Advanced Professional Certificate in Investment Analysis

Advanced Professional Certificate in Investment Analysis

The Advanced Professional Certificate in Investment Analysis aims to equip the learner with the key concepts of financial instruments traded on the market.

The course will enable the learner to analyze different financial statements using the tools and methods of financial analysis and generate and evaluate different financial investment options. The learner will be equipped with the knowledge and skills to manage the investment portfolio.

Learning Outcomes

Introduction to Investment Analysis:

• Understand the difference between direct and indirect investments and the advantages and disadvantages of each in terms of risk and return.
• Learn the key measures of return and risk used in investment analysis, including the expected return, standard deviation, and Sharpe ratio, and how to calculate them.
• Explore the determinants of the required rate of return, including risk-free rate, market risk premium, and beta, and understand how these factors affect investment decisions.
• Gain a solid understanding of correlation and coefficient of determination and how they are used to measure the strength and direction of the relationship between two assets.
• Dive into the concept of returns, including the different types of returns, such as capital gains, dividends, and interest, and how they impact investment analysis and decision-making.
• Discover the effect of diversification on investment risk and how to construct a diversified portfolio that balances risk and return.

Analysis of Bonds, Forward and Futures:

• Understand the fundamentals of bond market analysis, including the different types of bonds and their characteristics.
• Learn about the advantages and disadvantages of investing in bonds and how to assess whether they are the right investment option for you.
• Gain in-depth knowledge of the various classifications of bonds, such as government, corporate, and municipal bonds, and how they differ from each other.
• Discover the importance of macro-level analysis in bond investment, including factors such as interest rates, inflation, and economic indicators.
• Learn about the concept of options and futures and the role they play in financial markets and investment strategies.
• Understand the concept and uses of swaps, including interest rate swaps and currency swaps, and how they can be used to manage risk and optimize investment returns.

Stock Investment and Portfolio Management:

• Understand the concepts and applications of Economic, Technical and Fundamental Analysis in stock investment.
• Explain the Industry Life Cycle model and its impact on portfolio management decisions.
• Explore and analyze the Tools of Technical Analysis used in stock investment.
• Identify the Objectives of Portfolio Management and their importance in achieving financial goals.
• Learn about Markowitz's Portfolio Theory and its relevance in creating a well-diversified investment portfolio.
• Analyze the Market Efficiency Theory, Arbitrage Pricing Theory, and Capital Asset Pricing Model and their implications for stock investment strategies.

Principles of Taxation:

• Understand taxation's basic concept and purpose, its history, and its evolution in different societies and economic systems.
• Explore the fundamental principles of taxation and learn how they shape tax policy and practice.
• Analyze the nature of progressive and regressive taxes and their impact on income distribution and social justice.
• Distinguish between direct and indirect taxes and explore their respective characteristics, advantages, and disadvantages.
• Identify direct and indirect taxes and their application in other countries and economic systems.
• Evaluate the impact of taxation on investment decisions, including the role of tax in shaping savings, investment, and capital allocation.

Investment Risk Management:

• Describe the nature of investment risk and its potential impact on investment outcomes.
• Identify and differentiate between the types of investment risks, such as market risk, credit risk, and liquidity risk.
• Explain the nature and process of risk management, including risk identification, risk assessment, and risk mitigation.
• Analyze the nature of a risk mitigation plan and identify the key components that make it effective.
• Evaluate a range of risk mitigation methods used in investments, including diversification, asset allocation, and use of derivatives.
• Examine the concept of hedging in investments, including hedging strategies and the use of futures and options for speculation and arbitrage.