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CHAPTER

SCONTENTS Page. No

Chapter 1 INTRODUCTION 1-5

Objective of the studyScope of the study

Limitations of the study

Reasearch methdolozy

Chapter 2 REVIEW OF LITERATURE 6-7

Chapter 3 COMPANY PROFILE 8-15

Chapter 4 DATA ANALYSIS & INTERPRETATIONS 16-23

Chapter 5 FINDINGS, SUGGESTIONS & CONCLUSION 24

BIBIOGRAPHY 25


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CHAPTER-1

INTRODUCTION

Portfolio management and investment decision as a concept came to be

familiar with the conclusion of second world war when thing can be in the stock

market can be liberally ruined the fortune of individual, companies ,even

governments it was then discovered that the investing in various scripts instead of

putting all the money in a single securities yielded weather return with low risk

percentage, it goes to the credit of HARYMERKOWITZ, 1991 noble laurelled to

have pioneered the concept of combining high yielded securities with these low but

steady yielding securities to achieve optimum correlation coefficient of shares.

Portfolio management refers to the management of portfolios for others by

professional investment managers it refers to the management of an individual

investors portfolio by professionally qualified person ranging from merchant banker

to specified portfolio company.

portfolio management is the total holdings of securities belonging to any

person. Portfolio is a combination of securities that have returns and riskcharacteristics of their own! port folio may not take on the aggregate characteristics of

their individual parts.

"hus a portfolio is a combination of various assets and #or instruments of

investments.

$ombination may have different features of risk and return separate from

those of the components. "he portfolio is also built up of the wealth or income of the

investor over a period of time with a view to suit is return or risk preference to that of

the port folio that he holds. "he portfolio analysis is thus an analysis is thus an

analysis of risk %return characteristics of individual securities in the portfolio and

changes that may take place in combination with other securities due interaction

among them and impact of each on others.

OBJECTIVES:

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"o study the investment decision process

"o analysis the risk return characteristics of sample scripts.

scertain portfolio weights.

"o construct an effective portfolio which offers the ma'imum return for

minimum risk

(onitering the performance of portfolio by incorporating the latest market

condition.

)dentification of the investors ob*ective constraints and preferences.

SCOPE

+


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uration Period & months

-ample sie / 0 years

"o ascertain risk, return and weights

(aking revision in the portfolio

(aking evaluation of portfolio income

)mplementation of strategies in tune with investment ob*ectives

LIMITATION:

nly two samples have been selected for constructing a Portfolio.

-hare prices of scripts of 0 years period was taken.

"here is stiff competition which makes difficult for the investors to choose a

good manager.

ne limitation faced, is the authority given to the manager to have control

over your investment.

2owever trusting a portfolio management advisor is difficult and risky as well.

3


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RESEARCH METHODOLOGY

(ethodology is a systematic procedure of collecting information order to analye and

verify a phenomenon. "he collection of data is done through two principles source

vi.

1. Primary data

&. -econdary data

PRIMARY DATA:primary data are generated in an investigation according to

the needs of problem in head. Primary data is collected using case study methods.

"here are some set of 4ualitative techniques used for collection of some socio

economic information about some phenomenon.

SECONDARY DATA:-econdary data can be defined as data collected by

some one else for purpose other than solving the problem being investigated.

-econdary data is collected from e'ternal sources which include information from

published material of -56) and some of the information is collected online. "he data

sources also include various books, *ournals, magaines, news papers, etc. "he

organiation profile is collected from 6ranch (anager 7)88$) 5:P;5--.

0


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CHAPTER-2

REVIEW OF LITERATURE

PORTFOLIO:

portfolio is a collection of securities since it is really desirable to

invest

the entire funds of an individual or an institution or a single security, it is essential that

every security be viewed in a portfolio conte't. "hus it seems logical that the e'pected

return of the portfolio. Portfolio analysis considers the determine of future risk and

return in holding various blends of individual securities

Portfolio e'pected return is a weighted average of the e'pected return of the

individual securities but portfolio variance, in short contrast, can be something

reduced portfolio risk is because risk depends greatly on the co


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CHAPTER-3

COMPANY PROFILE

$irca 1990 group of professional formed a company called Probity ;esearch

@ -ervices Pvt td. "he name was later changed to ;eligare -ecurities

imited. "he b*ective was to provide unbiased and independent information

to market intermediaries and investors. "he quality of research soon caught the

imagination of all ma*or participants in the financial market. )n a span of & to +

years the client list read like the whos who of )ndian 7inancial market. "he list

included consulting firms like (ckinsey, companies like 2industan ever,

6anks like $itibank, ;ating agencies like $;)-), @6, 7)s, foreign brokers

as well as leading )ndian brokers.

ne fine morning in early 1999, a colleague had a cray idea that if the

company made all the research available free on the web, the number of users

may well *ump from &0A to &.0 million. "o make it true, the business required a

reincarnation. nd the pre


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Ou K!" M#$!%&'(!%:

)ncorporated on ctober 1C, 1990 as Probity ;esearch @ -ervices.

aunched )nternet portal www. ;eligare -ecurities imited.comin (ay 1999.

$ommenced distribution of personal financial products like (utual 7unds

and ;6) 6onds in pril &AAA.

aunched online trading in shares and securities branded as www.0paisa.com

in Duly &AAA.

-tarted life insurance agency business in ecember &AAA as a $orporate

gent of )$)$) Prudential ife )nsurance.

6ecame a depository participant of 8- in -eptember &AA1.

aunched stock messaging service in (ay &AA+.

cquired commodities broking license in (arch &AA3.

aunched portfolio management services in ugust &AA3.

isted on 8-5 and 6-5 on (ay 1?, &AA0.

cquired ?0E stake holding in (oney tree $onsultancy services, which is a

distributor of (ortgages and other oan products, in ctober &AA0.

cquired 1AAE equity of (archmont $apital dvisors Pvt td in

ecember &AA0 through which we have ventured into (erchant 6anking.

-P (errill ynch $apital subscribed to convertible bonds aggregating

;s.CA crores in ecember &AA0. "heir current stake in )ndia )nfoline is a

little over 13 E as on +1st(arch &AAC.

6ennett $oleman @ $o td F6$$G invested ;s.&A crores in )ndia )nfoline

by way of preferential allotment in ecember &AA0.

6ecame a depository participant of $- in Dune &AA>.

(erger of )ndia )nfoline -ecurities Private imited with )ndia )nfoline

imited in Danuary &AAC.

9
http://www.indianinfoline.com/http://www.indianinfoline.com/http://www.5paisa.com/http://www.indianinfoline.com/http://www.5paisa.com/


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Ou M)()*!+!(& T!)+:

(r. 8irmal Dain F$hairman and (anaging irectorG

8irmal Dain is the founder and $hairman of )ndia )nfoline td.

2e holds an (6 degree from ))( hmedabad, and is a $hartered

ccountant Fll )ndia ;ank &G and a $ost ccountant.

(r. ;.=enkataraman F5'ecutive irectorG

;. =enkataraman is the co


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M0 N#$!%, V#7)+%!" I(!6!(!(& D#!/&'4

(r. 8ilesh -hiv*i =ikamsey *oined the 6oard with effect from 7ebruary 11,

&AA0.

(r. =ikamsey qualified as a $hartered ccountant in 19C0 and has been a

member of the )nstitute of $hartered ccountants of )ndia since 19C0.

M0 K)( S#(,) I(!6!(!(& D#!/&'4

(r. Hranti -inha *oined the 6oard with effect from Danuary &?, &AA0.

(r. -inha graduated from the gra Jniversity with a (asters degree.

(r. -inha is also on the 6oard of irectors of 2industan (otors imited,

arsen @ "urbo imited @ )$27 $are 2omes imited.

Ou V#%#'(

will not be accomplished only by maintaining high growth alone. ur vision is

to emerge as the most respected financial services company in )ndia. 8eedless

to emphasie that it is imperative for all us to align our personal goals and

values to this vision.

K('8$!*!:

lways keep yourself up


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RETURNS ON PORTFOLIO/

5ach security in a portfolio contributes return in the proportion of its

investments in security. "hus the portfolio e'pected return is the weighted average of

the e'pected return, from each of the securities, with weights representing the

proportions share of the security in the total investment. Bhy does an investor have so

many securities in his portfolioK )f the security 6$ gives the ma'imum return why

not he invests in that security all his funds and thus ma'imie returnK "he answer to

this questions lie in the investors perception of risk attached to investments, his

ob*ectives of income, safety, appreciation, liquidity and hedge against loss of value of

money etc. this pattern of investment in different asset categories, types of investment,

etc., would all be described under the caption of diversification, which aims at the

reduction or even elimination of non


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(ost investors invest in a portfolio of assets, because as to spread risk by

not putting all eggs in one basket. 2ence, what really matters to them is not the risk

and return of stocks in isolation, but the risk and return of the portfolio as a whole.

;isk is mainly reduced by iversification.

RISK RETURN ANALYSIS:

ll investment has some risk. )nvestment in shares of companies has its own risk or

uncertainty! these risks arise out of variability of yields and uncertainty of

appreciation or depreciation of share prices, losses of liquidity etc

"he risk over time can be represented by the variance of the returns. Bhile the return

over time is capital appreciation plus payout, divided by the purchase price of the

share.

8ormally, the higher the risk that the investor takes, the higher is the

return. "here is, however, a risk less return on capital of about 1&E which is the bank,

rate charged by the ;.6.) or long term, yielded on government securities at around

1+E to 13E. "his risk less return refers to lack of variability of return and no

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uncertainty in the repayment or capital. 6ut other risks such as loss of liquidity due to

parting with money etc., may however remain, but are rewarded by the total return on

the capital.

P!%'(% #('$! #( 6'&.'$#' +)()*!+!(&/

I(!%&':

re the people who are interested in investing their fundsK

P'&.'$#' +)()*!%:

)s a person who is in the wake of a contract agreement with a client, advices or

directs or undertakes on behalf of the clients, the management or distribution or

management of the funds of the client as the case may be.

D#%/!'()" 6'&.'$#' +)()*!:

(eans a manager who e'ercise under a contract relating to a portfolio

management e'ercise any degree of discretion as to the investment or management of

portfolio or securities or funds of clients as the case may be

The relation ship between an investor and portfolio manager is of a highly

interactive nature

"he portfolio manager carries out all the transactions pertaining to the investor under

the power of attorney during the last two decades, and increasing comple'ity was

witnessed in the capital market and its trading procedures in this conte't a key

FuninformedG investor formed G investor found him self in a tricky situation , to keep

track of market movement ,update his knowledge, yet stay in the capital market and

make money , there fore in looked forward to resuming help from portfolio manager

to do the *ob for him ."he portfolio management seeks to strike a balance between

risks and return.

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"he generally rule in that greater risk more of the profits but -.5.6.). in its

guidelines prohibits portfolio managers to promise any return to investor.Portfolio

management is not a substitute to the inherent risks associatedW,' /)( 9! )

6'&.'$#' +)()*!

CHAPTER-;

DATA ANALYSIS

C)$/u$)'( '. !&u( '. ICICI

Y!) B!*#((#(*6#/!R%4

E(#(*

6#/!R%4

D##!(R%4

&AA> 131.30 &90.30 ?.0A

&AA? &9?.9A +?1.+0 ?.0A

&AAC +?0.AA 0C0.A0 C.0A

&AA9 0C?.?A C91.0 C.0A

&A1A C9&.AA 1&+C.? 1A.AA

R!&u(>?4< @0>=20;-1;10;4 1>> < 11;01@

1;10;

R!&u(2>>@4 < @0>=3@103-2@0>4 1>> < 2@01@ 2@0>

R!&u(2>>4 < 0>=0>-3@4 1>> >4 < 0>=10-@0@>4 1>>

R!&u(2>1>4 < 1>0>>=1230@-24 1>>


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CALCULATION OF RETURN OF HDFC

R!&u(>?4 < 3=?;0-304 1>> 0 30

R!&u(2>>@4 < 30>=@?0>-?;04 1>> ?;0

R!&u(2>>4 < ;0>=12>@-@@14 1>> >4 < 0>>=1?2?0-114 1>> 1>4 < @0>>=2@@0@-1?3>4 1>>

Y!) B!*#((#(*

P#/!

E(#(* 6#/! D##!(

2>>? 30 ?;0 32>>@ ?;0 @?0> 30>

2>> @@1 12>@ ;0>

2>> 11 1?2?0 0>

2>1> 1?3> 2@@0@ @0>>

1?


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C)$/u$)'( '. %&)() !#)'( '. ICICI

Lear;eturn F;G

M

;

M

;0& 0>.A3C +3C>.>

&AA? &?.1? 0C.>0& 0& 0& 0& ?& +3C.>3

&9+.&> 3C0>.9C

M

verage F;G N ; N 2302? N 0C.>0& 8 0

M

=ariance N 1 F;


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C)$/u$)'( '. %&)() !#)'( '. HDFC

Lear;eturn F;G

M

;

M

;.>> ?1A.?0

&AA? 19.>A 03.&3 3 1199.9&

&AAC 0?.1+ 03.&3 &.C9 C.+0&1

&AA9 +>.> 03.&3 3 +11.1>

&A1A ?>.9? 03.&3 &&.?+ 01>.>0

&?1.& &3?>.C

M

verage F;G N ; N &?1.& N 03.&3 8 0

M

=ariance N 1 F;


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C'!$)'( 9!&8!!( HDFC ICICI

Lear

5=)")8727$

MMM

;> 0>.A3C 1393.&3

&AA? 3


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STANDARD DEVIATION

COMPANY STANDARED DEVIATION

HDFC 2;0ICICI 3;0;?

&1


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P'&.'$#' !&u( R6

ICICIHDFC 11;02;

ITCCOLGATE 2?03

WIPRAN 30>1

CIPLARANBAI 1023;

MM BAJAJ 1220?1

INTERPRETATION:

T,! )9'! &)9$! %,'8% 6'&.'$#' !&u( '. HDFCICICI

WIPRORANITCCOLGATECIPLARANBAYMMBAJAJ

/'+6)("%0&,! /'+6)(" ,)% &,! ,#*,!%& 6#/! '. 1220?1 $'8!%& 6#/! '. 103;

&&


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P'&.'$#' #%7

ICICIHDFC 3101;

WIPRORAN 3012

ITCCOLGATE 220@@

CIPLARANBAI ;0;3

MM BAJAJ 1@1022

INTERPRETATION

T,! )9'! &)9$! %,'8% 6'&.'$#' #%7 '. HDFCICICI WIPRORANITCCOLGATECIPLARANBAYMMBAJAJ

/'+6)("%0&,! /'+6)(" ,)% &,! ,#*,!%& 6#/! '. 1@@02 $'8!%& 6#/! '. 220@@

FINDINGS

&+


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uring the study, following are some of the observations that are

found out/

1. s the market is not doing well, current prices of various stocks fallen. when

compared to purchase prices. "herefore, investor may incur negative returns also.

&. -ince the term Oreturns from an investment refers to the benefits that an investor

receives from that particulars investment, hence we can infer that portfolio is

generating more returns when compared to individual.

SUGGESTIONS

1. "he companyQs profit over the years has been decreasing when compared to

previous years and even it incurred loss in the last year.

&. "he company must increase the profit in future.

+. "he company must take steps to increase the profit level.

CONCLUSIONS

ICICIHDFC

"he combination of )$)$) and 27$ gives the proportion of investment is 1.1CA1

and A.C199 for )$)$) and 27$, based on the standard deviations "he standard

deviation for )$)$) is +3.C3> and for

27$ is &3.CC.

2ence the investor should invest their funds more in 27$ when compared to

)$)$) as the risk involved in 27$ is less than )$)$) as the standard deviation of

27$ is less than that of )$)$).

&3


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BIBLIOGRAPHY

BOOKS

10 DONALDE FISHER RONALD J0JODON

SECURITIES ANALYSIS AND PORTFOLIO MANAGEMENT?TH

EDITION

20 V0K0BHALLA

INVESTMENTS MANAGEMENT S0 CHAND PUBLICATION0

30 V0A0AVADHANI0

INVESTMENT MANAGEMENT

W!9%#&!

;0 WWW0 )nvestopedia.com

0 www.nseindia.com

?0 www.bseindia.com0

N!8%6)6!% +)*)#(!

DAIRY NEWS PAPERS0

ECONOMIC TIME FINANCIAL EPRES0ETC

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