| CODE | BFI5334 | ||||||||
| TITLE | Fundamental Tools for Investing | ||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||
| MQF LEVEL | 7 | ||||||||
| ECTS CREDITS | 5 | ||||||||
| DEPARTMENT | Banking, Finance and Investments | ||||||||
| DESCRIPTION | This study-unit builds on undergraduate knowledge in investments and finance and provides students with an advanced overview of the theory, tools, and terminology related to the investment management industry. The study-unit will look into the steps taken to build a well-diversified portfolio including deciding which assets will benefit given a current economic environment, to the valuation of the different assets (fixed income and equities) and the measurement of risk. The study-unit will also focus on the building up of an Investment Policy Statement in order to understand what a client's needs are and how to achieve those targets through portfolio diversification. The study-unit will also aim at identifying the advantages and disadvantages of funds as well as a thorough understanding of UCITS funds and the rigorous monitoring put in place when managing these funds. It is a complete understanding on the different roles in the business to appreciate all the work and stages before trades are executed in the best interest of the client. Study-Unit Aims: The study-unit aims to provide students with advanced knowledge of financial markets in both the fixed income and equity market by covering latest investment trends. It aims at covering all aspects of investments from identification of successful trading strategies to conceptualisation of investment products. Students taking this unit should expect to learn the nature and workings of financial markets and their use by corporations, investors and others. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Explain how to value a company and the differences between valuing a bond and an equity; - Explain the concept of risk in order to be able to decide which clients can benefit from this asset; - Explain how diversification can mitigate risk rather; - Describe how diversification can be achieved; - Explain how to build an investment policy statement in order to better understand a client's needs; - Describe different types of mutual funds; - Explain the rigorous monitoring put in place when managing these funds. 2. Skills: By the end of the study-unit the student will be able to: - Compute valuation of different asset classes - mainly equity and bonds; - Measure risk and apply different measurements of risks used by practitioners; - Construct portfolios in order to achieve the desired risk reward; - Formulate an Investment Policy Statement in order to understand a client's needs and risk/reward; - Apply rules used to manage UCITS funds; - Determine whether the asset is undervalued or overpriced and how it will contribute to a portfolio. Main Text/s and any supplementary readings: Main Texts: - Bodie, Zvi., Alex Kane, and Alan J. Marcus. Investments. 10th ed. McGraw-Hill Education, 2014. Print. The McGraw-Hill/Irwin Ser. in Finance, Insurance and Real Estate. Supplementary Readings: - Ross, Westerfield, Jordan, Westerfield, Randolph, and Jordan, Bradford D. Fundamentals of Corporate Finance. Irwin, 1991. Print. |
||||||||
| ADDITIONAL NOTES | Pre-requisite Qualifications: B.Com. (Hons.) Banking & Finance, B.Com. Banking & Finance Major or equivalent | ||||||||
| STUDY-UNIT TYPE | Lecture | ||||||||
| METHOD OF ASSESSMENT |
|
||||||||
| LECTURER/S | Kristian Camenzuli |
||||||||
|
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
|||||||||