SHRI RAMSWAROOP MEMORIAL GROUP

OF PROFESSIONAL COLLEGES
LUCKNOW
RESEARCH REPORT
ON
PORTFOLIO CONSTRUCTION USING
FUNDAMENTAL ANALYSIS
SUBMITED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD
OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
TO
GAUTAM BUDDHA TECHNICAL UNIVERSITY, LUCKNOW
FOR THE SESSION
20131!
UNDER GUIDANCE OF" SUBMITTED BY"
M#$ VI%AY SINGH GARIMA YADAV
D&'(#)*&+) ,- M(+(.&*&+) R,// +,$" 1212200030
PORTFOLIO CONSTRUCTION USING FUNDAMENTAL ANALYSIS
SRMGPC, LUCKNOW M$B$A$ !
)1
S&*&2)&#
Department of Management, Shri Ramswaroop Group of Professional Colleges, Lucknow
ii
PORTFOLIO CONSTRUCTION USING FUNDAMENTAL ANALYSIS
CERTIFICATE
Department of Management, Shri Ramswaroop Group of Professional Colleges, Lucknow
iii
PORTFOLIO CONSTRUCTION USING FUNDAMENTAL ANALYSIS
DECLARATION
Department of Management, Shri Ramswaroop Group of Professional Colleges, Lucknow
iv
PORTFOLIO CONSTRUCTION USING FUNDAMENTAL ANALYSIS
ACKNOWLEDGEMENT
We think if any of us honestly reflects on who we are, how we got here, what we think we
might do well, and so forth, we discover a debt to others that spans written history. The work of
some unknown person makes our lives easier everyday. We believe it's appropriate to
acknowledge all of these unknown persons; but it is also necessary to acknowledge those people
we know have directly shaped our lives and our work.
First of all we would like to thank my guide Mr. !"#$ %!&'(, Faculty of Management
)epartment, %*! *#M%W#*++, M-M+*!#. '*+/, +F ,*+F-%%!+&#. 0+..-'-%,
.ucknow for his guidance throughout the semester.
Finally, ! would like to thank My 'od, My ,arents and my friends for all the support and
blessings that was re1uired for completion of this pro2ect.
GARIMA YADAV
R,// N,$" 1212200030
MBA 3IV S&*$4
Department of Management, Shri Ramswaroop Group of Professional Colleges, Lucknow
v
PORTFOLIO CONSTRUCTION USING FUNDAMENTAL ANALYSIS
PREFACE
The ,ortfolio Management deals with the process of selection securities from the number of
opportunities available with different e3pected returns and carrying different levels of risk and
the selection of securities is made with a view to provide the investors the ma3imum yield for a
given level of risk or ensure minimum risk for a level of return.
,ortfolio Management is a process encompassing many activities of investment in assets and
securities. !t is a dynamics and fle3ible concept and involves regular and systematic analysis,
2udgment and actions. The ob2ectives of this service are to help the unknown investors with the
e3pertise of professionals in investment ,ortfolio Management.
!t involves construction of a portfolio based upon the investor4s ob2ectives, constrains,
preferences for risk and return and liability. The portfolio is reviewed and ad2usted from time to
time with the market conditions. The evaluation of portfolio is to be done in terms of targets set
for risk and return. The changes in portfolio are to be effected to meet the changing conditions.
The modern theory is the view that by diversification, risk can be reduced. The investor can
make diversification either by having a large number of shares of companies in different
regions, in different industries or those producing different types of product lines. Modern
theory believes in the perspectives of combination of securities under constraints of risk and
return.
Department of Management, Shri Ramswaroop Group of Professional Colleges, Lucknow
vi
PORTFOLIO CONSTRUCTION USING FUNDAMENTAL ANALYSIS
ABSTRACT
!nvesting is both #rts and %cience. -very !ndividual has their own specific financial need and
e3pectation based on their risk taking capabilities, whereas some needs and e3pectation are
universal. Therefore, we find that the scenario of the %tock Market is changing day by day hours
by hours and minute by minute. The evaluation of financial planning has been increased through
decades, which can be best seen in customers. &ow a day4s investments have become very
important part of income saving.
!n order to keep the !nvestor safe from market fluctuation and make them profitable, ,ortfolio
Management %ervices 5,M%6 is fast gaining !nvestment +ption for the High Net worth
Individual 5(&!6. There is growing competition between brokerage firms in post reform !ndia.
For investor it is always difficult to decide which brokerage firm to choose.
#t the time of investing money everyone look for the *isk factor involve in the !nvestment
option.
The first of the two most conse1uential take7home messages that we want to convey is that good
portfolio management practice is not a matter of establishing a discussion culture, but one of
implementing sound, data driven, and transparent decision processes. The second message is
that, even as seen in the light of the previous insight, portfolios and their constituent pro2ects are
ultimately managed by people, not by functions. +b2ections to portfolio management, or
attempts to push it in a certain direction, fre1uently arise from less rational elements in the
personalities of the acting people, even if they are driven by the best intentions. # good
portfolio manager will be aware of this and make use of these human features instead of
attempting their suppression.
Department of Management, Shri Ramswaroop Group of Professional Colleges, Lucknow
vii
PORTFOLIO CONSTRUCTION USING FUNDAMENTAL ANALYSIS
TABLE OF CONTENTS
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Department of Management, Shri Ramswaroop Group of Professional Colleges, Lucknow
viii