Portfolio Management

www.final-yearprojects.co.cc | www.troubleshoot4free.
com/fyp/
Final Year Project's is One place for all Enineerin Projects! Presentation! seminar!
summer trainin report an" lot more.
#O$E%-$his wor& is copyriht '() to its *uthors. $his is only for E"ucational Purpose.
DECLARATION
I here by declare that the project entitled
PORTFOLIO MANAGEMENT AND INE!TMENT DECI!ION"
!#b$itted %or partial %#l%ill$ent %or the a&ard o%
De'ree o%
MA!TER OF ()!!INE!! ADMINI!TRATION i* entirely ori'inal and
+a* not
(een
!#b$itted earlier by any one %or any De'ree or Diplo$a,
DATE-
PLACE-

www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
OBJECTIVES AND METHODOLOGY
AIM OF THE STUDY:
The study focuses its attention on the functioning of stock markets and
onstruction of the e!uity "ortfo#io
O$%ETI&ES:
To study the in'estment decision "rocess(
To ana#ysis the risk return characteristics of sam"#e scri"ts(
Ascertain "ortfo#io )eights(
To construct an e*ecti'e "ortfo#io )hich o*ers the ma+imum
return for minimum risk
METHODO,O-Y
&isiting .otak securities at $an/ara hi##s0 Secundera1ad and co##ecting information
Discussions )ere conducted )ith the "ersonne# of .otak securities
SOURCES OF INFORMATION
The study uses e+tensi'e#y 1oth "rimary and secondary data
PRIMARY DATA:
Information )as co##ected through this source com"rises of discussions )ith the "ersonne#
of Fortis securities
SECONDARY DATA:
The secondary data inc#udes information o1tained from 'arious sources that inc#udes
ne)s"a"er artic#es0 1usiness maga2ines and )e1
LIMITATIONS
3( The "ro/ect )ork is main#y 1ased on the a1o'e mentioned sources of information
4( The study )as made in "ur'ie) of the guide#ines of SE$I0 5ATIO5A, STO.
E6HA5-E OF I5DIA and .OTA. SEU7ITIES as a""#ica1#e to that "eriod on#y(
INTRODUCTION
INTRODUCTION , IMPORTANCE & NEED OF STUDY
8ortfo#io management or in'estment he#"s in'estors in e*ecti'e
and e9cient management of their in'estment to achie'e this goa#
(
The ra"id gro)th of ca"ita# markets in India has o"ened u" ne)
in'estment a'enues for in'estors(
The stock markets ha'e 1ecome attracti'e in'estment o"tions for
the common man(
$ut the need is to 1e a1#e to e*ecti'e#y and e9cient#y manage
in'estments in order to kee" ma+imum returns )ith minimum risk(
Hence this study on PORTFOLIO MANAGEMENT : INVESTMENT
DECISION; to e+amine the ro#e "rocess and merits of e*ecti'e in'estment
management and decision(
PORTFOLIO MANAGEMENT
PORTFOLIO:
A "ortfo#io is a co##ection of securities since it is rea##y desira1#e to in'est
the entire funds of an indi'idua# or an institution or a sing#e security0 it is essentia# that
e'ery security 1e 'ie)ed in a "ortfo#io conte+t( Thus it seems #ogica# that the e+"ected
return of the "ortfo#io( 8ortfo#io ana#ysis considers the determine of future risk and return in
ho#ding 'arious 1#ends of indi'idua# securities
8ortfo#io e+"ected return is a )eighted a'erage of the e+"ected return of the
indi'idua# securities 1ut "ortfo#io 'ariance0 in short contrast0 can 1e something reduced
"ortfo#io risk is 1ecause risk de"ends great#y on the co<'ariance among returns of
indi'idua# securities( 8ortfo#ios0 )hich are com1ination of securities0 may or may not take
on the aggregate characteristics of their indi'idua# "arts(
Since "ortfo#ios e+"ected return is a )eighted a'erage of the e+"ected return of its
securities0 the contri1ution of each security the "ortfo#io=s e+"ected returns de"ends on its
e+"ected returns and its "ro"ortionate share of the initia# "ortfo#io=s market 'a#ue( It
fo##o)s that an in'estor )ho sim"#y )ants the greatest "ossi1#e e+"ected return shou#d
ho#d one security> the one )hich is considered to ha'e a greatest e+"ected return( &ery
fe) in'estors do this0 and 'ery fe) in'estment ad'isors )ou#d counse# such and e+treme
"o#icy instead0 in'estors shou#d di'ersify0 meaning that their "ortfo#io shou#d inc#ude more
than one security(
OBJECTIVES OF PORTFOLIOMANAGEMENT:
The main o1/ecti'e of in'estment "ortfo#io management is to ma+imi2e
the returns from the in'estment and to minimi2e the risk in'o#'ed in in'estment( Moreo'er0
risk in "rice or in?ation erodes the 'a#ue of money and hence in'estment must "ro'ide a
"rotection against in?ation(
Seconda! o"#ec$%&e':
The following are the other ancillary objectives:
7egu#ar return(
Sta1#e income(
A""reciation of ca"ita#(
More #i!uidity(
Safety of in'estment(
Ta+ 1ene@ts(
8ortfo#io management ser'ices he#"s in'estors to make a )ise choice
1et)een a#ternati'e in'estments )ith "it any "ost trading hass#e=s this ser'ice renders
o"timum returns to the in'estors 1y "ro"er se#ection of continuous change of one "#an to
another "#ane )ith in the same scheme0 any "ortfo#io management must s"ecify the
o1/ecti'es #ike ma+imum return=s0 and risk ca"ita# a""reciation0 safety etc in their o*er(
Return From the angle of securities can be fxed income securities such as:
AaB De1entures C"art#y con'erti1#es and non<con'erti1#es de1entures de1t )ith trada1#e
Darrants(
A1B 8reference shares
AcB -o'ernment securities and 1onds
AdB Other de1t instruments
A4B &aria1#e income securities
AaB E!uity shares
A1B Money market securities #ike treasury 1i##s commercia# "a"ers etc(

8ortfo#io managers has to decide u" on the mi+ of securities on the 1asis of
contract )ith the c#ient and o1/ecti'es of "ortfo#io
NEED FOR PORTFOLIO MANAGEMENT:
8ortfo#io management is a "rocess encom"assing many acti'ities of in'estment in
assets and securities( It is a dynamic and ?e+i1#e conce"t and in'o#'es regu#ar and
systematic ana#ysis0 /udgment and action( The o1/ecti'e of this ser'ice is to he#" the
unkno)n and in'estors )ith the e+"ertise of "rofessiona#s in in'estment "ortfo#io
management( It in'o#'es construction of a "ortfo#io 1ased u"on the in'estor=s o1/ecti'es0
constraints0 "references for risk and returns and ta+ #ia1i#ity( The "ortfo#io is re'ie)ed and
ad/usted from time to time in tune )ith the market conditions( The e'a#uation of "ortfo#io is
to 1e done in terms of targets set for risk and returns( The changes in the "ortfo#io are to
1e e*ected to meet the changing condition(
Portfolio construction refers to the allocation of surplus funds in hand among a
variety of financial assets open for investment. Portfolio theory concerns itself with
the principles governing such allocation. The modern view of investment is oriented
more go towards the assembly of proper combination of individual securities to form
investment portfolio.
A com1ination of securities he#d together )i## gi'e a 1ene@cia# resu#t if they
grou"ed in a manner to secure higher returns after taking into consideration the risk
e#ements(
The modern theory is the 'ie) that 1y di'ersi@cation risk can 1e reduced(
Di'ersi@cation can 1e made 1y the in'estor either 1y ha'ing a #arge num1er of shares of
com"anies in di*erent regions0 in di*erent industries or those "roducing di*erent ty"es of
"roduct #ines( Modern theory 1e#ie'es in the "ers"ecti'e of com1ination of securities under
constraints of risk and returns
PORTFOLIO MANAGEMENT PROCE!!-
+n,estment manaement is a comple- acti,ity which may be bro&en "own into the
followin steps%
.) !peci%ication o% in.e*t$ent objecti.e* and con*traint* %
$he typical objecti,es souht by in,estors are current income! capital
appreciation! an" safety of principle. $he relati,e importance of these objecti,es shoul"
be specifie" further the constraints arisin from li/ui"ity! time hori0on! ta- an" special
circumstances must be i"entifie".
/0 choice o% the a**et $i1 -
$he most important "ecision in portfolio manaement is the asset mi- "ecision ,ery
broa"ly1 this is concerne" with the proportions of 2stoc&s3 'e/uity shares an" units/shares
of e/uity-oriente" mutual fun"s) an" 2bon"s3 in the portfolio.
$he appropriate 2stoc&-bon"3 mi- "epen"s mainly on the ris& tolerance an"
in,estment hori0on of the in,estor.

ELEMENTS OF PORTFOLIO MANAGEMENT:
Portfolio management is on-going process involving the following basic tass:
Identi@cation of the in'estor=s o1/ecti'es0 constraints and "references(
Strategies are to 1e de'e#o"ed and im"#emented in tune )ith in'estment "o#icy
formu#ated(
7e'ie) and monitoring of the "erformance of the "ortfo#io(
Fina##y the e'a#uation of the "ortfo#io
R%'(:
7isk is uncertainty of the income Eca"ita# a""reciation or #oss or 1oth( A## in'estments
are risky( The higher the risk taken0 the higher is the return( $ut "ro"er management of risk
in'o#'es the right choice of in'estments )hose risks are com"ensating( The tota# risks of
t)o com"anies may 1e di*erent and e'en #o)er than the risk of a grou" of t)o com"anies
if their com"anies are o*set 1y each other(
The two major types of risks are:
Systematic or market re#ated risk(

Unsystematic or com"any re#ated risks(
!ystematic riss a*ected from the entire market are Athe "ro1#ems0 ra) materia#
a'ai#a1i#ity0 ta+ "o#icy or go'ernment "o#icy0 in?ation risk0 interest risk and @nancia# riskB( It
is managed 1y the use of $eta of di*erent com"any shares(
The unsystematic riss are mismanagement0 increasing in'entory0 )rong @nancia#
"o#icy0 defecti'e marketing etc( this is di'ersi@a1#e or a'oida1#e 1ecause it is "ossi1#e to
e#iminate or di'ersify a)ay this com"onent of risk to a considera1#e e+tent 1y in'esting in
a #arge "ortfo#io of securities( The unsystematic risk stems from ine9ciency magnitude of
those factors di*erent form one com"any to another(
RETURNS ON PORTFOLIO:
Each security in a "ortfo#io contri1utes return in the "ro"ortion of its
in'estments in security( Thus the "ortfo#io e+"ected return is the )eighted a'erage of the
e+"ected return0 from each of the securities0 )ith )eights re"resenting the "ro"ortions
share of the security in the tota# in'estment( Dhy does an in'estor ha'e so many
securities in his "ortfo#ioF If the security A$ gi'es the ma+imum return )hy not he in'ests
in that security a## his funds and thus ma+imi2e returnF The ans)er to this !uestions #ie in
the in'estor=s "erce"tion of risk attached to in'estments0 his o1/ecti'es of income0 safety0
a""reciation0 #i!uidity and hedge against #oss of 'a#ue of money etc( this "attern of
in'estment in di*erent asset categories0 ty"es of in'estment0 etc(0 )ou#d a## 1e descri1ed
under the ca"tion of di'ersi@cation0 )hich aims at the reduction or e'en e#imination of
non<systematic risks and achie'e the s"eci@c o1/ecti'es of in'estors
RIS) ON PORTFOLIO :
The e+"ected returns from indi'idua# securities carry some degree of risk( 7isk on
the "ortfo#io is di*erent from the risk on indi'idua# securities( The risk is re?ected in the
'aria1i#ity of the returns from 2ero to in@nity( 7isk of the indi'idua# assets or a "ortfo#io is
measured 1y the 'ariance of its return( The e+"ected return de"ends on the "ro1a1i#ity of
the returns and their )eighted contri1ution to the risk of the "ortfo#io( These are t)o
measures of risk in this conte+t one is the a1so#ute de'iation and other standard de'iation(

Most in'estors in'est in a "ortfo#io of assets0 1ecause as to s"read risk 1y not
"utting a## eggs in one 1asket( Hence0 )hat rea##y matters to them is not the risk and
return of stocks in iso#ation0 1ut the risk and return of the "ortfo#io as a )ho#e( 7isk is
main#y reduced 1y Di'ersi@cation(
RIS) RETURN ANALYSIS:
A## in'estment has some risk( In'estment in shares of com"anies has its o)n risk or
uncertainty> these risks arise out of 'aria1i#ity of yie#ds and uncertainty of a""reciation or
de"reciation of share "rices0 #osses of #i!uidity etc
The risk o'er time can 1e re"resented 1y the 'ariance of the returns( Dhi#e the return o'er
time is ca"ita# a""reciation "#us "ayout0 di'ided 1y the "urchase "rice of the share(
5orma##y0 the higher the risk that the in'estor takes0 the higher is the return(
There is0 ho) e'er0 a risk #ess return on ca"ita# of a1out 34G )hich is the 1ank0 rate
charged 1y the 7($(I or #ong term0 yie#ded on go'ernment securities at around 3HG to 3IG(
This risk #ess return refers to #ack of 'aria1i#ity of return and no uncertainty in the
re"ayment or ca"ita#( $ut other risks such as #oss of #i!uidity due to "arting )ith money
etc(0 may ho)e'er remain0 1ut are re)arded 1y the tota# return on the ca"ita#( 7isk<return
is su1/ect to 'ariation and the o1/ecti'es of the "ortfo#io manager are to reduce that
'aria1i#ity and thus reduce the risky 1y choosing an a""ro"riate "ortfo#io(
Traditiona# a""roach ad'ocates that one security ho#ds the 1etter0 it is according
to the modern a""roach di'ersi@cation shou#d not 1e !uantity that shou#d 1e re#ated to the
!ua#ity of scri"ts )hich #eads to !ua#ity of "ortfo#io(
E+"erience has sho)n that 1eyond the certain securities 1y adding more securities
e+"ensi'e(
S%*+,e d%&e'%-ca$%on ed.ce' :
An asset=s tota# risk can 1e di'ided into systematic "#us unsystematic risk0 as sho)n 1e#o):
S!'$e*a$%c %'( /.nd%&e'%-a",e %'(0 1 .n'!'$e*a$%c %'( /d%&e'%-ed %'(0 2To$a,
%'( 2Va /03
Unsystematic risk is that "ortion of the risk that is uni!ue to the @rm Afor e+am"#e0 risk due
to strikes and management errors(B Unsystematic risk can 1e reduced to 2ero 1y sim"#e
di'ersi@cation(
Sim"#e di'ersi@cation is the random se#ection of securities that are to 1e added to a
"ortfo#io( As the num1er of random#y se#ected securities added to a "ortfo#io is increased0
the #e'e# of unsystematic risk a""roaches 2ero( Ho)e'er market re#ated systematic risk
cannot 1e reduced 1y sim"#e di'ersi@cation( This risk is common to a## securities(
Pe'on' %n&o,&ed %n +o$4o,%o *ana5e*en$:
In&e'$o:
Are the "eo"#e )ho are interested in in'esting their funds
Po$4o,%o *ana5e':
Is a "erson )ho is in the )ake of a contract agreement )ith a c#ient0 ad'ices or
directs or undertakes on 1eha#f of the c#ients0 the management or distri1ution or
management of the funds of the c#ient as the case may 1e(
D%'ce$%ona! +o$4o,%o *ana5e:
Means a manager )ho e+ercise under a contract re#ating to a "ortfo#io
management e+ercise any degree of discretion as to the in'estment or management of
"ortfo#io or securities or funds of c#ients as the case may 1e
(
The relation ship between an investor and portfolio manager is of a highly
interactive nature
The "ortfo#io manager carries out a## the transactions "ertaining to the in'estor
under the "o)er of attorney during the #ast t)o decades0 and increasing com"#e+ity )as
)itnessed in the ca"ita# market and its trading "rocedures in this conte+t a key
AuninformedB in'estor formed B in'estor found him se#f in a tricky situation 0 to kee" track
of market mo'ement 0u"date his kno)#edge0 yet stay in the ca"ita# market and make
money 0 there fore in #ooked for)ard to resuming he#" from "ortfo#io manager to do the /o1
for him (
The "ortfo#io management seeks to strike a 1a#ance 1et)een risk=s and return(
The genera##y ru#e in that greater risk more of the "ro@ts 1ut S(E($(I( in its
guide#ines "rohi1its "ortfo#io managers to "romise any return to in'estor(
8ortfo#io management is not a su1stitute to the inherent risk=s associated )ith e!uity
in'estment
67o can "e a +o$4o,%o *ana5e8
On#y those )ho are registered and "ay the re!uired #icense fee are e#igi1#e to
o"erate as "ortfo#io managers( An a""#icant for this "ur"ose shou#d ha'e necessary
infrastructure )ith "rofessiona##y !ua#i@ed "ersons and )ith a minimum of t)o "ersons
)ith e+"erience in this 1usiness and a minimum net )orth of 7s( JK#akh=s( The certi@cate
once granted is 'a#id for three years( Fees "aya1#e for registration are 7s 4(J#akh=s e'ery
for t)o years and 7s(3#akh=s for the third year( From the fourth year on)ards0 rene)a# fees
"er annum are 7s LJKKK( These are su1/ected to change 1y the S(E($(I(
The S(E($(I( has im"osed a num1er of o1#igations and a code of conduct on them(
The "ortfo#io manager shou#d ha'e a high standard of integrity0 honesty and shou#d not
ha'e 1een con'icted of any economic o*ence or mora# tur"itude( He shou#d not resort to
rigging u" of "rices0 insider trading or creating fa#se markets0 etc( their 1ooks of accounts
are su1/ect to ins"ection to ins"ection and audit 1y S(E($(I((( The o1ser'ance of the code of
conduct and guide#ines gi'en 1y the S(E($(I( are su1/ect to ins"ection and "ena#ties for
'io#ation are im"osed( The manager has to su1mit "eriodica# returns and documents as
may 1e re!uired 1y the SE$I from time<to< time(
3F.nc$%on' o4 +o$4o,%o *ana5e':
the main function of portfolio managers are :
Ad&%'o! o,e: ad'ice ne) in'estments0 re'ie) the e+isting ones0 identi@cation of
o1/ecti'es0 recommending high yie#d securities etc(
Cond.c$%n5 *a(e$ and econo*%c 'e&%ce: this is essentia# for recommending
good yie#ding securities they ha'e to study the current @sca# "o#icy0 1udget
"ro"osa#> indi'idua# "o#icies etc further "ortfo#io manager shou#d take in to
account the credit "o#icy0 industria# gro)th0 foreign e+change "ossi1#e change in
cor"orate #a)=s etc(
F%nanc%a, ana,!'%': he shou#d e'a#uate the @nancia# statement of com"any in
order to understand0 their net )orth future earnings0 "ros"ectus and strength(
S$.d! o4 '$oc( *a(e$ : he shou#d o1ser'e the trends at 'arious stock
e+change and ana#ysis scri"ts so that he is a1#e to identify the right securities for
in'estment
S$.d! o4 %nd.'$!: he shou#d study the industry to kno) its future "ros"ects0
technica# changes etc0 re!uired for in'estment "ro"osa# he shou#d a#so see the
"ro1#em=s of the industry(
Dec%de $7e $!+e o4 +o$ 4o,%o: kee"ing in mind the o1/ecti'es of "ortfo#io a
"ortfo#io manager has to decide )eather the "ortfo#io shou#d com"rise e!uity
"reference shares0 de1entures0 con'erti1#es0 non<con'erti1#es or "art#y
con'erti1#es0 money market0 securities etc or a mi+ of more than one ty"e of
"ro"er mi+ ensures higher safety0 yie#d and #i!uidity cou"#ed )ith 1a#anced risk
techni!ues of "ortfo#io management(
A "ortfo#io manager in the Indian conte+t has 1een $rokers A$ig 1rokersB
)ho on the 1asis of their e+"erience0 market trends0 Insider trader0 he#"s the #imited
kno)#edge "ersons(
The one=s )ho use to manage the funds of "ortfo#io0 no) 1eing managed
1y the "ortfo#io of Merchant $ank=s0 "rofessiona#=s #ike M$A=s A=s And many @nancia#
institution=s ha'e entered the market in a 1ig )ay to manage "ortfo#io for their c#ients(
According to S(E($(I( ru#es it is mandatory for "ortfo#io managers to get
them se#f=s registered(
7egistered merchant 1ankers can act=s as "ortfo#io manager=s
In'estor=s must #ook for)ard0 for !ua#i@cation and "erformance and a1i#ity and research
1ase of the "ortfo#io manager=s(
Tec7n%9.e:' o4 +o$4o,%o *ana5e*en$:
As of no) the under noted techni!ue of "ortfo#io management: are in 'ogue in our
country
;3 e9.%$! +o$4o,%o: is in?uenced 1y interna# and e+terna# factors the interna# factors
e*ect the inner )orking of the com"any=s gro)th "#an=s are ana#y2ed )ith
referenced to $a#ance sheet0 "ro@t : #oss aEc AaccountB of the com"any(
Among the e+terna# factor are changes in the go'ernment "o#icies0 Trade cyc#e=s0
8o#itica# sta1i#ity etc(
<3 e9.%$! '$oc( ana,!'%': under this method the "ro1a1#e future 'a#ue of a share of
a com"any is determined it can 1e done 1y ratio=s of earning "er share of the
com"any and "rice earning ratio

EPS 22 PROFIT AFTER TA=
NO: OF E>UITY SHARES
PRICE EARNING RATIO2 MAR)ET PRICE
E3P3S /ean%n5:' +e '7ae0
One can estimate trend of earning 1y E8S0 )hich re?ects trends of earning !ua#ity of
com"any0 di'idend "o#icy0 and !ua#ity of management(
8rice earning ratio indicate a con@dence of market a1out the com"any future0 a high rating
is "refera1#e(
(
The following points must be considered by portfolio managers while analy"ing
the securities#
;3 Na$.e o4 $7e %nd.'$! and %$' +od.c$: #ong term trends of industries0
com"etition )ith in0 and out side the industry0 Technica# changes0 #a1our re#ations0
sensiti'ity0 to Trade cyc#e(
<3 Ind.'$%a, ana,!'%' o4 +o'+ec$%&e ean%n5', ca'7 ?o@', @o(%n5 ca+%$a,,
d%&%dend', e$c3
A# Ratio analysis: Ratio such as de1t e!uity ratio=s current ratio=s net )orth0
"ro@t earning ratio0 return on in'estment0 are )orked out to decide the "ortfo#io(
The )ise "rinci"#e of "ortfo#io management suggests that M$uy when the maret is
low or $%&R'!(0 and sell when the maret is rising or $)**'!(+#
Stock market o"eration can 1e ana#y2ed 1y:
aB Fundamenta# a""roach :< 1ased on intrinsic 'a#ue of share=s
1B Technica# a""roach:<1ased on Do)/one=s theory0 7andom )a#k theory0 etc(
Prices are based upon demand and supply of the maret(
i( Traditiona# a""roach assumes that
ii( O1/ecti'es are ma+imi2ation of )ea#th and minimi2ation of risk(
iii( Di'ersi@cation reduces risk and 'o#ati#ity(
i'( &aria1#e returns0 high i##i!uidity> etc(
a"ita# Assets "ricing a""roach AA8MB it "ay=s more )eight age0 to risk or "ortfo#io
di'ersi@cation of "ortfo#io(
,iversifcation of portfolio reduces ris but it should be based on certain
assessment such as:
Trend ana#ysis of "ast share "rices(
&a#uation of intrinsic 'a#ue of com"any Atrend<marker mo'es are kno)n for their
Uncertainties they are com"ared to 1e high0 and #o) "rom"ts of )a'e market trends
are constituted 1y these )a'es it is a "attern of mo'ement 1ased on "astB(
The fo##o)ing ru#es must 1e studied )hi#e cautious "ortfo#io manager 1efore decide to
in'est their funds in "ortfo#io=s(
3( om"i#e the @nancia#s of the com"anies in the immediate "ast H years such as turn
o'er0 gross "ro@t0 net "ro@t 1efore ta+0 com"are the "ro@t earning of com"any )ith
that of the industry a'erage nature of "roduct manufacture ser'ice render and it future
demand 0kno) a1out the "romoters and their 1ack ground0 di'idend track record0
1onus shares in the "ast H to J years 0re?ects com"any=s commitment to share ho#ders
the re#e'ant information can 1e accessed from the 7DAregistrant of
com"aniesB"u1#ished @nancia# resu#ts @nanced !uarters0 /ourna#s and #edgers(
4( Datch out the high=s and #o)s of the scri"ts for the "ast 4 to H years and their
timing cyc#ica# scri"ts ha'e a tendency to re"eat their "erformance 0this hy"othesis
can 1e true of a## other @nancia# 0
H( The higher the trading 'o#ume higher is #i!uidity and sti## higher the chance of
s"ecu#ation0 it is futi#e to in'est in such shares )ho=s dai#y mo'ements cannot 1e ke"t
track0 if you )ant to rea" rich returns kee" in'estment o'er a#ong hori2on and it )i##
o*set the )i#d intra day trading ?uctuation=s0 the minor mo'ement of scri"ts may 1e
ignored0 )e must remem1er that share market mo'es in "hases and the s"an of each
"hase is N months to J years(
a( ,ong term of the market shou#d 1e the guiding factor to ena1#e you to in'est
and !uit( The market is no) 1u##ish and the trend is #ike#y to continue for some
more time(
1( U5 trada1#e shares must @nd a #ast "#ace in "ortfo#io a"art from return> e'en
ca"ita# in'ested is eroded )ith no )ay of e+it )ith no )ay of e+it )ith inside(
Ho) at a## one shou#d a'oid such scri"ts in futureF
A3B 5e'er in'est on the 1asis of an insider trader ti" in a com"any )hich is not sound
Ainsider trader is "erson )ho gi'es ti" for trading in securities 1ased on "rices sensiti'e u"
"rice sensiti'e un "u1#ished information re#ating to such securityB(
A4B 5e'er in'est in the so ca##ed "romoter !uota of #esser kno)n com"any
AHB 5e'er in'est in a com"any a1out )hich you do not ha'e a""ro"riate kno)#edge(
AIB 5e'er at a## in'est in a com"any )hich doesn=t ha'e a stringent @nancia# record your
"ortfo#io shou#d not a stagnate
AIB ShuOe the "ortfo#io and re"#ace the s#o) mo'ing sector )ith acti'e ones 0 in'estors
)ere shatter )hen the techno#ogy 0 media0 soft)are 0 sto"s ha'e taken a do)n s#ight(
AJB 5e'er fa## to the magic of the scri"ts don=t con@ne to the 1#ue chi" com"anyPs0 #ook out
for other "ortfo#io that ensure regu#ar di'idends(
ANB In the same )ay ne'er react to sudden raise or fa## in stock market inde+ such
?uctuation is mo'ementary minor correction=s in stock market he#d in conso#idation of
market their 1y reading out a )eak "#ayer often taste on )ait for the dust and dim to sett#e
to make your mo'e; (
PORT FOLIO MANAGEMENT AND DIVERSIFICATOIN:
om1inations of securities that ha'e high risk and return features make u" a "ortfo#io(
8ortfo#io=s may or may not take on the aggregate characteristics of indi'idua# "art0
"ortfo#io ana#ysis takes 'arious com"onents of risk and return for each industry and
consider the e*ort of com1ined security(
8ortfo#io se#ection in'o#'es choosing the 1est "ortfo#io to suit the risk return
"references of "ortfo#io in'estor management of "ortfo#io is a dynamic acti'ity of
e'a#uating and re'ising the "ortfo#io in terms of "ortfo#ios o1/ecti'es
It is )ide#y acce"ted that returns from indi'idua# scri"ts carry certain rate of risk
("ortfo#io he#d in s"reading the risk in many security then the risk is reduced( The 1asic
"rinci"#e is that of a "ort fo#io ho#ds se'era# assets or securities
It may inc#ude in cash a#so0 e'en if one goes 1ad the other )i## "ro'ide "rotection from the
#oss e'en cash is su1/ect to in?ation the di'ersi@cation can 1e either 'ertica# or hori2onta#
the 'ertica# di'ersi@cation "ortfo#io can ha'e scri"t of di*erent com"any=s )ith in the same
industry(
In hori2onta# di'ersi@cation one can ha'e di*erent scri"ts chosen from di*erent industries(
EME5T I5DUST7Y (TE6TI,E I5DUST7Y
A EME5T
%. EME5T
U,T7A TEH
$I7,A EM
&ISH5U EM
87IYA EM
7AM O EM

7E,I,A5E I5DUST7IES
-A7DE5 SI,. MI,,S
5E8 TE6TI,E
$OM$AY DEYI5-
-7ASIM I5DUST7IES
$O7ODA 7AYO5
HES,I5D TE6TI,E

Ho%Bon$a, D%&e'%-ca$%on
TISO MA5UFATU7I5-
A
-A7DE5 TE6TI,E
I5FOSYS ASOFTDA7EB
$SES ,TD A8ODE7B
U,T7A TEH AO5ST7UTIO5B
Di'ersi@cation shou#d 1e either 1e too much nor too #ess

It shou#d 1e an ade!uate di'ersi@cation #ooking in to the si2e of "ortfo#io(
Traditiona# a""roach ad'ocates the more security one ho#ds in a "ortfo#io 0 the 1etter it is
according to modern a""roach di'ersi@cation shou#d not 1e !uanti@ed 1ut shou#d 1e re#ated to
the !ua#ity of scri"ts )hich #eads to the !ua#ity and "ortfo#io su1se!uent#y e+"erience can sho)
that 1eyond a certain num1er of securities adding more securities 1ecome e+"ensi'e(
In'estment in a @+ed return securities in the current market scenario )hich is "assing
through a an uncertain "hase in'estors are facing the "ro1#em of #ack of #i!uidity com1ined )ith
minimum returns the im"ortant "oint to 1oth is that the e!uity market and de1t market mo'es in
o""osite direction ()here the stock market is 1ooming0 e!uities "erform 1etter )here as in
de"ressed market the assured returns re#ated securities market out "erform e!uities(
It is cyc#ic and is e'ident in more g#o1a# market kee"ing this in mind an in'estor can shift
from @+ed income securities to e!uities and 'ise 'ersa a#ong )ith the changing market
scenario 0 if the in'estment are )ise#y "#anned they 0 fetch good returns e'en )hen the market is
de"ressed most 0 im"ortant the in'estor must ado"t the time 1ound strategy in di*ering state of
market to achie'e the o"timum resu#t )hen the aim is short term returns it )ou#d 1e )ise for the
in'estor to in'est in e!uities )hen the market is in 1oom : it cou#d 1e re'ie)ed if the same is
done(
Ma+imum of returns can 1e achie'ed 1y fo##o)ing a com"osite "attern of in'estment 1y
ha'ing0 suita1#e in'estment a##ocation strategy among the a'ai#a1#e resources(
-ever invest in a single securities your investment can be allocated in the
following areas:
3( E!uities:<"rimary and secondary market(
4( Mutua# Funds
H( $ank de"osits
I( Fi+ed de"osits : 1onds and the ta+ sa'ing schemes
The di*erent areas of @+ed income are as:<
Fi+ed de"osits in com"any
$onds
Mutua# funds schemes
)ith an in'estment strategy to in'est in de1t in'estment in @+ed de"osit can 1e made for the
sim"#e reason that assured @+ed income of a high of 3I<3LG "er annum can 1e e+"ected
)hich is much safer then in'esting a high#y 'o#ati#e stock market0 e'en in com"arison to 1anks
de"osit )hich gi'es a ma+imum return of 34G "er annum0 @+ed de"osit s in high "ro@#e
esteemed )i## "erforming com"anies de@nite#y gi'es a higher returns(
Add%$%ona, 4ac%,%$%e' oCeed "! *o'$ o4 $7e 'c7e*e'
Instant #oan faci#ity
Ad'ances "ayment of interest in the form of "ostdated )arrants
8remature )ith dra)# faci#ity
8re "ersona# accident insurance
Fixed deposit does provide a .arity of schemes to suit the fnancial lins of investor
a few of the schemes are:
Month#y income de"osits )here the interest is "aid e'ery month(
Quarter#y income de"osit )here the interest is "aid once in a !uarter
umu#ati'e de"osit )here interest is accumu#ated and "aid at the time of maturity(
7ecurring de"osit simi#ar to recurring de"osit of 1anks
ash certi@cates schemes
An in'estor can #ook for the CRISIL, CARE, ICRA0 ratings for @+ed de"osits(
BETA:
The conce"t of $eta as a measure of systematic risk is usefu# in "ortfo#io management(
The 1eta measures the mo'ement of one scri"t in re#ation to the market trendR( Thus $ETA
can 1e "ositi'e or negati'e de"ending on )hether the indi'idua# scri" mo'es in the same
direction as the market or in the o""osite direction and the e+tent of 'ariance of one scri"
'is<S<'is the market is 1eing measured 1y $ETA( The $ETA is negati'e if the share "rice
mo'es contrary to the genera# trend and "ositi'e if it mo'es in the same direction( The
scri"=s )ith higher $ETA of more than one are ca##ed aggressi'e0 and those )ith a #o) $ETA
of #ess than one are ca##ed defensi'e(
It is therefore it is necessary0 to ca#cu#ate $etas for a## scri"=s and choose those )ith
high $eta for a "ortfo#io of high returns(
EFFICIENT FRONTIER
To construct an e9cient "ortfo#io0 )e ha'e to conce"tua#i2e( &arious
com1inations of in'estments in a 1asket and designate them as "ortfo#io 3 and n( the
e+"ected returns from these "ortfo#ios are 1e )orked out( The risk on these "ortfo#ios is to 1e
estimated 1y measuring the standard de'iation of di*erent "ortfo#io returns( In order to
understand more easi#y )e )i## see in Morko)it2 gra"hica# se#ection of "ortfo#io:
If there are Mn; assets a'ai#a1#e in the ca"ita# market0 )e can constitute t)o assets
"ortfo#io0 three asset "ortfo#io0 four asset "ortfo#io0 and T(;n; asset "ortfo#io( For each
"ortfo#io there are Mn; "ossi1#e "ro"ortions of in'estments( Together they resu#t in an a#most
in@nite num1er of "ortfo#ios( The risk and return and 1e seen in gra"h 1e#o):
F%nd%n5' : The marko)irt2 gra"hic se#ection of "ortfo#io is set to 1e not an e9cient one
1ecause if an in'estor is ready to take risk at std de'iation 6( he can 'ote the #ast "ortfo#io Y
(from the risk std de'iation U and 7+ "oint of 'ie) it is not an e9cient "ortfo#io(
D= is a denominated "ortfo#io(
DYE and MFE is a dominant "ortfo#io(
Dhen the outer "oints of an e9cient "ortfo#io are /ointed a she## is formed or
a 1roken egg is formed( the sha"e de"ends u"on degree of corre#ation among securities0
therefore the she## is ca##ed attaina1#e set0 feasi1#e set0 it is so ca##ed 1ecause a## the
a'ai#a1#e in'estment o""ortunities in the market #ike either on the 1order or )ith in the
1order(
CONCEPT OF EFFICIENT PORTFOLIO:
Assume that 6 is se#ected it is in Ce9cient "ortfo#io 1ecause
3( If he is "re"are to take a risk of STD de'iation for the same risk MY;( gi'es in the higher
rate of 7y ( Therefore MY; is a dominant "ortfo#io and M6; is a dominated "ortfo#io(
4(if a in'estor is satis@ed )ith the return of RG 0 the same return can 1e earn 1y choosing
"ortfo#io DFE )hich has a simi#ar risk of '$d de&%a$%on G AAs against #arger risk '$d
de&%a$%on G0
The dominants "rinci"#e states that among a## the in'estment o""ortunities
a'ai#a1#e )ith a gi'en return0 the in'estment )ith the #east risk is the most desira1#e one or
among the in'estment in a gi'en risk c#ass0 the one )ith the highest return )ith the most
desira1#e one( 7isk "rinci"#e is a#so ca##ed E9cient set theorem(
In the #ight of this segment A, B is the re#e'ant "ortion of the feasi1#e set it is ca##ed the
Marko)it2 e9cient frontier( It is so ca##ed 1ecause a## e9cient "ortfo#ios #ie on this frontier(
An e9cient "ortfo#io is one0 that gi'es the highest return for gi'en return or
a minimum risk for a gi'en return0 these e9cient "ortfo#ios are a#so refer as means 'ariance
e9cient "ortfo#ios( The sha"e of the e9cient frontier is gi'en 1y De#ta 78 EDe#ta STD
de'iation "(
MODIFICATION TO THE EFFICIENT FRONTIER:
T)o modi@cations to the e9cient frontier must 1e discussed: )hat ha""ens )hen short
se##ing is added0 and )hat ha""ens )hen #e'eraged "ortfo#ios are addedF
A3 S7o$ 'e,,%n5: the a1i#ity to short se## has t)o e*ects on the e9cient frontier( The
frontier "ro1a1#y shifts u" and to the #eft and it continuous to the right( The a1i#ity to
short se## securities created a ne) set of "ossi1#e in'estments( A security so#d short
"roduces a "ositi'e return )hen a security has a #arge decrease in "rice and a negati'e
return )hen its "rice increases( Its "otentia# im"ro'es the e9cient frontier(
$ecause the a1i#ity to short se## dou1#es the num1er of "ossi1#e in'estments( Since in'estors
are free not short se##0 the introduction of the a1i#ity to short se## cannot make in'estors
)orse o*( If it ne'er "ays to short se##0 the )orst that can ha""en is that the e9cient frontier
is unchanged( Dith out short sa#es0 a## in'estors can do is not to ho#d securities that they
1e#ie'e do "oor#y(
Dith short sa#es0 an o""ortunity is created that is e+"ected to ha'e a#most the
o""osite characteristics of the in'estment )hen "urchased( Dith short sa#es it is "ossi1#e0 in
a sense to disin'est in "oor in'estments and hence gain "oor#y( If it e'er "ays to short se##
any security0 the e9cient frontier is shifted u" and to the #eft( This is an e+am"#e of the o#d
economic adage that a decision maker can not 1e )orse o 1y 1eing gi'en additiona# choices
and the decision maker may )e## 1e 1etter o*( In addition short sa#es a##o) the in'estor to
decrease or e#iminate market risk in a #arge )e## di'ersi@ed "ortfo#io0 uni!ue risk is
e#iminated and on#y market risk remains( Short sa#es a##o) the reduction of market risk to
'ery #o) #e'e#s( Thus the additiona# of short "ositions o"erates as a hedging mechanism0
reducing the market e+"osure of a "ortfo#io(
The e+tension of the e9cient frontier to the right arises from the tendency of a 'ery
#arge amount of short se##ing to increase the risk and return on the "ortfo#io( This increase in
risk is easy to understand( Short sa#es can in'o#'e un#imited #oss( The #esson to 1e #earned
from this is that short sa#es can increase the "ossi1#e #e'e# of return for any #e'e# of risk(
Short sa#es can 1e a1used and "ositions taken that are too e+treme( Ho)e'er short se##ing
"er sec is not 1ad( ,ike any other in'estment strategy0 it can 1e used "rudent#y or
im"rudent#y(
B3LEVERAGED PORTFOLIO:
Marko)it2 mode#0 )hich recogni2ed the e+istence of 1oth systematic and
unsystematic risk0 did not a##o) for 1orro)ing and #ending o""ortunities( The in'estor is
assumed to ha'e a certain amount of initia# )ea#th to in'est for a gi'en ho#ding "eriod( O*
a## the "eriods that are a'ai#a1#e0 the o"tima# one is sho)n to corres"ond to the "oint )here
one of the in'estor=s indi*erence cur'es in tangent to the e9cient set(
At the end of the ho#ding "eriod0 the in'estor=s initia# )ea#th
)i## ha'e either increased or decreased0 de"ending on the "ortfo#io=s
rate of return( Again in the marko)it2 Ps a""roach 0 it is assumed that
the assets 1eing considered for in'estment are indi'idua##y risky0 that
is each one of the 5 risky assets has an uncertain return o'er the
in'estor=s ho#ding "eriod( Since none of the asset has a "erfect#y
negiti'e corre#ation )ith any other asset0 a## the "ortfo#ios a#so ha'e
uncertain returns o'er the in'estor is not a##o)ed to use 1orro)ed
money( A #ong )ith his or her initia# )ea#th0 to "urchase a "ortfo#io of
assets( This means that the in'estor is not a##o)ed to use @nancia#
#e'erage(
To e+"and the Marko)it2 a""roach in'estor can consider risk free assets and @nancia#
#e'erage 1y @rst in'esting in not on#y risky assets 1ut a#so in risk free assets0 and second 1y
1orro)ing money at a gi'en rate of interest(
;3 RIS) FREE ASSET:
In'estment in risk free asset is often referred to as risk free #ending( Since this a""roach
in'o#'es in'esting for a sing#e ho#ding "eriod0 it means that the return of the risk free asset is
certain( That is0 if the in'estor "urchases this asset at the 1eginning of the ho#ding "eriod0
then the in'estor kno)s e+act#y )hat the 'a#ue of the asset )i## 1e at the end of the ho#ding
"ro/ect( Since there is no uncertainty a1out the termina# 'a#ue of the risk free asset0 the
standard de'iation of the risk free assets0 1y de@nition0 2ero( In turn0 this means that the
co'ariance 1et)een the rate of return on the risk free asset and the rate of return on any
risky asset is 2ero(
4. INVESTMENT IN BOTH THE RIS) FREE ASSETS AND A RIS)Y ASSTS:
The e9cient frontier )ou#d 1e a#tered su1stantia##y if a risk frees securities is inc#uded
among a'ai#a1#e in'estment o""ortunities( Dhi#e a risk free security does not e+ist in the strict
sense of the )ord0 there are securities0 )hich "romise return )ith re#ati'e certainty( They are
characteri2ed 1y an a1sence of defau#t risk and return rate> fu## "ayment of "rinci"#e is assured
)ith out serious "ros"ect of ca"ita# #oss arising from changes in the #e'e# of interest rates( A
risk free security of this ty"e inc#udes cash0 short<term treasury 1i##s0 and time de"osits in
1anks or sa'ings and #oan association> cash )ou#d 1e dominated 1y the other "ositi'e return
in'estments(
-i'en the o""ortunity to either 1orro) or #end at the risk free rate0 an in'estor "roceed
to identify the o"tima# "ortfo#io 1y "#otting his or her indi*erence cur'es on gra"h and nothing
)here once of them is tangent to the indi*erence e9cient set(
For e+am"#e "ortfo#io0 has an e+"ected return of 33G and a standard de'iation of 34(JG(
Ho)e'er0 "ortfo#io is not e9cient0 since "ortfo#io $ has the same e+"ected return 1ut a
standard de'iation of on#y VG( 8ortfo#io 1ut not e9cient0 # since "ortfo#io f has a sti## higher
return )ith the same degree of risk as e and 73 8ortfo#io A is a sing#e e!uity "ortfo#io that has
the highest return and risk> in no )ay can in'estor im"ro'e on its return<to<risk ratio( If in'estor
mo'es to the right on the cur'e0 return decreases and risk decreased( Hence in'estor mo'es to
the #eft and do)n( The on#y )ay the in'estor can o1tain a higher return on the e9cient frontier
is to acce"t a higher return on the e9cient frontier is to acce"t a higher amount of risk(
Dhere in'estors o"erate on the ca"ita# market #ine de"ends on their attitudes to)ards
risk and return( In'estors must determine their o)n "reference for risk and return 1y )ay of a
di*erence cure( In theory0 the in'estor )i## in'est the com1ination of securities found at the
"oint )here the highest indi*erence cur'e /ust touches the ca"ita# market #ine( In'estors might
ha'e higher return and #o)er risk goa#s0 1ut they can o1tain those com1inations on#y on the
ca"ita# market #ine0 and )i## in'est at some "oint that gi'es the com1ination of returns and risk
that a##o)s them to ma+imi2e net )orth and make a satisfactory in'estment
( To 1e rea#istic0 assume that the in'estor=s 1orro)ing rate is a1o'e the #ending
rate( om1ination of #ending or 1orro)ing )ith a "ortfo#io of risky assets #ies a#ong a straight
#ines0 )ith #ending and 1orro)ing the e9cient frontier( 5oticed that for a## in'estors0 e+"ect for
those )hose risk<return trade<o*s causes they to ho#d "ortfo#ios0 the a1i#ity to #end and 1orro)
im"ro'e their o""ortunities( The a1i#ity to #end is hard#y contro'ersia#( The 1orro)ing "art may
1e more contro'ersia#( $orro)ing and 1uying a #ess risky "ortfo#io can gi'e higher returns and
#ess risk and 1uying a more risky "ortfo#io(
Higher e+"ected return at the same risk #e'e# 1y 1orro)ing( Of course0
1orro)ing #ike short sa#es0 a#most any @nancia# mechanism can 1e a1used( It can 1e used to
take e+treme and im"rudent risk "osition( On the other hand0 it can 1e used to enhance
"erformance( 7e/ecting 1orro)ing entire#y )ou#d thro) out "ositi'e o""ortunities( For e+am"#e0
consider an in'estor )ishing to ha'e a high "ortfo#io )ith greater e+"ected returns than
o*ered 1y "ortfo#io $( this in'estor )ou#d ha'e the same e+"ected return and #ess risk 1y
1uying "ort fo#io $ and 1orro)ing than 1y 1uying "ortfo#io0 )hich does not in'o#'e 1orro)ing(
7eturning to the conce"t of the e9cient frontier0 it is necessary to dea# further
into the su1/ect of "rudent in'estment( In an e9cient frontier0 an in'estor shou#d ne'er ho#d a
security or "ortfo#io that #ie 1e#o) that frontier( $ecause a## sing#e securities e+"ect the risk #ess
asset #ie 1e#o) the frontier0 there is a#most ne'er a situation )here a sing#e security is e9cient(
A## e9cient "ortfo#ios are )i## di'ersi@ed(
CAPITAL ASSET PRICING MODEL/CAPM0
The re#e'ant risk for an indi'idua# asset is a systematic risk Aor market Cmarket riskB 1ecause
non market risk can 1e e#iminated 1y di'ersi@cation0 the re#ationshi" 1et)een an asset=s return
and its systematic risk can 1e e+"ressed 1y the A8M0 )hich is a#so ca##ed the security market
ASM,B( The e!uation for the A8M is as fo##o)s:
E/%02R1HE/*0IRJ"%
Dhere E AriB is the e+"ected return for an asset0
7 is the risk<free rate Ausua##y assumed to 1e a short<term T<1i## rateB
E ArmBe!ua#s the e+"ectecmarket return Ausua##y assumed to 1e the S:8JKKB
$i denotes for the asset=s 1eta(
The A8M is an e!ui#i1rium mode# for measuring the risk<return tradeo* for a## asset s
inc#uding 1oth ine9cient and e9cient "ortfo#ios( A gra"h of the A8M is gi'en 1e#o):
F%5.e e+e'en$%n5 : RIS) E=POSURE OF PORTFOLIO
FINDINGS:
De"icts t)o assets0 U and O that are not in e!ui#i1rium on the A8M( Asset U is under'a#ued
and therefore 0 a'ary desira1#e asset to o)n( U;s "rice )i## rise in the market as more in'estors
"urchase it( Ho)e'er as U=s "rice goes u"0its return fa##s( Dhen U=s return fa##s to the return
consistent )ith the 1eta on the SM,0 e!ui#i1rium is attained( Dith O0/ust the o""osite takes
"#ace(in'estor )i## attem"t to se## O0since it is o'er'a#ued and therefore0 "ut do)n "ressure on
O=s "rice( Dhen the return on asset O increases to the rate that is coinsistent )ith the 1eta risk
#e'e# gi'en 1y the SM,0 e!ui#i1rium )i## 1e achie'ed and do)n )ard "rice "ressure )i## cease(
A''.*+$%on' .nde,!%n5 CAPM
The a"ita# Asset 8ricing Mode# WA8MX is an e!ui#i1rium mode#( The deri'ation
of the mode# is 1ased on se'era# assum"tions a1out in'estors and the market0 )hich)e
"resent 1e#o) for com"#eteness( In'estors are assumed to take in to account on#y t)o
"arameters of return distri1ution0 name#y the mean and the 'arience 0 in making a choice of
"ortfo#io ( in other )ords0 it is assumed that a secutity can 1e com"#ete#y re"resented in terms
of its e+"ected return and 'arience and those in'estors 1eha'e as if a security )ere a
commodity )ith t)o attri1utes0name#y 0 e+"ected return )hich is a desira1#e attri1ute and
'arience0 )hich is an undesira1#e attri1ute( In'estors are su""osed to 1e risk a'erse and for
e'ery additiona# unit of risk they take0 they demand com"ensation in terms of e+"ected
returns(
Again the ca"ita# market is assumed to 1e e9cient( An e9cient market im"#ies
that a## ne) information )hich cou#d "ossi1#y a*ect the share "rice 1ecomes a'ai#a1#e to a##
the in'estors !uick#y and more or #ess simu#taneous#y( Thus in an e9cient market no sing#e
in'estor has an edge o'er another it terms of the information "ossessed 1y him since a##
in'estor are su""osed#y )e## informed and rationa#0meaning that a## of them "rocess the
a'ai#a1#e information more or #ess a#i#ke( And @na##y in an e9cient market0 a## in'estors are
"rice takers0 i(e(0 no in'estor are so 1ig as to a*ect the "rice of security signi@cant#y 1y 'irtue
of his trading in that security
The a"ita# Asset 8ricing Mode# a#so assumes that the di*erence 1et)een #ending
and 1orro)ing rates are neg#igi1#y sma## for in'estors( A#so0 the in'estors are assumed to make
a sing#e "eriod in'estment decisions( The cost of transactions and information are assumed to
1e neg#igi1#y sma##( The mode# a#so ignores the e+istence of ta+es0 )hich may in?uence the
in'estor=s 1eha'ior(
The fact that some of the a1o'e assum"tions are some )hat restricti'e has
attracted considera1#e criticism of the mode#( This ho)e'er need not distract us from main
thrust of the mode#( The a"ita# Asset 8ricing Mode# mere#y im"#ies that in a reasona1#y )e##<
functioning market )here a #arge num1er of kno)#edgea1#e @nancia# ana#ysts o"erate0 a##
securities )i## yie#d returns consistence )ith their risk0 since if this )ere not is0 the
kno)#edgea1#e ana#ysts )i## 1e a1#e to take ad'antage of the o""ortunities for dis"ro"ortionate
returns and there 1y reduce such o""ortunities(
Hence0 according to A8M0 in an e9cient market0 returns dis"ro"ortionate to risk are
di9cu#t to come 1y( assum"tions concerning the in'estor 1eha'ior0 market e9ciency0 #ending
and 1orro)ing rates0 etc(0 are to 1e taken not in their #itera# sense0 1ut rather as a""ro+imate
conditions( Factors such as ta+es0 transaction cost0 etc0 can 1e easi#y incor"orated in to the
mode# for greater rigor(
The security market #ine ASM,B e+"ress the 1asic theme of the A8M i(e((0 e+"ected
return of a security increases #inear#y )ith risk0 as measured 1y $eta( It can 1e dra)n as
fo##o)s(

The SM, is u")ard s#o"ing straight #ine )ith an interce"t at the risk free return securities
and "asses through the market "ortfo#io( The u")ard s#o"e of the #ine indicates that greater
e+"ected return accom"any higher #e'e# of $eta( In e!ui#i1rium0 each security or "ortfo#io #ies
on the SM,(
In the a1o'e @gure that the return e+"ected from "ortfo#io or in'estment is a
om1ination of risk free return "#us risk "remium( An in'estor )i## come for)ard to take risk
on#y if the return on in'estment a#so inc#udes risk "remium(
The A8M has sho)n the risk and return re#ationshi" of a "ortfo#io in the fo##o)ing formu#a(
E A7iB Y7r Z[i<A7m<7rB
Dhere
E A7iB Y e+"ected rate of return on any indi'idua# security Aor "ortfo#io of securityB
7r Y7isk free rate of return
7m Ye+"ected rate of return on the market "ortfo#io(
[i Ymarket sensiti'ity inde+ of indi'idua# security Aor "ortfo#io of securitiesB
STOC) E=CHANGES
a"ita# markets in India ha'e considera1#e de"th( There are 44 stock e+changes in India(
Ahmeda1ad0 De#hi0 a#cutta0 Madras and $anga#ore are ma/or ones amongst the other
stock e+changes( These stock e+changes are ser'ed 1y H0KKK 1rokers and 4K0KKK su1<
1rokers( A num1er of "ro'iders for merchant 1anking ser'ices e+ist(
The market ca"ita#i2ation of the $om1ay Stock E+change A$SEB a#one )as around 7s(J
tri##ion in Decem1er 3\\I(This makes it one of the #argest emerging stock markets in the
)or#d( A num1er of other cities a#so ha'e stock markets(
There are t)o other e+changes in $om1ay :<
5ationa# Stock E+change A5SEB
O'er The ounter E+change of India AOTEIB
The regu#atory agency )hich o'ersees the functioning of stock markets is the Securities
and E+change $oard of India ASE$IB0 )hich is a#so #ocated in $om1ay(
India has one of the most acti'e "rimary markets in the )or#d0 )ith rough#y 3HK "u1#ic
issues taking "#ace each month(
The 5ationa# Stock E+change A5SEB0 $om1ay Stock E+change A$SEB and OTEI ha'e
a#ready introduced screen<1ased trading( A## other e+changes Ae+ce"t -u)ahati0 Magadh
and $hu1anesh)arB are to introduce fu## com"uterisation and screen<1ased trading 1y HK
%une 3\\N( This )i## 1ring a1out greater trans"arency for in'estors0 reduce s"reads0 a##o)
for more e*ecti'e monitoring of "rices and 'o#umes and s"eed u" sett#ement(
NATIONAL STOC) E=CHANGE OF INDIA /NSE0
The 5ationa# Stock E+change of India ,imited has genesis in the re"ort of the High 8o)ered
Study -rou" on Esta1#ishment of 5e) Stock E+changes0 )hich recommended "romotion of
a 5ationa# Stock E+change 1y @nancia# institutions AFIsB to "ro'ide access to in'estors from
a## across the country on an e!ua# footing( $ased on the recommendations0 5SE )as
"romoted 1y #eading Financia# Institutions at the 1ehest of the -o'ernment of India and
)as incor"orated in 5o'em1er 3\\4 as a ta+<"aying com"any un#ike other stock
e+changes in the country(
On its recognition as a stock e+change under the Securities ontracts A7egu#ationB Act0
3\JN in A"ri# 3\\H0 5SE commenced o"erations in the Dho#esa#e De1t Market ADDMB
segment in %une 3\\I( The a"ita# Market AE!uitiesB segment commenced o"erations in
5o'em1er 3\\I and o"erations in Deri'ati'es segment commenced in %une 4KKK
urrent#y0 4KK #arge com"anies are traded on the 5SE> that #ist is e+"ected to gradua##y
e+"and as the e+change sta1i#i2es( The 5SE is a com"uteri2ed market for de1t and e!uity
instruments(
The 5SE0 #ocated in $om1ay0 )as set u" in 3\\H to encourage stock e+change reform
through system moderni2ation and com"etition( 5SE]s reach has 1een e+tended to 43
cities0 of )hich N cities do not ha'e their o)n stock e+changes( 5SE "#ans to co'er IK cities
1y end<3\\N( The 5SE has a 'ery modern im"#ementation of trading using contem"orary
techno#ogy in com"uters and communication( It is an e#ectronic screen 1ased system
)here mem1ers ha'e e!ua# o""ortunity and access for trading irres"ecti'e of their
#ocation0 since they are connected 1y a sate##ite net)ork(
The num1er of mem1ers trading on the e+change has increased from the 44L at
commencement to NKK mem1ers as of 5o'em1er 3\\J( 5SE0 thus0 he#"s to integrate the
nationa# market and "ro'ides a modern system )ith a com"#ete audit trai# of a##
transactions( In a further e*ort to im"ro'e the sett#ement system and minimi2e the risks
associated therein0 5SE has set u" a su1sidiary < 5ationa# Securities #earing or"oration
A5SB( On "ar )ith c#earing cor"orations the )or#d o'er0 5S )i## short#y guarantee
sett#ement of trades e+ecuted and sett#ed through it( The instruments traded are treasury
1i##s0 go'ernment security0 and 1onds issued 1y "u1#ic sector com"anies(
The go'ernment of India issues around 7s(LK 1i##ion of de1t instruments "er year( The
market is sti## nascent> 1ut0 trading 'o#umes are steadi#y rising( A'erage dai#y turno'er in
stocks ha'e increased from 7s(LK mi##ion in 5o'em1er 3\\I to 7s(\\K mi##ion during %u#y
3\\J(

OBJECTIVES:
;0 To e'$a",%'7 a na$%on @%de $ad%n5 4ac%,%$! 4o
e9.%$%e', de"$ %n'$.*en$' and 7!"%d'3
4B To ensure e!ua# access to in'estors a## o'er the country through
a""ro"riate communication net)ork(
HB To "ro'ide a fair0 e9cient and trans"arent securities market to in'estors
using an e#ectronic communication net)ork(
IB To ena1#e shorter sett#ement cyc#e and 1ook entry sett#ement system(
JB To meet current internationa# standards of securities market(
PROMOTERS:
Industria# De'e#o"ment $ank of India AID$IB
Industria# redit and In'estment or"oration of India AIIIB
Industria# Financing or"oration of India AIFIB
,ife Insurance or"oration of India A,IB
State $ank of India AS$IB
-enera# Insurance or"oration A-IB
$ank of $aroda
anara $ank
or"oration $ank
Indian $ank
Orienta# $ank of ommerce
Union $ank of India
8un/a1 5ationa# $ank
Infrastructure ,easing and Financia# Ser'ices
Stock Ho#ding or"oration of India
S$I ca"ita# market
NSEINIFTY
The nationa# Stock E+change on A"ri# 440 3\\N #aunched a ne) E!uity Inde+( The 5SE<JK(
The ne) Inde+ )hich re"#aces the e+isting 5SE<3KK Inde+ is e+"ected to ser'e as an
a""ro"riate Inde+ for the ne) segment of futures and o"tions(
M5ifty; means 5ationa# Inde+ for Fifty Stock(
The 5SE<JK com"rises JK com"anies that re"resent 4K 1road Industry grou"s )ith an
aggregate market ca"ita#i2ation of around 7s(3LKKKKcrores( A## com"anies inc#uded in the
inde+ ha'e a market ca"ita#i2ation in e+cess of 7s(JKKcrores each and shou#d ha'e traded
for VJG of trading days at an im"act cost of #ess than 3(JG(
The 1ase "eriod for the inde+ is the c#ose of "rices on 5o' H03\\J )hich makes one year of
com"#etion of o"eration of 5SE=s ca"ita# market segment( The 1ase 'a#ue of the Inde+ has
1een set at 3KKK(
BOMBAY STOC) E=CHANGE
T7e S$oc( EGc7an5e, M.*"a%, Po+.,a,! a' DBo*"a! S$oc(
EGc7an5eE /BSE0 @a' e'$a",%'7ed %n ;KLM a' T7e
Na$%&e S7ae and S$oc( Bo(e' A''oc%a$%onE, a'
a &o,.n$a! nonI+o-$ *a(%n5 a''oc%a$%on3 I$ 7a'
e&o,&ed o&e $7e !ea %n$o %$' +e'en$ '$a$.' a'
$7e +e*%e S$oc( EGc7an5e %n $7e co.n$!3 I$
*a! "e no$ed $7a$ $7e Bo*"a! S$oc( EGc7an5e
%' $7e o,de'$ one %n A'%a, e&en o,de $7an $7e
To(!o S$oc( EGc7an5e, @7%c7 @a' 4o.nded %n
;KLK3
The $om1ay Stock E+change0 )hi#e "ro'iding an e9cient and trans"arent
market for the trading in securities0 u"ho#ds the interests of the in'estors and ensures
redressa# of their grie'ances0 )hether against the com"anies or its o)n mem1er<1rokers( It
a#so stri'es to educate and en#ighten the in'estors 1y making a'ai#a1#e necessary
informati'e in"uts and conducting in'estor education "rograms(
A -o'ernment $oard com"rising of \ e#ected Directors Aone third of them retire
e'ery year 1y rotationB0 T)o SE$I 5ominees0 Se'en 8u1#ic re"resentati'es and an
E+ecuti'e Director is the A"e+ $ody0 )hich decides the "o#icies and regu#ates the a*airs of
the $om1ay Stock E+change( The e+ecuti'e Director as the hief E+ecuti'e O9cer is
res"onsi1#e for the day<to<day administration of the $om1ay Stock e+change(
SECURITIES TRADED:
The securities traded in the $SE are c#assi@ed in to three grou"s name#y
s"eci@ed shares of PA= grou" and non<s"eci@ed securities( The #atter is su1<di'ided into P$3=
and P$= grou"s( PA= grou" contains the com"anies )ith #arge outstanding shares0 good track
record and #arge 'o#umes of 1usiness in the secondary market( Sett#ements of a## the
shares are carried out through the #earing House(
2ear
N#$ber o%
Li*ted
Co$panie*
Mar3et
Capitali4ation
5In Crore*0
Ann#al
T#rno.er
5In Crore*0
A.era'e Daily
T#rno.er
5R*, In (illion0
.554-56 4784 7966 :77 ..;
.556-5: 6:84 69:6 68. 4.4
.55:-57 6;94 4:95 .449 6.4
.557-5; 6;69 6:98 478: ;.6
4888-89 :888 6475 4445 ...6
In order to ena1#e the market "artici"ants0 ana#ysts etc(0 to track the 'arious u"s and
do)ns in the Indian Stock Market0 the E+change has introduced in 3\VN an e!uity stock
inde+ ca##ed $SE<SE5SE6 that su1se!uent#y 1ecame the 1arometer of the moments of the
share "rices in the Indian Stock Market( It is a MMarket a"ita#i2ation<Deighted; inde+ of HK
com"onents( The 1ase year of SE5SE6 is 3\LV<L\( The SE5SE6 is )ide#y re"orted in 1oth
domestic and internationa# markets through "rint as )e## as e#ectronic media(
SE5SE6 is ca#cu#ated using a market ca"ita#i2ation )eighted method( As "er this
methodo#ogy0 the #e'e# of the inde+ re?ects the tota# market 'a#ue of a## HKcom"onent
stocks from di*erent industries re#ated to "articu#ar 1ase "eriod( The tota# market 'a#ue of
a com"any is determined 1y mu#ti"#ying the "rice of its stock 1y the num1er of shares
outstanding( Statisticians ca## an inde+ of a set of com1ined 'aria1#es Asuch as "rice and
num1er of sharesB a com"osite inde+( An inde+ed num1er is used to re"resent the resu#ts
of this ca#cu#ation in order to make the 'a#ue easier to )ork )ith and track o'er a time( It is
much easier to gra"h a chart 1ased on inde+ed 'a#ues than one 1ased on actua# 'a#ues(
In "ractice0 the dai#y ca#cu#ation of SE5SE6 is done 1y di'iding the aggregate market of the
HK om"anies in the Inde+ 1y a num1er ca##ed the Inde+ Di'isor( The Di'isor is the on#y #ink
to the origina# 1ased "eriod 'a#ue of the SE5SE6( The di'isor kee"s the inde+ com"ara1#e
o'er a "eriod of time and if the reference "oint for the entire Inde+ maintenance
ad/ustments( SE5SE6 is )ide#y used to descri1e the mood in the Indian Stock Markets(
Ba'e !ea a&ea5e %' c7an5ed a' +e $7e 4o*.,a:
5e) $ase Year A'erage Y
O#d $ase Year A'erage R A5e) Market &a#ueEO#d Market &a#ueB
R%/%-T ,%.%*0P1%-T! '- '-,'&- !T0/2 1&R2%T
Many ste"s ha'e 1een taken in recent years to reform the Stock Market such as:
7egu#ation of Intermediaries(
hanges in the Management Structure(
Insistence on Qua#ity Securities(
8rohi1ition of Insider Trading(
Trans"arency of Accounting 8rocesses(
Strict su"er'ision of Stock Market O"erations(
8re'ention of 8rice 7igging(
Encouragement of Market Making(
Discouragement of 8rice Mani"u#ations(
Introduction of E#ectronic Trading(
Introducing of De"ository System(
Deri'ates Trading(
Internationa# ,isting(
STOC) E=CHANGES IN INDIA
S3NO NAME OF THE STOC) E=CHANGE YEAR
3 $om1ay Stock E+change( 3VLJ
4 Hydera1ad Stock E+change( 3\IH
H Ahmeda1ad Share : Stock $rokers Association( 3\JL
I a#cutta Stock E+change Association ,imited 3\JL
J De#hi Stock E+change Association ,imited 3\JL
N Madras Stock E+change Association ,imited 3\JL
L Indoor Stock $rokers Association( 3\JV
V $an ga#ore Stock E+change( 3\NH
\ ochin Stock E+change( 3\LV
3K 8une Stock E+change ,imited 3\V4
33 U(8 Stock E+change Association ,imited 3\V4
34 ,udhiana Stock E+change Association ,imited 3\VH
3H %ai"ur Stock E+change ,imited 3\VI
3I -auhati Stock E+change ,imited 3\VI
3J Manga#ore Stock E+change ,imited( 3\VJ
3N Maghad Stock E+change ,imited0 8atna( 3\VN
3L $hu'anesh)ar Stock E+change ,imited 3\V\
3V O'er the ounter E+change of India0 $om1ay 3\V\
3\ Saurasthra .utch Stock E+change ,imited 3\\K
4K &adodara Stock E+change ,imited 3\\3
43 oim1atore Stock E+change ,imited 3\\3
44 Meerut Stock E+change ,imited 3\\3
4H 5ationa# Stock E+change ,imited 3\\4
4I Integrated Stock E+change 3\\\
STOC) E=CHANGES IN 6ORLD
S3NO COUNTRY INDE=
3( 7ussia Mosco) Times
4( Argentina Mer &a#
H( Thai#and SET
I( 8akistan .arachi 3KK
J( Indonesia %ak om"
N( US 5ASDAQ
L( 2ech 7e"u1#ic 86JK
V( Me+ico I8
\( $ra2i# $o'es"a
3K( %a"an 5ikkei 44J
33( Ma#aysia .ISE om"
34( hina Shanghai om"
3H( Singa"ore Straits Times
3I( South .orea Seou# om"
3J( S"ain Madrid -enera#
3N( US S : 8 JKK
3L( India SE5SE6
3V( US Do) %ones
3\( -ermany Da+
4K( Hong .ong Hang Seng
43( anada S : 8 TS6 om"osite
44( India 5IFTY
4H( U. FTSE 3KK
4I( Austra#ia A## Ordinaries
4J( France A IK
Po$4o,%o Mana5e*en$ Se&%ce'
Fortis Securities ,imited
A 7A5$A6Y 8romoter -rou" om"any
Fortis securities
Fortis )as founded in 3\\N 1y #ate
Dr( 8ar'inder Singh AMD C 7an1a+y ,a1oratories ,imitedB )ith the 'ision to
"ro'ide integrated @nancia# care dri'en 1y the re#ationshi" of trust and con@dence(
Fortis aims to 1e India=s @rst tru#y mu#tinationa# com"any to "ro'ide @nancia# ser'ices
across the g#o1e(
Fortis has an e+tensi'e net)ork of o'er 33K 1ranches and 4LJ 1usiness associates
through its regiona#0 2ona# and 1ranch o9ces ser'ed 1y 34KK em"#oyees(
A"o.$ co*+an!
Fortis is "romoted0 contro##ed and managed 1y the "romoters of 7an1a+y( It )as founded
)ith the 'ision of "ro'iding integrated @nancia# dri'en 1y re#ationshi" of trust( To rea#i2e its
'ision0 1oth0 fund C1ased and non<fund 1ased @nancia# ser'ices are "ro'ided to its c#ients(
The gro)ing sta* @nancia# institutions )ith )hom Fortis is em"ane##ed0 as a""ro'ed 1roker0
is a re?ection of the high #e'e#s of ser'ices maintained ($esides ser'icing institutiona#
c#ients0 Fortis a#so "ioneered the conce"t of "artnershi" to reach mu#ti"#e #ocations in order
to e*ecti'e#y ser'ice its #arge 1ase of indi'idua# c#ients ( They great#y 1ene@t 1y its strong
research ca"a1i#ity 0 )hich encom"asses fundamenta#s as )e##s technica#s(
!ERICE!
Coe
E!uity : Deri'ati'e trading
ommodity Trading
De"ository ser'ices
Fac%,%$a$%on
8ri'ate c#ient management (
57I Desk Management (
Margin @nancing(
Ad&%'o!
7esearch : Technica# Ana#ysis (
8ortfo#io Management Ser'ices(
Mutua# fund In'estments(
Internationa# Ad'isory<E!uity: ommodity Trading(
O"#ec$%&e o4 PMS a$ FORTIS
The returns from the de1t asset c#ass ha'e fa##en signi@cant#y in #ast fe) years( The
a'ai#a1i#ity of a#ternate in'estment a'enues has a#so 1een shrinking( In such a scenario0
one doesn=t ha'e a choice e+ce"t to #ook at e!uity for in'esting some "art of his
in'estment so that the o'era## yie#d on the tota# in'estment can 1e increased(
Though0 e!uity carries a risk and ho)soe'er much one may desire0 the risk can=t 1e
e#iminated( Ho)e'er the risk can certain#y 1e managed Aor contro##edB )ith "rofessiona#
e+"ertise( This "rofessiona# e+"ertise de'e#o"ed o'er the #ong years of o"erations in
@nancia# markets is 1eing o*ered 1y Fortis( Fortis 8MS is a dedicated ser'ice aimed at
managing the "ortfo#ios of the in'estors )ho fee# the need of "rofessiona# a""roach to
o"timi2e the returns from their in'estments(
$esides its #ong e+"erience of o"erating in @nancia# markets( Fortis o*ers many other
ad'antages to its in'estors( ontinuing )ith its tradition of inno'ations( Fortis has
introduced some ne) features in its 8MS as )e##( These inc#ude gi'ing the ad'antage of its
1eing a De"ository "artici"ant to the in'estor 1y not charging him for any custodia#
charges( Additiona##y0 Fortis )ou#d 1e using other 1rokers to 1uy and se## stocks in its 8MS
des"ite ha'ing its o)n 1roking ser'ice so as to a'oid con?ict of interest0 not to mention the
fact that it has set itse#f stu* return targets 1efore charging fee to in'estors(
In'estors "hi#oso"hy at Fortis is dri'en 1y fo##o)ing fundamenta# "rinci"a#s(
O"tima# returns
Focus on risk contro#
E*ort to)ards a1so#ute returns
Stock s"eci@c research 1ased a""roach
Di##ing to under "erform in 7ising market0$ut aiming to out"erform in fa##ing
market(
Ad'antage 8MS

Customised Portfolio
Transparency
Benefit from tactical cash management
High level of client interaction
Cost efficient
Hassle free operation
Diversification across or within the asset class
SEB regulated
M.$.a, F.nd V' PMS

Dai#y Month#y U"dates
5o Yes ross
su1sidi2ation
Yes 5o Trans"arency
!s per ris"#reward appetite
of the investor
5o 8ortfo#io
8ro@#ing
5o Yes Sector E Stock
#imits
$ption of fi%ed #
performance based fees
Fi+ed Fee structure
8ersona#i2ed
ser'ices in the
form of access to
fund manager and
dedicated
re#ationshi"
manger
&o personali'ed
service available
Ser'ices
5o entry E E+it
#oads
EntryEE+it
#oads
osts
ustomi2ed
"roduct
Mass
"roduct
8roduct
PMS
M.$.a, F.nd
In'estment 8hi#oso"hy

Stock s"eci@c se#ection "rocedure 1ased on fundamenta#
research for making sound in'estment decisions(
Focus on minimi2ing in'estment risk 1y fo##o)ing rigorous
'a#uation disci"#ines(
E*ort is to enhance a1so#ute returns for in'estors(
$e#ief in ser'ing in'estors 1y a disci"#ined in'estment
a""roach C )hich com1ines an understanding of the goa#s
and o1/ecti'es of the in'estor )ith a @ne tuned strategy
1acked 1y research(
In&e'$*en$ Poce''

Identi@cati
on
&a#uation
&a#idation
Ac!uisitio
n
7e'ision
E+it
In'estment 8rocess
7e'ie)ing "u1#ic#y a'ai#a1#e historica# information(
Management meetings to get a 1etter understanding of industry
trends0 structure and "ecu#iarities re#ated to the industry(
8re"aring forecasted earnings mode# 1ased on assum"tions(
7e'ie) meeting )ith the com"any management to 'a#idate the
assum"tions(
Accessing the com"etiti'e ad'antage the com"any en/oys 'is<S<'is
1uyers0 su""#iers0 su1stitutes0 1arriers to entry(
E'a#uate management ca"a1i#ities and cor"orate go'ernance
standards(
Using mu#ti"#e 'a#uation "rocess for 'a#uing the com"any )hich
inc#udes re#ati'e 'a#uations A8EE08E-0 8E$& etc(B0 determining intrinsic
'a#ue 1ased on DF and sum of "arts 'a#uation(
Arranging "eriodic re'ie) meeting )ith the management to
re'a#idate the under#ying assum"tions(
De fo##o) strict se##ing disci"#ine 1oth in 1ooking "ro@ts as )e## as
cutting #osses in case the under#ying "remise of 1uying into a
"articu#ar stock has changed(
0ur /ompetitive %dge
In'estment team consisting of fund managers and headed
1y IO )hich ensures co##ecti'e decision making(
More than HJ years of cumu#ati'e )ork e+"erience in
ca"ita# markets(
Institutiona# research team com"rising of 34 "rofessiona#s
ha'ing an e+"erience ranging from 4<3K years(
$ene@t from a net)ork of em"ane##ed 1rokers and ana#ysts
from a )ide s"ectrum of 1roking out@ts(
a"a1i#ities to identify emerging 1usinesses at a nascent
stage 1acked 1y "rimary research(
8roduct O*erings

8anther
Tortise
E#e"hant
PANTHER
O1/ecti'e
Aims to achie'e higher returns 1y taking aggressi'e "ositions
across sectors and market ca"ita#i2ation
Strategy
In'estment strategy )ou#d 1e to in'est across the sectors )ith a
'ie) to take ad'antage of 'arious market conditions( E*orts
)ou#d 1e made to @nd out stocks )hich ha'e triggers to
1ecome mu#ti<1aggers in the market 1acked 1y a turn<around0
or ne) "roduct introduction0 idea marketing0 un'ei#ing of
'a#uation and recognition of stock in the market(
Suita1i#ity
High risk high return
In'estment Hori2on
3<4 years
8ortfo#io Turno'er
High
TORTISE
$b(ective
!ims to achieve gradual growth in the portfolio value
over a period of time by way of careful and (udicious
investment in fundamentally strong and attractive valued
shares.
Strategy
nvestment strategy would be to invest across the
sectors with a view to ta"e advantage of lower valuation of
the companies with high growth potential and consistent
trac" record over a longer period of time.
Suitability
)edium *is" )edium *eturn
nvestment Hori'on
+ to , years
E,E8HA5T
O"#ec$%&e
A%*' $o 5enea$e '$ead! e$.n o&e a ,on5e +e%od "! %n&e'$%n5 %n
'ec.%$%e' 'e,ec$ed on,! 4o* BSE ;NN %ndeG3
S$a$e5!
In&e'$*en$ '$a$e5! @o.,d "e $o %n&e'$ %n $7e co*+an%e' @7%c7 4o* +a$ o4
BSE ;NN IndeG a' $7e'e co*+an%e' 7a&e '$ead! +e4o*ance and ed.ce'
$7e ,%9.%d%$! %'( %n $7e *a(e$3
S.%$a"%,%$!
Lo@ R%'( Lo@ Re$.n
In&e'$*en$ Ho%Bon
A $o O !ea'
Po$4o,%o T.no&e
Lo@
10
12
14
16
18
20
22
S
e
p
-
0
4
S
e
p
-
0
4
O
c
t
-
0
4
N
o
v
-
0
4
N
o
v
-
0
4
D
e
c
-
0
4
J
a
n
-
0
5
J
a
n
-
0
5
F
e
b
-
0
5
M
a
r
-
0
5
M
a
r
-
0
5
A
p
r
-
0
5
M
a
y
-
0
5
M
a
y
-
0
5
J
u
n
-
0
5
J
u
l
-
0
5
J
u
l
-
0
5
A
u
g
-
0
5
S
e
p
-
0
5
S
e
p
-
0
5
O
c
t
-
0
5
N
o
v
-
0
5
N
o
v
-
0
5
BS 500 NA"
NA"
BS
33V(K N\(N H\(V
Since
Ince"tion
3 Year N Months
Pe4o*ance P To$o%'e
^ A1so#ute 7eturns as on 3J
th

Decem1er0 4KKJ
10
12
14
16
18
20
22
24
S
e
p
-
0
4
S
e
p
-
0
4
O
c
t
-
0
4
N
o
v
-
0
4
D
e
c
-
0
4
D
e
c
-
0
4
J
a
n
-
0
5
F
e
b
-
0
5
M
a
r
-
0
5
M
a
r
-
0
5
A
p
r
-
0
5
M
a
y
-
0
5
M
a
y
-
0
5
J
u
n
-
0
5
J
u
l
-
0
5
J
u
l
-
0
5
A
u
g
-
0
5
S
e
p
-
0
5
O
c
t
-
0
5
O
c
t
-
0
5
N
o
v
-
0
5
BS 500 NA"
NAV
BSE MNN
34\(N L3(K HK(I
Since
Ince"tion
3 Year N Months
^ A1so#ute 7eturns as on 3J
th
Decem1er 4KKJ
^ Ince"tion as on Lth Se"tem1er0 4KKI
8erformance < 8anther
In'estment Detai#s
)inimum nvestment !mount-
. *esident nvestors / *s. +0 1acs
. &on *esident nvestors / *s. 02 1acs

)ode of nflow-
nflow can be in the form of cash and#or securities
8ortfo#io Disc#osure
!ccess thru 3eb-
. Clients can see the portfolio details on web +45,60
7aluation *eport Holdings Statement
Transaction *eport 8ain#1oss *eport
Corporate !ction
)onthly *eport-
Containing all the details about the portfolio and a monthly news letter on
)ar"ets.
!nnual !udited Balance Sheet
&a#uation 7e"ort
_
Ho#ding Statement
Transaction 7e"ort
-ainE#oss 7e"ort
or"orate Action

Portfolio Management

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Portfolio Management

Загружено:

Авторское право:

Доступные форматы

www.final-yearprojects.co.cc | www.troubleshoot4free.

Вам также может понравиться