This book seeks to capture the essence of modern developments and provides a guided tour of the intricate and complex world of investments. It presents a framework for portfolio management in a comprehensive manner and covers techniques used by professionals for analyzing and valuing investment alternatives and portfolio management. It not only describes the characteristics of various investment alternatives available to investors but also discusses how the securities market functions. This new edition sensitizes the reader to the pitfalls of investments and offers a set of guidelines with varying inclination in tune with the latest investment changes.
• Thorough updates in tune with the latest investment practices across 12 chapters
• 17 new appendices capturing latest investment trends and practices
• Rich Pedagogy - Glossary, Boxes capturing insights from prominent investors
• CD containing supplementary notes, additional solved problems and self-test problems

Part 1: Introduction
1. Overview: A Broad Map of the Territory
2. Investment Alternatives: Choices Galore
3. Securities Market: The Battlefield

Part 2: Basic Concepts and Methods
4. Risk and Return: Two Sides of the Investment Coin
4. Risk and Return: Two Sides of the Investment Coin
5. The Time Value of Money: The Magic of Compounding
6. Financial Statement Analysis: The Information Maze Part

Part 3: Modern Portfolio Theory
7. Portfolio Theory: The Benefits of Diversification
8. Capital Asset Pricing Model and Arbitrage Pricing Theory: The Risk Reward Relationship
9. Efficient Market Hypothesis: The Collective Wisdom
10. Behavioural Finance: The Irrational Influences



Part 4: Fixed Income Securities
11. Bond Prices and Yields: Figuring out the Assured Returns
12. Bond Portfolio Management: The Passive and Active Stances

Part 5: Equity Shares
13. Equity Valuation: How to Find Your Bearings
14. Macroeconomic and Industry Analysis: Understanding the Broad Picture
15. Company Analysis: Establishing the Value Benchmark
16. Technical Analysis: The Visual Clue

Part 6: Derivatives
17. Options: The Upside Without the Downside
18. Futures: Where the Hedges and the Speculators Meet

Part 7: Other Investment Options
19. Mutual Funds: Indirect Investing
20. Investment in Real Assets: The Tangible Thing
21. International Investing: The Global Search

Part 8: Portfolio Management
22. Portfolio Management: Investment Policy and Strategy: The Grand Design
23. Portfolio Management: Implementation and Review: The Specific Moves
24. Professional and Institutional Money Management: Seeking the Help of Experts
25. Guidelines for Investment Decisions: What It All Comes To
26. Strategies of the Great Masters: The Timeless Wisdom