A STUDY ON PORTFOLIO MANAGEMENT OF HIGH NET WORTH

INDIVIDUALS WITH REFERENCE TO

IDBI FEDERAL LIFE INSURANCE CO. LTD.

Submitted By:NEHA CHOUDHARY

PGDM
Roll No. 2852
BM/JULY/14/27/2952
Corporate Guide:Mr. Anand Bansal
Assistant Branch Head, Jaipur
IDBI Federal Life Insurance Co. Ltd.

Faculty Guide:Prof. Terjani Goyal

Faculty
FMS-IRM, Jaipur
1

INTRODUCTION
A portfolio is a combination of different investment assets mixed and matched for the
purpose of achieving an investors goal(s).

A 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 context. Portfolio analysis determines the future risk and return in
holding various blends of individual securities.

But the basic principle is that the higher the risk, the higher is the return and the investor
should have a clear perception of the elements of risk and return when he makes
investments.

OBJECTIVES

To know the factors that affects the investment decision of

investors.
To know the criteria of investors asset allocation and their
dependency on market probable.

Company profile:-

IDBI
Bank
ltd.

Federal
Bank

Ageas
IDBI
Federal life
insurance co.
ltd.
4

IDBI Bank Ltd. continues to be, since its inception, India's premier industrial development
bank. It came into being as on July 01, 1964 to support India's industrial backbone.
As part of its development activities, IDBI Bank has been instrumental in sponsoring the
development of key institutions involved in India's financial sector - National Stock Exchange
of India Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock Holding
Corporation of India Ltd), CARE (Credit Analysis and Research Ltd).
Federal Bank is one of India's leading private sector banks, with a dominant presence in
the state of Kerala.
The bank provides over four million retail customers with a wide variety of financial
products. Federal Bank is one of the first large Indian banks to have an entirely automated
and interconnected branch network.
Ageas is an international insurance group with a heritage spanning more than 186 years.
Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate
its business activities in Europe and Asia, which together make up the largest share of the
global insurance market. These are grouped around four segments: Belgium, United
Kingdom, Continental Europe and Asia and served through a combination of wholly owned
subsidiaries and partnerships with strong financial institutions and key distributors around
the world.

RESEARCH
METHODOLOGY
6

RESEARCH
METHODOLOGY
Research Design

Descriptive
Research

Universe

All the High Net Worth

Individuals of IDBI
Federal Life Insurance of
Jaipur

Sample Size

100 Individuals

Tools used for Data

Collection

Questionnaire and
Interview Schedule

Sampling Technique

Purposive
sampling

Date Analysis

Percentage and
Frequency

LIMITATIONS

Biases and non-cooperation of the respondents.

Geographical selectivity in study limiting to
Jaipur city only.
People are not interested in giving personal
opinion.

DATA INTERPRETATION
AND
ANALYSIS
10

Income earned by respondents

FREQUENCY
60

51

50
40
29
30
17

20
10
0

3
Below 5lac

5lac-8lac

8lac-10lac

Above 10 lac
11

Annual savings by respondents

FREQUENCY
45
40
35
30
25
20
15
10
5
0

43
31

16
10

less than 50000 50000-80000

80000-110000 Above 110000

12

Factor considered before investing

FREQUENCY
44
45
40
35
30
25
20
15
10
5
0

22

24

10

Safety of Principal

Low Returns

High Returns

Maturity Period

13

Investment horizon
FREQUENCY
70
60
50
40
30
20
10
0

63

22
5

10

14

Age range of respondents

Frequency
50

45

45
40
35
30

25

25

20

20
15
10

10

5
0

Under 30

30-40

40-50

More than 50

15

Willingness to take financial risks

FREQUENCY
54

60
50

36

40
30
20

10

10
0

Low

Medium

High

16

Criteria of asset allocation of respondents

Frequency
59
60
50
40
30
20
10
0

34
7

17

Market continuously drop, at that time:

Frequency
50
45
40
35
30
25
20
15
10
5
0

43

47

10

Sell your stock

Hold your stock

Purchase more stock

18

Market rise, at that time:

Frequency
60

56

50
40
30
20
10
0

Sell your stock

Hold your stock

Pirchase more stock

19

FINDINGS

51% investors earnings comes in the 8lac-10lac bracket.

43% respondents annual savings is 80000-110000.
44% respondents consider safety of principal in investment.
63% HNIs consider their time horizon for investment 10-15
years.
43% respondents are in the age of 30-40.
54% individuals rate their willingness to take risk is
medium.
59% individuals allocate their asset with blended portfolio
stability.
47% of respondents would purchase more stock if market
drops.
56% of respondents would sell their stock if market rise.
20

SUGGESTION
Company can divide its customers portfolio into two categories:A moderately aggressive portfolio satisfies an average risk tolerance,
attracting those who are willing to accept more risk in their portfolios in order
to achieve a balance of capital growth and income.
Conservative portfolio is to protect its value. The allocation would
yield current income, and would also provide some long-term capital growth
potential from the investment in high-quality.
A well diversified portfolio protects investor assets from the risks of large
declines and structural changes in the economy over time. Monitor the
diversification of investor portfolio, making adjustments when necessary
and which will greatly increase chances of long-term financial success.

21

U
O
Y
K
N
A
TH
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