A STUDY ON “PORTFOLIO AND RISK MANAGENT”

WITH REFERENCE TO

“ICICI PRUDENTIAL LIFE INSURANCE COMAPANY”

MADANAPALLE

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Name: L.Lakshmi Prasanna Project Guide:

[ Reg:100998048 ] Mr.K.NAGENDRA PRASAD, MBA.,

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INDUSTRY PROFILE:
ICICI GROUP PROFILE

ICICI Bank is India's second-largest bank with total assets of Rs. 3,446.58 billion (US$ 79
billion) at March 31, 2007 and profit after tax of Rs. 31.10 billion for fiscal 2007. ICICI Bank
is the most valuable bank in India in terms of market capitalization and is ranked third
amongst all the companies listed on the Indian stock exchanges in terms of free float market
capitalization*. The Bank has a network of about 950 branches and 3,300 ATMs in India and
presence in 17 countries. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and through
its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank currently has subsidiaries in the
 United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka
and Dubai International Finance Centre and representative offices in the United States,
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
Our UK subsidiary has established a branch in Belgium.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National ock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE)

COMPANY PROFILE

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank
and Prudential plc. It was one of the first players to commence operations when the
insurance industry was opened to the private sector in year 2000. Since inception the
company has written over 3.75 million policies. The company has a network of over
4,00,000 advisors & 22 bank assurance partners. It is also the only life insurer in India to
get IFS AAA (ind) rating, by Fitch Ratings. For the pas six years, ICICI Prudential has
retained its position as No.1 private life insurer in the country with a wide range of
flexible products that meet the needs of the Indian customer at every step in life.

OBJECTIVES OF STUDY:
• To identify and analyze risk, portfolio and return.
• To study ICICI Prudential Portfolio and risk regarding selection of
assets.
• To undertake the company analysis of the sample units of selected
industries.
• To evaluate the performance of securities of selected firms through
different performance evaluation techniques.
• To understand analyze and select a best portfolio.
NEED FOR STUDY:
ICICI Prudential Life Insurance has a number of funds for investors to invest.
The ICICI Maximiser is such a fund that offers the investors maximum
returns with minimum risk. But the company wants to know the risk and return
of the investors by analyzing the portfolio. Hence the study is taken.

RESEARCH METHODOLOGY :
The scope of the project is related to security form of investment particularly in
shares and setting a portfolio by using various risky shares. The selected of units is made
from specified category shares listed in ICICI Prudential. To achieve the objectives of
the present study the data ha been collected from the following sources.
SECONDARY DATA:
 Data collected from various books and websites.
 Data provided by ICICI Prudential as part of the classes undertaken.
 Data collected from newspapers and Internet.
 Date collected from Stock Exchanges.(BSE/NSE)
FINDINGS:

1. It is observed that average EPS of software sector is 26.71 with risk factor 0.675.
2. It is noted that average EPS of Pharmaceutical sector is 64.9 with risk factor 0.5;
which is maximum average EPS of all the sectors.
3. It is identified that average EPS of Telecom sector is 20.85 with risk factor is 1.2.
4. It is cleared that average EPS of Banking sector is 56.84 with risk factor (1.11).
5. It is found that average EPS of chemicals sector is 52.7 with risk factor 0.72.
6. It is identified that average EPS of cement sector is 38.9 with risk factor 0.92.
7. It is noted average EPS of steel sector is 11.41 with risk factor 0.83 with low
steady growth.
8. It is cleared that average EPS of FMEG sector is 11.42 with risk factor 0.58 with
steady low steady growth.
 9. It is observed that average EPS of automobile sector is 29.46 with risk factor 0.79.
10. It is identified that overall average EPS of maximum is in the Pharma sector.
It is observed that overall minimum average EPS ins in the steel sector

SUGGESTIONS:
1. It is suggested to invest more funds in the Infosys Technologies rather than
Satyam Computers because EPS is greater in Infosys than Satyam.
The company may also consider the Fund Manager to invest in the other
companies like
I-flex(EPS 64.3, β -1.3),
Tech-Mahindra (EPS 43.5, β -1.1 and
TCS (EPS 36.5, β - 0.9) to increase the returns of the company.
2. It is suggested that, to invest the funds in other Pharmaceutical companies like
Aurobindo Pharma (EPS-41.5, β -0.8),
IPCA Labs (EPS – 41.5, β -0.8),
YOTHY Labs (EPS – 162. β -1.3)
3. It is suggested that to allocate the funds in Telecom Sector in other companies
like
FCI OE connections (EPS-30.2, β -1.1)
Tulip IT (EPS-34.1, β -1.2)
VSNL (EPS – 16.1, β -0.7)
4. It is suggested that to invest the funds in more in the SBI rather than Axis Bank
because, EPS is very low in Axis than SBI. It is suggested that to invest the funds
in other companies like
J & K Bank (EPS-54.7, β -1.3)
Karur Vysya Bank (EPS-27.9, β -0.9)
ICICI Bank (EPS-25.8, β -08)
5. It is suggested that to invest the funds more in the Reliance Chemicals than Tata
Chemicals because EPS is more in the Reliance than Tata. It is suggested the
Fund Manger to invest other companies like
Tide Water oil (EPS – 101.1, β -1.4)
Panama Petro Chemicals (EPS-24.6, β -0.9)
Gujarat Alkalies (EPS-25.0, β -0.9)
 6. It is suggested that to invest more funds in the ACC cement rather than Ambuja
Cement because EPS of ACC is more than Ambuja cement.
It is suggested that to invest more funds in other companies like
J.K.cement Ltd (EPS-25-01, β -0.9)
Ultra Tech (EPS-62.3, β -1.2)
J.K.Lakshmi (EPS-30.1, β -1.0)

7. It is suggested that to invest more funds in the TATA steel rather than Sterite
Industries because EPS in more in TATA than Sterite.
It is suggested that to invest more funds in the other companies like
Bhshan Steel (EPS-73.1 β 1.3)
Jindal Saw (EPS-59.2, β - 1.2)
J&L Steel (EPS-75.0 β -1.4)
8. It is suggested that to invest more funds in Proctor & Gamble rather than Dabur
India because EPS is more in Proctor & Gamble than Dabur India. It is suggested
to invest more funds in the other companies like
Neelamalai Agrp (EPS-33.2, β -0.9)
CCL Products (EPS-27.4, β -0.8)
Parry Agro Industrial FPO – 84.6, β -1.3)

9. It is suggested that to invest more funds in the Mahindra & Mahindra rather than
TVS Motor Company because EPS of Mahindra & Mahindra rather than TVS
Motor Company because EPS of Mahindra & Mahindra is more than TVS
Motors.
It is suggested to invest more funds in the other companies like.
Maruti Suzuki (EPS-64.5, β -1.2)
Bajaj (EPS-50.2, β -1.0)
Chevarlet (EPS-42.3, β -1.0)

LIMITATIONS OF THE STUDY:

The major limitations of the project are:

 Detailed study of the topic was not possible due to limited time of the project.
 Direct contact with the companies is not made.
Fluctuations in the market performance of the companies were a big constraint

of the study.