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Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. Our research study has two objectives:OBJECTIVES To know the concept of Portfolio Management. To know about the schemes offered by the different insurance companies, new IPOs, Mutual Funds. To know in depth about Insurance, Mutual Funds, Stock, Bonds etc.

To know about the awareness towards stock brokers and share market.

To study about the competitive position of CD Equisearch Private Ltd in Competitive Market.

To study about the effectiveness & efficiency of CD Equisearch Private Ltd in relation to its competitors

To study about whether people are satisfied with CD Equisearch Private Ltd Services & Management System or not.

To study about the difficulties faced by persons while Trading in CD Equisearch Private Ltd.

To study about the need of improvement in existing Trading system.


Investing is both Arts and Science. Every Individual has their own specific financial need and expectation based on their risk taking capabilities, whereas some needs and expectation are universal. Therefore, we find that the scenario of the Stock 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. Now a days investments have become very important part of income saving.

In order to keep the Investor safe from market fluctuation and make them profitable, Portfolio Management Services (PMS) is fast gaining Investment Option for the High Net worth Individual (HNI). There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose. The research design is analytical in nature. A questionnaire was prepared and distributed to Investors. The investors profile is based on the results of a questionnaire that the Investors completed. The Sample consists of 100 investors from various brokers premises. The target customers were Investors who are trading in the stock market.

In order to identify the effectiveness of CD Equisearch Private Ltd PMS services this Research is carried throughout the area of Hyderabad. At the time of investing money everyone look for the Risk factor involve in the Investment option. The Report is prepared on the basis of Research work done through the different Research Mythology the data is collected from both the source Primary sources which consist of Questionnaire and secondary data is collected from different sources such as Company website, Magazine and other sources. As the PMS services of CD Equisearch Private Ltd have the best result in its field .It has given 43.50% return in Trailing stops, 94.30%return in Nifty and 38.10% in Beta Portfolio which is the result when the Market was not doing well from last one year. In this project I have shown the details of financial planning as well as wealth management so as to understand about the customers needs and wants with respect to market and how a clients portfolio can be designed and what factors a portfolio manager must consider for designing a portfolio.



The field of investment traditionally divided into security analysis and portfolio management. The heart of security analysis is valuation of financial assets. Value in turn is the function of risk and return. These two concepts are in the study of investment .Investment can be defined the commitment of funds to one or more assets that will be held over for some future time period.

In today fast growing world many opportunities are available, so in order to move with changes and grab the best opportunities in the field of investments a professional fund manager is necessary. Therefore, in the present scenario the Portfolio Management Services (PMS) is fast gaining importance as an investment alternative for the High Net worth Investors. Portfolio Management Services (PMS) is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities, managed by a professional money manager that can potentially be tailored to meet specific investment objectives. When you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the entire fund. You have the freedom and flexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio managers may oversee hundreds of portfolio, your account may be unique. Investment Management Solution in PMS can be provided in the following ways: i. ii. iii. Discretionary Non Discretionary Advisory

Discretionary: Under these services, the choice as well as the timings of the investment decisions rest solely with the Portfolio Manager. Non Discretionary: Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the Investor. However the execution of trade is done by the portfolio manager. Advisory: Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the execution of the investment decisions rest solely with the Investor.

Rule 2, clause (d) of the SEBI (portfolio managers) Rules, 1993 defines the term Portfolio as total holding of securities belonging to any person. As a matter of fact, portfolio is combination of assets the outcomes of which cannot be defined with certainty new assets could be physical assets, real estates, land, building, gold etc. or financial assets like stocks, equity, debenture, deposits etc. Portfolio management refers to managing efficiently the investment in the securities held by professional for others. Merchant banker and the portfolio management with a view to ensure maximum return by such investment with minimum risk of loss of return on the money invested in securities held by them for their clients. The aim Portfolio management is to achieve the maximum return from a portfolio, which has been delegated to be managed by manger or financial institution. There are lots of organization in the market on the lookout for the people like you who need their portfolios managed for them .They have trained and skilled talent will work on your money to make it do more for you. Therefore, if any investors still insist on managing their own portfolio, then ensure you build discipline into their investment. Work out their strategy and stand by it.


There are two most common myths found about Portfolio Management Services (PMS) which we found among most of the Investors. They are as follows.

Myth No. 1: PMS and Mutual Fund are Similar as the investment option
As in the Finance Basket both the PMS and Mutual Fund are used for minimizing risk and maximize the profit of the Investors. The objectives are similar as in both the product but they are different from each other in certain aspects. They are as follows.

Management Side

In PMS, its ongoing personalized access to professional money management services. Whereas, in Mutual fund gives personalize access to money. Customization In PMS, Portfolio can be tailored to address each investor's specific needs. Whereas in Mutual Fund Portfolio structured to meet the fund's stated investment objectives. Ownership In PMS, Investors directly own the individual securities in their portfolio, allowing for tax management flexibility, whereas in Mutual Fund Shareholders own shares of the fund and cannot influence buy and sell decisions or control their exposure to incurring tax liabilities. Liquidity In PMS, managers may hold cash; they are not required to hold cash to meet redemptions, whereas, Mutual funds generally hold some cash to meet redemptions.

Minimums PMS generally gives higher minimum investments than mutual funds. Generally, minimum ranges from: Rs. 1 Crore + for Equity Options Rs. 5 Crore + for Fixed Income Options Rs. 20 Laces + for Structured Products, whereas in Mutual Fund Provide ongoing, personalized access to professional money management services. Flexibility

PMS is generally more flexible than mutual funds. The Portfolio Manager may move to 100% cash if it required. The Portfolio Manager may take his own time in building up the portfolio. The Portfolio Manager can also manage a portfolio with disproportionate allocation to select compelling opportunities whereas, in Mutual Fund comparatively less flexible.

Myth No. 2: PMS is more Risk free than other Financial Instrument

In Financial Market Risk factor is common in all the financial products, but yes it is true that Risk Factor vary from each other due to its nature. All investments involve a certain amount of risk, including the possible erosion of the principal amount invested, which varies depending on the security selected. For example, investments in small and mid-sized companies tend to involve more risk than investments in larger companies.


The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses. In Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India Company as well as the shares of the bank of Bengal in 1836. This list was a further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union bank and Agra bank. It also

quoted the prices of business ventures like the Bengal bonded warehouse, the Docking Company and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the number of brokers increased considerably. By 1860, the number of brokers was about 60 and during the exciting period of the American Civil war, their number increased to about 200 to 250. The end of American Civil war brought disillusionment and many

Failures and the brokers decreased in number and prosperity. It was in those troublesome times between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the Articles of Association of the Exchange.

On or about 9th day of July,1875, a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of the Members of such association.

As a meeting held in the broker Hall on the 5th day of February, 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3rd day of December, 1887. The Association is now known as The Stock Exchange.

The entrance fee for new member was Re.1 and there were 318 members on the list, when the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization structure of stock exchange varies.

14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent recognition. Others have to seek recognition on annual basis. These exchange do not work of its own, rather, these are run by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange.

These are:

i. ii. iii. iv.

Stockbrokers Sub-broker Market makers Portfolio consultants etc.

1. Stockbrokers:
Stock brokers are the members of stock exchanges. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can impose certain conditions while granting the certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker, arbitrageur etc.

Detail of Registered Brokers

Total no. of registered brokers as on 31.03.09 9000 24,000 Total no. of sub-broker as on 31.03.09

2. Sub-broker:

A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules and regulation.

3. Market Makers:
Market maker is a designated specialist in the specified securities. They make both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs. 3 Crore but not more than Rs. 5 core and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities.

4. Portfolio Consultants:
A combination of securities such as stocks, bonds and money market instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients.

Traditionally stock trading is done through stock brokers, personally or through telephones. As number of people trading in stock market increase enormously in last few years, some issues like location constrains, busy phone lines, miss communication etc start growing in stock broker offices. Information technology (Stock Market Software) helps stock brokers in solving these problems with Online Stock Trading.

Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker. There are two different type of trading environments available for online equity trading.

1. Installable software based Stock Trading Terminals

This trading environment requires software to be installed on investors computer. This software is provided by the stock broker. This software requires high speed internet connection. These kind of trading terminals are used by high volume intraday equity traders.

2.Web (Internet) based trading application

This kind of trading environment doesn't require any additional software installation. They are like other internet websites which investor can access from around the world through normal internet connection.

Stock exchanges are like market places, where stockbrokers buy and sell securities for individuals or institutions. As per the SCRA (Securities Contracts Regulation Act) 1956, the definition of securities includes shares, bonds, stocks, debentures, government securities, derivatives of securities, units of collective investment scheme (CIS) etc. The securities market has two interdependent segments: the primary and secondary market.

The primary market is the channel for creation of new securities issued by public limited companies or by government agencies. New securities issued in the primary market are traded in the secondary market.

The secondary market operates through the over-the-counter (OTC) market and the exchange trade market.

Advantages of Stocks Trading

1. Better returns Actively trading stocks can produce better overall returns than simply buying and holding.

2. Huge Choice

There are thousands of stocks listed on markets around the world. There is always a stock whose price is moving - its just a matter of finding them.

3. Familiarity The most traded stocks are in the largest companies that most of us have heard of and understand - Microsoft, IBM, and Cisco etc.

Disadvantages of Stocks Trading

1. Leverage With a margined account the maximum amount of leverage available for stock trading is usually 4:1. Meaning a $25,000 could trade up to $100,000 of stock. This is pretty low compared to Forex trading or futures trading.

2. Pattern Day Trader Rules It requires at least $25,000 to be held in a trading account if the trader completes more than 4 trades in a 5 day period. No such rule applies to Forex trading or futures trading.

3. Uptick Rule on Short Selling A trader must wait until a stock price ticks up before they can short sell it. Again there are no such rules in Forex trading or futures trading where going short are as easy as going long.

4. Need to Borrow Stock to Short Stocks are physical commodities and if a trader wishes to go short then the broker must have arrangements in place to borrow that stock from a shareholder until the trader closes their


position. This limits the opportunities available for short selling. Contrast this to futures trading where selling is as easy as buying.

5. Costs Although online trading costs for stock trading are low they still add considerably to the costs of day trading. Online futures trading are about 1/4 of the cost for the equivalent value. In the UK 0.5% stamp duty is also levied on all share purchases making trading virtually impossible, hence the popularity of spread betting.

Organization profile
CD Equiserach Pvt.Ltd is one of the leading brokerage houses with a strong presence in the institutional and HNI broking segment. With over 30years of experience, you could be sure of the best in class research, operation, back-end support and above all, a name which inspires trust


Mission and vision

CD Equisearch is passionate about providing friendly customer services on the greens of the investing world. Following the highest standards of ethics is entrenched in the DNA of CD Equisearch. At CD Equisearch, the selection and recommendations of wealth creating opportunities are primarily based on the 3C principle:

Conservation of capital Consistent growth in value of investment over a period of time Continual cash inflow through handsome dividends

Companys Guiding Principles...

CD Equisearch believe that being on par in terms of price and quality only satisfies the customer. It is the customized service, which delights. The core values, which drive CD Equisearch to exceed customer service expectations, are:


CD EQUISEARCH LTD believe that abiding by these values for over more than the past three decades has helped them earn the goodwill that they enjoy today.

MANAGEMENT CD Equisearch is managed by professionals who have years of experience in financial service industry Mr. Chandravadan Desai Chairman Mr. Pranay Desai Director Mr. Vikash Kalani COO

Mr. Jayesh Vora CFO CD GROUP CD Equisearch Pvt Ltd Capital Market Services Institutional Equity Services Retail Financial Products Private & Premier Client Group Services Financial Planning Group Services CD Commosearch Pvt Ltd Commodity Broking Services MCX and NCDEX Exchanges CD Equifinance Pvt Ltd Providing Loans Against Shares (LAS) IPO / FPO Financing CD Equiholding Pvt Ltd Distribution of Third Party Products

At CD Equiserach Pvt.Ltd, people are not weighted of the company, rather inspired by the rich heritage of the company. Here business is conducted by building long term relationships with clients and associates by laying emphasis on ethical and clean dealing. Here people practice the gentle art of finance with professionalism, skill and transparency.
The products of the company are:

1. Equities -NSE and BSE cash 2. Derivatives 3. Commodities 4. Currency Derivatives 5. Online broking 6. Depository participant 7. Structured products

8. Life insurance 9. Distribution of Mutual Funds 10. Alternative Investment 11. Distribution of IPO/FPO 12. Bonds CD Equiserach Pvt.Ltd has been a pioneer in providing financial services for over three decades now. CD Equiserach Pvt.Ltd has not only become one of the best known research houses but has also garnered the reputation of becoming one of the most transparent , ethical and client centric organizations, which speaks volumes about the reliability, stability and expertise of the firm. CD Equiserach Pvt.Ltd follows a complete customer centric approach while being true to its underlying principles. A testimony to this would be the faith of thousands of its satisfied clientele who have subscribed to a host of financial services designed for them. Whether it is in terms of research, technology, service or in terms of being first to offer innovative products and solutions, CD Equiserach Pvt.Ltd is not only at par with todays demands but also ahead of its time.

Research Support
Fundamental Research Company specific report. Technical Report Trading calls on ODIN Research reports on email Daily trading calls on SMS Live chat with technical analyst Dedicated advisor to guide your trading Commodity Research Derivative Research

Model Portfolio of CD Equisearch includes

1) Bharat Electronics Ltd 2) Bharti Airtel 3) Colgate Palmolive India Ltd 4) Container Corporation of India 5) Divis Laboratories 6) Hero Honda 7) Jindal Steel and Power 8) Larsen and Turbo Ltd 9) NMDC Ltd 10) NTPC Ltd 11) ONGC Ltd 12) State Bank of India 13) Sterlite Industries 14) Tate Tea 15) Ultratech Cement Current Presence Mumbai Kolkata Delhi Hyderabad Jaipur Vijayawada

Opening Shortly Ahmedabad


Bangalore Pune Expansion plans Setting up Regional Offices/Branch Office in 25 Metros/ Tier II cities in next 24 months Expansion at 1000+ locations through Sub Brokers in the next 24 months IPO / PE in another 3-4 years

CD Equisearch advantage -Research based investment advisory -In depth stock and sector specific research -Trained team of equity sales and dealings teams to ensure smooth executions of trades -Independent and unbiased advice -Wide product range Customized investment solutions



Portfolio (finance) means a collection of investments held by an institution or a private individual. Holding a portfolio is often part of an investment and risk-limiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. There are also portfolios which are aimed at taking high risks these are called concentrated portfolios.

Investment management is the professional management of various securities (shares, bonds etc) and other assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds).

The term asset management is often used to refer to the investment management of collective investments, whilst the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as wealth management or portfolio management often within the context of so-called "private banking".

The provision of 'investment management services' includes elements of financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Outside of the financial industry, the term "investment management" is often applied to investments other than financial instruments. Investments are often meant to include projects, brands, patents and many things other than stocks and bonds. Even in this case, the term implies that rigorous financial and economic analysis methods are used.


Need of PMS
As in the current scenario the effectiveness of PMS is required. As the PMS gives investors periodically review their asset allocation across different assets as the portfolio can get skewed over a period of time. This can be largely due to appreciation / depreciation in the value of the investments.

As the financial goals are diverse, the investment choices also need to be different to meet those needs. No single investment is likely to meet all the needs, so one should keep some money in bank deposits and / liquid funds to meet any urgent need for cash and keep the balance in other investment products/ schemes that would maximize the return and minimize the risk. Investment allocation can also change depending on ones risk-return profile.


Objective of PMS
There are the following objective which is full filled by Portfolio Management Services. 1. Safety Of Fund: The investment should be preserved, not be lost, and should remain in the returnable position in cash or kind.

2. Marketability: The investment made in securities should be marketable that means, the securities must be listed and traded in stock exchange so as to avoid difficulty in their


3. Liquidity: The portfolio must consist of such securities, which could be en-cashed without any difficulty or involvement of time to meet urgent need for funds. Marketability ensures liquidity to the portfolio.

4. Reasonable return: The investment should earn a reasonable return to upkeep the declining value of money and be compatible with opportunity cost of the money in terms of current income in the form of interest or dividend.

5. Appreciation in Capital: The money invested in portfolio should grow and result into capital gains.

6. Tax planning: Efficient portfolio management is concerned with composite tax planning covering income tax, capital gain tax, wealth tax and gift tax.


7. Minimize risk: Risk avoidance and minimization of risk are important objective of portfolio management. Portfolio managers achieve these objectives by effective investment planning and periodical review of market, situation and economic environment affecting the financial market.

The Portfolio Construction of Rational investors wish to maximize the returns on their funds for a given level of risk. All investments possess varying degrees of risk. Returns come in the form of income, such as interest or dividends, or through growth in capital values (i.e. capital gains).

The portfolio construction process can be broadly characterized as comprising the following steps:

1. Setting objectives.

The first step in building a portfolio is to determine the main objectives of the fund given the constraints (i.e. tax and liquidity requirements) that may apply. Each investor has different objectives, time horizons and attitude towards risk. Pension funds have long-term obligations and, as a result, invest for the long term. Their objective may be to maximize total returns in excess of the inflation rate. A charity might wish to generate the highest level of income whilst maintaining the value of its capital received from bequests. An individual may have certain liabilities and wish to match them at a future date. Assessing a clients risk tolerance can be difficult. The concepts of efficient portfolios and diversification must also be considered when setting up the investment objectives.


2. Defining Policy.

Once the objectives have been set, a suitable investment policy must be established. The standard procedure is for the money manager to ask clients to select their preferred mix of assets, for example equities and bonds, to provide an idea of the normal mix desired. Clients are then asked to specify limits or maximum and minimum amounts they will allow to be invested in the different assets available. The main asset classes are cash, equities, gilts/bonds and other debt instruments, derivatives, property and overseas assets. Alternative investments, such as private equity, are also growing in popularity, and will be discussed in a later chapter. Attaining the optimal asset mix over time is one of the key factors of successful investing.

3. Applying portfolio strategy.

At either end of the portfolio management spectrum of strategies are active and passive strategies. An active strategy involves predicting trends and changing expectations about the likely future performance of the various asset classes and actively dealing in and out of investments to seek a better performance. For example, if the manager expects interest rates to rise, bond prices are likely to fall and so bonds should be sold, unless this expectation is already factored into bond prices. At this stage, the active fund manager should also determine the style of the portfolio. For example, will the fund invest primarily in companies with large market capitalizations, in shares of companies expected to generate high growth rates, or in companies whose valuations are low? A passive strategy usually involves buying securities to match a preselected market index. Alternatively, a portfolio can be set up to match the investors choice of tailor-made index. Passive strategies rely on diversification to reduce risk. Outperformance versus the chosen index is not expected. This strategy requires minimum input from the portfolio manager. In practice, many active funds are managed somewhere between the active and passive extremes, the core holdings of the fund being passively managed and the balance being actively managed.


4. Asset selections.

Once the strategy is decided, the fund manager must select individual assets in which to invest. Usually a systematic procedure known as an investment process is established, which sets guidelines or criteria for asset selection. Active strategies require that the fund managers apply analytical skills and judgment for asset selection in order to identify undervalued assets and to try to generate superior performance.

5. Performance assessments.

In order to assess the success of the fund manager, the performance of the fund is periodically measured against a pre-agreed benchmark perhaps a suitable stock exchange index or against a group of similar portfolios (peer group comparison). The portfolio construction process is continuously iterative, reflecting changes internally and externally. For example, expected movements in exchange rates may make overseas investment more attractive, leading to changes in asset allocation. Or, if many large-scale investors simultaneously decide to switch from passive to more active strategies, pressure will be put on the fund managers to offer more active funds. Poor performance of a fund may lead to modifications in individual asset holdings or, as an extreme measure; the manager of the fund may be changed altogether.

Steps to Stock Selection Process


Types of assets
The structure of a portfolio will depend ultimately on the investors objectives and on the asset selection decision reached. The portfolio structure takes into account a range of factors, including the investors time horizon, attitude to risk, liquidity requirements, tax position and availability of investments. The main asset classes are cash, bonds and other fixed income securities, equities, derivatives, property and overseas assets.

Cash and cash instruments

Cash can be invested over any desired period, to generate interest income, in a range of highly liquid or easily redeemable instruments, from simple bank deposits, negotiable certificates of deposits, commercial paper (short term corporate debt) and Treasury bills (short term

government debt) to money market funds, which actively manage cash resources across a range of domestic and foreign markets. Cash is normally held over the short term pending use elsewhere (perhaps for paying claims by a non-life insurance company or for paying pensions), but may be held over the longer term as well. Returns on cash are driven by the general demand for funds in an economy, interest rates, and the expected rate of inflation. A portfolio will normally maintain at least a small proportion of its funds in cash in order to take advantage of buying opportunities.

Bonds are debt instruments on which the issuer (the borrower) agrees to make interest payments at periodic intervals over the life of the bond this can be for two to thirty years or, sometimes, in perpetuity. Interest payments can be fixed or variable, the latter being linked to prevailing levels of interest rates. Bond markets are international and have grown rapidly over recent years. The bond markets are highly liquid, with many issuers of similar standing, including governments (sovereigns) and state-guaranteed organizations. Corporate bonds are bonds that are issued by companies. To assist investors and to help in the efficient pricing of bond issues, many bond issues are given ratings by specialist agencies such as Standard & Poors and Moodys. The highest investment grade is AAA, going all the way down to D, which is graded as in default. Depending on expected movements in future interest rates, the capital values of bonds fluctuate daily, providing investors with the potential for capital gains or losses. Future interest rates are driven by the likely demand/ supply of money in an economy, future inflation rates, political events and interest rates elsewhere in world markets. Investors with short-term horizons and liquidity requirements may choose to invest in bonds because of their relatively higher return than cash and their prospects for possible capital appreciation. Longterm investors, such as pension funds, may acquire bonds for the higher income and may hold them until redemption for perhaps seven or fifteen years. Because of the greater risk, long bonds (over ten years to maturity) tend to be more volatile in price than medium- and shortterm bonds, and have a higher yield.

Equity consists of shares in a company representing the capital originally provided by shareholders. An ordinary shareholder owns a proportional share of the company and an ordinary share carries the residual risk and rewards after all liabilities and costs have been paid. Ordinary shares carry the right to receive income in the form of dividends (once declared out of distributable profits) and any residual claim on the companys assets once its liabilities have been paid in full. Preference shares are another type of share capital. They differ from ordinary shares in that the dividend on a preference share is usually fixed at some amount and does not change. Also, preference shares usually do not carry voting rights and, in the event of firm failure, preference shareholders are paid before ordinary shareholders. Returns from investing in equities are generated in the form of dividend income and capital gain arising from the ultimate sale of the shares. The level of dividends may vary from year to year, reflecting the changing profitability of a company. Similarly, the market price of a share will change from day to day to reflect all relevant available information. Although not guaranteed, equity prices generally rise over time, reflecting general economic growth, and have been found over the long term to generate growing levels of income in excess of the rate of inflation. Granted, there may be periods of time, even years, when equity prices trend downwards usually during recessionary times. The overall long-term prospect, however, for capital appreciation makes equities an attractive investment proposition for major institutional investors.

Derivative instruments are financial assets that are derived from existing primary assets as opposed to being issued by a company or government entity. The two most popular derivatives are futures and options. The extent to which a fund may incorporate derivatives products in the fund will be specified in the fund rules and, depending on the type of fund established for the client and depending on the client, may not be allowable at all.


A futures contract is an agreement in the form of a standardized contract between two counterparties to exchange an asset at a fixed price and date in the future. The underlying asset of the futures contract can be a commodity or a financial security. Each contract specifies the type and amount of the asset to be exchanged, and where it is to be delivered (usually one of a few approved locations for that particular asset). Futures contracts can be set up for the delivery of cocoa, steel, oil or coffee. Likewise, financial futures contracts can specify the delivery of foreign currency or a range of government bonds. The buyer of a futures contract takes a long position, and will make a profit if the value of the contract rises after the purchase. The seller of the futures contract takes a short position and will, in turn, make a profit if the price of the futures contract falls. When the futures contract expires, the seller of the contract is required to deliver the underlying asset to the buyer of the contract. Regarding financial futures contracts, however, in the vast majority of cases no physical delivery of the underlying asset takes place as many contracts are cash settled or closed out with the offsetting position before the expiry date.

An option contract is an agreement that gives the owner the right, but not obligation, to buy or sell (depending on the type of option) a certain asset for a specified period of time. A call option gives the holder the right to buy the asset. A put option gives the holder the right to sell the asset. European options can be exercised only on the options expiry date. US options can be exercised at any time before the contracts maturity date. Option contracts on stocks or stock indices are particularly popular. Buying an option involves paying a premium; selling an option involves receiving the premium. Options have the potential for large gains or losses, and are considered to be high-risk instruments. Sometimes, however, option contracts are used to reduce risk. For example, fund managers can use a call option to reduce risk when they own an asset. Only very specific funds are allowed to hold options.


Property investment can be made either directly by buying properties, or indirectly by buying shares in listed property companies. Only major institutional investors with long-term time horizons and no liquidity pressures tend to make direct property investments. These institutions purchase freehold and leasehold properties as part of a property portfolio held for the long term, perhaps twenty or more years. Property sectors of interest would include prime, quality, well-located commercial office and shop properties, modern industrial warehouses and estates, hotels, farmland and woodland. Returns are generated from annual rents and any capital gains on realization. These investments are often highly illiquid.

Risk and Risk Aversion

Portfolio theory also assumes that investors are basically risk adverse, meaning that, given a choice between two assets with equal rates of return they will select the asset with lower level of risk. For example, they purchased various type of insurance including life insurance, Health insurance and car insurance. The Combination of risk preference and risk aversion can be explained by an attitude toward risk that depends on the amount of money involved. A discussion of portfolio or fund management must include some thought given to the concept of risk. Any portfolio that is being developed will have certain risk constraints specified in the fund rules, very often to cater to a particular segment of investor who possesses a particular level of risk appetite. It is, therefore, important to spend some time discussing the basic theories of quantifying the level of risk in an investment, and to attempt to explain the way in which market values of investments are determined


Definition of Risk
Although there is a difference in the specific definitions of risk and uncertainty, for our purpose and in most financial literature the two terms are used interchangeably. In fact, one way to define risk is the uncertainty of future outcomes. An alternative definition might be the probability of an adverse outcome.

Composite risks involve the different risk as explained below:-

(1). Interest rate risk: -

It occurs due to variability cause in return by changes in level of interest rate. In long runs all interest rate move up or downwards. These changes affect the value of security. RBI, in India, is the monitoring authority which effectalises the change in interest rate. Any upward revision in interest rate affects fixed income security, which carry old lower rate of interest and thus declining market value. Thus it establishes an inverse relationship in the prize of security.

Cash equivalent Long term Bond

Less vulnerable to interest rate risk More vulnerable to interest rate risk.

(2) Purchasing power risk:

It is known as inflation risk also. This risk emanates from the very fact that inflation affects the purchasing power adversely. Purchasing power risk is more in inflationary times in bonds and fixed income securities. It is desirable to invest in such securities during deflationary period or a period of decelerating inflation. Purchasing power risk is less in flexible income securities like equity shares or common stuffs where rise in dividend income offset increase in the rate of inflation and provide advantage of capital gains.

(3) Business risk:

Business risk emanates from sale and purchase of securities affected by business cycles, technological change etc. Business cycle affects all the type of securities viz. there is cheerful movement in boom due to bullish trend in stock prizes where as bearish trend in depression brings downfall in the prizes of all types of securities. Flexible income securities are nearly affected than fix rate securities during depression due to decline n the market prize.

(4) Financial risk:

Financial risk emanates from the changes in the capital structure of the company. It is also known as leveraged risk and expressed in term of debt equity ratio. Excess of debts against equity in the capital structure indicates the company to be highly geared or highly levered. Although leveraged companys earnings per share (EPS) are more but dependence on borrowing exposes it to the risk of winding up. For, its inability to the honor its commitments towards the creditors are most important.

Here it is imperative to express the relationship between risk and return, which is depicted graphically below


Maximize returns, minimize risks


Risk versus return is the reason why investors invest in portfolios. The ideal goal in portfolio management is to create an optimal portfolio derived from the best riskreturn opportunities available given a particular set of risk constraints. To be able to make decisions, it must be possible to quantify the degree of risk in a particular opportunity. The most common method is to use the standard deviation of the expected returns. This method measures spreads, and it is the possible returns of these spreads that provide the measure of risk. The presence of risk means that more than one outcome is possible. An investment is expected to produce different returns depending on the set of circumstances that prevail.

Portfolio Diversification

There are several different factors that cause risk or lead to variability in returns on an individual investment. Factors that may influence risk in any given investment vehicle include uncertainty of income, interest rates, inflation, exchange rates, tax rates, the state of the economy, default risk and liquidity risk (the risk of not being able to sell on the investment). In addition, an investor will assess the risk of a given investment (portfolio) within the context of other types of investments that may already be owned, i.e. stakes in pension funds, life insurance policies with savings components, and property.

One way to control portfolio risk is via diversification, whereby investments are made in a wide variety of assets so that the exposure to the risk of any particular security is limited. This concept is based on the old adage do not put all your eggs in one basket. If an investor owns shares in only one company, that investment will fluctuate depending on the factors influencing that company. If that company goes bankrupt, the investor might lose 100 per cent of the investment. If, however, the investor owns shares in several companies in different sectors, then the likelihood of all of those companies going bankrupt simultaneously is greatly diminished. Thus, diversification reduces risk. Although bankruptcy risk has been considered here, the same principle applies to other forms of risk.

Perfect positive correlation (correlation coefficient = +1) occurs when the returns from
two securities move up and down together in proportion. If these securities were combined in a portfolio, the offsetting effect would not occur.


Perfect negative correlation (correlation coefficient = 1) takes place when one security
moves up and the other one down in exact proportion. Combining these two securities in a portfolio would increase the diversification effect.

Uncorrelated (correlation coefficient = 0) occurs when returns from two securities move
independently of each other that is, if one goes up, the other may go up or down or may not move at all. As a result, the combination of these two securities in a portfolio may or may not create a diversification effect. However, it is still better to be in this position than in a perfect positive correlation situation.

Unsystematic and systematic risk

As mentioned previously, diversification diminishes risk: the more shares or assets held in a portfolio or in investments, the greater the risk reduction. However, it is impossible to eliminate all risk completely even with extensive diversification. The risk that remains is called market risk; the risk that is caused by general market influences. This risk is also known as systematic risk or non-diversifiable risk. The risk that is associated with a specific asset and that can be abolished with diversification is known as unsystematic risk, unique risk or diversifiable risk.

Total risk = Systematic risk + Unsystematic risk

Systematic risk = the potential variability in the returns offered by a security or asset caused
by general market factors, such as interest rate changes, inflation rate movements, tax rates, state of the economy.

Unsystematic risk = the potential variability in the returns offered by a security or asset
caused by factors specific to that company, such as profitability margins, debt levels, quality of management, susceptibility to demands of customers and suppliers.

As the number of assets in a portfolio increases, the total risk may decline as a result of the decline in the unsystematic risk in that portfolio. The relationship amongst these risks can be quantified as follows

TR2 = SR2 + UR2 or 2i = s2 + u2


= the investments total risk (standard deviation) s = the investments systematic risk u =the investments unsystematic risk.

The correlation coefficient between two investment opportunities can be expressed as: s = i CORim

s = the investment systematic risk i = the investments total risk (systematic and unsystematic) CORim = the correlation coefficient between the return of the investment and those of the market.

If an investment were perfectly correlated to the market so that all its movements could be fully explained by movements in market, then all of the risk would be systematic & i = s If an investment were not correlated at all to the market, then all of its risk would be unsystematic



Various types of portfolio require different techniques to be adopted to achieve the desired objectives. Some of the techniques followed in India by portfolio managers are summarized below.

(1). Equity portfolioEquity portfolio is affected by internal and external factors:

(a) Internal factors

Pertain to the inner working of the particular company of which equity shares are held. These factors generally include:

(1) Market value of shares (2) Book value of shares (3) Price earnings ratio (P/E ratio) (4) Dividend payout ratio

(b) External factors

(1) Government policies (2) Norms prescribed by institutions (3) Business environment (4) Trade cycles


(2). Equity stock analysis

The basic objective behind the analysis is to determine the probable future value of the shares of the concerned company. It is carried out primarily fewer than two ways. :

(a) Earnings per share (b) Price earnings ratio

(A) Trend of earning: A higher price-earnings ratio discount expected profit growth. Conversely, a downward trend in earning results in a low price-earnings ratio to discount anticipated decrease in profits, price and dividend. Rising EPS causes appreciation in price of shares, which benefits investors in lower tax brackets? Such investors have not pay tax or to give lower rate tax on capital gains. Many institutional investor like stability and growth and support high EPS. Growth of EPS is diluted when a company finances internally its expansion program and offers new stock. EPS increase rapidly and result in higher P/E ratio when a company finances its expansion program from internal sources and borrowings without offering new stock.

(B) Quality of reported earning: -

Quality of reported earnings affects P/E ratio. The factors that affect the quality of reported earnings are as under:

Depreciation allowances: Larger (Non Cash) deduction for depreciation provides more funds to company to finance profitable expansion schemes internally. This builds up future earning power of company.


Research and development outlets: There is higher P/E ratio for a company, which carries R&D programs. R&D enhances profit earning strength of the company through increased future sales.

Inventory and other non-recurring type of profit: Low cost inventory may be sold at higher price due to inflationary conditions among profit but such profit may not always occur and hence low P/E ratio.

(C) Dividend policy: Dividend policy is significant in affecting P/E ratio. With higher dividend ratio, equity price goes up and thus raises P/E ratio. Dividend rates are raised to push in share prices up. Dividend cover is calculated to find out the time the dividend is protected, In terms of earnings. It is calculated as under:

Dividend Cover = EPS / Dividend per Share

(D) Investors demand: Demand from institutional investors for equity also enhances the P/E ratio.

(3) Quality of management: Investors decide about the ability and caliber of management and hold and dispose of equity academy. P/E ratio is more where a company is managed by reputed entrepreneurs with good past records of management performance.


Types of Portfolios

The different types of Portfolio which is carried by any Fund Manager to maximize profit and minimize losses are different as per their objectives .They are as follows.

Aggressive Portfolio:

Objective: Growth. This strategy might be appropriate for investors who seek High growth and who can tolerate wide fluctuations in market values, over the short term.

Growth Portfolio:

Objective: Growth. This strategy might be appropriate for investors who have a preference for growth and who can withstand significant fluctuations in market value. Balanced Portfolio:

Objective: Capital appreciation and income. This 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

Conservative Portfolio:

Objective: Income and capital appreciation. This strategy may be appropriate for investors who want to preserve their capital and minimize fluctuations in market value.


CD Equi Search Portfolio Management Services

Origin ation

Loan Trading


Portfol io

Pro Prime :Product Approach

Investment will be keeping in mind 3 investment tenets. 1. Consistent, steady and sustainable returns. 2. Margin of Safety 3. Low Volatility

Product offering
Pro Prime is the ideal for investors looking at steady and superior with low and medium risk appetite. The portfolio consists of a blend of quality blue chip and growth stocks ensuring a balanced portfolio with relatively medium risk profile. The portfolio constitutes of relatively large capitalization stocks, based on sector and themes which have medium to long term growth potential.

Product Characteristics
Bottom up stock selection In depth ,independent fundamental research High quality companies with relatively large capitalization Disciplined valuation approach applying multiple valuation measure. Medium to long term vision, resulting in low portfolio turnover.

How to invest? Minimum Investment : 10 Laces Lock in : 6 months Reporting: Access to website showing clients holding .Monthly reporting of portfolio holding /transaction. Charges: 2.5% pa AMC (Annual Maintenances Charges) fees charged every quarter ,0.5% brokerage ,20% profit sharing after 15% hurdle is crossed chargeable at the end of fiscal year. Pro tech Diversified :Product Approach
An opportunity lies in basis which is the difference between cash and future. Whenever basis is high we buy the stocks and sell the future to lock in difference .The difference is bound to be zero at expiry.

Product Offered Cash future arbitrage:

The product intends to spot low risk opportunities which will yield more than the normal low risk product .Whenever such opportunity is spotted stocks will be bought and to lock in the

basis, future will be sold .This position will be liquated in the expiry or before that if the basis vanishes early .Similarly the scheme will move on from opportunity to opportunity.

Product Characteristics moderate Risk: This is relatively low risk product which can be compared with liquid funds
issued by mutual funds.

High return: Compared with other low risk products, this products offers an indicative post
tax return of 8 to 10% plus.

Product Details Minimum Investment:Rs.1 Crore Lock in :6 months Reporting: Fortnightly for portfolio Net worth, Monthly reporting pf portfolio Holding /transaction. Charges: 0.035% brokerage for future ,0.07% for delivery Pro Tech :Protech using the knowledge of technique analysis and the power of depravities markets to identify trading opportunities in the market .The protech line of the product is designed around various risk /reward /volatility profiles for the different kind of investment needs.

Product Approach
Better performance is possible from superior market timing and from picking stocks before inflation points in their trading cycles .Linear return are possible from having hedged/ sell market positions in downtrends .Absolute return are targeted by focusing on finding trading opportunities & not out performance of an index.


Product offered 1. Nifty Thirty :

Nifty futures will be bought and sold on the basis of an automated trading system generated calls to go long/short. The exposure will never exceed the value of portfolio i.e. no leveraging; but allows us to be short /hedged in Nifty in falling market therefore allowing the client to earn irrespective of the market direction.

2. Beta Portfolio :
Positional trading opportunities are identified in the future segment based on technical analysis .Inflection points in the momentum cycles are identified to go long /short on stock/index futures with 1-2 months time horizon .The idea is to generate the best possible return in the medium term irrespective of the direction of the market without really leveraging beyond the portfolio value. Risk protection is done based on stop losses on daily closing prices.

3. Star Nifty:
Swing trading technique and Dow theory is used to identify short term reversal levels for Nifty futures and ride with trend both on the long and short side .This return can be earned in bull and bear market .Stop and reverse means to reverse ones position from long to short or vice a versa at the reversal levels simultaneously .The exposure never exceeds value of portfolio i.e. there is no leveraging.

4. Trailing Stops.
Momentum trading techniques are used to spot short term momentum of 5-10 days in stocks and stocks /index futures .Trailing stop loss method of risk management or profit protection is used to lower the portfolio volatility and maximize return .Trading opportunities are exposed both on the long side and the short side as the market demands to get the best of both upward and downward trends.


Product Characteristics Using swing based index trading systems stop and reverse .trend following and
momentum trading technique.

Nifty based products for low impact cost and low product volatility Both long and short strategies to earn returns even in falling market. Trading in future market to allow for active risk protection using trailing stop losses. How to invest?
Minimum : Rs.10 Laces

Lock in : 6 months Reporting: Fortnightly reporting of portfolio Net Worth, monthly reporting of portfolio Holding /Transaction. Charges: 0% AMC (Annual Maintenance Charges), 0.05% brokerage for derivatives, 20% profit sharing on booked profit quarterly basis Protech Performance Report


1. Do you know about the Investment Option available?

NO 15%

YES 85%

Interpretation As the above table shows the knowledge of Investor out of 100 respondent carried throughout the Hyderabad Area is only 85%. The remaining 15% take his/her residential property as an investment. According to law purpose this is not an investment because of it is not create any profit for the owner. The main problem is that in this time from year 2008-2009 , the recession and the Inflation make the investor think before investing a even a Rs. 100.So , it also create the problem for the Investor to not take interest in Investment option.


2. What is the basic purpose of your Investments?

30% 20% 10% 0%



As with the above analysis, it is found 75% people are interested in liquidity, returns and tax benefits. And remaining 25% are interested in capital appreciations, risk covering, and others. In the entire respondent it is common that this time everyone is looking for minimizing the risk and maximizing their profit with the short time of period.

As explaining them About the Portfolio Management Services of CD Equi Search, they were quite interested in Protech Services.


3. What is the most important factor you consider at the time of Investment?

70% 60% 50% 40% 30% 23% 20% 12% 10% 0% Risk Return %AGE



Interpretation As the above analysis gives the clear idea that most of the Investors considered the market factor as around 12% for Risk and 23% Return, but most important common things in all are that they are even ready for taking both Risk and Return in around 65% investor. Moreover, the Market is fluctuating now days, so as it also getting improvement. So, Investor are looking for Investment in long term and Short-term.












Others Property Bonds Fixed Deposits Commodities Market Shares Mutual Funds 20% 16% 22% 8% 18% 2% 14%

Interpretation Most of the respondents say they will get more returns in Share Market. Since Share Market is said to be the best place to invest to get more returns. The risk in the investment is also high.

Similarly, the Investor are more Interested in Investing their money in Mutual Fund Schemes as that is also very important financial product due to its nature of minimizing risk and maximizing the profit. As the commodities market is doing well from last few months so Investor also prefer to invest their money in Commodities Market basically in GOLD nowadays. Moreover, even who dont want to take Risk they are looking for investing in Fixed Deposit for long period of time.


5. Investing in PMS is far safer than Investing in Mutual Fund. Do you agree?

80% 60% 40% 20% 0% Yes No Yes 76% No 24%

24% 76%

%Age of Respodents

Interpretation In the above graphs its clear that 24% of respondent out of hundred feel that investing their money in Mutual Fund Scheme are far safer than Investing in PMS. This is because of lack of proper information about the Portfolio management services. As the basis is same for the mutual fund and PMS but the investment pattern is totally different from each other and which depends upon different risk factor available in both the Financial Products.


6. How much you carry the expectation in Rise of your Income from Investments?

12% 48% 32%
UPTO 15% 15-25% 25-35% Morethan 35%

Interpretation The optimism is shown in the attitude of the respondents. The confidence was appreciable with which they are looking forward to a rise in their investments. Major part of the sample feels that the rise would be of around 15%. Only 8% of the respondents were confident enough to expect a rise of up to 35%. As all the respondents were considering the Risk factor also before filling the questionnaire and they were asking about the performance report of all the PMS services offered by CD Equi Search.


7. If you invested in Share Market, what has been your experience?

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Satisfactory return received 20% Burned Fingers 34% Unsatisfactory results 6% 6% 20% 34%


No 40%

%Age of Respondents


20% of the respondents have invested in Share market and received satisfactory returns, 40% of the respondents have not at all invested in Share Market. Some of the investors face problems due to less knowledge about the market. Some of the respondents dont have complete overview of the happenings and invest their money in wrong shares which result in Loss. This is the reason most of the respondents prefer Portfolio Management Services to trade now a days, which gives the Investor the clear idea when is the right time to buy and right time to sell the shares which is recommended by their Fund Manager.


8. How do you trade in Share Market?

% Respondents



Speculation Investment

Interpretation As we know that Share market is totally based on psychological parameters of Investors, which changed as per the market condition, but at the same time the around 45% investor trade on the basis of speculation and 31% depend upon Investment option Bonds, Mutual Funds etc.


9. How do you manage your Portfolio?

%of Respodents

Depends on the Company for Portfolio 43%

Self 57%

Interpretation About 57% of the respondents say they themselves manage their portfolio and 43% of the respondents say they depend on the security company for portfolio Management. 43% of the respondents prefer PMS of the company because they dont have to keep a close eye on their investment; they get all the information time to time from their Fund Manager.

Moreover, talking about the CD Equi Search PMS services they are far satisfied with the Protect and Prop rime Performance during last year. They are satisfied with the quick and active services of CD Equi Search customer services where, they get the updated knowledge about the scrip detail every day from their Fund Manager.


10. If you trade with CD Equisearch Limited then why?

Research 35%

Services 22%

Brokerage 28%

Investment Tips are good 15%

Interpretation As the above research shows the reasons and the parameters on which investor lie on CD Equisearch and they do the trade. Among hundred respondents 35% respondents do the trade with the company due to its research Report, 28% based on Brokerage Rate whereas 22 % are happy with its Services. Last but not the least, 15% respondents are depends upon the tips of CD Equi search which gives them idea where to invest and when to invest. At the time of research what I found is that still CD Equisearch need to make the clients more knowledge about their PMS product.


11. Are you using Portfolio Management services (PMS) of CD Equisearch?

No 44% Yes 56%

Interpretation As talking about the Investment option, in most of clients it was common that they know about the Option but as the PMS of CD Equisearch have different Product offering, Product Characteristics and the Investment amount is also different this makes the clients to think differently. It is found that 56% of CD Equisearch client where using PMS services as for their Investment Option.


12. Which Portfolio Type you preferred?

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
27% 28% 45%

Equity 45%

Debt 27%

Balanced 28%

%Age of Respodents

Interpretation The above analysis shows, in which portfolio the investor like to deal more in PMS. As 45% investor likes to go for Equity Portfolio and 28% with Balanced Portfolio, whereas around 27% investor like to, go for Debt Portfolio.


13. How was your experience about Portfolio Management services (PMS) of CD Equisearch Limited?

No Profit No Loss Situation

Faced Loss

0% 10% Earned %Age of Respondents 52% 20% 30% Faced Loss 18% 40% 50% 60%

No Profit No Loss Situation 30%

Interpretation In the above analysis it is clear that the Investor have the good and the bad experience both with the CD Equisearch PMS services. In this current scenario 52% of the Investor earned, whereas around 18% have to suffer losses in the market. Similarly 30% of the Respondents are there in Breakeven Point (BEP), where no loss and no profit.


14. Does CD Equisearch Limited keep it PMS process Transparent?

37% 63%
Yes No

Interpretation The above analysis is talking about the CD Equisearch Transparency of their PMS services. In hundred respondents 63% said that they get all the information about their scrip buying and selling information day by day, where as 37% of respondents are not satisfied with the PMS information and Transparency because they dont get any type of extra services in PMS as they were saying.


15. Do you recommend CD Equisearch PMS to others?

No 14%

Yes 86%

Interpretation The above analysis shows the Investor perception toward the CD Equisearch PMS as on the basis of their good and bad experience with CD Equi Search limited. Among hundred respondents 86% respondents were agree to recommend the PMS of CD Equisearch to their peers, relatives etc.


5. Investing in PMS is far safer than Investing in Mutual Fund. Do you agree? 6. Do you know about the Investment Option available?

INTERPETATION People who think investment in PMS is safer also know the options available in PMS.

14. Does CD Equi Search Limited keep it PMS process Transparent? 15. Do you recommend CD Equi Search PMS to others?

Interpretation: People think PMS is safer recommend others also.


1. Basic purpose major investment?

30 25 5 15 10 15

13.3 8.3 -11.7 -1.7 -6.7 -1.7

(x-x) ^2
176.8 68.9 136.89 2.89 44.89 2.89

x = /n
100/6= 16.7

Standard deviation=

=433.26/5 =9.30 Z- TEST:-

= 16.7/(9.3/100) =17.52 Z cal=17.5 65

2. Important factor you consider?

23 40 37

-10.33 8.56.67 3.67

(x-x) ^2
106.70 44.48 13.46 164.64

x = /n

Standard deviation=

=(164.64/2) = 9.07


=33.33/(9.07/0.907) =36.74 66

3. Which option gave you best returns?

20 22 16 18 8 14 2

5.72 7.72 1.72 2.72 -6.28 -0.28 -12.28

32.71 59.69 2.95 7.39 39.43 0.78 150.79

x = /n

Standard deviation=

=293.64/6 =6.99


=14.28-0/(6.99/100) =20.42 zcal =20.42 67

4.How much expect rise of income?

48 32 12 8

23 7 -13 -17

(x-x) ^2
52.9 49 169 289 1036

x = /n
100/4= 25 Standard deviation=

=1036/3 =18.58


=25-0/(18.58/100) =58.13


5. Invest share market what have expected?

20 34 6 40

-5 9 -19 15

(x-x) ^2
25 81 361 225 692

x = /n

Standard deviation=

= 692/3 =15.18


=25-0/(15.18/100) =64.107


Case Study Case Study: Project Portfolio Management with One point in the Manufacturing Industry
Graz, April 7, 2009 Expert conference of German institute for project management focuses on tools and solutions: One point also present at exhibition area At this year's expert conference of the German institute for project management the successful deployment of a project and portfolio management (PPM) solution of One point Software in the manufacturing industry will be presented as a case study. At Amazonen-Werke H. Dreyer GmbH & Co. KG One point supports research and development projects. In addition, visitors of the event ("Focus > Project management Tools & Lsungen 2009") can get first hand experience regarding the usability of One point Project. In its third year, the yearly expert conference has established itself as an important market place for PM tools and solutions. Project managers and vendors are going to present up-to-date project work in the form of workshops and presentations as well as demos in the exhibition area. In doing so, the focus is clearly on the practical aspects of project management. This year's key topics are the selection, implementation processes and the solution aspects of PM tools. In this context the case study presented by Jrn Henkelmann, project manager construction/R&D at Amazon, will share his experience applying project

management based on One point Project in his company. The strongly exportoriented vendor of agricultural implements and municipal technology sees itself on the road to success since many years. In order to stay competitive, it constantly stimulates research and innovation. With its development team distributed across different locations, Amazon also cooperates closely with research institutes and universities abroad. "Development projects are typically time and resource critical and thus, a major challenge for the project managers," said Gerald Mesaric, CEO of One point Software. "For the development team at Amazon One point Project has proven to be an ideal fit since it integrates ad-hoc monitoring, traffic light functions and plan/actual comparisons. Through the increased transparency project risks are minimized." These advantages will also be presented in a public live demo on May 6, 2009. One point Software will also be present at the exhibition area. Interested parties have the possibility to get a first impression of the latest version One point Project 9 in individual live demos. The Web-based project leadership software provides an innovative approach to integrated project management from planning to monitoring and controlling. It is available both for on-premise installation and as Software as a Service (Seas). Additional information regarding the event and the registration can be found at


About One point Software One point Software is the first project and portfolio management vendor offering both an on demand and an installed Web 2.0-based solution for the extended enterprise. Unlike traditional PPM software, One point Project is known to be integrated, real-time, open, easy-to-use and fast to deploy. One point enables project-oriented companies and departments to increase project and portfolio transparency, shorten project lead-times, automate best practices and reduce project risks. The ROI period of one point Project is usually well below 12 months.

Portfolio management service this can pay off for the well-off
Aerate Krishnan


Portfolio managers also let you choose from various `concepts' or model portfolios. YOU earn money in bagfuls, but don't have the time or inclination to manage it. If this description fits you, do consider entrusting your money to a professional portfolio management service (PMS). In return for a fee, portfolio managers offer to craft a basket of stocks, bonds or even mutual funds that would fit your personal investment goals and risk preferences. Though a few portfolio managers offer standardized packages for a sum as small as Rs 5-10 lakh, it may take a minimum investment size of Rs 25-50 lakh to fetch you a customized portfolio. Apart from cash, you can also hand over an existing portfolio of stocks, bonds or mutual funds to a PMS that could be revamped to suit your profile. Why not mutual funds? But why should you opt for PMS instead of a mutual fund? Here are a few aspects on which portfolio managers say they score over the standardized products offered by mutual funds: Asset allocation: You may know what stocks, equity funds or bonds you would like to own, but do you know how much of your savings you should allocate to each of these? The decision on asset allocation will be crucial in determining investment returns over the long term. With PMS, an asset allocation plan is tailor-made for you, after a detailed check on your investment goals, savings pattern and appetite for risk.

Timing: Have you ever kicked yourself for switching your entire portfolio into equities just before they tanked? If you have, you probably need help with regard to timing of investments. Once you hire a portfolio manager, you can expect assistance on when you should be investing more money into equities and when you should be bailing out. A portfolio manager may also switch a portion of your portfolio into cash, if he perceives a big risk to stock prices. The focus is on preserving value. Flexibility: You are bullish on FMCG stocks, but find that equity funds have marginal exposures to the sector. In a PMS, you can expect the portfolio manager to accommodate your sector preferences when he invests. But don't expect to completely dictate what stocks or sectors your portfolio manager will buy for you, as he will be the best judge of that. Also, portfolio managers do not have to stick to any rigid rules on what proportion of your money will be invested in each sector or stock. They can also use liberal doses of cash or derivative instruments to pep up your returns. Mutual fund managers have their hands tied on these aspects by SEBI regulations. What to expect from PMS Okay, you have fallen for the sales pitch and entrusted your money to a PMS. What can you now expect from this service? handholding from your portfolio manager than you have been accustomed to from your mutual fund. You can expect to have a personal relationship manager through whom you can interact with the fund manager at any time of your choice. You can also expect frequent (maybe monthly)

interaction with the portfolio manager to discuss any concerns that you might have. Expect to be consulted on any major changes in asset allocation or in the investment strategy relating to your portfolio. All administrative matters, including operating a bank account and dealing with settlement and depository transactions, will be handled by the PMS.

disclosures offered by a PMS may be just right for you. On handing over your money, you will receive a user-ID and password from the PMS, which will grant you online access to your portfolio details. You can use these to check back on your portfolio as often as you like. for the taxman can be a depressing chore, when you have furiously churned your investments through the year. Opting for PMS will free you of this chore, as a detailed statement of the transactions on your portfolio for tax purposes comes as a part of the package. What you pay Most portfolio managers allow you to choose between a fixed and a performance-linked management fee. If you opt for the fixed fee, you may pay between 2-2.5 per cent of portfolio value; this is usually calculated on a weighted average basis. The structure for the performance-linked fee differs across players; usually, this includes a flat fee of 0.5-1.5 per cent. The portfolio manager also gets to share a percentage of your profit usually 15-20 per cent earned over and above a threshold level, which may range between 8 per cent and 15 per cent. Apart from management fees, separate charges will be levied towards brokerage, custodial services and towards meeting tax payments.

There are wide variations in fee structure between players and across products. For instance, Birla Sun Life charges only a performance-linked fee for its portfolio services. Way2Wealth has a differential fee structure for its debt and equity dominated portfolios. When you opt for a performance-based fee, the profits are reckoned on the basis of "high watermarking". That is, you pay the fee only on the positive returns on your portfolio. For instance, if you invest Rs 100 in a PMS and its value appreciates to Rs 150 at the end of the year, you pay a fee on the profit of Rs 50. Subsequently, a fee will be levied only on gains over and above the Rs 150 mark. If the value of your portfolio slumps to Rs 70, and climbs back to Rs 110, the Rs 40 you earn will not be reckoned as profit. You will again be charged a fee only if the value of your portfolio recovers to over Rs 150, the previous "high watermark." Who should hire a portfolio manager? Anybody with a nest egg, which meets the minimum investment requirement, can consider using a PMS. However, a PMS may only add significant value in the following cases: bias: Portfolio management services may be ideal for a person who seeks a substantial investment in the stock markets. An equity portfolio also offers greater scope for a manager to add value than does a debt portfolio. Several of the established players in the PMS business focus on equity investments, though some also offer hybrid products. surplus to invest: The minimum portfolio size that portfolio managers accept for a customized portfolio ranges from Rs 25 lakh to Rs 5 crore. So consider

a PMS only if you have a substantial surplus to invest in stocks. If you don't, evaluate if you can use the services of a financial planner or an advisor, instead of a PMS. If you are willing to handle the paperwork associated with investing, you can get a financial planner or advisor to construct an asset allocation plan and guide you on the choice of investments for a one-time fee of Rs 5,000-15,000.





OBSERVATION AND FINDING About 85% Respondents knows about the Investment Option, because remaining 15%
take his /her residential property as Investment, but in actual it not an investment philosophy carries that all the Investment does not create any profit for the owner. More than 75% Investors are investing their money for Liquidity, Return and Tax benefits. At the time of Investment the Investors basically considered the both Risk and Return in more %age around 65%. As among all Investment Option for Investor the most important area to get more return is share around 22%after that Mutual Fund and other comes into existence. More than 76% of Investors feels that PMS is less risky than investing money in Mutual Funds. As expected return from the Market more than 48% respondents expect the rise in Income more than 15%, 32% respondents are expecting between 15-25% return. As the experience from the Market more than 34% Investor had lose their money during the concerned year, whereas 20% respondents have got satisfied return. About 45% respondents do the Trade in the Market with Derivatives Tools Speculation compare to 24% through Hedging .And the rest 31% trade their money in Investments. Around 57% residents manage their Portfolio through the different company whereas 43%Investor manage their portfolio themselves. The most important reasons for doing trade with CD Equisearch Private Limited is CD Equisearch Research Department than its Brokerage rate Structure.


Out of hundred respondents 56% respondents are using CD Equisearch PMs services.

Investors preferred more than 45% equity Portfolio, 28%Balanceed Portfolio and about 27% Debt Portfolio with CD Equisearch PMS.

About 52% Respondents earned through CD Equisearch PMS product, whereas 18% investor faced loses also.

More than 63% Investor are happy with the Transparency system of CD Equisearch Private limited.

As based on the good and bad experience with CD Equisearch Private limited around 86% are ready to recommended the PMS of CD Equisearch to their peers, relatives etc.


As only Hyderabad was dealt in the survey so it does not represent the view of the total Indian market.

The sample size was restricted with hundred respondents.

There was lack of time on the part of respondents.

The survey was carried through questionnaire and the questions were based on perception.

There may be biasness in information by market participant.

Complete data was not available due to company privacy and secrecy.

Some people were not willing to disclose the investment profile.



On the basis of the study it is found that CD Equisearch Private Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. CD Equisearch Ltd. provides the facility of Trade tiger as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO. We can conclude the following with above analysis.

CD Equisearch Private Ltd has better Portfolio Management services than Other Companies

It keeps its process more transparent.

It gives more returns to its investors.

It charges are less than other portfolio Management Services

It provides daily updates about the stocks information.

Investors are looking for those investment options where they get maximum returns with less returns.

Market is becoming complex & it means that the individual investor will not have the time to play stock game on his own.

People are not so much ware aware about the Investment option available in the Market.


The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market.

Investors must feel safe about their money invested.

Investors accounts must be more transparent as compared to other companies.

CD Equisearch private limited must try to promote more its Portfolio Management Services through Advertisements.

CD Euisearch Private Ltd needs to improve more its Customer Services There is need to change in lock in period in all three PMS i.e.Protech, Proprime, Pro Arbitrage.




Book Referred

Value guide by CD Equisearch Private Ltd Investors Eyes by CD Equisearch Private Ltd Business world. The economist