Portfolio Managers book by National Institute of Securities Markets

The Portfolio Managers workbook provides an in-depth and systematic exploration of the concepts, regulations, and best practices in Portfolio Management Services (PMS). It equips professionals and learners with the knowledge essential to understand the PMS landscape effectively. The content seamlessly combines foundational investment knowledge, advanced theoretical frameworks, and a thorough exposition of India's regulatory environment.

This book will be helpful for the following:

• Portfolio Managers & PMS Employees – Principal officers, analysts, and frontline staff who require a solid grounding in PMS operations, compliance, and client interactions
• Market Practitioners & Investors – Financial advisors, investment consultants, and discerning investors seeking clarity on portfolio construction, risk management, and performance evaluation.
• Aspiring Professionals & Students – Those preparing for the NISM Certification Examination XXI-B or looking to broaden their understanding of securities markets, asset allocation, and modern portfolio theory

The Present Publication is the December 2024 workbook version, developed by Dr Rachana Baid (Professor at NISM) and reviewed by Dr Kishore Rathi and Dr Kameshwar Rao (NISM Resource Persons). It is published exclusively by Taxmann for NISM Certification Examination XXI-B [Portfolio Managers], with the following noteworthy features:

• [Comprehensive Content]
• Covers everything from investment basics to advanced portfolio construction, highlighting the role and responsibilities of a portfolio manager
• Provides a thorough explanation of fixed income, equities, derivatives, and mutual funds.
• [Regulatory & Compliance Insight]
• Offers an in-depth understanding of relevant SEBI regulations, governance, tax implications, and ethical considerations specific to portfolio managers
• Equips readers to manage compliance challenges adeptly
• [Practical & Applied Approach]
• Incorporates examples, illustrative case studies, and best practices to make the concepts easily comprehensible
• Emphasises operational facets of PMS, including client onboarding, performance measurement, fees, disclosures, and grievance redressal
• [Advanced Theoretical Frameworks]
• Delivers clear explanations of modern portfolio theory, capital market theory, behavioural finance, and concepts of market efficiency
• Explains crucial models and methods to analyse and optimise portfolios in a dynamic investment environment
• [Performance Evaluation & Reporting]
• Guides readers on quantitative and qualitative techniques for evaluating portfolio performance, risk-adjusted returns, and benchmark comparisons
• Details the adoption of global performance measurement standards such as GIPS®

The detailed contents of the book are as follows:

• Foundational Investment Knowledge – Distinguishes between investment and speculation, explains objectives and outlines various investment channels
• Securities Markets Overview – Examines the structure of primary and secondary markets, detailing the roles of diverse market participants
• Equity & Fixed Income – Outlines the risks and return prospects of equity and bonds, along with valuation and technical/fundamental analysis methods
• Derivatives & Mutual Funds – Demonstrates the strategic use of derivatives in hedging and portfolio optimisation; elucidates mutual fund structure and benefits
• Role & Operations of Portfolio Managers – Clarifies registration requirements, types of services, client onboarding, disclosure norms, and day-to-day operational procedures
• Portfolio Management Process – Provides insights into asset allocation, correlation across different asset classes, portfolio rebalancing, and tactical vs. strategic allocation
• Taxation & Regulatory Norms – Summarises tax treatments across varied income streams and relevant SEBI guidelines, insider trading prohibitions, and anti-money laundering regulations
• Market Efficiency & Indices – Investigates index methodologies, significance of market efficiency, random walk theory, market anomalies, and their portfolio implications
• Behavioural Finance & Modern Portfolio Theory – Discusses biases, heuristics, and the development of efficient frontiers for optimising portfolio returns
• Risk Management & Performance Evaluation – Explores different types of risk, measurement and mitigation strategies, performance attribution analysis, benchmarking, and global best practices