Software Requirement Specification (SRS) Investment Management System

1. Introduction

Purpose

The Investment Management System (IMS) is intended to help the user keep account of their money invested in institutions such as Banks and Share Market.

This document is meant to delineate the features of IMS, so as to serve as a guide to the developers on one hand and a software validation document for the prospective client on the other.

Scope:

We describe what features are in the scope of the software and what are not in the scope of the software to be developed.

In Scope:
a. Managing investment of a single user, which would include maintaining bookkeeping information about entities like Portfolio, Security, and Transaction.
b. Computation of Net-Worth and Rate of Investment (ROI) of the Investor.
c. Giving alerts to the user, if he requests for one.
d. Downloading the current prices of shares from the web.
e. User authentication.

Out of Scope:
a. Features for actual purchasing and selling of securities. That is, actually buying and selling of shares/securities is done outside IMS.
b. Tax computations for gains/losses.
c. Any market related prediction.

Definitions, Acronyms, and Abbreviations:

Acronyms and Abbreviations:
a. IMS: Personal Investment Management System.
b. SRS: Software Requirements Specification.
c. WWW: World Wide Web.
d. GUI: Graphical User Interface.
e. ROI: Rate of Investment.

Definitions:
a. Transaction: A real event that involves flow of personal money. In the context of shares, it is buying/selling a group of shares of the same company, and in context of Bank it is deposit/withdrawal of money to/from one's account.
b. Security: A set of all transactions pertaining to a company share or a bank account.
c. Portfolio: A set of Securities.
d. Net-Worth: The sum total of all the money of the investor in form of shares and bank balances.
e. ROI: The interest that user gets on a particular investment. In the context of a bank account it is the annual interest and in case of a company share it is defined as given in appendix A:

Overview:

The rest of this SRS is organized as follows: Section 2 gives an overall description of the software. It gives what level of proficiency is expected of the user, some general constraints while making the software and some assumptions and dependencies that are assumed. Section 3 gives specific requirements which the software is expected to deliver. Functional requirements are given by various use cases. Some performance requirements and design constraints are also given. Section 4 gives some possible future extensions of the system. Finally, the appendices in Section 5 describe respectively the formula for ROI calculation for shares and user screen.

2. Overall Description:

Product Perspective:

IMS is aimed toward a person who has considerable number of investments in
stock market and banks, and so needs software assistance for book keeping and computations regarding the investments. IMS should be user-friendly, ‘quick to learn' and reliable software for the above purpose. IMS is intended to be a stand-alone product and should not depend on the availability of other software. It should run on both UNIX and Windows based platform.

User Characteristics:

a. The user should be familiar with the Investment Management related terminology like Portfolio/Security/Transaction.
b. The user should know the details of a transaction.

Principal Actors

The two principal actors in IMS are "user" and "system".

General Constraints:

a. For full working IMS requires Internet connection.

b. IMS is single-user software.

Assumptions and Dependencies:

a. Full working of IMS is dependent on the availability of Internet connection.

b. The downloading of share prices in IMS is customized to www.asx.com.au. IMS would not work for any other website.
c. The company shares registered in the Australian Stock Exchange (ASX) are only considered by IMS.

3. Specific Requirements:

Functional Requirements:

We describe the functional requirements by giving various.
Performance Requirements:

(a) Should run on 500 MHz, 64 MB machine.

(b) 90% of the responses should be within 2 sec, except for downloading current prices for which more time is acceptable.
Design Constraints:

1. Security: The files in which the information regarding securities and portfolios should be secured against malicious deformations.
2. Fault Tolerance: Data should not become corrupted in case of system crash or power failure.
External Interface Requirements:

The user screen is split vertically into two panes. The left pane contains the Investment tree, which expands and contracts as per user action. The right part displays the information

related to investment/portfolio/security that is specified on the left pane. Appendix B shows the intended user screen.
4. Future Extensions:

a. IIMS is intended to be a single user software. A possible future extension would be to make it multi user.

5. Appendix

Appendix A:

The formula for calculation of ROI for shares:

Suppose that, for the share of a particular company, following were the attributes of ith transaction.
Amount of money transacted = mi

Time between date of transaction and day when ROI is being calculated = ni Type of transaction = buy or sell
Let sgn(i) = +1 if the transaction was a buy, and -1 if it was a sell.

Then, the rate of investment, r, is got by solving the equation

Σ sgn(i) mi (1+r) ni = M

where M is the total amount in that share, and summation is over all the transactions.

The formula for calculation of ROI for banks:

For a bank the ROI is constant, namely the interest rate of that bank.

Appendix B:

The formula for calculating net-worth of a security:

If the security is of type "share":

Net-worth = C*N where C is the current value of the share of the security and N is the number of shares of that security which the user has.
If the security is of type "bank", the net-worth is simply the total balance of money in that bank.
The formula for calculating net-worth of a portfolio: Net worth of a security = Σ Net-worth of ith security.
( where the summation ranges over all the securities.)

The formula for calculating net-worth of entire investment: Net worth of entire investment = Σ Net-worth of ith portfolio. ( where the summation ranges over all the portfolios.)

Attachment:- Assignment.rar