Learning Unit 5
Instructions to facultyPortfolio Management
General Instructions:
The faculty must give a detailed presentation on the topic for conceptual clarity. Faculty
may use visual aids Nos. 32-40 as given in this handout.
Presentation on Portfolio Management:
Make an initial presentation with focus on the following objectives: namely that the
module will enable the participants to:
- Discuss, understand and interpret basic principles required for designing,
analyzing and managing a portfolio. - Forecast future share price movements.
- Identify factors that influence financial performance of companies.
- Discuss the proportion of total funds that should be invested in each
security. - Discuss the design of a portfolio for decisions on asset allocation and
choice of securities within each broad category of assets. - Understand the need for revision of portfolio based on the changes in the
prices of securities. - Evaluate performance of a portfolio.
The opening presentation, outlining the objectives of the module will be followed by a
more detailed presentation covering the following points.
- Types of stock market orders: market lots and odd lots, and the trade ring
- Trading in the stock exchanges; settlement trading in specified shares
- Share purchase on settlement basis or taking a long position
- Backwardation/ Forwardation charge
- Faceless transactions
- Book closure and record dates
- Good and bad deliveries
- Kerb trading
- Settlement trading
- Speculation detection in the market and curbing of speculation.
- Ratio analysis of balance sheets
- Financial analysis and measures of risk with examples.
- Technical Analysis and Charting.
- Asset class: (i) Equities, (ii) Bonds, (iii) Cash and money market instruments