner – Investment Planning
Pursuing PhD (Sales Ethics in Life Insurance)
kaushal@insighthr.co.in, +919825300447
www.kaushalmandalia.wix.com/kaushal
FOUNDATION PROGRAM IN STOCK MARKET
Security Analysis and
Portfolio Management
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When Everyone is Greedy
You Should be Fearful

And


When Everyone is fearful
You Should be greedy
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At the end of the course , you will be able to..
Recommend investment alternative to the investor, based on Risk-Return
Analysis, Investor Behavior and their Life Stage Analysis.
Understand and define Terms associated with Capital Market.
Estimate the intrinsic value of stocks and bond based on dividend
discounting model, time value of money, combination of Ratios like Price
Equity Ratios and Price to Book Value Ratios.
Be familiar with regulatory framework and compliance norms for Financial
Service Providers.
Analyze portfolio based on Fundamental Analysis, Technical Analysis, Risk
Analysis and Return Expectation.

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Security Analysis and Portfolio Management
Security
Analysis

Why?

To choose the
better one to
INVEST?
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1. Why to Invest?
2. What are the Choices
for Investment? Type
of Securities?
3. Where to Invest?
4. How to Invest?
5. Should we invest only
in One Security or
Multiple Securities?
WHY TO INVEST?
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Example
Michel Gerard Tyson
Former American Heavy Weight Boxing Champion
Youngest man to have won boxing world title
Made $30 million during his career..
Declared Bankrupt in 2003

Reason
Indiscriminate Spending
Earn – Spend – Save Philosophy
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Example
Kapil Dev
5% Stake in Zicom Electronics
Investment in Kapil Eleven’s Restaurant and
Kaptain’s Retreat Hotel
Established a company DEV Musco Lighting
Ltd

Reason
Earn – Save – Invest - Spend Philosophy
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WHERE TO INVEST?
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Investment Choices
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HOW TO CHOOSE?
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How to Make Choice?
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Factors
Amount
Safety of Capital
Returns
Liquidity
WHY TO CONSIDER EQUITY MARKET?
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Investment in Stock Market
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Mr. Sharma has invested Rs.10,000 in stock market
by purchasing shares of Infosys on 1st Jan 1995.

Shares of Infosys were trading at Rs.450 at the time
of purchase. If Mr. Sharma has sold all his shares on
30 June, 2010 at price of Rs.2,719, can you guess,
what is the return which the share has generated for
Mr. Sharma!!!!!


Let’s have a look.
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Overview of Return of Investment
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Overview of Return of Investment
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PPF Returns
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Returns from Gold
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Summary
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Investment in Stock Market
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How much you can make in 30 years by Just
Investing Rs 10,000 initially in any of the
instrument?
Lets look at the real example
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If you have subscribed in 100 shares of ______ company with
a face value of Rs 100 in 1980
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In 1981 company declared 1:1 bonus = You have 200 Shares
In 1985 company declared 1:1 bonus = You have 400 Shares
In 1986 company split shares in Rs 10 = You have 4000 Shares
In 1987 company declared 1:1 bonus = You have 8000 Shares
In 1989 company declared 1:1 bonus = You have 16,000 Shares
In 1992 company declared 1:1 bonus = You have 32,000 Shares
In 1995 company declared 1:1 bonus = You have 64,000 Shares
In 1997 company declared 1:2 bonus = You have 1,92,000 Shares
In 1999 company split shares in Rs 2 = You have 9,60,000 Shares
In 2004 company declared 1:2 bonus = You have 28,80,000 Shares
In 2005 company declared 1:1 bonus = You have 57,60,000 Shares
In 2010 company declared 2:3 bonus = You have 1,15,20,000 Shares


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Lets see the earnings….
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You have 1.15 Crore Shares
Dividend Amount earned in last Five Years..
Rs 21.8 Crore
Plus Market Value of Shares
Market Price : Rs 439
Total Value : Rs 527 Crore
Company is WIPRO

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What you learn in SAPM?
Managing Our Money Effectively
Managing Other People’s Money Effectively
Learning the art of Wealth Management
Helping you to be Expert in Wealth Management.
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(C) Insight HR and Training Consultants, 2011
I work for Money
If you want loyalty hire a Dog
THANK YOU
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