CIRA

CERTIFIED INVESTMENT RESEARCH ANALYST

Certified Investment Research Analyst (CIRA)

Syllabus

1. Investments- Concepts & Features

 Micro & Macro-Economic Concepts Relating to Investments
 Investment Objectives
 Investment Process
 Security Analysis
 Financial & Non-Financial Forms of Investments
 Investment Environment & Opportunities
 Sources of Investment Information
 Nature of Security and Investment Analysis
 Process of Investment Decisions
 Financial Markets & Investments
 Behavioral Finance & Investments

2. Investment Avenues
 Classification of Securities
 Mutual Funds
 American Depository Receipts/ Global Depository Receipts
 Indian Depository Receipt
 Commodities
 Real Assets
 Real Estate
 Rural Savings
 Art & Antiques
 Basis of Selection of Securities
 Real Perception in Securities

3. Stock Market Indices

 Introduction
 Use of Indices
 Construction Process
 Market Capitalization Method
 Difference Between Indices
 Removal of a Stock from Indices
 Major Global Equity Indices

4. Depository System & Listing of Securities

 Need for Depositors
 Depository Process
 Depository Participants
 Formalities for Opening Demat Accounts
 Role of DPs
  Demat Accounts- Advantages, Disadvantages, Precautions & Safeguards
 Dematerialization Process
 Listing of Securities
 Listing Process
 Delisting of Securities
 Recent Developments

5. Futures & Options

 Introduction
 Derivation Markets
 Advantages of Options
 Forwards, Futures & Options
 Black Scholes Option Pricing Models
 Factors Affecting Options Price
 Futures
 Contract Specifications
 Futures in Indian Stock Markets
 Selection of Index for Futures
 Benefits of Index Futures
 Trading in Futures & Options

6. Real Estate
 Real Estate as Investment
 Types of Real Estate
 Advantages & Disadvantages of Investing in Real Estate
 Difference between Real Assets & Financial Assets
 Leveraging Real Estate Investments
 Risk & Return
 Essentials of Real Estate Deals
 Taxes & Insurance
 Upkeep & Maintenance

7. Risk & Return

 Definition of Risk
 Types of Risk
 Risk in Investments
 Risk Avoidance
 Contemporary Risk Models
 Measurement of Returns
 Asset Allocation Strategies
 Diversification Strategies

8. Multifactor Risk & Return Models

 Introduction
 CAPM Theory
 Security Market Line (SML)
 Multi-Factor Model of Risk & Return

9. Efficient Market Hypothesis

 Basic Concepts
 Random Walk Theory
 Predictability of Stock Returns- Empirical Evidences
  Weak, Semi-Strong & Strong Form of EMH
 Market Inefficiencies
 Maximization of Efficiency in a Market

10. Company Valuation

 Fundamental Principles of Valuation
 Valuation Models
 DCF Model
 EVA & MVA Models
 Use of Real Options in Valuation
 Effects of Undervaluation & Overvaluation
 Distress Valuation

11. Equity Valuation

 Introduction
 Return
 Multiple Holding Period
 Intrinsic Value vs. Market Value
 Traditional Methods of Valuation

12. Bond Valuation

 Bonds- Basics
 Bond Charateristics & Markets
 Bond Risk & Return
 Bond Yield & Yield to Maturity
 Term Structures & Interest Rates
 Bond Value Theorems
 Duration & Convexity
 Immunization

13. Technical Analysis

 Basic Principles
 Advantages & Criticism
 Technical Price Forecasting
 Technical Indicators
 Dow Theory
 Elliot Wave Theory
 Chart Patterns
 Trend Reversal
 Difference between Fundamental & Technical Analysis

14. Fundamental Analysis

 Economic Analysis
 Industry Analysis
 Factors Affecting Industrial Performance
 Company Analysis
 Financial Heath
 15. Portfolio Construction
 Principles of Portfolio Management
 Portfolio Theory
 Portfolio Management – Traditional & Modern Approahces
 Portfolio Creation
 Portfolio Risk Management
 Beta in Portfolio Selection
 Portfolio Performance Analysis

16. Markowitz Model

 Simple Diversification
 Problems of Diversification
 Three Security Portfolios
 Markowitz Efficient Frontier

17. Sharpe Portfolio Optimization Model

 Sharpe’s Performce Index
 Sharpe’s Single Index
 Sharpe’s Optimal Portfolio
 Construction of Optimal Portfolio

18. Portfolio Evaluation

 Performance Evaluation
 Sharpe’s Performance Index
 Treynor’s Performance Index
 Jensen’s Performance Index

19. Portfolio Revision & Management

 Portfolio Revisions
 Formula Plans
 Portfolio Revision & Transaction Costs
 Equity & Derivative Portfolios
 Equity & Debt Portfolios
 Managing Portfolios of Individuals & Corporate Clients
 Future of Portfolio Management in India

Additional Online reading

20. Indian Capital Markets
 Structure of Indian Capital Markets
 Statutory Requirements
 Integration with Global Capital Markets
 Capital Market Reforms
 Capital Market Expectations
 Performance of Indian Capital Markets

21. Stock Exchanges in India

 Stock Exchanges & Their Functions
 Commodity Exchanges
 Linkage with Global Stock Markets
 Institution Supporting Stock Market Operations
 Recent Developments in Stock Markets
  Regulatory Framework

22. Market Regulators

 Genesis of Capital Markets Regulation
 Securities & Exchange Board of India (SEBI)
 SEBI & FII Activities
 Reserve Bank of India (RBI)
 Insurance Regulatory & Development Authority of India (IRDA)
 Pension Fund Regulatory & Devleopment Authority (PFRDA)
 Forward Markets Commission (FMC)
 Ministry of Finance

Association of International Wealth Management Of India (AIWMI), Regus, Level 9, Platina, Block G, Plot C-
59, Bandra-Kurla Complex, Bandra (East) Mumbai – 400051 Ph: +91 8097661200/01 Fax: +91 22 67000600
 Additional Reading

1. Introduction to Research Analyst Profession

 Role, Responsibilities & Desired Qualities of a Research Analyst
 Basic Principles
 Code of Conduct for Research Analysts
 Ethics
 Disclosure Requirements for Research Analysts

2. Qualities of a Good Investment Research Report

 Qualities of a good investment research report
 Checklist for Investment Research Reports

3. Financial Statement Analysis

 Business Activities & Financial Statements
 Analysis of Balance Sheet & Income Statements
 Analysis of the Statement of Shareholder’s Equity
 Analysis of Cash Flow Statement
 Analysis of Profitability
 Analysis of Growth & Sustainability

4. Alternative Investments
 Basics of Alternative Investments
 AIF Industry in India
 Regulations

5. Mathematics for Investment Management

 Foundations- Symbols & Rules, Sequences & Series, Exponents & Logarithms,
Equations & Inequalities, Functions & Graphs
 Calculus- Differential Calculus, High Order Derviatives, Financial Applications
of Second Derivatives, Optimization
 Linear Mathematics and Matrix Algebra- Matrices & determinants, Eigenvalues
& Eigen Vectors, Numerical Optimization
 Descriptive Statistics- Moment of Distribution, Measures of Dispersion
 Probability in Finance- Probability Distributions, Joint Distributions
 Regression Analysis in Finance- Simple & Multiple Linear Regression, Confidence
Intervals, Hypothesis Testing, Random Walks & Mean Reversions, Maximum
Likelihood Estimation

Association of International Wealth Management Of India (AIWMI), Regus, Level 9, Platina, Block G, Plot C-
59, Bandra-Kurla Complex, Bandra (East) Mumbai – 400051 Ph: +91 8097661200/01 Fax: +91 22 67000600