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A image to illustrate Investment and portfolio management module
This module covers the field of investment and describes the main participants, their objectives and constraints, and the major investment markets. The module includes investment strategies for bonds, equities, and structured products, including the use of derivatives in managing risk. Portfolio optimisation and asset allocation are covered, as well as how to measure portfolio performance. Ethical investment, the role of taxation, and behavioural investment biases will also be explored. By the end of the module, you'll be able to evaluate individual securities, investment strategies and portfolio performance in the context of investor objectives, constraints and behavioural biases.
The aim of this module is twofold. First, to provide you with the theoretical knowledge and analytical skills to enable you to evaluate different investment possibilities, such as bonds, equities, and alternative investments, as well as the ability to construct optimal portfolios in a risk-return sense, including the use of derivatives.
Second, to give you an understanding of the key factors affecting investment-decision making, including investment objectives and constraints, behavioural and ethical issues, as well as an understanding of the different institutions involved in portfolio management.
The content of the module will be spread across six units:
Unit 1: Introduction

This unit introduces you to the main investing institutions and intermediaries, to the markets in which they invest and to the way in which the investment industry works. It also includes a discussion on Fintech. It focuses on the key elements of determining investment objectives and constraints, and constructing portfolios of different types of securities that will offer the best expected return per unit of risk given the investor’s objectives and constraints.
Unit 2: Fixed Income

Unit 2 starts by offering a broad view of fixed income by considering its history from biblical times to the present day. Session 2 provides a macroeconomic context for examining fixed income and includes a discussion of quantitative easing and tightening. You’ll then look at bond prices and yields, as well as the different approaches to fixed income trading.
Unit 3: Equities

You’ll start by building on the earlier macroeconomic discussions from Unit 2, and explore the sensitivity of a firm to the business cycle, the typical life cycle of an industry and strategic issues that affect firm performance. You’ll consider how securities are marketed to the public and how they are traded among investors before turning to explore the role of trading arenas, such as the New York Stock Exchange and electronic markets. You'll also look at forms of analysis other than fundamental analysis, the efficient market hypothesis, and equity valuation.
Unit 4: Derivatives and Structured Products

In this unit, you’ll look at derivatives based on cash products and foreign exchange derivatives. You’ll then learn how these derivatives are used in practice, such as to try to profit from a view on the market, to find arbitrage opportunities or to manage risk. The unit ends with a focus on structured products.
Unit 5: Alternative Assets

The aim of this unit is to examine the alternatives to the conventional asset classes covered in previous units. This will include commodities, private equity/venture capital, and real estate/infrastructure, or investment strategies, such as hedge funds, which use leverage or short selling.
Unit 6: Asset Allocation and Performance Measurement

This unit will look at:
This module will enable you to understand:
You'll also gain an awareness of the:
Your tutor will help you with the study material, mark and comment on your assignments and provide advice and guidance. You will contact your tutor by email, phone or via your tutor group forum on the module website.
There will be online tutorials throughout the module, as well as opportunities to collaborate with fellow students through forum discussions.
Course work includes:
We regularly review the assessments in our modules, so we may update the examination method used for this module to an in-person exam or a remotely invigilated (proctored) exam. When we are making such a change, we will make it clear on this page. If we need to make a change after you have registered, we will notify you as soon as possible. If you have additional requirements, we will support you to complete your assessments.
You'll have access to a module website, which includes:
Spreadsheets exemplifying the concepts presented in the module will be provided for student practice. Some cells within the spreadsheets will be fixed, while others can be manipulated. They are a practice-based tool that a manager or practitioner would be expected to use.
B818 is an option module in our:
Sometimes you cannot count a module towards a qualification if you have already counted another module with similar content. To verify any excluded combinations with this module, check with an adviser before registering.
Investment and portfolio management starts once a year – in May.
This page describes the module that will start in May 2027.
We expect it to start for the last time in May 2031.
As a student of The Open University, you should be aware of the content of the academic regulations, which are available on our Student Policies and Regulations website.
All entrants must hold a BA/BSc degree awarded by a recognised university, or equivalent. Various higher education and professional qualifications are considered equivalent to a degree.
It is strongly recommended that you are comfortable with the use of numerical methods and use of spreadsheets. If you are unsure about these skills we suggest you familiarise yourself with illustrative numerical skills and methods prior to study.
You will also need an appropriate facility in English language, sufficient to be able to work effectively at postgraduate level; generally this means capability equivalent to an International English Language Test System (IELTS) score of 6.5. To assess your English language skills in relation to your proposed studies you can visit the IELTS website.
This module is delivered online and time spent using a computer and the internet will therefore be extensive. Some online material may not be available or fully accessible using a screen reader (and mathematical and scientific materials may be particularly difficult to read in this way).
If you’re using printed materials as part of reasonable adjustments to support your studies, note that printed versions of online materials are unavailable for this module.
StartEndRegister byEngland fee
01 May 202731 Oct 202715 Apr 2027£2,075
If you study this module as part of an eligible qualification, you can apply for a postgraduate loan to support your study costs. To find out more, see Postgraduate loans in England.
Studying with The Open University can boost your employability. OU courses are recognised and respected by employers for their excellence and the commitment they take to complete. They also value the skills that students learn and can apply in the workplace.
Over 30,000 employers have used the OU to develop staff so far. If the module you’ve chosen is geared towards your job or developing your career, you could approach your employer to see if they will sponsor you by paying some or all of the fees.
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Please note: your permanent address/domicile will affect your fee status and, therefore, the fees you are charged and any financial support available to you. The fee information provided here is valid for modules starting before 31 July 2027. Fees typically increase annually. For further information about the University's fee policy, visit our Fee Rules.
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