Collective investment
- Credits: 6
- Ending: Examination
- Range: 2P + 2C
- Semester: summer
- Year: 1
- Faculty of Economics and Finance
Teachers
Included in study programs
Teaching results
Knowledge and competences:
By completing the course Collective Investing, the student should acquire extensive theoretical knowledge and practical skills in the field of investment portfolio management, ranging from the creation of the portfolio based on quantitative and qualitative parameters, to its monitoring and operational management. At the same time, the student will get acquainted with the specifics of various collective investing products, such as mutual funds, exchange traded products (ETF, ETN, ETC), hedge funds, venture capital funds, real estate funds, pension funds, sovereign wealth funds, etc. Completion of this course should provide the student with extensive foundations for work in the field of asset management, either within investment funds and asset management companies, or on an individual basis.
Skills:
By completing the course, the skills of student will improve, mainly in usage of database and of analytical software. Student will be able to propose and defend his opinions or recommendations,
critically evaluate the process and to propose appropriate level of quality as well as to think creatively, effectively communicate in a way appropriate to the financial business environment.
Indicative content
1. Fund industry in the world (types of funds and geographical structure of the fund industry in the world, the EU fund industry, fund industry in Slovakia, regulation of the fund industry (UCITS, MiFID, MiFID II))
2. Portfolio modeling in financial theory (Markowitz's approach to portfolio modeling, risk measurement and return correlation coefficient, efficient and optimal portfolio)
3. Bond portfolio modeling (active and passive portfolio modeling strategies, the role of duration in modeling the bond portfolio, immunization of the bond portfolio)
4. Equity portfolio modeling (capital Asset Pricing Model (CAPM), portfolio risk, beta factor and alpha factor)
5. Secured funds and structured products (creation of a secured fund, growth and click structures of secured funds, advantages and disadvantages of secured funds)
6. Quantitative and qualitative parameters of funds (risk in collective investing, rating of funds, scoring of funds)
7. Investment strategies in collective investing (investment strategies by type of investor, growth investment strategies, value investment strategies, investment strategies in terms of trading frequency)
8. Hedge funds and venture capital funds (system of hedge funds functioning, investment strategies of hedge funds, regulation of hedge funds, specifics of venture capital funds)
9. Index funds and exchange traded products (characteristics of index funds, advantages and disadvantages of index funds, exchange traded products (ETF, ETN, ETC))
10. Real estate funds (specifics of investing in real estate markets, real estate indices, risks, advantages, and disadvantages of real estate funds, types of real estate funds, REIT)
11. Pension funds in the world (types of pension funds, supervision and regulation of pension funds, specifics of pension funds and pension schemes in selected countries)
12. Pension funds in Slovakia (development of the Slovak pension system, specifics of the Slovak pension system, advantages, disadvantages, and risks, pension funds of the 2nd. pillar pension funds of the 3rd pillar
13. Sovereign wealth funds (the nature and mechanism of functioning of sovereign wealth funds, the position of sovereign wealth funds in global financial markets, the most important sovereign wealth funds)
Support literature
CHOVANCOVÁ, B - ÁRENDÁŠ, P. (2020). Manažment portfólia v kolektívnom investovaní. Praha: Wolters Kluwer: 2020. ISBN 978-80-7598-638-2
2. GRAHAM, B. - ZWIEG, J. - BUFFET, W.E. (2003). The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel. London: Collins Business, 2003. ISBN 978-00-6055-566-5
3. PEDERSEN, L.H. (2015). Efficiently Inefficient: How Smart Money Invest and Market Prices Are Determined. Princeton: Princeton University Press, 2015. ISBN 978-06-9116-619-3
Requirements to complete the course
10 % team portfolio management
15 % work on team assignments
15 % midterm exam
60 % written exam
Student workload
- 26 hours – lectures
- 26 hours – seminars
- 39 hours – preparation for seminars
- 65 hours – preparation for written exam
Date of approval: 09.02.2023
Date of the latest change: 28.12.2021