NISM-Series V-A: Mutual Fund Certification Exam Notes
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Fundamental analysis is a study of the business and financial statements of a firm in order to identify securities suitable for the strategy of the schemes as well as those with high potential for investment returns and where the risks are low.
Fundamental analysis - security selection strategy - identifying long term investment avenues.
Technical Analysts believe that price behaviour of a share over a period throws up trends for the future direction of the price. Along with past prices, the volumes traded indicate the underlying strength of the trend and reflect investor sentiment, which in turn will influence future price of the share.
Technical Analysts therefore study price-volume charts (a reason for their frequently used description as 'chartists') of the company's shares to decide support
Earnings per Share (EPS): Net profit after tax ? No. of equity shares outstanding
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