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RIPHAH INTERNATIONAL UNIVERSITY

FACULTY OF MANAGEMENT SCIENCES (FMS)


AL MIZAN CAMPUS
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Subject: Investment Analysis and Portfolio Management
Course Code: ………
Credit Hours: 3 Cr Hrs
Contact Hours: 3 Hours per week for 16 weeks = 48 Hours
Faculty Name: Najam Us Sahar …….. Najam.sahar@riphah.edu.pk
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1.1 Introduction to the Course
This course provides students with the quantitative and qualitative skills necessary for the construction, revision and
evaluation of financial portfolios. Students will first be introduced to the portfolio formation and asset allocation
process. After revisiting the mathematics of portfolio construction and diversification, students will develop an
understanding of equity portfolio management strategies and portfolio performance evaluation. The aim of this
module is also to introduce you with analysis of Islamic investment including the traditional and modern approaches to
analysis of some investments. You will be introduced to analysis of Islamic investment in general, but also Islamic
Financial institution, instruments and types of investments. The focus will be on the difference between conventional
and Islamic Investments, evaluation models and asset management of Islamic investments, and various methods of
investment analysis and processes to make decision and choose an optimal project. You will also be familiarized with
technical, technological, economic and financial analysis of Islamic investments. The emphasis will on investing in
derivative Islamic instruments and Islamic bonds (Sukuk). You will also understand the processes of Islamic Investment
projects, valuation and funding, and scope of AOIFI regulation
1.2 Learning Objectives

 To understand why Return & risk are the critical components of all investment decisions
 To identify the importance & mechanism of money market and capital market securities for investment decisions
 To distinguish between the direct & indirect investment opportunities
 To understand how the securities are traded?
 To recognize the modern portfolio theory
 To understand the valuation of securities for investment analysis purpose

MARKS ALLOCATIONS
a. Midterm Exam (After 8th week) - 20%
b. Final Exam (After 16th week) - 40%
c. Quiz Marks - 10%
d. Class Participation - 10%
e. Assignment - 10%
f. Final Project - 10%
Total 100%
Recommended Books:
 Investment; Analysis & Management By Charles P. Johns Mc-Graw Hill, Inc., USA
 Essentials of Investment By Bodie, Kane Marcus Mc-Graw Hill, Inc., USA
 Security Analysis & Portfolio Management, Donald E. Fischer & Ronald J. Jordan Pearson Education Inc., USA

Investment; Analysis & Portfolio Management (IAPM)


Week Topics/Contents to be covered Objectives Suggested Readings
01 Understanding Investments & Investment  Why investment decisions are Chapter 1,2 & 3
Alternatives important? +
 Why investment decisions are important?  To Introduce Markets and Supplementary Reading Material
 Investment Decision Process securities
 Individual Investors Vs. Institutional
Investors
 Financial Markets
 Fundamental analysis
 Money Market Securities
 Fixed Income Securities
 Equity Securities
 Derivative Securities
 Mutual Fund Investment
 Direct & Indirect Investment

02 - 03 Investment Risk & Returns  To understand the relationship Chapter 6


 Components of Return of risk and return
 Sources & Types of Risks  How to measure risk and
 Measuring Risk returns
 Realizing Risk & Returns from Investing
 How to diversify in context of
 Managing & Diversifying the Risk
risk and resturn

04 - 05 Investment Valuations & Analysis  .Can explain the passive and Chapter 10 - 18
 Passive & Active Strategies active strategies
 Fundamental & Technical Analysis  Can perform Fundamental
 Equity Securities Valuation & and technical analysis
Analysis  Can value and analyse
 Fixed Income Securities Valuation & investments
Analysis
 Sector & Industry Analysis
 Economy & Market Analysis
 Efficient Market Hypothesis
 Economic Value Added

06 - 07 Portfolio Investments  Understand the importance of Investments;Analysis & Management


 Why Portfolios? Portfolios By
 Types of Portfolio  Can Classify, Nalyse and Build Charles P. JonesLatest Edition
 Portfolio Risk & Return efficient Portfolios Chapter 7,8,9 & 21
 Analyzing Portfolio Risk  Can describe relevant theories
 Multi Securities Portfolios
 Selection of Portfolio
 How to build up an efficient Portfolio?
 Portfolio Theories
08
09 - 10 Stock Market Investments  Can understand the Importance of Investments; Analysis & Management
 Importance of Financial Markets Financial Markets By
 Primary & Secondary markets  Can Explain the mechanics of Charles P. Jones Latest Edition
 Equity, Debt & Derivative Markets Primary & Secondary markets, Chapter 4 & 5
 Stock Market Indexes Equity, Debt & Derivative
 Mechanism of Trading Markets, Stock Market Indexes
 Investment & Brokerage Houses and investments
 How Orders work?  Can apply the relevant knowledge
 Margin & Short Selling  Can Explain Investors Protection
 Investors Protection Demutualization of Stock Exchanges
 Demutualization of Stock Exchanges
11 – 12 Mutual Fund Investments  Student can explain the Investments; Analysis & Management
 Fundamental concepts importance, classification and By
 Benefits of Investing in Mutual Funds application of mutual funds in Charles P. Jones Latest Edition
 Role of Fund Managers investment context Chapter 1 & 2
 Open End & Closed End Mutual Funds
 Money Market Funds
 Fixed Income Funds
 Balanced Funds
 Equity Funds
 Islamic Funds
 Fund of Funds
 Pension Funds
13 Evaluation of Investment Performance  Student can explain Why to Investments; Analysis &
 Risk-adjusted performance measures evaluate performance? Management
 Monitoring Performance  Can apply the monitoring By
 Performance Attribution measures of performance. Charles P. Jones Latest Edition
 Problems with Portfolio Performance  Can understand the related issues Chapter 22

14 Investment Perspective in Pakistan


 Investment Regulators in Pakistan Supplementary Reading Material
 General overview of Rules &
Regulations for Local & Foreign
Investment in Pakistan  Students must be up to date
 Investment in Capital Markets of about Pakistani context of
Pakistan Investments
 Investment in Mutual Fund
Markets of Pakistan
 Establishment of Investment
Management Companies in
Pakistan
15 Project Presentations
16 Investment in Islam
.Halal and Haram
.portfolios with options of Sukuks and Shariah Compliance
.AAOFI framework