A POWERPOINT PRESENTATION ON

INVESTMENT MANAGEMENTCOMPILED BY :

CHANDNI SINHA

AMIT RANJAN

WHAT IS AN INVESTMENT

oINVESTMENT IS THE EMPLOYMENT OF FUND ON ASSETS WITH THE AIM OF EARNING INCOME OR CAPITAL APPRECIATION.

oINVESTMENT HAS TO ATTRIBUTE TIME AND RISK.

OBJECTIVE OF INVESTMENT

• RETURN

• RISK

• LIQUIDITY

RETURN

• RETURN IS DEFINED AS RECOVERY OF PART OR COMPLETE INVESTMENT FROM A SPECIFIC PROJECT OR VENTURE .

• NET RETURN REFERS TO THE PART OF TOTAL RETURN EXCEEDING THE VALUE OF INVESTMENT.

RISK

RISK OF HOLDING SECURITIES IS RELATED WITH THE PROFITABILITY OF ACTUAL RETURN BECOMING LESS THAN THE EXPECTED RETURN OR DESIRED RETURN.

LIQUIDITY

• LIQUIDITY REFERS TO THE SPEED OF CONVERSION OF ANY ASSET INTO LIQUID ASSET THAT IS CASH.

• MARKETABILITY OF THE INVESTMENT PROVIDES LIQUIDITY TO THE INVESTMENT.

INVESTMENT OPPORTUNITY

• EQUITY

• PREFERENCE SHARES

• DEBENTURES

• BONDS OR FIXED INCOME SECURITIES

• MONEY MARKET INSTRUMENTS

• NON-MARKETABLE FINANCIAL ASSETS

• REAL ESTATE

• PRECIOUS OBJECTS

• INSURANCE POLICIES

INVESTMENT MANAGEMENT

• INVESTMENT MANAGEMENT IS BASICALLY MANAGING THOSE INVESTMENT OPTION TO MAXIMIZE PROFIT AND MINIMIZE RISK.

• INVESTMENT MANAGEMENT REFERS TO THE SELECTION BEST OPTION OUT OF VARIOUS ALTERNATIVES.

INVESTMENT MANAGEMENT PROCESS:

•IDENTIFY INVESTMENT GOALS.

•DETERMINE RISK TOLERANCE AND TIME HORIZON.

•WRITTEN INVESTMENT POLICY

•ACCOUNTS ESTABLISHED

•INVESTMENTS ALLOCATED

•QUARTERLY INVESTMENT REPORTS

•MONITOR PORTFOLIO AND TAX-PLANNING DATA

•ANNUAL PORTFOLIO REVIEW AND REOPTIMIZE PORTFOLIO

SCOPE OF INVESTMENT MANAGEMENT

o DEALING

o SETTLEMENT

o MARKETING

o INTERNAL AUDITING

o THE PREPARATION OF REPORTS FOR CLIENTS.

ADVANTAGE OF INVESTMENT MGMT

• REDUCES RISK.

• GIVE ALTERNATIVE OPTIONS.

• TO AVOID COSTLY MISTAKES.

• TO UNDERSTAND YOUR INVESTMENT.

• TO MAKE YOUR LIFE EASIER.

DISADVANTAGES OF INVESTMENT MGMT.

• NOT COMPLETELY SECURE.

• COSTLY AFFAIR.

• TIME CONSUMING.

THANK YOU