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CHAPTER

S
CONTENTS Page. No
Chapter 1
INTRODUCTION 1-5
Objective of the study
Scope 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


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 risk
characteristics 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:
&
"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
+
,uration Period & months
-ample si.e / 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:
1nly 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.
1ne 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
RESEARCH METHODOLOGY
(ethodology is a systematic procedure of collecting information order to analy.e 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, maga.ines, news papers, etc. "he
organi.ation profile is collected from 6ranch (anager 7)88$)9 5:P;5--.
0
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<variance among
returns of individual securities. Portfolios, which are combination of securities, may
or may not take on the aggregate characteristics of their individual parts.
-ince portfolios e'pected return is a weighted average of the e'pected return of
its securities, the contribution of each security the portfolios e'pected returns
depends on its e'pected returns and its proportionate share of the initial portfolios
market value. )t follows that an investor who simply wants the greatest possible
e'pected return should hold one security! the one which is considered to have a
greatest e'pected return. =ery few investors do this, and very few investment advisors
would counsel such and e'treme policy instead, investors should diversify, meaning
that their portfolio should include more than one security.
>
NEED FOR PORTFOLIO MANAGEMENT:
Portfolio management is a process encompassing many activities of investment in
assets and securities. )t is a dynamic and fle'ible concept and involves regular and
systematic analysis, *udgment and action. "he ob*ective of this service is to help the
unknown and investors with the e'pertise of professionals in investment portfolio
management. )t involves construction of a portfolio based upon the investors
ob*ectives, constraints, preferences for risk and returns and ta' liability. "he portfolio
is reviewed and ad*usted from time to time in tune with the market conditions. "he
evaluation of portfolio is to be done in terms of targets set for risk and returns. "he
changes in the portfolio are to be effected to meet the changing condition.

?
CHAPTER-3
COMPANY PROFILE
$irca 1990 group of professional formed a company called Probity ;esearch
@ -ervices Pvt 9td. "he name was later changed to ;eligare -ecurities
9imited. "he 1b*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 9ever,
6anks like $itibank, ;ating agencies like $;)-)9, ,@6, 7)s, foreign brokers
as well as leading )ndian brokers.
1ne fine morning in early 1999, a colleague had a cra.y idea that if the
company made all the research available free on the web, the number of users
may well *ump from &0A to &.0 million. "o make it true, the business required a
reincarnation. nd the pre<requisite was a death. )t meant that the company put
up all the information free on the website and let go of all the revenues and
profits. Borse, if the new avatar failed, there would be no comebacks.
"he company became heavily dependent on its e<broking business for survival.
"he odds were against them. "here was no money available from the private
equity investors at any valuation. "he core promoters of the company had little
e'perience of broking. "o add to it, the market was hit by a scam. "hey also
had their share of price to pay and lessons to learn. )t was difficult to retain
people. lthough devastating for morale, but not surprising, most market
observers had written them off.
C
Ou K!" M#$!%&'(!%:
)ncorporated on 1ctober 1C, 1990 as Probity ;esearch @ -ervices.
9aunched )nternet portal www. ;eligare -ecurities 9imited.com in (ay 1999.
$ommenced distribution of personal financial products like (utual 7unds
and ;6) 6onds in pril &AAA.
9aunched 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 9ife )nsurance.
6ecame a depository participant of 8-,9 in -eptember &AA1.
9aunched stock messaging service in (ay &AA+.
cquired commodities broking license in (arch &AA3.
9aunched portfolio management services in ugust &AA3.
9isted 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 9oan products, in 1ctober &AA0.
cquired 1AAE equity of (archmont $apital dvisors Pvt 9td in
,ecember &AA0 through which we have ventured into (erchant 6anking.
,-P (errill 9ynch $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 +1
st
(arch &AAC.
6ennett $oleman @ $o 9td F6$$9G invested ;s.&A crores in )ndia )nfoline
by way of preferential allotment in ,ecember &AA0.
6ecame a depository participant of $,-9 in Dune &AA>.
(erger of )ndia )nfoline -ecurities Private 9imited with )ndia )nfoline
9imited in Danuary &AAC.
9
Ou M)()*!+!(& T!)+:
(r. 8irmal Dain F$hairman and (anaging ,irectorG
8irmal Dain is the founder and $hairman of )ndia )nfoline 9td.
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<promoter and 5'ecutive ,irector of )ndia
)nfoline 9td.
2e holds a 6."ech degree in 5lectronics and 5lectrical $ommunications
5ngineering from ))" Hharagpur and an (6 degree from ))( 6angalore.
2e has held the position of ssistant =ice President with I 5 $apital
-ervices )ndia 9imited in their private equity division.
T,! B')- '. D#!/&'%
M0 S)& P)$ K,)&&) 1N'( E2!/u&#3! D#!/&'4
(r. -at Pal Hhattar *oined the 6oard with effect from pril &A, &AA1.
(r. -at Pal Hhattar is a lawyer by profession.
2e is a director of a number of public companies in -ingapore and )ndia.
M0 S)(5#3 A,u5) 1I(-!6!(-!(& D#!/&'4
(r. -an*iv hu*a *oined the 6oard with effect from ugust &C, &AA&.
(r. hu*a graduated from 8ational Jniversity of -ingapore with a degree
in $omputer -cience and is also a $ertified Public ccountant.
1A
M0 N#$!%, V#7)+%!" 1I(-!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#(,) 1I(-!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 9imited,
9arsen @ "urbo 9imited @ 9)$279 $are 2omes 9imited.
Ou V#%#'(
will not be accomplished only by maintaining high growth alone. 1ur vision is
to emerge as the most respected financial services company in )ndia. 8eedless
to emphasi.e that it is imperative for all us to align our personal goals and
values to this vision.
K('8$!-*!:
lways keep yourself up<to<date by reading newspapers like 5conomics
"imes, 6usiness standard and 6usiness 9ine daily. Passing 8$7(, (7),
);, e'ams also help you to get basic domain understanding.
Be are in a knowledge industry and hence we cannot afford to go to a client
and appear ignorant and foolish by not even knowing basic things.
11
T!/,('$'*":
6y technology, we mean that as an organi.ation, we leverage technology to
deliver best service to our clients at the least cost.
1ur trading interface for broking is absolutely world class.
Be e'pect our employees to be comfortable with and confident of using
technology.
S!3#/!:
1ur customer service is warm, friendly and responsive that media cannot
help but rave about. "oday, service is the key driver for growth in financial
services. Be take pride in our ability to add value that our customers can
feel and appreciate.
;emember we have to always ensure that simple things like ensuring customer
problems are solved, requests are catered to, giving him investment ideas etc.
6asically, whatever it takes to keep him served
1&
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'imi.e 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<systematic risks and achieve the specific
ob*ectives of investors
RISK ON PORTFOLIO :
"he e'pected returns from individual securities carry some degree of risk.
;isk on the portfolio is different from the risk on individual securities. "he risk is
reflected in the variability of the returns from .ero to infinity. ;isk of the individual
assets or a portfolio is measured by the variance of its return. "he e'pected return
depends on the probability of the returns and their weighted contribution to the risk of
the portfolio. "hese are two measures of risk in this conte't one is the absolute
deviation and other standard deviation.
1+
(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
13
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!%'(% #(3'$3!- #( 6'&.'$#' +)()*!+!(&/
I(3!%&':
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.
10
"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#/!1R%4
E(-#(*
6#/!1R%4
D#3#-!(-1R%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(<D#3#-!(-=1E(-#(* P#/!-B!*#((#(* 6#/!4
B!*#((#(* P#/!

R!&u(12>>?4< @0A>=12BA0;A-1;10;A4 C 1>> < 11;01@D
1;10;A
R!&u(12>>@4 < @0A>=13@103A-2B@0B>4
C 1>>
< 2@01@D
2B@0B>
R!&u(12>>E4 < E0A>=1AEA0>A-3@A4
C 1>>
<AE02ED
3@A
R!&u(12>>B4 < E0A>=1EB10A-AE@0@>4
C 1>>
<A3013D
AE@0@>
R!&u(12>1>4 < 1>0>>=1123E0@-EB24
C 1>>
<3B0BED
EB2
1>
CALCULATION OF RETURN OF HDFC

R!&u(<D#3#-!(-=1E(-#(* P#/!-B!*#((#(* 6#/!4
B!*#((#(* P#/e

R!&u(12>>?4 < 3=1?;A0AA-3AE0A4
C1>>
<E>0BD
3AE0A

R!&u(12>>@4 < 30A>=1@?B0>A-?;A0B4
C 1>>
<1B0?>D
?;A0B
R!&u(12>>E4 < ;0A>=112>@-@@14
C 1>>
<A@013D
@@1
R!&u(12>>B4 < A0>>=11?2?0B-11BA4
C 1>>
<3?0?D
11BA0B
R!&u(12>1>4 < @0>>=12E@@0@A-1?3>4
C 1>>
<@?0B@D
1?3>
Y!) B!*#((#(*
P#/!
E(-#(* 6#/! D#3#-!(-
2>>? 3AE0A ?;A0AA 3
2>>@ ?;A0B @?B0>A 30A>
2>>E @@1 12>@ ;0A>
2>>B 11BA 1?2?0B A0A>
2>1> 1?3> 2E@@0@A @0>>
1?
C)$/u$)&#'( '. %&)(-)- -!3#)&#'( '. ICICI
Lear
;eturn F;G
M
;
M
;<;
M
F ;<; G
&

&AA> 113.? 0C.>0& 0>.A3C +3C>.>
&AA? &?.1? 0C.>0& <+1.3C& 991.11
&AAC 0C.&C 0C.>0& <A.+?& A.1+C+C3
&AA9 0+.1+ 0C.>0& <0.0&& +A.39&
&A1A +9.9C 0C.>0& <1C.>?& +3C.>3
&9+.&> 3C0>.9C

M
verage F;G N ; N 2B302? N 0C.>0&
8 0

M
=ariance N 1 F;<;G
&
n<1
-tandard ,eviation N =ariance
N 1 F119A0.+?9G
0<1
< +3.C3>
1C

C)$/u$)&#'( '. %&)(-)- -!3#)&#'( '. HDFC
Lear
;eturn F;G
M
;
M
;<;
M
F ;<; G
&

&AA> CA.9 03.&3 &>.>> ?1A.?0
&AA? 19.>A 03.&3 <+3.>3 1199.9&
&AAC 0?.1+ 03.&3 &.C9 C.+0&1
&AA9 +>.> 03.&3 <1?.>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;<;G
&
n<1

-tandard ,eviation N =ariance
N 1 F&3?>.CG
0<1

< 2;0EE

19
C'!$)&#'( 9!&8!!( HDFC F ICICI
Lear
,5=)")18172,7$
MMM
;<;
,5=)")18 17 )$)$)
MM
;6<;6
$1(6)85, ,5=)")18

MMM MMM
F;<; G F;6<;6G
&AA> &>.>> 0>.A3C 1393.&3
&AA? <+3.>3 <+1.3C& 1A9A.0
&AAC &.C9 <A.+?& <1.A?0
&AA9 <1?.>3 <0.0&& 9?.31
&A1A &&.?+ <1C.>?& <3&3.3
&&0>.>?0
(
$o<variance F$1=
6

G N1#n F;<;G F;6<;6G
&<1
$o<variance F$1=
6

GN1#0 F&&0>.>?0G

N301.++0
$orrelation % $oefficient FP
6
G N $1=
6

F-td. G F-td. 6G
N 301.++0
F&3.CCG F+3.C3>G
N A.0&A>
&A

STANDARD DEVIATION
COMPANY STANDARED DEVIATION
HDFC
2;0EE
ICICI
3;0E;?


&1
P'&.'$#' !&u( R6

ICICIFHDFC 11;02;
ITCFCOLGATE 2?0E3A
WIPFRAN 3A0>E1A
CIPLAFRANBAGI 1023;
MFM FBAJAJ 1220?1
INTERPRETATION:

T,! )9'3! &)9$! %,'8% 6'&.'$#' !&u( '. HDFCFICICI H
WIPROFRANHITCFCOLGATEHCIPLAFRANBAGYHMFMFBAJAJ
/'+6)("I%0&,! /'+6)(" ,)% &,! ,#*,!%& 6#/! '. 1220?1 F $'8!%& 6#/! '. 103;
&&
P'&.'$#' #%7

ICICIFHDFC 3101;
WIPROFRAN 3A012
ITCFCOLGATE 220@@
CIPLAFRANBAGI ;B0;3
MFM FBAJAJ 1@1022
INTERPRETATION
T,! )9'3! &)9$! %,'8% 6'&.'$#' #%7 '. HDFCFICICI H
WIPROFRANHITCFCOLGATEHCIPLAFRANBAGYHMFMFBAJAJ
/'+6)("%0&,! /'+6)(" ,)% &,! ,#*,!%& 6#/! '. 1@@02 F $'8!%& 6#/! '. 220@@

FINDINGS
&+
,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 OreturnsP 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
ICICIFHDFC
"he combination of )$)$) and 2,7$ gives the proportion of investment is 1.1CA1
and A.C199 for )$)$) and 2,7$, based on the standard deviations "he standard
deviation for )$)$) is +3.C3> and for
2,7$ is &3.CC.
2ence the investor should invest their funds more in 2,7$ when compared to
)$)$) as the risk involved in 2,7$ is less than )$)$) as the standard deviation of
2,7$ is less than that of )$)$).
&3
BIBLIOGRAPHY

BOOKS
10 DONALDEH FISHER F RONALD J0JODON
SECURITIES ANALYSIS AND PORTFOLIO MANAGEMENTH?
TH

EDITION
20 V0K0BHALLA
INVESTMENTS MANAGEMENT S0 CHAND PUBLICATION0
30 V0A0AVADHANI0

INVESTMENT MANAGEMENT
W!9%#&!
;0 WWW0 )nvestopedia.com
A0 www.nseindia.com
?0 www.bseindia.com0
N!8%6)6!%F +)*)J#(!
DAIRY NEWS PAPERS0
ECONOMIC TIMEH FINANCIAL EGPRES0ETC
&0