Module 1 - Security Analysis and Portfolio Management
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Kaushal Mand Certified Personal Financial Planner ( Associate Financial Planner – Investment Pla Pursuing PhD (Sales Ethics in Life Insur [email protected], +9198253 www.kaushalmandalia.wix.com/ka FOUNDATION PROGRAM IN STOCK MARKET ecurity Analysis and ortfolio Management
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Why one should study SAPM?
Transcript of Module 1 - Security Analysis and Portfolio Management
By,
Kaushal MandaliaCertified Personal Financial Planner (CPFA)
Associate Financial Planner – Investment PlanningPursuing PhD (Sales Ethics in Life Insurance)
[email protected], +919825300447www.kaushalmandalia.wix.com/kaushal
FOUNDATION PROGRAM IN STOCK MARKET
Security Analysis and Portfolio Management
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When Everyone is GreedyYou Should be Fearful
And
When Everyone is fearfulYou Should be greedy
LEARNIN
G O
UTCO
MES
At the end of the course , you will be able to..
Recommend investment alternative to the investor, based on Risk-Return
Analysis, Investor Behavior and their Life Stage Analysis.
Understand and define Terms associated with Capital Market.
Estimate the intrinsic value of stocks and bond based on dividend
discounting model, time value of money, combination of Ratios like Price
Equity Ratios and Price to Book Value Ratios.
Be familiar with regulatory framework and compliance norms for Financial
Service Providers.
Analyze portfolio based on Fundamental Analysis, Technical Analysis, Risk
Analysis and Return Expectation.
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Security Analysis and Portfolio Management
Security Analysis
Why?
To choose the better one to
INVEST?
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1. Why to Invest?2. What are the Choices
for Investment? Type of Securities?
3. Where to Invest?4. How to Invest?5. Should we invest only
in One Security or Multiple Securities?
WHY TO INVEST?
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FINAN
CIAL FAILURE
ExampleMichel Gerard TysonFormer American Heavy Weight Boxing ChampionYoungest man to have won boxing world titleMade $30 million during his career..Declared Bankrupt in 2003
ReasonIndiscriminate SpendingEarn – Spend – Save Philosophy
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FINAN
CIAL IN
DEPEN
DEN
CEExampleKapil Dev5% Stake in Zicom ElectronicsInvestment in Kapil Eleven’s Restaurant and Kaptain’s Retreat HotelEstablished a company DEV Musco Lighting Ltd
ReasonEarn – Save – Invest - Spend Philosophy
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WHERE TO INVEST?
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Investment Choices
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HOW TO CHOOSE?
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How to Make Choice?
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FactorsAmount Safety of Capital ReturnsLiquidity
WHY TO CONSIDER EQUITY MARKET?
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POW
ER OF EQ
UITY
Investment in Stock Market
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Mr. Sharma has invested Rs.10,000 in stock market by purchasing shares of Infosys on 1st Jan 1995.
Shares of Infosys were trading at Rs.450 at the time of purchase. If Mr. Sharma has sold all his shares on 30 June, 2010 at price of Rs.2,719, can you guess, what is the return which the share has generated for Mr. Sharma!!!!!
Let’s have a look.
POW
ER OF EQ
UITY
Overview of Return of Investment
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POW
ER OF EQ
UITY
Overview of Return of Investment
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POW
ER OF EQ
UITY
PPF Returns
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POW
ER OF EQ
UITY
Returns from Gold
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POW
ER OF EQ
UITY
Summary
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POW
ER OF EQ
UITY
Investment in Stock Market
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How much you can make in 30 years by Just Investing Rs 10,000 initially in any of the instrument?
Lets look at the real example
POW
ER OF EQ
UITY
If you have subscribed in 100 shares of ______ company with a face value of Rs 100 in 1980
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In 1981 company declared 1:1 bonus = You have 200 SharesIn 1985 company declared 1:1 bonus = You have 400 SharesIn 1986 company split shares in Rs 10 = You have 4000 SharesIn 1987 company declared 1:1 bonus = You have 8000 SharesIn 1989 company declared 1:1 bonus = You have 16,000 SharesIn 1992 company declared 1:1 bonus = You have 32,000 SharesIn 1995 company declared 1:1 bonus = You have 64,000 SharesIn 1997 company declared 1:2 bonus = You have 1,92,000 SharesIn 1999 company split shares in Rs 2 = You have 9,60,000 SharesIn 2004 company declared 1:2 bonus = You have 28,80,000 SharesIn 2005 company declared 1:1 bonus = You have 57,60,000 SharesIn 2010 company declared 2:3 bonus = You have 1,15,20,000 Shares
POW
ER OF EQ
UITY
Lets see the earnings….
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You have 1.15 Crore SharesDividend Amount earned in last Five Years..
Rs 21.8 CrorePlus Market Value of Shares
Market Price : Rs 439
Total Value : Rs 527 Crore
Company is WIPRO
WH
AT OTH
ERS DO
N’T KN
OW
What you learn in SAPM?
Managing Our Money Effectively
Managing Other People’s Money Effectively
Learning the art of Wealth Management
Helping you to be Expert in Wealth Management.
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I work for Money If you want loyalty hire a Dog
THANK YOU
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