Security Analysis and Portfolio Management.

Singh, Kanhaiya

Security Analysis and Portfolio Management, K. Sasidharan and Alex K Mathews, Tata Mc Graw Hill Education Private Limited, New Delhi, 2011, Pages 680.

Security Analysis and Portfolio Management is an area where good numbers of books are available. However most of them are authored keeping in view the practices and policies followed in the foreign countries. There is derth of useful books in the Indian context. This book by Sasidharan and Mathews fills the gap to a larger extent.

Broadly the contexts of the book can be divided into two parts i.e. the conceptual framework and operational aspects of the subject on one hand while on the other the technical and valuation aspects of the securities. Chapters 1 to 10 of the book are devoted on the conceptual and fundamental aspects.

Chapters 1 and 2 explain the fundamentals of investment decisions, factors effecting investment decisions and investment avenues available to the variety of investors. The interesting part is that these chapters deal with latest instruments and highlights the features of such instruments in detail. Chapter 3, 4 and 5 deals with Indian capital market, stock exchanges in India and stock market indices. Chapters 3 and 4 provide the framework and operational aspects of stock exchanges in India, various kinds of stock exchanges, regulatory part; integration with the foreign stock exchanges etc. while chapter 5 provides a detailed analysis on construction of different indices in the Indian context. Chapter 6 highlights with latest procedure and guidelines on depository system and procedure of listing of securities. Chapter 7 presents an overview of futures and options market with reference to Indian system. It also deals with the operational aspects of futures and options. Chapter 8 gives the detail review of real estate investments.

Chapter 9 describes the fundamental aspects of risk return strategies. It also provides useful suggestions for effective management of risk. Chapter 10 deals with the guidelines issued by regulatory authorities for efficient functioning of security markets. Chapter 11 and 12 deals with technical aspects of risk and return models and efficient markets hypothesis with required figures, data and models. Chapter 13 provides the fundamental aspects of valuation through discounted cash flow model, economic value added and market value added models. Chapter 14 presents a brief on equity valuation techniques by describing different methods of valuation.

Chapter 15 deals with valuation aspects of bond by describing various theories and other valuation aspects. Chapter 16 and 17 explains usual way of technical and fundamental analysis. Various types of technical analysis and theories indicating the future trend are explained suitably through practical examples and trend movements. Chapter 18, 19 and 20 provides a detailed view on portfolio construction by appropriately explaining the concept, combination and hedging strategies. To optimize the return in the portfolio management, Markowitz and Sharpe models have been displayed to provide a useful analysis. Chapter 21 deals with portfolio evaluation process where the case of mutual fund investment has been adequately explained. The last chapter describes useful information on portfolio revision and management by explaining different kinds of portfolio holdings.

In all, the authors have made considerable efforts to enhance the quality of the book not only by explaining various concepts and models but also dealing with practical suggestions. This book can be used in many ways such as useful text book to the management students, a practical book to the investors and also a reference book to the regulatory authorities.

Kanhaiya Singh

Professor

FORE School of Management

                                                        Form-IV

Title of Journal                                     : Abhigyan
Language                                             : English
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