Introduction to Portfolio Management

• Discussing the history and evolution of Portfolio Management
• Illustrating the need for an investment policy and it’s composition
• Explaining the various SEBI regulations applicable for portfolio manager
• Understanding the different types of risks in investment involved in portfolio management
• Elucidating the portfolio management process and outlining the parties involved thereof

Investment policy

• Understanding the types of portfolios applicable in portfolio management
• Explaining the different types of investors for portfolio management and using various models like BB&K, Barnewall two-way model, etc.
• Detailing the steps in client profiling
• Rationalizing the process of setting goals and prioritization for portfolio managers
• Describing the techniques of gathering data
• Understanding the investment objectives and constraints

Capital market expectations

• Illustrating the importance of forecasting of market environment in portfolio management
• Describing the various macroeconomic variables of economy
• Elucidating the various forecasting tools to be used

Asset allocation: policies & procedures

• Understanding the need for portfolio diversification
• Detailing the asset allocation process for portfolio manager
• Explaining the different types of asset allocation for achieving client’s goals
• Understanding the various classes of assets and their characteristics for portfolio manager
• Describing the various issues in expected long-term benchmark portfolio results

Capital market theory

• Elucidating the markowitz model and it’s efficient frontier to be used for optimal portfolios
• Illustrating the capital asset pricing model (CAPM) and it’s elements with SML and CML for the riskiness of securities
• Understanding the chaos theory as applied in portfolio management
• Describing the arbitrage pricing model for a zero investment portfolio with a sure profit

Portfolio analysis

• Detailing the various components of risk and return
• Explaining the various measures of risk like central tendency, mean MAD, etc. for probable distribution of returns
• Elucidating the systematic and unsystematic risk as applied to portfolio management
• Understanding the beta of a portfolio for describing the relationship between the stock’s return and the index returns

Portfolio revision

• Explaining the importance of portfolio revision and it’s constraints
• Detailing the common faults for fair revision
• Illustrating the different portfolio revision strategies and portfolio revision techniques

Measuring and evaluating portfolio performance

• Elucidating the different measures of return as applied to a portfolio
• Explaining the buying the index approach for evaluating the performance of a portfolio based only on the rate of return
• Highlighting the performance evaluation of portfolio managers

Equity portfolio management

• Understanding passive portfolio management and it’s techniques for long term investment strategies
• Describing the active portfolio management and it’s different techniques
• Elucidating the benchmark portfolios for different investment instrument like Sharpe, BARRA, etc.
• Clarifying the usage of derivatives in equity-portfolio management

Fixed income portfolio management

• Understanding the bond ratings by different agencies
• Illustrating the techniques for active and passive fixed income portfolio management
• Elucidating the barbelled and laddered strategies for short and long-term bonds