Mahatma Gandhi University
Kottayam
Programme BA (Hons) Economics
Course Name Security Analysis and Portfolio Management
Type of Course SEC
Course Code MG5SECECO300
Course Level 300-399
Course Summary This course provides an introduction to the principles and practices of
security analysis and portfolio management. Students will learn to analyse
different investment alternatives, including stocks, bonds, mutual funds,
and real estate. They will also learn to develop and manage investment
portfolios that meet the risk and return objectives of their clients.
Semester Total
Hours
5 Credits 3
Course Details Learning
Approach
Lecture Tutorial Practical Others
3 45
Pre-requisites, if any
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COURSE OUTCOMES (CO)
CO Expected Course Outcome Learning PO
No. Domains * No
Upon completion of this course, the students will be able to:
1 understand the concepts of Indian financial system, financial markets, U 1
financial instruments, and basic calculations.
2 apply financial planning and risk management techniques to develop A, An, S 2
personalized financial plans.
3 understand the working of the bond market. U 2, 3,
4
4 examine the process of financial benchmarking. E 1, 2,
10
*Remember (K), Understand (U), Apply (A), Analyse (An), Evaluate (E), Create (C), Skill (S),
Interest (I) and Appreciation (Ap)
COURSE CONTENT
Content for Classroom transaction (Units)
Module Units Course description Hrs CO
No.
1 Introduction to Financial Markets and Instruments 15
1.1 Overview of the Indian Financial System-Structure-Capital 3 1
Market-Primary and Secondary Market-Instruments.
1.2 Indian stock market-NSE-BSE-GIFT-indices-calculations. 3 1
1.3 Economic Linkages – Macroeconomic activities and security 5 1
markets-the Cyclical Indicator Approach, Monetary Variables
and Securities Market.
1.4 Basic Financial Calculations: Risk and Return, Discounted 4 1
Cash Flow Analysis.
2 Security Analysis and Portfolio Management 15
2.1 Fundamental Analysis: Economic Factors, Industry Analysis, 3 2
Company Analysis.
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2.2 Technical Analysis: Assumptions-advantages-Types of 4 2
Charts-Technical Trading Rules and Indicators-Dow theory.
2.3 Portfolio Management: Specification of Investment Objectives 5 2
and Constraints-Selection of Asset Mix- Formulation of
Portfolio Strategy-Selection of Securities-Portfolio Execution-
Portfolio Revision- Markowitz Model.
2.4 Index Portfolio Construction techniques, Value versus Growth 3 2
Investing-Random Walk Model.
3 Bonds and Financial Benchmarking 15
3.1 Bond Fundaments, Bond Pricing- Bond Yield-Market interest 5 3
rate and bonds-types of bonds-Bond market in India.
3.2 Capital Assets Pricing Model-Arbitrage Pricing Theory- 4 3
Sharpe’s Single Index Model.
3.3 Interest rate determination-External Benchmark Lending Rate- 3 4
Base Rate.
3.4 Financial Benchmarking-Financial Benchmarking in India- 3
FBIL.
4
4 Teacher Specific Module
Classroom Procedure (Mode of transaction)
Teaching and
Learning Approach Classroom Lectures and Authentic Learning: Traditional
lectures can provide solid factual knowledge
Active-interactive learning, brainstorming, seminar, group
activities: Foster student engagement through interactive class
discussions
Suggested Course Delivery Methods
o CD1 - Lecture by use of boards/LCD projectors/ Projectors
etc.
o CD2 - Tutorials/Assignments
o CD3 - Class Seminars
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o CD4 - Peer group Discussions
MODE OF ASSESSMENT
Assessment Continuous Comprehensive Assessment (CCA): 25 Marks
Types
Components of CCA
Class Test-I
Chart/Work book/Other specific assessment
Seminar/Assignment
B. End Semester Examination (ESE): 50 marks; Time 1 hour and 30 minutes.
End Semester Examination (ESE) 1 Hour and 30 minutes
Descriptive type Word Limit Number of questions Marks
to be answered
Short Answer 30 words 10 out of 15 10 x 2 =20
Short Essay 150 words 6 out of 10 6 x 5 = 30
Total Marks 50
Practicum /Practical Applications/ Case Studies
1. Trading Simulation- create a portfolio with a fixed initial investment and analyse the performance
2. Real-world Applications: Analyzing Investment Scenarios, Case Studies, Investment Advice
3. Financial Modelling and Tools: Applying Financial Models, Software Simulation
4. Client Simulation and Role-playing: Mock Financial Planning Sessions, Feedback
References:
1. Security Analysis and Portfolio Management -Donald E Fischer &Ronald J Jordan
2. Investment Analysis and Portfolio Management -Prasanna Chandra
3. Investments- Zvi Bodie, Alex Kane,Alan J Marcus, Pitabas Mohanty
4. Business Communication -R C Bhatia
5. Essentials of Business Communication-Rajendra Pal and J S Korlahalli
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