Certified Portfolio Analyst Course Outline

Course Outline


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

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