Syllabus Of PM-
1. Introduction to Portfolio Management:
- Overview of financial markets
- Investment objectives and constraints
- Risk and return concepts
- The role of portfolio management in investment decision-making
2. Asset Classes:
- Equities (stocks)
- Fixed income (bonds)
- Alternative investments (real estate, private equity, hedge funds)
- Cash and equivalents
3. Investment Analysis:
- Fundamental analysis
- Technical analysis
- Quantitative analysis
- Macroeconomic and microeconomic factors affecting investments
4. Modern Portfolio Theory (MPT):
- Efficient frontier and optimal portfolios
- Capital market line and risk-free rate
- Portfolio diversification and risk reduction
- Beta and systematic risk
5. Portfolio Construction:
- Asset allocation strategies (strategic, tactical, and dynamic)
- Security selection methods
- Portfolio optimization techniques
- Risk management and hedging strategies
6. Portfolio Performance Evaluation:
- Measures of risk-adjusted performance (Sharpe ratio, Treynor ratio, Jensen’s alpha)
- Benchmarking and comparison
- Attribution analysis
- Investment style analysis
7. Behavioral Finance:
- Psychological biases and their impact on investment decisions
- Prospect theory and framing effects
- Investor sentiment and market anomalies
8. Asset Allocation Models:
- Capital Asset Pricing Model (CAPM)
- Arbitrage Pricing Theory (APT)
- Black-Litterman model
- Multi-factor models
9. Risk Management:
- Value at Risk (VaR)
- Stress testing
- Portfolio insurance
- Derivative instruments for risk management
10. Ethics and Professional Standards:
– CFA Institute’s Code of Ethics and Standards of Professional Conduct
– Ethical considerations in portfolio management
11. Investment Strategies:
– Passive vs. active investment strategies
– Factor-based investing
– Socially responsible investing (SRI) and Environmental, Social, and Governance (ESG) investing
12. Portfolio Monitoring and Rebalancing:
– Monitoring portfolio performance
– Rebalancing strategies
– Tax considerations in portfolio management
13. Case Studies and Practical Applications:
– Real-world examples of portfolio management
– Investment simulations and exercises
14. Current Trends and Developments:
– Emerging trends in portfolio management
– Impact of technology and artificial intelligence on investment management