INVESTMENT MANAGEMENT

What are the recent developments in Indian stock market? The Indian regulatory and supervisory framework of securities market in India has been adequately strengthened through the legislative and administrative measures in the recent past. The regulatory framework for securities market is consistent with the best international benchmarks, such as, standards prescribed by International Organisation of Securities Commissions (IOSCO). Recent capital market reforms and an agenda for reforms are given below. 1.     Extensive Capital Market Reforms were undertaken during the 1990s encompassing legislative regulatory and institutional reforms. Statutory market regulator, which was created in 1992, was suitably empowered to regulate the collective investment schemes and plantation schemes through an amendment in 1999. Further, the organization strengthening of SEBI and suitable empowerment through compliance and enforcement powers including search and seizure powers we...

Discuss the various steps involved in portfolio investment process? Portfolio is a combination of securities such as stocks, bonds and money market instruments. The process of blending together the broad asset classes so as to obtain optimum return with minimum risk is called portfolio construction. Individual securities have risk return characteristics of their own. Portfolios may or may not take on the aggregate characteristics of their individual parts. Diversification of investment helps to spread risk over many assets. A diversification of securities gives the assurance of obtaining the anticipated return on the portfolio. In a diversified portfolio, some securities may not perform as expected, but others may exceed the expectation and making the actual return of the portfolio reasonably close to the anticipated one. Keeping a portfolio of single security may lead to a greater likelihood of the actual return somewhat different from that of the expected return. Hence, it is...

Venture Capital  A type of   private equity ,   a form of financing that is provided to   small, early-stage, emerging firms   that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both). Venture capital funds invest in these early-stage companies in exchange for   equity –an ownership stake–in the companies they invest in. The start-ups are usually based on an   innovative technology   or   business model   and they are usually from the   high technology industries, such as   Information technology   (IT),   social media   or   biotechnology . The typical venture capital investment occurs after an initial " seed funding " round. The first round of institutional venture capital to fund growth is called the   Series A round . Venture capitalists provide this financing in the interest of generating a return ...

Risk Return Trade off    The world of investing can be a cold, chaotic, and confusing place. In this tutorial, we'll go through some of the theories that investors have developed in an effort to explain the behaviour of the market. We will discuss concepts, like risk return trade-off, rupee cost averaging and diversification, that are especially useful for individual investors. Deciding what amount of risk you can take while remaining comfortable with your investments is very important. In the investing world, the dictionary definition of risk is the chance that an investment's actual return will be different than expected. Technically, this is measured in statistics by standard deviation. Practically, risk means you have the possibility of losing some or even all of your original investment. Low risks are associated with low potential returns. High risks are associated with high potential returns. The risk return trade-off is an effort to achieve a balance between...

Debenture - If a company needs funds for extension and development purpose without increasing its share capital, it can borrow from the general public by issuing certificates for a fixed period of time and at a fixed rate of interest. Such a loan certificate is called a debenture. Debentures are offered to the public for subscrip­tion in the same way as for issue of equity shares. Debenture is issued under the common seal of the company acknowledging the receipt of money. Features of Debentures: The important features of debentures are as follows: 1. Debenture holders are the creditors of the company carrying a fixed rate of interest. 2. Debenture is redeemed after a fixed period of time. 3. Debentures may be either secured or unsecured. 4. Interest payable on a debenture is a charge against profit and hence it is a tax deductible expenditure. 5. Debenture holders do not enjoy any voting right. 6. Interest on debenture is payable even if there is a loss. Advantag...