Investment management
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The document provides an overview of investment management concepts including the meaning of investment, objectives of investment, and financial markets. It defines investment as committing funds with the expectation of a positive return in the future. The objectives of investment are outlined as maximizing return, minimizing risk, and hedging against inflation. Different types of financial markets are also introduced such as the primary market, stock exchanges, and their functions in facilitating investment activities.
Investment management
- 2. Module-1 • Learning objectives: • Meaning of Investment • Definition of Investment • Objectives of Investment • Types of Investment • Securities Market • Primary Market(NIM) • Book building • Private placement • Organized stock exchanges • Functions of stock exchanges • Listing of securities • Trading & operational mechanism of stock exchanges • Settlement and
- 6. Meaning of Investment • Investment is putting money into something with the expectation that it will generate income or the value will appreciate in future or profit.
- 7. Definition of Investment • “Commitment of funds made in the expectation of some positive rate of return” • Investment is the employment of funds with the aim of achieving additional income or growth in value. • Expectation of return is an essential element of investment.
- 8. Meaning of Investment • It involves the commitment of resources which have been saved or put away from current consumption in the hope some benefits will accrue in future. • Investment involves long term commitment of funds and waiting for a reward in the future.
- 9. Meaning of Investment Financial Meaning: Investment is the commitment of a person’s funds to derive future income in the form of interest,divident,premiums,pension or appreciation in the value of their capital.
- 10. Meaning of Investment Economic meaning: • Net additions to the economy’s capital stock which consists of goods and services that are used in the production of other goods and services.
- 11. Financial Meaning of Investment • Financial investment involves of funds in various assets, such as Stock, Bond, Real Estate, Mortgages etc.
- 12. Characteristics of Investment • Return • Risk • Safety • Liquidity
- 13. Objectives of investment • 1.Maximisation of return • 2.Minimisation of risk • 3.Hedge against inflation