Training on Investment Analysis and Portfolio Management

Module 1: Introduction to Investment Analysis

• Overview of financial markets and investment instruments
• Understanding risk and return
• Introduction to portfolio theory
• Case Study: Examine the performance of a real-world investment portfolio and identify risk-return trade-offs.
• Practical Exercise: Calculate expected returns and standard deviation for a sample portfolio of stocks and bonds.

Module 2: Financial Statement Analysis and Valuation

• Analyzing financial statements for investment decisions
• Valuation methods: Discounted Cash Flow (DCF), multiples, and relative valuation
• Application of valuation techniques to different asset classes
• Case Study: Evaluate the financial health of a company and determine its intrinsic value using DCF and multiples.
• Practical Exercise: Perform a valuation of a selected company and compare it with its market price.

Module 3: Portfolio Construction and Management

• Principles of portfolio diversification
• Asset allocation strategies
• Portfolio optimization models
• Case Study: Review an investment fund’s allocation strategy and assess its diversification benefits.
• Practical Exercise: Construct a diversified portfolio using sample assets and optimize it for risk-adjusted returns.

Module 4: Risk Management in Investments

• Identifying and measuring investment risk
• Risk management tools and techniques
• Application of derivatives in risk management
• Case Study: Analyze a scenario where derivatives were used to hedge portfolio risk.
• Practical Exercise: Calculate Value at Risk (VaR) and simulate risk mitigation strategies for a sample portfolio.

Module 5: Performance Evaluation and Portfolio Adjustments

• Performance measurement techniques
• Benchmarking and performance attribution
• Making strategic adjustments to investment portfolios
• Case Study: Evaluate a fund’s performance against a benchmark and recommend portfolio adjustments.
• Practical Exercise: Compute performance metrics (Sharpe ratio, alpha, beta) and suggest rebalancing strategies.