Introduction – Importance of asset management for various organizations Risk return relationship – Expected rate of return – Kinds of risk – Trade-off between risk and return Securities – Money market securities – bonds and debentures – Equity shares – convertible securities – Primary market – Secondary market – Stock exchanges – Over the counter (OTC) markets – Market Indexes – Construction of an index – Arbitrage Construction of portfolio – Diversification – Portfolio analysis – Asset allocation and portfolio design – Markovitz diversification – Capital asset pricing model (CAPM) Equity valuation – Fundamental analysis – Capitalizing earnings – Price-earnings (PE) ratio – Economy, industry and firm – Charting and technical analysis Bond valuation – Market interest rates – Yield spreads – Yield to maturity – Yield curve – Interest rate swaps and bond swaps – spot and forward rates – Interest rate risk Mutual Funds – Benefits of diversification – advantages of liquidity – Investor needs and investment objectives – Sectoral funds Evaluation of portfolio performance - Derivatives – Futures and options – Index futures – puts and calls – Applications of derivatives – Hedging and speculation Regulation of asset management – Regulation of foreign exchange and money markets by RBI – Regulation of capital market by SEBI – Regulation of insurance sector by IRDA
