A Project Report

On
PORTFOLIO MANAGEMNET SERVICES
For
SHAREKHAN LIMITED.
B
VIJETA B RATHOD
!n"er t#e $%&"'nce o(
MRS. SMITA SOVANI
S%)*&tte" to
!n&+er,&t o( P%ne
In p'rt&'- (%-(&--*ent o( t#e re.%&re*ent (or t#e '/'r" o( t#e "e$ree o(
M',ter o( B%,&ne,, A"*&n&,tr't&on 0MBA1
T#ro%$#
V&,#/'2'r*' In,t&t%te o( M'n'$e*ent
P%ne345.
1
ACKNO6LEDGEME NT
I take immense pleasure in completing this project and submitting the final
project report. A successful project can never be prepared by the singular effort of the
person to whom project is assigned but, it also demand the help and guardianship of
some conversant person who undersigned actively or passively in the completion of a
successful project.
I would like to express my sincere thanks to my Director, Pro(. S#'r'" L
7o,#& for giving me the opportunity to be a part of an esteemed institution and without
whose support this project would not have been possible.
he last two months with SHAREKHAN SEC!RITIES LTD has been full
of learning and sense of contribution toward the organi!ation. I would like to thank
SHAREKHAN SEC!RITIES LTD. giving me this opportunity for learning and
contributing. I take this opportunity to thank all those people who made this
experience a memorable one.
In this context, as a student of "I#$%A&A'(A I)#I*+ ,-
(A)A.+(+), /*)+ would first of all like to express my thank fullness to Mr.
PRANA8 SONCHHATRA, for assigning me such a worthwhile title
0PORTFOLIO MANAGEMENT1
During the actual project work, Mr,. SMITA SOVANI 0PRO7ECT G!IDE1
has been a source of inspiration through her constant guidance, personal interest,
encouragement and help. I convey my sincere thanks to her. In spite of her busy
schedule she always found time to guide me through the project.
0
INDE9
Sr. No. Top&c P'$e No.
:1 E;ec%t&+e S%**'r 4
<1 Co*p'n Pro(&-e =
>1 P%rpo,e o( Project <?
41 Re,e'rc# Met#o"o-o$ <<
@1 Intro"%ct&on to In+e,t*ent, <A
A1 Port(o-&o M'n'$e*ent >4
1 Intro"%ct&on >@
1 Scope >=
1 O)ject&+e, >5
1 Tpe, o( Port(o-&o >B
=1 In+e,t*ent A+en%e, 4=
1 P#,&c'- A,,et, 45
1 F&n'nc&'- A,,et, @?
51 V&rt%'- Port(o-&o

@>
B1 F&n"&n$, @A
:?1 S%$$e,t&on, @B
::1 L&*&t't&on, A:
:<1 Conc-%,&on A>
:>1 B&)-&o$r'p# AA
:41 Anne;%re A5
2
CHAPTER :
E9EC!TIVE S!MMAR8

3
E9EC!TIVE S!MMAR8
he project at #$A'+&$A) 4D. i.e. 5/ortfolio (anagement #ervices6 helps the
individual investors in constructing a portfolio from the funds they want to put in the
various securities or financial instruments that are available in the market.
T#&, project &, "&+&"e" &nto t#ree p#',e,
he (&r,t p'rt emphasi!es on the entire methodology of my study the parameters kept
in the mind while designing of the report, various sources of data collection. Also
company7s detail, objective of project etc in detail is done.
hen ,econ" p'rt emphasi!es on an introduction to investments need for financial
planning what is a 5/ortfolio (anagement #ervice6. he objective of portfolio is to
diversify risk, the various investment avenues and product offered in /(# along with
its objective and advantages. he report emphasi!es on portfolio management 8 the
types of portfolio and various activities of portfolio management.
9
hen in the t#&r" p'rt there is an example of virtual designed portfolio. It also
consists of my learning7s from the project and few suggestions for the organi!ation
which I feel will be useful for them in improving their services even further. his
phase of the project talks about the final :'*; of the report under the name of
conclusion, it talks all about the findings and my beautiful experience with
5#$A'+&$A) 4I(I+D6.
<
CHAPTER <
COMPAN8 PROFILE

=
Co*p'n Pro(&-e

#harekhan is one kind of mediator between clients that are investors and
+xchange board. %ithout mediator nobody can directly purchased shares from the
exchange. #harekhan is one of the leading stock broking companies in India.
#harekhan is the retail broking arm of SSKI, an organi!ation with more than 84 years
of trust and credibility in the stock market. >ut before = years the business was
changed from being a discount brokerage house to complete investment solutions
provider. #harekhan was officially launched in -ebruary 0??? as a brand Sharekhan.
%ith branches and outlets across the country, their ground network is one of the
biggest in India@
H&,tor o( S#'re2#'n
A member of the >ombay #tock +xchange for the last 2 generations and
serving investors since 1A00, ##&I is a member of the )ational #tock +xchange, the
Inter1connected stock exchange and a depository participant registered with both
)#D4 8 :D#4. ##&I made its foray into institutional broking and corporate finance
1A years ago. (r. #hripal (orakhia, chairman of the ##&I group turned into a
professional outfit and established the group as the pioneer of the investment research
in the Indian market. he ##&I group of companies is distributed in to four such
divisions and they are as followsB1
C
##&I Investors #ervices 4td.D#harekhanE
#.#. &antilal Ishwarlal #ecurities /vt. 4td.
##&I :orporate -inance.
I dream /roductions.
#harekhan falls under the umbrella of #.#. &antilal Ishwarlal #ecurities /vt. 4td
D##&IE. hus becoming the leading domestic player in Indian institutional business.
#harekhan has more than F1 billion of private eGuity deals.
##&I has been voted as op Domestic >rokerage $ouse in the research category as
well as derivatives, depository services, commodities trading on the (:; 8 ):D+;
and most importantly, investment advice tempered by eighty years of broking
experience. #harekhan is known for its research and it big share of its profit on
research.
A
M'n'$e*ent Co**&ttee
Mr. S#r&p'- Mor'2#&'C
:hairman, #harekhan,
Mr. T'r%n S#'#
:hief +xecutive ,fficer
Mr. A)#' H'+'-"'r,
(anaging Director
Mr. P't#&2 G'n"otr'
$ead of 'esearch
Mr. R&,#& Ko#-&
"ice /resident of +Guity Derivatives
Mr. N&2#&- Vor'
"ice /resident of 'esearch
1?
Ro-e o( S#'re2#'n
Interface between the stock exchange and the investor.
Assistance to investors in precise allocation of funds.
>uilding awareness amongst general public about stock market
#$A'+&$A) 4imited is a retail financial services provider with a focus on
+Guities, Derivatives and :ommodities, >rokerage execution on the )ational #tock
+xchange of India 4td. D)#+E, >ombay #tock +xchange 4td. D>#+E, )ational
:ommodity and Derivatives +xchange India D):D+;E and (ulti1:ommodity
+xchange of India 4td. D(:;E.
#$A'+&$A) provides trade execution services through multiple channels 1 an
Internet platform, elephone and 'etail ,utlets and is present in 009 cities through a
network of <19 locations. he company was awarded the 0??9 (ost /referred #tock
>roking >rand by Awwa! :onsumer "ote.
#$A'+&$A) covers the entire spectrum of financial services such as #tock
broking, Depository /articipants, Distribution of financial products like (utual
-unds, >onds, -ixed Deposit, (erchant >anking and :orporate -inance, Insurance
>roking, :ommodities >roking, /ersonal -inance Advisory #ervices, /lacement of
+Guity, I/,7s, among others
11
A Sharekhan outlet offers the following services:
,nline >#+ and )#+ executions Dthrough >,4 8 )+A terminalsE.
-ree access to investment advice from #harekhanHs 'esearch team.
#harekhan "alue 4ine Da monthly publication with reviews of
recommendations, stocks to watch out for etcE.
Daily research reports and market review D$igh )oon 8 +agle +yeE.
/re1market 'eport D(orning :uppaE.
Daily trading calls based on echnical Analysis.
:ool trading products DDaring Derivatives and (arket #trategyE.
/ersonali!ed Advice.
4ive (arket Information.
Depository #ervicesB Demat 8 'emat ransactions.
Derivatives rading D-utures and ,ptionsE.
:ommodities rading.
I/,7s 8 (utual -unds Distribution.
Internet1based ,nline radingB #peed rade.
10
hey try to give new facilities thorough their researches to their clients like,
S#'re *o)&-e where clients can buy or sell shares through their mobile phone. It
provides facility to their clients to buy or sell of shares through them. It provides
research calls to their clients so that clients can easily think of investment. (ainly
there are five departments in the company, one is DP "ep'rt*ent, we can say it heart
of the company because it is also F&n'nce Dep'rt*ent, all the clerical work are
done there. #econd one is O((3-&ne tr'"er,D roo*, where the transaction has been
executed via phone calls or directly through clients. hen there is On3-&ne tr'"&n$
roo* where transaction executed totally online through 5internet6. hen there is one
department of M%t%'- F%n" where they take care of (utual -und clients. hen there
is one S'-e,EM'r2et&n$ Dep'rt*ent which is situated nearby >ranch ,ffice. he
>ranch (anager of the company is Mr. F%)&n B#'tpor&'C he is taken care all the
activities done within the company. otal there is 2? to 3? employees working under
one roof.
12
13
VARIO!S ACTIVITIES !NDERTAKEN B8
SHAREKHAN STOCK BROKING LTD
DEMAT SERVICE
Demateriali!ation and trading in the demat mode is the safer and faster alternative
to the physical existence of securities. Demat as a parallel solution offers freedom
from delays, thefts, forgeries, settlement risks and paper work. his system works
through depository participants DD/sE who offer demat services and the securities are
held in the electronic form for the investor directly by the Depository.
#harekhan Depository #ervices offers demateriali!ation services to individual and
corporate investors. hey have a team of professionals and the latest technological
expertise dedicated exclusively to our demat department, apart from a national
network of franchisee, making services Guick, convenient and efficient.
At #harekhan, their commitment is to provide a complete demat solution which is
simple, safe and secure.
$ere mainly two types of services provided by the company to the customer for
Demat AI: that is D1E ,nline AI: and D0E ,ffline AI:.
19
1. On-&ne Acco%ntG )owadays online AI: is more popular than offline AI:. In
online AI: what company will do, they simply provide terminal to the
customer and customer can do trading himselfIherself when heIshe wants. he
online AI: will charge =9?I1 's. (*It varies from company to company). In
these there 2 types of facility company will provide to the customer as per the
company7s reGuirement.
aE C-',,&c Acco%ntG his is the simplest way to do trading. $ere what
customer has to do is that first he has to open an Demat AI: with the
#harekhan, after the AI: has been opened the customer will get login
ID and /assword and with the help of these he can login to the
#harekhan.com and in :lassic AIc which company7s data he wants, he
has to type that company7s name or code and he will get all the
necessary information regarding the company and he can buy or sell
that company7s stock.
bE F',t Tr'"e Acco%ntG In this the whole terminal will provided to the
customer and the customer can buy or sell the shares by himself by
watching the live position of the company in the terminal. he initial
procedure will be same here, but after login in to #harekhan.com the
customer has to login into -ast trade and he will get the whole terminal
from where he can buy or sell the shares of the company by himself
only. In this the customer can see 09 scripts at a time and place the
order from wherever he wants. here is no limitation for brokerage that
has to be generated.
1<
cE Spee" Tr'"e Acco%ntG his is also same as -ast trade but the only
difference is that in -ast trade the customer will get only 09 scripts at a
time whereas in #peed rade the customer will get full screen view and
more than 09 scripts at a time. his AI: also provides charts and
graphs so that one can easily understand about the stocks. his is
provided mostly to those persons who are dealer kind of customer or
the big clients. $ere the minimum brokerage that has to be generated is
's. 9?? per month.
0. O((-&ne Acco%ntG his is the traditional way of buying or selling shares. In
this, customer can place the order via telephone or directly by sitting in the
company. he customers who are busy in their jobs or businesses, they can
place the order via telephone and the customers who are not that much of
busy, they can come to the office D#harekhanE and by sitting there whole day
they can place the order.
DAIL AND TRADE
Tr'"e in Equity by using your phone!
-ree with #harekhan :lassic Account, the Dial1n1rade service enables
customer to place orders for buying and selling shares through telephone.
1=
FEAT!RESG
#imple and #ecure Interactive "oice 'esponse based system for authentication. )o
waiting time. +nter your 1/I) to be transferred to our telebrokers
STOCK BROKING
#$A'+&$A) offers trading on a vast platformJ )ational #tock +xchange,
>ombay #tock +xchange and $yderabad #tock +xchange. (ore importantly, they
make safe to the maximum possible extent, by accounting for several risk factors and
planning accordingly. hey assisted in this task by their in1depth research, constant
feedback and sound advisory facilities. heir highly skilled research team, comprising
of technical analysts as well as fundamental specialists, secure result oriented
information on market trends, market analysis and market predictions. his crucial
information is given as a constant feed back to the customers, through daily reports
delivered along with their updated portfolio. >esides this they are also offered special
portfolio analysis packages that provide daily technical advice on scrip7s for
successful portfolio management and provide customi!e advisory services to help
customer make the right financial moves that are specifically suited to their portfolio.
-actors such as their success in the electronics custody business has helped
build on our trading of trust even more. :onseGuentially their retail client base
expanded very fast. o empower the investor further they have made serious efforts to
ensure that their research calls are disseminated systematically to all their stock
broking clients through various delivery channels like e1mail, chat, #(#, phone calls
etc.
1C
ADVISOR8 SERVICES
*nder their real brand #$A'+&$A) 4I(I+D7 they deliver advisory
services to a cross1section of customers. he service is backed by a team of dedicated
and expert professionals with varied experience and background in handling
investment portfolios. hey are continually engaged in designing the right investment
portfolio for each customer according to individual needs and budget considerations
with a comprehensive support system that focuses on trading customers portfolios
providing valuable inputs, monitoring and managing the potfolio through varied
technological intiatives. hose is made possible by the expertise they have gained in
the business over the years.
COMMODITIES
At #$A'+&$A) :ommodities, they are focused on taking commodities
trading to new dimensions of reliability and profitability. hey have made
commodities trading, an essentially age1old practice, into a sophisticated and
scientific investment option. :ompany enables trade in all goods and products of
agriculture and mineral origin that include lucrative commodities like gold and silver
and popular items like oil, pulses and cotton through a well1systemati!ed trading
platform. he technological and infrastructural strengths and especially the street
smart skills make them an ideal broker. heir service matrix is holistic with a gamut
of advantages, the first and foremost being their legacy of human resources,
technology and infrastructure that comes from being part of the #$A'+&$A)
.roup.
1A
heir wide national network, spanning the length and breadth of India, further
supports these advantages. 'egular trading workshops and seminars are conducted to
hone trading strategies to perfection. +very move made is a calculated one, based on
reliable research that is converted into valuable information through daily, weekly and
monthly newsletters
M!T!AL F!NDS
#harekhan have announced that customers will now be able to invest in
(utual -unds through #harekhan. hey have started this service for a few mutual
funds, and in the near future will be expanding their scope to include a whole lot
more. Applying for a mutual fund through sharekhan is open to everybody, regardless
of whether you are a #harekhan customer or not.
-or investing in mutual funds through sharekhan you have to just download
the form from internet, fill it and submit it in any sharekhan office.
Co*petetor, o( S#'re2#'n
Indiabulls
&arvy consultant
I:I:I Direct
India Infoline
'elience money
0?
I48-# Investsmart.
01
CHAPTER >
OB7ECTIVE OF
PRO7ECT
00
OB7ECTIVE OF PRO7ECT
he main objective of this project is to know the Awareness of -inancial
Instrument among investors and also to know the investing pattern of people in
different -inancial /roject. he project with SHAREKHAN SEC!RITIES LTD has
been full of learning and sense of contribution towards the organi!ation.
(y project on 5Port(o-&o M'n'$e*ent Ser+&ce,6 is meant to study the nature
of different investment instruments available in the market and then finally suggest
the same to the clients in the form of a structured product. I do this by suggesting the
investor as to go for which all investments that can fetch out real good returns to them
in future, as per their risk appetite regarding the investments and their needs. I suggest
them the investments that they can opt for and the one7s which can bring a huge value
addition to their portfolio.
According to the study of the markets, it is being observed that there are lots
of financial instruments are available in the markets and some of them are really
doing well. In near future a proper financial planning is reGuired to invest money in
all type of financial product because there is good potential in market to invest.
In this project the great emphasis is given to the investor7s mind in respect to
investment where he can maximi!e his wealth. he needs and wants of the client are
taken into consideration.
(ore emphasis has been given for the study of the project because it is the
only field where all type of Age group, Income class and different level of people are
represented and accordingly their approach towards the market.
02
CHAPTER 4
RESEARCH
METHODOLOG8
03
METHODOLOG8 OF ST!D8
'esearch can be defined as a systemi!ed effort to gain new knowledge. A
research is carried out by different methodologies which have their own pros and
cons. 'esearch methodology is a way to solve research in study and solving research
problems along with logic behind them are defined through research methodology.
hus while talking about research methodologies we are not only talking of research
methods but also consider the logic behind the methods. %e are in context of our
research studies and explain why it is being used a particular method or techniGue and
why the others are not used. #o that research result is capable of being evaluated
either by researcher himself or by others.
RESEARCH METHODOLOG8
'esearch has its special significance in solving various operational and
planning problems of business and industry. 'esearch methodology is a way to
systematically analy!e the research problem.
I have executed the project after prior discussion with our guide and structured in the
following stepsB
a. /reparation of a Guestionnaire
b. he focal point of the designing the Guestionnaire was to comprehend the
current investment scenario with respect to tax planning part.
09
c. his Guestionnaire was primarily aimed to respondents who belong to the
service and business class people
he Guestionnaires were discussed through personal interface with the
respondents.
ASS!MPTIONSG
1. It has been assumed that sample of hundred represents the whole population.
0. he information given by the customer is unbiased.
De+e-op*ent o( 6or2&n$ Hpot#e,&,
he hypothesis could be developed by discussing with the consulting
department heads and guides about this exploratory research and reach to the
conclusion that the data is to be collected by personal interaction with the clients,
asking them about their investment planning and their need for financial advisory
service from #harekhan #ecurities 4td.
-irst of all are they aware of tax and investment planning or not and then
analy!ing the findings to reach to the objectives of research.
So%rce, o( D't'G
PRIMAR8 DATA
his research is solely based on primary research done by means of
Guestionnaires targeted to respondents who primarily belong to the business and
service sector.
0<
It is very essential in the research process to know the accuracy of the finding7s which
depends on how systematically the study has been carried out so that it can make
sense.
he data reGuired for the project was about the customers and therefore this data was
a confidential for the company.
SECONDAR8 DATA
#econdary data is a data that has been collected earlier for some purpose other than
the purpose of the present study. I have collected data by referring book and websites
for carrying out my project from .
Also, secondary data can be a useful benchmark against which the findings of
the study can be tested. his study is highly dependent on the secondary data for
various facts and figures.
0=
CHAPTER @
INTROD!CTION TO
INVESTMENTS

0C
INTROD!CTION
INVESTMENTS
6H8 &n+e,tG %e work hard so that we can live life to its fullest. (ost of us
spend more than half of our lives working and saving because money is essential. In
fact, to most of us it is the driving force of our life. he reasons why we invest are
primarily for tax1saving purposes. Although, this may not be incorrect, it is true that
one needs to analy!e various factors before putting the hard1earned money into any
type of investment. A proper planning is crucial to make your how to invest money
work effectively at later stages of your life.
I"ent&( o%r $o'-,G ,ur goals in life may be plenty Dowing a house,
providing the best education to children, supporting family with the best amenities,
holidaying, etcE. And of course, last but not the least is to save how to invest for those
retirement days. /rioriti!e your goals. (ake a note of when you would like to achieve
them. %e learn about a few smart ideas on how to increase your net worth and not
affect your needs too.
Ho/ to &n+e,t 'n" /#ereG he right time to learn how to invest is when you
have identified at what stage in life you would reGuire how much funds. It is human
tendency to be affected by greed and fear. .reed makes us invest without thinking
twice. ,ne may land being a loser when the desire to get more for less creeps in.
%hen fear strikes, one dreads to even take normal investment risks. Due to this, one
may lose on opportunities while investing in the market.
0A
H'n"-&n$ r&,2G &now what is your risk appetite. All investments carry some
risk. 'isk and return are two sides of the same coin. Investments with the potential for
the biggest returns are associated with the highest risk Dof losing moneyE.
Re*e*)erG your age, family situation, income and goals can all influence the
amount of risk you wish to take. In general, the younger you are you have more time
to recover from any loses if at all. he older you are or the closer to needing the
money, the more conservative you may become and be reluctant to take risks. ,nce
you know your goals and your comfort with risk, you can decide what type of
portfolio is right for you. DA portfolio is simply a collection of different kind of
investmentsE.
-or example, if you are young, aggressive and have plenty of time before you plan to
use money from your investments, you might allocate =? to 1?? percent of your
portfolio to stocks and stock mutual funds. If youHre more conservative, you might
allocate 9? percent to stock mutual funds, 3? percent to bond funds and the rest to
cash eGuivalents.
6#en to ,t'rt In+e,t&n$G he sooner one starts investing the better. >y
investing early investor allow his investments more time to grow, whereby the
concept of compounding increases income, by accumulating the principal and the
interest or dividend earned on it, year after year.
T#e t#ree $o-"en r%-e, (or '-- &n+e,tor, 'reG
o KInvest e'r-C
o KInvest re$%-'r-,
o KInvest for -on$ ter* and not short term.
2?
6# F&n'nc&'- P-'nn&n$ &, nee"e"H
his can be explained by very simple example. Assume a person is 3? years
old and will reGuire =?L of his current annual income for each of the 19 years expect
to live after his retirement. $e wants to retain his purchasing ability after certain age.
In t#&, c',e #e /&-- #'+e to p-'n #&, (&n'nce 'n" #ence t#e ter*, port(o-&o
'n" port(o-&o *'n'$e*ent co*e &n p&ct%re
Investors should periodically review their asset allocation across different
assets as the portfolio can get skewed over a period of time. his can be largely due to
appreciationIdepreciation in the value of the investments.
For e;'*p-eB an investor who had invested 's. =? into eGuities and balance in
income funds in Mune 0??3. During last one year, the >#+ #ensex has moved up by
31L while the income funds have grown by 1L. As of end (ay ?9, the eGuity asset
allocation would be <=L into eGuities and rest into debt 1 eGuity exposure would have
gone up by =L Ddue to appreciation in stock indicesE. An investor who wants to keep
the allocation at <?L should reduce the exposure in eGuities and shift to debt.
As the financial goals are diverse, the investment choices also need to be
different to meet those needs. )o single investment is likely to meet all the needs, so
one should keep some money in bank deposits and I liGuid funds to meet any urgent
need for cash and keep the balance in other investment productsI schemes that would
maximi!e the return and minimi!e the risk. Investment allocation can also change
depending on ones risk1return profile.
21
In+e,t*ent G%&"e-&ne,
Investment in general is defined as use of money with an intention of making
more money or profit. he use of money could be in many ways like purchase of
property, purchase of vehicles, investing in financial assets like mutual funds,
government securities and so on. he ultimate aim of all investments would be to earn
a sum as profit which is called as the return on investment
he idea of investing in various options is a result of demand, where in one
person would be in need for money and the other person who has sufficient money is
interested in making some profits out of the same. It is interesting to know that how
these two people with a matching demand and supply meet. And the process is being
made easier now a days with various investing in India consultants booming down
very lane and all major banks competing with one another to give investment advice
to their customers
.oing further into the investing in India options available the points that any
individual would be looking at the return on investment, the time period involved and
the authenticity of the return. >y rate of return we would mean the percentage of
profit that we would be getting on the amount invested.
20
A ,&*p-e e;'*p-e (or t#&, N
4et7s assume ; invests 's.1?? in a >ank Deposit for 2<9 days and at the end of 2<9
days he gets back 's.1?C. in this case the rate of return would be CL per annum, the
time period involved in this investment in 2<9 days and the authenticity of the return
would be the certificate given by the bank for the investment that you make. >est
advice would be that before we go in make some investments the points to ponder
would be your risk1appetite and investment objective. 'isk would be high on market
and economy related investments where as on the contrary there would be completely
)I4 risk in government securities. he return would be nominal in .overnment
securities and high in market related investments.
Drilling down on the topic of investing in India options in India the areas that
are most opted for sorted on the level importance would be real estate for long term
investments and mutual fund investments, stock market investments, -ixed return
.overnment securities for short term investments.
Bene(&t, o( &n+e,t&n$ 't 'n e'r- '$e
It7s known that inflation eats into savings. Investing early in life can help youB
Be't &n(-'t&on3 Inflation is the tendency of prices to rise over time giving your
money less buying power each year. herefore if you invest your money wisely, you
might earn returns that match or beat the rate of inflation. Oou shall reap the benefits
during your retirement years Dthe time period when one does not wish to compromise
too much on the standard of livingE.
22
Bene(&t (ro* co*po%n"&n$3 :ompounding is when an investment gives you
returns on the money you originally invested as well as on the returns you have
gained so far from that investment. -or example, imagine you invest F1,??? into an
investment that gives you a 9 percent rate of return each year. Oear on year, you
would get a 9 percent return on both your original F1,??? and on the other returns
youHve earned so far. +laborating on this, lets review the following1
In one year, you would have F1,?9? DF1,??? plus 9 percent, or F9?E.
In two years, you would have F1,1?0.9? DF1,?9? plus 9 percent, or F90.9?E.
And in 09 years and you would have F2,3C1.0A Dwithout investing a penny after the
original F1,???E.his is the magic of compounding wherein you triple your money in
09 years.
M&,t'2e, &n+e,tor, ,#o%-" ne+er *'2e /#&-e &n+e,t&n$
hinking that customer should have loads of money to invest. It is in fact the
other way round. ,ne can start investing with a just small amount and the
earlier you start, the more time your money has to compound and grow.
Investing for shorter duration because customer do not want your money to be
lying somewhere else. 'emember, investing for the long term Dfive years or
longerE can not only help you how to invest meet a range of different goals, it
gives your portfolio time to recover from any losses in the market.
23
#elling investments in a panic when the market is down or rush to buy PhotP
investments unless they truly suit your long1term goals.
rading too much is not advisable. If your portfolio has high turnover you
could face high trading costs and capital gains taxes.
Investing money to avoid taxes. ,ne should be aware of the tax implications
of their actions, but the first objective should always be to make a
fundamentally sound investment decision.
Ignoring return calculations. Always calculate the post1tax effective yield for
each investment made.
Invest, monitor and review customers portfolio from time to time. >e
disciplined and your money will work harder for you.
29
2<
CHAPTER A
PORTFOLIO MANAGEMENT
2=
INTROD!CTION TO PORTFOLIO
MANAGEMENT
-irst, a definition of portfolio in the I>( view, a portfolio isB
... ,ne of a number of mechanisms, constructed to actuali!e significant elements in
the +nterprise >usiness #trategy.
It contains a selected, approved, and continuously evolving, collection of
Initiatives which are aligned with the organi!ing element of the /ortfolio, and, which
contribute to the achievement of goals or goal components identified in the +nterprise
>usiness #trategy.
he basis for constructing a portfolio should reflect the enterprise7s particular
needs. -or example, you might choose to build a portfolio around initiatives for a
specific product, business segment, or separate business unit within a multinational
organi!ation.
/ortfolio management is the process of managing money, including
investments, budgeting, banking and taxes. he portfolio management process
involves formulating, modifying and implementing a real estate investment strategy in
light of an investorHs broader overall investment objectives. It also can be defined as
the management of several properties owned by a single entity.
It is the art and science of making decisions about investment mix and policy,
matching investments to objectives, asset allocation for individuals and institutions,
and balancing risk vs. performance
2C

he '&* o( Port(o-&o M'n'$e*ent &, to 'c#&e+e t#e *';&*%* ret%rn (ro*
port(o-&oC /#&c# #', )een "e-e$'te" to )e *'n'$e" ) 'n &n"&+&"%'- *'n'$er or
(&n'nc&'- &n,t&t%t&on. T#e *'n'$er #', to )'-'nce t#e p'r'*eter, /#&c# "e(&ne '
Goo" &n+e,t*ent &.e. ,ec%r&tC -&.%&"&t 'n" ret%rn. he goal is to obtain the
highest return.
T#e re-'t&on,#&p )et/een risk 'n" return is one of the essential concepts to
understand when investing and it is uniGue for every investor, the personal risk
tolerance could be influenced by current world events, investments experiences even
your inherited views on saving and investing r the client of the managed portfolio.
ADVANTAGES OF PORTFOLIO MANGEMENT
0:1 In"&+&"%'-- *'n'$e" 'cco%nt,G /rovides a flexible format for optimi!ing
returns through effective fund management.
0<1 C%,to*&Ie" port(o-&o,G ailor1made investment strategies to suit individual
reGuirements.
0>1 In"&+&"%'-- *'n'$e" 'cco%nt,G /rovides a flexible format for optimi!ing
returns through better information supportIclient servicing regular investments
disclosures make the investor feel comfortable and in control of his money.
041 S%pport&+e t'; ,tr%ct%reG ax changes support rise in eGuity, there is a cut in
capital gains tax on listed eGuitiesB
i. )I4 for holdings greater than 10 months
ii. 1?LDfrom 2?LE for holdings less than 10 months
0@1 SEBI re$%-'te"G A regulated industry makes the investor feel comfortable with
the investments techniGues adapted to optimi!e returns.
2A
SCOPE OF PORTFOLIO MANAGMENT
he portfolio management is vast in nature. It is intended to provide a bird7s1
eye view of the client7s assets. he portfolio manager has to have bottomless
knowledge of markets, funds etc. :onsidering this fact, the scope of the portfolio is
defined to satisfy following objectivesB
#tudy and compare various investment and attributes
*nderstand the necessity of portfolio management
#tudy and apply the portfolio management process
*nderstand client7s desires, investment potential and risk taking
approach
Identify various investment alternatives that can fit in client7s profile
/rovide the client an appropriate asset allocation mix based on certain
factors like time hori!on, risk tolerance etc.
Re$%-'r- *on&tor c-&entD, port(o-&o 'n" t'2e correct&+e 'ct&on, &(
e,,ent&'-
Attain the investment objective by strengthening the client7s portfolio
in the best possible way
3?
OB7ECTIVES OF PORTFOLIO
MANAGMENT
1 .S'(et O( F%n"G he investment should be preserved, not be lost and remain in the
returnable position in cash or kind.
0. L&.%&"&tG /ortfolio must consists of such securities which could be en cashed
without any difficulty or involvement of time to meet urgent need for funds.
2. Re',on')-e ret%rnG he investment should earn a reasonable return to up keep the
declining value of money and must be compatible with opportunity cost of money in
terms of current income in the form of interest or dividend.
3. Apprec&'t&on &n C'p&t'-G he money invested in portfolio must grow and result
into capital gains.
9. T'; p-'nn&n$G +fficiently portfolio management is concerned with composite tax
planning covering income tax, capital gains tax , wealth tax, and gift tax.
<. M&n&*&Ie r&,2G 'isk avoidance and minimi!ation are important are most important
objectives of portfolio management. /ortfolio managers must ensure these objectives
by effective investment planning and periodical review of market, economy etc.
=. M'r2et')&-&tG he investment made in securities made in securities should be
marketable that means , the securities must be listed and traded in stock exchange so
31
as to avoid risk and difficult in their encashment . (arketability ensures liGuidity to
the portfolio.
Tpe, o( Port(o-&o,
Aggressive Portfolio
Aggressive /ortfolio consists almost entirely of eGuities. As such, with a very
aggressive portfolio, your main goal is aggressive capital growth over a long term
hori!on. #ince these portfolios carry a considerable amount of risk, the value of the
portfolio will vary widely in the short term. his strategy might be appropriate for
investors who seek $igh growth and who can tolerate wide fluctuations in market
values, over the short term.

30
32
Growth Portfolio
.rowth portfolios mainly consist of eGuities, so these portfolios7 value tends
to fluctuate widely. If you have an aggressive portfolio, your main goal is to obtain
long term growth of the capital. As such the strategy of an aggressive portfolio is
often called a 5capital growth strategy. o provide some diversifications, investors
with aggressive portfolios usually add some fixed1income securities. his strategy
might be appropriate for investors who have a preference for growth and who can
withstand significant fluctuations in market value.

33
Balanced Portfolio
>alanced portfolio are often referred as 5(oderately Aggressive portfolios6 since
the asset composition is divided almost eGually between fixed1income securities and
eGuities in order to provide a balance of growth and income.
#ince these moderately aggressive portfolios have a higher level of risk than those
conservative portfolios mentioned above, select this strategy only if you have a longer
time hori!on Dgenerally more than five yearsE, and have a medium level of risk
tolerance. his strategy might be appropriate for investors who want the potential for
capital appreciation and some growth, and who can withstand moderate fluctuations
in market values

39
Conservative Portfolio
hese types of portfolios generally allocate a large percent of the present
portfolio to lower risk securities such as fixed1income and money market securities.
he main goal with a conservative model portfolio is to protect the principal value of
your portfolio. As such these models are often referred to as 5:apital /reservation
portfolios6.
+ven if they are very conservative and prefer to avoid the stock market
entirely, some exposure can help offset inflation. hey could invest the eGuity portion
in high Guality blue chip companies, or an index fund, since the goal is not to beta the
market. his strategy may be appropriate for investors who want to preserve their
capital and minimi!e fluctuations in market value.

3<
INVESTMENT STRATEG8 IN PMS
0:1 Foc%, on ,e-ectEc-e'r ,toc2 opport%n&t&e,G Investments in stocks where there is a
clear earnings visibility.
0<1 Re-'t&+e- concentr'te" port(o-&oG A portfolio composition of not more than 091
2? stocks of what there are compelling opportunities.
0>1 !,'$e o( "er&+'t&+e, ', ' too-G ,ne must have a selective use of derivatives in
various options to enhance returnsIportfolio protection.
041 F-e;&)-e c',# '--oc't&on ,tr'te$G %e have an efficient allocation among assets
with flexibility to sit on 1??L cash.
T#e Port(o-&o Str%ct%re
A portfolio structure identifies and contains a number of portfolios. his
structure, like the portfolios within it, should align with significant planning and
results boundaries, and with business components. If customers have a product1
oriented portfolio structure, for example, then you would have a separate portfolio for
each major product or product group. +ach portfolio would contain all the initiatives
that help that particular product or product group contribute to the success of the
enterprise business strategy.
3=
T#e Port(o-&o M'n'$er
his is a new role for organi!ations that embrace a portfolio management
approach. A portfolio manager is responsible for continuing oversight of the contents
within a portfolio. If you have several portfolios within your portfolio structure, then
you will likely need a portfolio manager for each one. he exact range of
responsibilities Dand authorityE will vary from one organi!ation to anotherone, but the
basics are as followsB
,ne portfolio manager oversees one portfolio.
he portfolio manager provides day1to1day oversight.
he portfolio manager periodically reviews the performance of, and
conformance to expectations for, initiatives within the portfolio.
he portfolio manager ensures that data is collected and analy!ed about each
of the initiatives in the portfolio.
he portfolio manager enables periodic decision making about the future
direction of individual initiatives.
Ho/ t#e Port(o-&o M'n'$e*ent Ser+&ce /or2,
Investors sit down with one of the advisers and discuss exactly what they are
trying to achieveJ whether it is income, growth or a combination of the two, the level
of risk with which you feel comfortable and whether service is appropriate for them.
If investors decide to precede the portfolio will then be managed by specialist
investment team, headed by who look over the portfolios constantly, reacting instantly
to changes and taking investment decisions on your behalf.
3C
hese decisions are based on many years of experience, a deep understanding
of the market and the latest, most comprehensive investment research. As everyone
know, better results almost invariably derive from better information, more
experience and greater understanding.
%hat impact could this have on investors portfolioQ
-ive years ago (r. 'amikbhai, after careful consideration, invested in funds he
considered right for his portfolio. #ince then, some funds have under1performed and
he has held on to them, hoping they will do better. $owever, many of these funds will
not recover and, with hindsight, they should have been replaced when they started
under1performing.
It is a common story. (any investors are emotionally attached to their decisions Dwe
hate to feel we are wrongE and others are too busy to stay fully informed or react
swiftly.
+very time your funds under1perform, you lose in two waysJ through the money you
lose and the money you could have gained elsewhere.
A professional manager is impartial and does little else but watch and consider what is
happening in the markets so as to make what he thinks are the right decisions faster.
3A
IN!""!#AI$NS%IP A&$NG 'A"I$(S P%AS!S $)
P$")$#I$
9?
#/+:I-I:AI,) ,- I)"+#(+) ,>M+:I"+#
A)D :,)#'AI)
:$I,:+ ,- (I; A##+#
-,'(*AI,) ,-
/,'-,4I, #'A+.O
#+4+:I,) ,- #+:*'I+#
/,'-,4I, +;+:*I,)
/,'-,4I, '+"I#I,)
/,'-,4I, +"A4*AI,)
CHAPTER =
INVESTMENTS AVEN!ES
91
INVESTMENT AVEN!ES
V'r&o%, opt&on, '+'&-')-e (or &n+e,t*ent 're
P#,&c'- ',,et, like 'eal +state, :ommodities etc.
Re'- e,t'te *'r2et is something that is always glowing like the )ew Oork
:ity. he reason being that this market has very rarely seen a downslide. 'eal estate
market in a common man terms would mean dealing in property which would include
purchase and sale of land and building. It could be both commercial space and
residential property. :ommercial space would mean the property that is purchased or
occupied for business purposes by small to large corporate houses. ,ne undeniable
reason why Indian real estate market has been a boom is due to the increasing number
of (ulti )ational :ompanies thronging the Indian 4and. he want for space is always
90
increasing with government in India giving additional concessions and recognition to
:orporate engaged in building I parks and commercial complex.
he best thing about real estate business is that every investor is bound to end up with
a sure margin of profit though the amount of profit may vary based on our bargaining
skills and the need of the buyer. /eople also engage in speculative business by
purchasing barren lands in under developed areas for a very minimal cost and wait for
couple of years till all necessary infrastructure is developed in that locality and then
sell the land at a huge profit. ,n the other side residential properties are also on the
increase. ,ne main reason behind this being that the $ousing Development
:orporation of India is promoting big 'esidential >uildings and all banks offer credit
to customers for purchase of property. his way majority of the population will end
up owing a property. And icing on the cake is that the value of the property is always
down to increase and would never decrease as such we would be assured about our
share of profit
COMMODITIES futures are contracts to buy specific Guantity of a particular
commodity at a future date. It is similar to the Index futures and #tock -utures but the
underlying happens to be commodities instead of #tocks and Indices. :ommodity
exchanges are regulated by -orward (arket :ommission D-(:EJ -orward market
:ommission works under the purview of the ministry of food, Agriculture and /ublic
Distribution. :ommodity prices are generally less volatile than the stocks and this has
been statistically proven. herefore it7s relatively safer to trade in commodities. Also
the regulatory authorities ensure through continuous vigil that the commodity prices
are market1 driven and free from manipulations.
92
M'jor Co**o"&t E;c#'n$e,
he .overnment of India permitted establishment of )ational1level (ulti1
:ommodity exchanges in the year 0??0 and accordingly three exchanges come in
picture. hey areB
(ulti1:ommodity +xchange in India 4td, (umbai D(:;E.
)ational :ommodity and Derivative +xchange of India, (umbai D):D+;E.
)ational (ulti :ommodity +xchange, Ahmadabad D)(:+E.
$owever there are regional commodities exchanges functioning all over the
country. #harekhan :ommodities >roking /vt. 4td has got membership of both the
premier commodity exchanges i.e. (:; and ):D+;.
F&n'nc&'- ',,et, such as -ixed Deposits with >anks, #mall #aving
Instruments with /ost ,ffices, InsuranceI/rovidentI/ension -und, (utual -und etc.
or #ecurities market related instruments like #hares, >onds, and Debentures etc.
L&(e In,%r'nce is a contract for payment of money to the person assured Dor to
the person entitledE depending on the event insured against. /ayment of amount
Ddepending on the type of policyE is made on the date of maturity or at specified
periodic intervals or at death Dif it occurs earlierE. hese policies involve periodical
payment of insurance premium by the assured to the corporation who provides the
insurance.
%hatever combinations your portfolio may comprise of, but do get yourself and your
family insured.
93
S'+&n$, Sc#e*e 'n" P%)-&c Pro+&"ent F%n" ,c#e*e, promoted by >anks.
*nder these options the rate of return is fixed and varies from CL to 1?L. he return
is paid in the form of interest usually half yearly I Guarterly. he time period for
investment ranges from 1 year to 1? years and even more if the individual desires so.
Another safe mode of investment would be >ank deposits. >anks accept deposits
from customers in different denominations and for varied time periods and offer a
return ranging from 9L to AL. he longer the duration of your investment the higher
would be the rate of return no the same. In the current market banks compete with one
another to attract customers by offering higher rates of interest.
M%t%'- (%n", 'n" ,toc2 *'r2et, a re the other arena where people can make
profit. >ut one major drawback to this option is its association with market conditions
and the economy of the country. he basic concept behind mutual funds is that one
institution collects funds from likeminded people by issuing mutual fund units and
invests the funds in various outlets. At the end of the time period the institution
distributes the profit earned among its members. he difference between the amount
invested and the amount returned would be the profit for an investor. he risk
involved in this case is that in case the institution faces loss, then the same also has to
be shared by the members which might result in getting a sum less than what we had
actually invested. hough the stock market and mutual funds investments are subject
to market risks, still many young people believe in investing in such options because
the yield is high in such investing in India and the turnaround time is also very less.
>ut word of caution is that you need to be a real watch dog about the market
99
conditions and must have the mind set to accept losses and gains in the same frame of
mind.
Bon", Individuals have surplus funds in the form of savings which they want to
invest. :ompanies need funds to undertake good projects with high returns.
:ompanies provide individuals with instruments to invest their savings in.
,ne such instrument is corporate bonds. #imilarly, governments also need funds for
various developmental projects. -urther, the government also needs to raise money to
finance the fiscal deficit. hey too tap the savings by issuing various kinds of bonds.
9<
CHAPTER 5
VIRT!AL PORTFOLIO
9=
VIRT!AL PORTFOLIO
0OF R, :? LACS1

TOTAL AMT INVESTED IN SHARES J A4<5@@ 0:=.?BK1
AMT INVESTED IN M!T!AL F!ND J <:???? 0<B.?AK1
INTRADA8 J :?????
OTHERS J 4=:4@
TOTAL :?????? 0<>.?5K1
SCRIPT
NO. OF
SHARES PRICE T.AMT
TARGET
PRICE
RET!RN
S

RIL =@ <@@4.5 :B:A:? >:<= <<.>BK
SBI :?? :@=>.<@ :@=><@ :=@<.AA ::.4?K
INFOS8S @? :5A<.4 B:<>? <<44.A <?.@<K
ITC A? <:>.A :<5:A <4?.@: :>.@<K
LLT >? <544.=@ 5@>4> ><@@.:: :4.4>K
RELIANCE IND!S.
INFRA A> :<4? =5:<? :4B?.=> <?.:AK
GOLDSTONE INFRA 4? @5.=@ <>@? =?.?A :B.<@K
DR REDD8S >@ A5=.4@ <4?A: =5=.:B :@.?:K

TOTAL 4@> A4<5@@ :=.?BK
9C
M.F NAV
INVEST
MENT RET!RNS

DBS CHOLA MONTHL8 INCOME PLAN :=.:5 A@??? <=.A?K
RELIANCE DIVERSIFIED PO6ER SECTOR GRO6TH A>.?4 B@??? 4@.=5K
FRANKLIN TEMPLTON ASSET MGMT GRO6TH >?.:5 @???? :@.4>K

TOTAL <:???? <B.A?K
C'-c%-'t&on o( T'r$et Pr&ce
:. T'r$et Pr&ce J Ne/ EPS M P.E R't&o
<. Ne/ EPS J L',t e'r EPS M Gro/t#
>. Gro/t# J Net 6ort# Ret%rn M Retent&on R't&o
9A
CHAPTER B
FINDINGS
<?
FINDINGS
On t#e )',&, o( re,e'rc# "one (o--o/&n$ 're t#e (&n"&n$,
TOTAL
POINTS
PORTFOLIO
STRATEG8
CLIENT PROFILE
19 N =? :A/IA4
/'+#+'"AI,)
:,)#+'"AI"+ I)"+','
#++&I). /'+#+'"AI,) ,-
:A/IA4 A)D A (,D+'A+
4+"+4 ,- I):,(+.
=1 N 109 I):,(+ I)"+#,' %I$ A 4,%
,4+'+):+ -,' 'I#&
#++&I)., A .'+A+' 4+"+4
,- I):,(+ %I$ #A>I4IO
,- /'I):I/A4
10< N 1A? .',%$ A)D I):,(+ 4+## :,)#+'"AI"+
I)"+#,' #++&I).
:*''+) I):,(+ /4*#
:A/I4A A//'+:IAI,).
1A1 N 09? .',%$ I)"+#,' %I$ #,(+
,4+'+):+ -,' 'I#&
#++&I).,:A/IA4
A//'+:IAI,) A)D
#+:,)DA'I4O I):,(+
091 N 2?9 A.'+##I"+ .',%$ +;/+'I+):+D I)"+#,'
%I44I). , A##*(+ A
.'+A 4+"+4 ,- 'I#& -,' A
/,+)IA44O .'+A+'.
<1
As per my findings a strong portfolio should go throughB
Analy!e result of survey
:ommunicate results to analysts
Accordingly research analysts give ideas
>ased on their research ideas managers create and manage portfolios
<0
CHAPTER :?
S!GGESTIONS

<2
S!GGESTIONS
To C-&ent,
#elling investments in a panic when the market is down or rush to buy PhotP
investments unless they truly suit your long1term goals.
Invest and monitor portfolio from time to time.
.reed makes invest without thinking twice. ,ne may land being a loser when
the desire to get more for less creeps in.
%hen fear strikes, one dreads to even take normal investment risks. Due to
this, one may lose on opportunities while investing in the market.
To F&r*
%ith the growing competition it needs to be more focused and give special
services to lead in market.
(ost of the client7s are connected through dial and trade service due to which
there is no direct connection i.e. seminars, get together etc should be
organi!ed.
-eedback should be taken by every customer regularly.
,rgani!e and make accessible a database of customer information.
<3
CHAPTER ::
LIMITATIONS
<9
LIMITATIONS
+very work has its own limitations. 4imitations are extent to which the process should
not exceed. he following limitations for the project areB
In+e,tor &$nor'nce was faced during discussions with respondents as the
topic is related with their income part so respondents were a bit reluctant
towards disclosing their true feelings, so I have to first built up the trust 8
then talk about the investments.
T&*e con,tr'&nt, have also become a major limitation as 5/ortfolio
(anagement6 is such a vast subject which involves in1depth study analysis.
#ome c-&ent, 're not '/'re o( t#e *'r2et ,cen'r&o and to make them
understand from basics was a problem. Also at times they panic to the market
movements which was difficult to tackle with.
Gett&n$ 'ppo&nt*ent, with people was difficult as most of the people were
busy and it was difficult to contact them again and again.
Peop-e pro+&"e ('-,e "'t' as they were scared about providing actual data
such as net income, premium paid etc.
<<
CHAPTER :<
CONCL!SION
<=
CONCL!SION
%hen we talk about 5/ortfolio (anagement #ervices6 it all start from making
a decision about what to invest and where to invest. All the advisory is done once the
financial advisor analyses the actual need of the customers, and this all is done once
we know what to offer and when to offer.
heir is lot of scope of promoting /(# in /une as in the present scenario the
Investors are not well versed with the various investment avenues present in the
market. hey always seek for financial help for good 5:apital Appreciations6 as the
annual packages offered to them are Guite high so they need to plan accordingly 8
that is the right time when we come into the picture, with best of the /(# which we
can offer.
here is great opportunity as there is a rise in number of people who want
to invest in share market but don7t have time and knowledge to do so, also these
people want to take risk .%ith booming market and falling interest rate of bank
deposits, people see mutual funds as an attractive financial tool which provide a high
return rate at lower risk as compared to eGuity market. Ooung people these days are
particularly more interested as these people have large disposable incomes and risk
taking capability too. Advertising can also play a major part as it has been seen that
people buy looking at the brand name.

<C
%hile offering them the 5/ortfolio (anagement #ervices6 we see that we offer them
the best after carrying out the total analysis on various schemes running in the market
we give them what satisfies their need the most efficiently.
According to the respondents the Guality of the service is very important.
#o the company should project itself as a brand in the market that gives end user the
best Guality of service with handy operations. Also most of the respondents have their
personal consultant or company consultants, #harekhan 4D. have to differentiate
their services from other consultant effectively by delivering value added services to
its customers. Also organi!ations have to concentrate on direct marketing activities.
he consultancy should develop its long term relationship with the customers. he
consultancy must give much more emphasis on creation of customer who make
repurchase.
<A
CHAPTER :>
BIBLIOGRAPH8
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=1
CHAPTER :4
ANNE9!RE
=0
ANNE9!RE
N%e,t&onn'&re
N'*e G
A""re,, G

C&t G
P&n G
Cont'ct '""re,, G

Te-ep#one G
D'te o( )&rt#G
Se; G
M'r&t'- St't%, G
E"%c't&on'- N%'-&(&c't&on, G
N:1 6HAT IS 8O!R AGEH
o 1C N 0A 3?
o 2?1 33 2?
o 391 93 0?
o 99 N <3 1?
=2
o A>,"+ <9 ?
N<1 HO6 MAN8 FINANCIAL DEPENDENTS DO 8O! HAVEH
o ),)+ 19
o 1 1?
o 0 N 2 9
o (,'+ $A) 2 ?
N>1 6AHT IS 8O!R EMPLO8MENT STAT!SH
o -*44 I(+ +(/4,O+D 0?
o /A' I(+ +(/4,O+D 1?
o #+4- +(/4,O+D 19
o ), +(/4,O+D ?
o '+I'+D 9
=3
N41 DESCRIBE 8O!R F!T!RE EARNING POTENTIALH
o -A' ,*/A:+ I)-4AI,) 3?
o #,(+%$A ,*/A:+ I)-4AI,) 2?
o &++/ /A:+ %I$ I)-4AI,) 0?
o 4+## $A) I)-4AI,) 1?
o '+I'+D 9
N@1 DO 8O! HAVE AN EMERGENC8 F!NDH
o ), ?
o S $A) 2 (,)$ A-+' A; I):,(+ 9
o S $A) < (,)$# A-+' A; I):,(+ 1?
o O+#, AD+T*A+ +(+'.+):O -*)D 0?
NA1 IF 8O! INVEST NO6C 6HEN 6ILL 8O! NEED THAT MONE8H
o ? N 9 O+A'# 9
o < N 1? O+A'# 1?
o 11 N 0? O+A'# 19
o 01 O+A'# A>,"+ 0?
=9
=<
N=1 IF 8O! INVEST NO6C 6HAT K OF 8O!R TOTAL INVESTABLE ASSETS
DOES THIS REPRESENTH
o 09 L ,' 4+## 0?
o 9? L ,' 4+## 1?
o =9 L ,' 4+## 9
o 1?? L ?
N51 6HEN I INVEST MONE8C M8 PRIMAR8 GOAL IS TOG
o /'+#+'"+ $+ "A4*+ ,- (O I)"+#(+) ?
o +(/$A#IU+ :*''+) I):,(+ 1?
o /'I(A'I4O .+)+'A+ :*''+) I):,(+
%I$ #,(+ .',%$ 0?
o /'I(A'I4O .+)+'A+ :*''+) I):,(+
%I$ #,(+ I):,(+ 2?
o $A"+ #*>#A)IA4 4,). +'( .',%$ 3?
NB1 THE APPROPRIATE LOSS IN AN8 : 8EAR PERIOD THAT I 6O!LD BE
6ILLING TO ACCEPT ISG
o (I)I(*( 4,## ?
==
o 9 N 1? L 1?
o 1? N 0? L 19
o 0? L ,' (,'+ 2?
N:?1 IF M8 INVESTMENT LOSES :? K AFTER : MONTHC AND THAT IS
CONSISTENT 6ITH THE OVERALL MARKETC I 6O!LD SELL PORTION OF
M8 RISKIER ASSETS AND P!T THE MONE8 INTO SAFER ASSETS.
o #',).4O A.'++ ?
o DI#A.'++ 9
o A.'++ 1?
o #',).4O DI#A.'++ 0?
N::1 HO6 CRITICAL IT IS THAT 8O! HAVE ACCESS TO 8O!R INVESTMENT
CAPITAL IN CASE OF EMERGENC8 OR OTHER INVESTMENT
OPP!RT!NITIES
o +;'+(+4O I(/,'A) ?
o I(/,'A) 1?
o #4I.$4O I(/,'A) 19
o ), I(/,'A) A A44 2?
=C
N:<1 IN 6HICH ARE MOST OF 8O!R C!RRENT INVESTMENT F!NDH
o >A)& :Ds ,' #A"I). A::,*)# ?
o >,)D# 1?
o (**A4 -*)D# 0?
o +T*IO 2?
o ,%) >*#I)+## 2?
=A