Pms

INTRODUCTION
Portfolio management Services helps investors in effective and efficient management of their
investment to achieve this goal.
The rapid growth of capital markets in India has opened up new investment avenues for investors.
The stock markets have become attractive investment options for the common man.
But the need is to be able to effectively and efficiently manage investments in order to keep
maximum risk.
Hence this study on PORTFOLIO MANAGEMENT SERVICES to examine the role process and
merits of effective investment management and decision.
PORTFOLIO MANAGEMENT
PORTFOLIO:
A portfolio is a collection of securities since it is really desirable to invest the entire funds of an
individual or an institution or a single security, it is essential that every security be viewed in a
portfolio context. Thus it seems logical that the expected return of the portfolio. Portfolio analysis
considers the determine of future risk and return in holding various blends of individual securities.
Portfolio expected return is a weighted average of the expected return of the individual securities but
portfolio variance, in short contrast, can be something reduced portfolio risk is because risk depends
greatly on the co-variance among returns of individual securities. Portfolios, which are combination of
securities, may or may not take on the aggregate characteristics of their individual parts.
Since portfolio expected return is a weighted average of the expected return of its securities, the
contribution of each security the portfolios expected returns depends on its expected returns and its
proportionate share of the initial portfolios market value. It follows that an investor who simply wants
the greatest possible expected return should hold one security, the one which is considered to have a
greatest expected return. Very few investors do this, and very few investment advisors would counsel
such and extreme
policy instead, investors should diversify, meaning that their portfolio should
include More than one security.
OBJECTIVES OF PORTFOLIO MANAGEMENT:

The main objective of investment portfolio management is to maximize the returns from the
investment and to minimize the risk involved. Moreover, risk in price or inflation erodes the values of
money and hence investment must provide a protection against inflation.
Secondary objectives:
The following are the other ancillary objectives:
Regular return.
Stable income.
Appreciation of capital.
More liquidity.
Safety of investment.
Tax benefits.
Portfolio management services helps investors to make a wise choice between alternative
investment with pit any post trading hassles this service renders optimum returns to the investors by
proper selection of continuous changes of one plan to another plane with in the same scheme, any
portfolio management must specify the objectives like maximum returns, and risk capital
appreciation, safety etc in their offer.
Return From the angle of securities can be fixed income

securities such as:
a) Debenture: Partly convertibles and non-convertibles debentures debt with tradable Warrants.
b) Preference shares
c) Government securities and bonds
d) Other debt instruments
e) Variable income securities:
Equity shares
Money market securities like treasury bills commercial papers etc.
A portfolio manager has to decide up on the mix of securities on the basis of contrast with the client
and objectives of portfolio.
NEED FOR PORTFOLIO MANAGEMENT:

Portfolio management is a process encompassing many activities of investment in assets and
securities. It is a dynamic and flexible concept and involves regular and systematic analysis,
judgment and action. The objective of this service is to help the unknown and investors with the
expertise of professionals in investment portfolio management. It involves construction of a portfolio
based upon the investors objectives, constraints, preferences for risk and returns and tax liability.
The portfolio is reviewed and adjusted from time to time in tune with the market conditions. The
evaluation of portfolio is to be done in terms of targets set for risk and returns. The changes in the
portfolio are to be effected 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 assemble of proper
combination of individual securities to form investment portfolio. A combination of securities held
together will give a beneficial result if they grouped in a manner to secure higher returns after taking
into consideration the risk elements.
The modern theory is the view that by diversification risk can be reduced. Diversification can be
made by the investor either by having a large number of shares of companies in different regions, in
different industries or those producing different types of product lines. Modern theory believes in the
perspective of combination of securities under constraints of risk and returns .
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PORTFOLIO MANAGEMENT PROCESS:

Investment management is a complex activity which may be broken down into the following
steps:
Specification of investment objectives and constraints:
The typical objectives sought by investors are currents income, capital
appreciation, and safety of principle. The relative importance of these objectives should be specified
further the constraints arising from liquidity, time horizon, tax and special circumstances must be
identified.
Choice of the Asset mix:
The most important decision in portfolio management is the asset mix decision very
broadly; this is concerned with the proportion of stock (equity shares and units/ shares of equity
oriented mutual funds) and bonds in the portfolio.
The appropriate stock-bond mix depends mainly on the risk tolerance and investment horizon of
the investor.
ELEMENTS OF PORTFOLIO MANAGEMENT:

Portfolio management is on-going process involving the following basic tasks:
Identification of the investors objectives, constraints and preferences.
Strategies are to be developed and implemented in tune with investment policy

formulated.
Review and monitoring of the performance of the portfolio.

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Finally the evaluation of the portfolio.
Risk:
Risk is uncertainty of the income / capital appreciations or loss or both. All investments are
risky. The higher the risk taken, the higher is the return. But proper management of risk involves
the rights choices of investments whose risks are compensating. The total risks of two
companies may be different and even lower than the risk of a group of two companies if their
companies are offset by each other.
The two major types of risks are:
Systematic or market related risk.
Unsystematic or company related risks.
Systematic risks
Systematic risks affected from the entire market are (the problems, raw material
availability, tax policy or government policy, inflation risk, interest risk and financial risk). It is
managed by the use of Beta of different company shares.
Unsystematic risks
Unsystematic risks are mismanagement, increasing inventory, wrong financial
policy, defective marketing etc. this is diversifiable or avoidable because it is possible to eliminate
or diversify away this components of risks to a considerable extents by investing in a large
portfolio of securities. The unsystematic risk stems from inefficiency magnitude of those factors
different from one company to another.
RETURNS ON PORTFOLIO:
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Each security in a portfolio contributes returns in the proportion of its investments in security.
Thus the portfolio expected return is the weighted average of the expected return, from each of
the securities, with weights representing the proportions share of the security in the total
investment. Why does an investor have so many securities in his portfolio? If the security ABC
gives the maximum return why not he invests in that security all his funds and thus maximize
return? The answer to this questions lie in the investors perception of risk attached to
investments, his objectives of income, safety, appreciation, liquidity and hedge against loss of
value of money etc. this pattern of investment in different asset categories, types of investment,
etc, would all be described under the caption of diversification, which aims at the reduction or
even elimination of non-systematic risks and achieve the specific objectives of investors.
RISK ON PORTFOLIO:
The expected returns from individual securities carry some degree of risk. Risk on the
portfolio is different from the risk on individual securities. The risk is reflected in the variability of
the returns from zero to infinity. Risk of the individual assets or a portfolio is measured by the
variance of its returns. The expected return depends on the probability of the returns and their
weighted contribution to the risk of the portfolio. These are two measures of risk in this context
one is the absolute deviation and other standard deviation.
Most investors invest in a portfolio of assets, because as to spread risk by not putting all
eggs in one basket. Hence, what really matters to them is not the risk and return of stocks in
isolation, but the risk and return of the portfolio as a whole. Risk is mainly reduced by
Diversification.
RISK RETURN ANALYSIS;

All investment has some risk. Investment in shares of companies has its own risk or
uncertainty; these risks arise out of variability of yields and uncertainty of appreciation or
depreciation of share prices, losses of liquidity etc.
The risk over time can be represented by the variance of the returns. While the return over
time is capital appreciation plus payout, divided by the purchase price of the share.
Y
(SML) Security market line
Expected
Return
Variable returns
} Risk Free
Return.
o
Normally, the higher the risk that the investor takes, the higher is the return. There is, how ever, a risk
less return on capital of about 12% which is the bank rate charged by the R.B.I or long term, yielded
on government securities at around 13% to 14%. This risk less return refers to lack of variability of
return and no uncertainty in the repayment or capital. But other risks such as loss of liquidity due to
parting with money etc. may however remain, but are rewarded by the total return on the capital.
Risk-return is subject to variation and the objectives of the portfolio manager are to reduce that
variability and thus reduce the risky by choosing an appropriate portfolio.
Traditional approach advocates that one security holds the better, it is according to the
modern approach diversification should not be quantity that should be related to the quality of
scripts which leads to quality of portfolio. Experience has shown that beyond the certain
securities by adding more securities expensive.
Simple diversification reduces;
An assets total risk can be divided into systematic plus unsystematic risk, as shown below:
Systematic Risk (Undiversifiable Risk) +
Unsystematic Risk (Diversifiable Risk) = Total Risk = Var (r).
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Unsystematic risk is that portion of the risk that is unique to the firm (for example, risk due to strike
and management errors). Unsystematic risk can be reduced to zero by simple diversification.
Simple diversification is the random selection of securities that are to be added to a portfolio.
As the number of randomly selected added to a portfolio is increased, the level of unsystematic
risk approaches zero. However market related systematic risk cannot be reduced by simple
diversification. This risk is common to all securities.
Persons involved in portfolio management:
Investor:
The peoples who are interested in investing their funds.
Portfolio managers:
Is a person who is in the wake of a contract agreement with a client, advices or directs or
undertakes on behalf of the clients, the management or distribution or management of the funds
of the clients as the case may be.
Discretionary portfolio manager:
Means a manager who exercise under a contract relating to a portfolio management exercise
any degree of discretion as to investment or management of portfolio or securities or funds of
clients as the case may be.
The relation ship between an investor and portfolio manager is of a highly
interactive nature
The portfolio manger carries out all the transitions pertaining to the investor under the power of
attorney during the last two decades, and increasing complexity was witnessed in the capital
market and its trading procedures in this context a key (uninformed) investor formed investor
found him self in a tricky situation, to keep track of market movement, update his knowledge, yet
stay in the capital market and make money, there fore in looked forward to resuming help from
portfolio manager to do for him.
The portfolio management seeks to strike a balance between risks and return.The generally rule in
that greater risk more of the profits but S.E.B.I in its guidelines prohibits portfolio managers to
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promise any return to investor.Portfolio management is not a substitute to the inherent risks
associated with equity investment.
Who can be a portfolio manager?

Only those who are registered and pay the required license fee are eligible to operate as
portfolio mangers. An applicant for this purpose should have necessary infrastructure with
professionally qualified persons and with a minimum of two persons with experience in this
business and a minimum net worth of Rs50lacks. The certificate once granted is valid for three
years. Fees payable for registration are Rs2.5 lacks every for two years and Rs 1 lacks for the
third year. From the fourth year onwards, renewal fees per annum are Rs 75000. These are
subjected to change by the SEBI.
The SEBI has imposed a number of obligations and a code of conduct on them. The portfolio
manager should have a high standard of integrity, honesty, and should not have been convicted
of any economic offence or moral turpitude. He should not resort to rigging up of prices, insider
trading or creating false markets, etc. their books of accounts are subject to inspection to
inspection and audit by the SEBI. The observance of the code of conduct and guidelines given
by the SEBI are subject to inspection and penalties for violation are imposed. The manager has
to submit periodical returns and documents as may be required by the SEBI from time-to-time.
Functions of portfolio managers:
Advisory role
Conducting market and economic services
Financial analysis
Study of stock market
Study of industry
Decide the type of port folio
Advisory role:
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Advice new investments, review the existing ones, identification of objectives,

recommending high yield securities etc.
Conducting market and economic service:

This is essential for recommending good yielding securities they have to study the
current fiscal policy, budget proposal; individual policy etc. further portfolio manager should
take in to account the credit policy, industrial growth, foreign exchange possible change in
corporate laws etc.
Financial analysis:
He/she should evaluate the financial statement of company in order to understand,
their net worth future earnings, prospectus and strength.
Study of stock market:
He/she should observe the trends at various stock exchange and analysis scripts so
that he is able to identify the right securities for investment.
Study of industry:
He should study the industry to know its future prospects, technical changes etc.
required for investment proposal he should also see the problems of the industry.
Decide the type of portfolio:
Keeping in mind the objectives of portfolio a portfolio manager has to decide weather the
portfolio should comprise equity preference shares, debentures convertibles, nonconvertibles or partly convertibles, money market, securities etc. or a mix of more than one
type of proper mix ensures higher safety yield and liquidity coupled with balanced risk
techniques of portfolio management.
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A portfolio manager in the Indian context has been Brokers (Big brokers) who on the basis of
their experience, market trends, Insider trader, helps the limited knowledge persons. The
ones who use to manage the funds of portfolio, now being managed by the portfolio of
Merchant Banks professionals like MBAs CAs And many financial institutions have entered
the market in a big way to manage portfolio for their clients.
According to SEBI rules it is mandatory for portfolio managers to get them selfs registered.
Registered merchant bankers can acts as portfolio managers Investors must look forward,
for qualification and performance and ability and research base of the portfolio managers.
Techniques of portfolio management:
As of now the under noted techniques of portfolio management: are in vogue in our country
1. Equity portfolio: Is influenced by internal and external factors the internal factors effect the
inner working of the companys growth plans are analyzed with referenced to balance sheet,
profit & loss a/c of the company.
Among the external factor are changes in the government polices, trade cycles political
stability etc.
2. Equity stock analysis: Under this method the probable future value of a share of a company is
determined it can be done by ratios of earning per share of the company and price earning
ratio.
EPS = PAT/ NO. Of Equity shares.
Price Earning Ratio = MPS/ EPS.
One can estimate trend of earning by Eps, which reflects trends of earning quality of
company, dividend policy, and quality of management.
Price earning ratio indicate a confidence of market about the company future, a high rating is
preferable
The following points must be considered by portfolio managers while analyzing the
securities:
1. Nature of the Industry and its Product:
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Long term trends of industries, competition with in, and out side the industry, Technical
changes, labor relations, sensitivity, to Trade cycle.
2. Industrial analysis of prospective earnings cash flows, working capital, dividends, etc.
3. Ratio analysis: Ratio such as Debt Equity Ratio, current ratio, net worth, profit earnings
ratio, return on Investment are worked out to decide the portfolio.
The wise principle of portfolio management suggests that Buy when the market is low or
BEARISH, and sell when the market is rising or BULLISH.
Stock market operation can be analyzed by:
1. Fundamental Approach
2. Technical Approach
Fundamental approach: This approach will be worked Based on intrinsic value of shares
Technical approach: This approach will be worked on Dowjones theory, Random walk theory, etc.
Prices are based upon demand and supply of the market.
I. Traditional approach assumes that
II. Objectives are maximization of wealth and minimization of risk.
III. Diversification reduces risk and volatility.
IV. Variable returns, high illiquidity, etc.
Capital assets pricing approach (CAPM) it pays more weight age, to risk or portfolio diversification
of portfolio.
Diversification of portfolio reduces risk but it should be based on certain assessment
such as:
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Trend analysis based on past share prices.

Valuation of intrinsic value of company (trend-market moves are known for their uncertainties
they are compared to be high, and low prompts of wave market trends are constituted by these
waves it is a pattern of movement based on past.).
The following rules must be studied while cautions portfolio manager before decide to invest
their funds in portfolios.
1) Compile the financials of the companies in the immediate past 3 years such as turn over,
gross profit, net profit before tax, compare the profit earning of company with that of the
industry average nature of product manufacture service render and it future demand, know
about the promoters and their back ground, dividend track record, bonus shares in the past 3
to 5 years, reflects companys commitment to share holders the relevant information can be
accessed from the RDC ( registrant of companies) published financial results financed
quarters, journals and ledgers.
2) Watch out the highs and lows of the scripts for the past 2 to 3 years and their timing cyclical
scripts have a tendency to repeat their performance, this hypothesis can be true of all other
financial,
3) The higher the trading volume higher is liquidity and still higher the chance of speculation, it
is futile to invest in such shares whos daily movements cannot be kept track, if you want to
reap rich returns keep investment over along horizon and it will offset the wild intra day
4) trading fluctuations, the minor movement of scripts may be ignored, we must remember that
share market moves in phases and the span of each phase is 6 months to 5 years.
a) Long term of the market should be the guiding factor to enable you to invest and
quit. The market is now bullish and the trend is likely to continue for some more time.
b) UN tradable shares must find a last place in portfolio apart from return, even capital
invested is eroded with no way of exit with no way of exit with inside.
How at all one should avoid such scripts in future?
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1) Never invest on the basis of an insider trader tip in a company which is not sound (insider
trader is person who gives tip for trading in securities based on prices sensitive up price
sensitive un published information relating to such security).
2) Never invest in the so called promoter quota of lesser known company.
3) Never invest in a company about which you do not have appropriate knowledge.
4) Never at all invest in a company which doesnt have a stringent financial record your portfolio
should not a stagnate.
5) Shuffle the portfolio and replace the slow moving sector with active ones, investors were
shatter when the technology, media, software, stops have taken a down slight.
6) Never fall to the magic of the scripts dont confine to the blue chip companys look out for
other portfolio that ensure regular dividends.
7) In the same way never react to sudden raise or fall in stock market index such fluctuation is
movement minor corrections in stock market held in consolidation of market their by reading
out a weak player often taste on wait for the dust and dim to settle to make your move.
Port Folio Management And Diversification:
Combinations of securities that have high risk and return features make up a portfolio.
Portfolios may or may not take on the aggregate characteristics of individual part, portfolio
analysis takes various components of risk and return for each industry and consider the effort of
combined security.
Portfolio selection involves choosing the best portfolio to suit the risk return preferences of
portfolio investor management of portfolio is a dynamic activity of evaluating and revising the
portfolio in terms of portfolios objectives.
It is widely accepted that returns from individual scripts carry certain rate of risk. Portfolio
held in spreading the risk in many securities then the risk is reduced. The basic principle is that of
a portfolio holds several assets or securities.
It may include in cash also, even if one goes bad the other will provide protection from the
loss even cash is subject to inflation the diversification can be either vertical or horizontal the
vertical diversification portfolio can have script of different companys with in the same industry. In
horizontal diversification one can have different scripts chosen from different industries.
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RESEARCH METHODOLOGY:
Collecting data from various sources which are secondary sources of
data carried on the research. The data were collected from leading websites which are meant
exclusively for tracking market data the theoretical part explained in this text was collected from text
books written by famous authors who are well known for their writing skills and who have an ocean of
experience in the teaching field
OBJECTIVE OF THE STUDY:

To help the investor to put their investments at effective experienced securities institution to
get the good returns by minimizing the risk.
To identify the best securities institution with good Operations.
Focused study on portfolio management.
To study the role and its impact, service they are providing to the investors.
To take the decisions regarding the returns that investors are getting good returns from which
securities institution.
Specific objectives:
To clearly define securities institution selection.
To measure the service, stock broking charges regular information that they are providing.
And returns to the investors.
METHODOLOGY:
The methodology carried in the project is descriptive along with the requisite analysis the data
sources of the study are.
Primary data:
Data collected from share khan members.
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Secondary data:
Data collected from various books and sites.
Data provided by Sharekhan Company as part of the classes under taken .
Limitations:
The data collection was strictly confined to secondary source No primary data was
associated with the project.
There was a constraint with regard to time allocated for the research study.
Detailed study of the topic was not possible due to the limited size of the project .
The availability of the information in the form of annual reports and price fluctuations of the
companies was a big constraint to the study.
Case study is based on assumptions
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INTRODUCTION
Share khan is the retail arm of SSKI< an organization with more than eight decades of trust
and credibility in the stock market. In the year 2000 we were one of the pioneers of online trading in
India. Our website- www.sharekhan.com was the first and most popular content-rich portal on the
Indian stock market. Today with a large network of share shops, cutting-edge online trading solutions
and a toll-free Dial n Trade number, we reach out to our customers like on one else.
Core Services:
Equity & Derivatives trading on BSE & NSE.
Depository Services
IPO Services
Online Trading MCX and NCDEX
Portfolio Management Services
Fundamental research
Technical analysis
We reckon such questions generally come to the uninitiated, and perhaps, thats why youre here on
this page in the first place.
SSKI a veteran equities solutions company with over 8 Decades of experience in the Indian stock
markets. If you experience our language, presentation style, content or for that matter the online
trading facility, youll find a common thread; one that helps you make informed decisions and
simplifies investing in stocks. The common thread of empowerment is what Share khans all about.
Sharekhan is also about focus. Sharekhan does not claim expertise in too many things.
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Share khans expertise lies in stocks and thats what he talks about with authority. So when he says
that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is
better than betting on a single horse, it is something that is spoken with years of focused learning and
experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for
you. To sum up. Sharekhan brings to you a user- friendly online trading facility, coupled with a wealth
of content that will help you stalk the right shares.
Those of you who feel comfortable dealing with a human being and would rather visit a brickand-mortar outlet than to a PC, youd be glad to know that Sharekhan offers you the facility to visit (or
talk to) any of our share shops across the country. In fact Sharekhan runs Indias largest chain of
share shops with over hundred outlets in more than 80 cities.
What is a share shop?
How we find a share shop in our city?
How we consult them? For all this quarries visit the www.sharekhan.com
Sharekhan Advantages:
1. Over 8 Decades of lineage in the business
Sharekhan is a part of SSKI, an organization with over 8 decades of experience which spans
institutional broking and corporate finance. The institutional broking division caters to domestic and
foreign institutional investor, while the corporate finance division focuses on the niche areas of
infrastructure, telecom and media. SSKI has been voted as the Top Domestic Brokerage House in
the research category, by the Euro money survey and by the Asia money survey.
2. Defining a new paradigm in online trading.
Among the pioneers in India, Sharekhan launched its online trading platform in
February 2000. Since then Sharekhan has constantly monitored customer needs to be at the
forefront of bringing innovations in its products so that they are customized to the habits traders as
well as preferences of investors.
Key features:
Live streaming quotes
Instant order execution and confirmation
Price Alerts
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Single screen for equities and derivatives
Multiple market watch windows
Real time portfolio tracking.
3. Unwavering focus on the Science of Research

While traditionally the markets have been known to react to tips, speculations and rumors
Sharekhan believes that research and in-depth knowledge of markets can provide a better analysis.
So, it has built a team of researchers and analysis who are constantly at work to track performance
and trends, to identify winners. A recent survey by The Economic Times reported that Sharekhan
reigns over equity research. Other managed impressive 50% - 70% returns for their customers, but
Share khans investment calls delivered a staggering 127% return.
Sharekhan Portfolio Management Services
Portfolio investing is a product where the Sharekhan team is primarily accountable. Based on
investors risk and return expectations, they can choose from
Types of products in sharekhan
1. PROTECH PMS
2. PROPRIME PMS
3. PROARBITRAGE PMS
Protech PMS will be run based on Technical analysis of price movement.
Proprime PMS will be run based on Primary analysis of Company Fundamentals
Proarbitrage PMS will be run based on Utilization of arbitrage opportunities.
Briefly explanation about products
1. PROTECH PMS
Investments in Protech are based on the Technical Analysis of price movements.
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Protech is ideally suited for clients who wants to make returns out of trading in stocks but
want a professional to manage the investment on their behalf.
Protech is considered to be a high-risk, high-return product because it is based on trading.
It is possible to identify and limit the risk with in a certain benchmark.
Discipline is the key for a trading portfolio and this product ensures discipline
The entry ticket size or minimum investment under Protech is Rs 10 lacks.
Why Protech
Here are the reasons why clients should go in Protech
Profitable trading requires certain time
Profitable trading also demands time
Profitable trading requires flexibility to be both long and short
Profitable trading, very importantly, requires the traders to be much disciplined
Most of the traders do not have all these characteristics. Protech provides an ideal alternative.
Product offering:
1) Nifty Thrifty
2) Beta Portfolio
3) Star Nifty
4) Trailing stops
Nifty Thrifty:
Nifty Thrifty focuses on the positional trading of only the index, that is, the Nifty
The Trading is based on the system generated calls.
The automated model continuously Generates buy or sell signals on the Nifty based on daily
price charts.
The action is taken to go long on Nifty futures when a buy signal is Generated
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The long position is squared up and made to go short on Nifty futures when a sell signal is
generated.
The long or short position on Nifty futures is taken based on the system generated call.
The model has been back-tested with historical date of the Sensex since the year 1978.
The portfolio, hence, will never be out of position.
SEBI regulations do not allow leveraging in PMS.
The overall exposure of a client to Nifty future is limited to the extent of the portfolio value.
The actual exchange margin on Nifty futures is only about 10 to 15%.
Beta portfolio:
In Beta portfolio, positional trading is done in stock and index futures.
Technical Analysis is used to identify inflection points in the momentum cycles of stocks with
a 1 to 2 months view.
The risk reward pen trade is typically 1:3 with a 3 to 5% risk and 10 to 20% pay off expected.
The exposure pen trade is not more than 10% of the corpus.
Stop losses are placed on daily closing praises to protect from risk.
Long and short positions can be taken so as to benefit from both rising and falling markets to
gain absolute returns or to achieve linearity of returns.
Product approach:
Superior performance can be achieved through share market timing, by picking stocks/nifty
before the inflection points in their trading cycles.
Linear returns possible from having sell market positions in downtrends and by using the
options market to change the portfolio beta.
Money management rules will be in place.
Product characteristics:
Using swing/momentum based index trading system with stop/reverse trend following.
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You get the best of both worlds by:
Having positions in cash and options.
Delivery positions enable profit maximization, while options positions offer high beta short
term profit in the same portfolio.
Low impact cost.
Product details / features:
Minimum investment: Rs. 5 lakh
Lock in period: 3 months.
AMC fees : 0 %
Portfolio holding and Transactions Reporting: Fortnightly reporting of portfolio Net Worth,
Monthly reporting of Portfolio Holdings/ Transactions.
Charges: 0.05% brokerage for derivatives, 0.03% for delivery, 20% profit sharing on
booked profits quarterly basis, 5% discount for 1 crore investments or 1 year lock in period.
2. PROPRIME PMS
Proprime PMS is a targeted at long term investors
It is discretionary Pms, which are share khans fund managers will have the complete
discretion of managing the clients money and hence, they will also be accountable for it.
The investments are made based on the primary analysis of company fundamentals,
that is, it is based on fundamental analysis.
The minimum corpus that can be invested in Proprime is Rs 10 lacks.
An investor can expect a return of 20 to 25 percent per annum when investing in
Proprime. That is not a guaranteed return, but is based on past performance.
It is recommended that a client who invests in Proprime looks at a long-term tenure, that
is, a minimum period of one year, in order to achieve the return objective.
Investing based on company Fundamentals.
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Proprime Portfolio categories:

Under Proprime, sharekhan offers the following schemes to suit the investors with different
return profiles.
Blue Chip Scheme.
Aggressive Scheme.
Balanced Scheme.
Blue chip scheme:
The blue chip scheme is ideal for long-term investors with a relatively lower risk appetite.
The blue chip scheme will invest in stocks fulfilling the following features;
Amongst the leaders or the best in their industry
A strong management track record
Consistent performers on sales and profit parameters
Fundamentally strong balance sheets
Relatively larger MKT Capitalization
Aggressive scheme:
The Aggressive scheme is ideal for investors expecting high returns with a relatively
higher risk appetite. The aggressive scheme will invest largely in Mid-cap and Small-cap
companies.
Typically, investment would be made in high-growth stocks fulfilling any of the
following features.
High growth in profitability expected in the future.
A turn around story or a corporate restructuring story that could lead to unlocking of
value or an expected change in ownership or management leading to change
fortunes.
Relatively low valuations
Mid to small cap companies.
Balanced Scheme:
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Ideal for investors looking at steady returns with low risk appetite. This consists of a blend
of quality blue chip and growth stocks ensuring a balanced portfolio with relatively medium risk
profile.
It is a long term investment so better for who wants invest long period and expecting
healthy gains but have a moderate-risk appetite.
In the balanced scheme, there is a balanced proportion of Mid-cap and Blue chip stocks.
A balanced scheme with there fore, invest in a mix of blue chips and growth stocks.
The exact mix can depend up on the clients risk profile.
Product Philosophy and Approach:
Investment Philosophy
Given the clients risk profile, maximize performance by adhering to a disciplined
investment approach backed by quality research.
Basic tenets of investment philosophy
Consistent, steady and sustainable returns
Adequate margin of safety
Low volatility
Approach:
A bottom-up stock selection approach is used with an in depth fundamental research on
companies.
A disciplined valuation approach applying multiple valuation measures is used.
The risk is limited through selection of high quality companies with sustainable competitive
advantages.
The investment is made with a long-term vision, resulting in a low-portfolio turnover.
Product Characteristics:
1. Bottom up stock selection
25
2. In-depth, independent fundamental research

3. High quality companies with sustainable competitive advantage
4. Disciplined valuation approach applying multiple valuation measures
5. Medium to long term vision, resulting in low portfolio turnover.
Product Details:
Minimum investment is Rs 5 lakh.
Lock in period is 3 months.
Reporting; online access to portfolio holdings, Monthly reporting of Portfolio Holdings/

Transactions.
Charges; 2.5% per annum AMC fees charged every quarter, 0.5% brokerage, 20% profit
sharing after 15% hurdles is crossed-chargeable at the end of the fiscal year.
3. PROARBITRAGE PMS
Investing using arbitrage opportunities.
Product offerings:
Cash-future Arbitrage: It spots risk fee opportunities that yield greater returns than
conventional risk free product. On spotting the opportunity, the stock is bought and future is
sold to look in the spread. Position is liquidated if the spread thins before time or on expiry,
whichever comes earlier, in this manner, the scheme move from one opportunity to another.
Product approach:
There is an inherent opportunity in the spread that lies between cash and futures.
When the spread is high stocks are bought, at the same time future are sold to lock in the
difference which is then bound to be Zero at expiry.
Product Characteristics:
Risk free: On the whole, it is risk-free can be compared to RBI bonds and GILT funds.
High returns: As compared to other Zero risk products, it offers roughly an 8% post tax
return.
26
Product Details:
Minimum investment: Rs 5 lakh.
Lock in: 3 months.
Reporting: Fortnightly reporting of Portfolio Net Worth, Monthly reporting of
portfolio Holdings/ Transactions.
Charges: 0.035% brokerage for cash, 0.075% fir delivery.
MOTILAL OSWAL PORTFOLIO MANAGEMENT SERVICES:

Our PMS helps you to earn the return of Equities, with maximum ease and comfort.
Three different schemes and with different approaches to managing your investment.
Value PMS
Bulls Eye PMS
Value Hedging PMS
When you invest in our PMS, you can be assured of the best research being used
For the investment decisions. We have been rated the Best Local Brokerage by Asia money
in 2005.
Value pms
Value PMS is a scheme meant for investors with a Long Term investment horizon in the Indian
Equity Markets. The money management team is headed by Mr.Raamdeo Agarwal, the
founder-director of Motilal Oswal Securities Ltd., and a very well respected investor among the
Indian Investor Community. Mr. Agarwal believes in low portfolio churn and a high margin of
safety investment philosophy for long term and sustainable wealth creation. The Value PMS
has been running successfully since February 2003, with clients not only in India, but across
the globe (NRIs).
Scheme 1:
27
Product Features:
Minimum Portfolio Size: Rs. 50 lakh cash or approved securities per individual or group.
Fee Structure:
Management Fees: Base Minimum fees charged based on opening NAV for the quarter
or corpus whichever is higher.
Rs. 50 lakh to Rs. 100 lakh: 0.25% per quarter (maximum group members 4)
Rs 100 lakh & above: 0.1875% per quarter.
Management fees on any infusion and with-drawls within quarter would be charged on
weighted basis.
Performance based management fees:
Perform based management fees would be charged based on performance in terms of
positive returns on portfolio.
Fee structure is as follows:
PROFITS
1%
2%
3%
4%
5%
FESS AS % OF OPENING
0.1%
0.2%
0.3%
0.4%
.05% and so on
Performance based fee would be subject to High Watermarking

(See example below)
Broker: Motilal Oswal Securities Ltd would be appointed as a broker. Brokerage as applicable to
broking segment clients.
Withdrawals: All withdrawals would be with the mutual consent of the client and the fund manager.
The withdrawals may be in form of shares or in cash at the end of the agreed period Service Tax,
securities transaction tax and other statutory levis, if any will be charged as applicable from time to
time.
Note 1:
Performance based management fees are charged only on NAV where there is incremental
profits (High Watermarking) and not and all profit. High watermarking would be adjusted for infusion
and withdrawal.
28
Note 2:
The fixed management fees and performance based management fees will be charged on
weighted average corpus of the portfolio during the period of reference which is quarterly for fixed
management fees, and yearly for performance based management fees.
Note 3:
All the above fees would be charged pro-rate for account opened during the quarter for fixed
management fees and subsequently normalized to quarterly basis.
Note 4:
Performance based fees will be charged for all accounts opened during the year till 31 st
march. It would subsequently be normalized on a financial year-basis i.e. April 1 to march 31.
Details on Calculation of High-Water Marking and Performance based Management Fees
With examples
Illustration:
Mr. X has given Rs.100 lacks in cash for portfolio management. Following is the performance of the
portfolio;
Scene 1: Volatile Markets:
Year
Opening
NAV
(Rs lakh)
Closing
NAV
(Rs lakh)
Absolute
Incremental
Returns
(Rs lakh)
Pre-Tax Performance Abs.

Returns Based Fees fees
(%)
(%)
(Rs
lakh)
High Watermark*
(Rs lakh)
Year1 100.00
120.00
20.00
20.00
2.
2.00
118.00
Year2 118.00
80.00
38.00
32.20
0.
118.00
Year3 80.00
110.00
30.00
37.50
118.00
Year4 110.00
132.00
14.00
11.86
1.19
1.4
130.6
Year5 130.60
158.00
27.40
21.00
2.10
2.74
155.26
29
Scene 2: Bullish Markets:

Year
Opening
NAV
(Rs lakh)
Closing
NAV
(Rs lakh)
Absolute
Incremental
Returns
(Rs lakh)
Pre-Tax Performance Abs.

Returns Based Fees fees
(%)
(%)
(Rs
lakh)
High Watermark
(Rs lakh)
Year1 100.00
120.00
20.00
20.00
2.
2.00
118.00
Year2 118.00
132.00
14.00
11.86
1.86
1.40
130.60
Year3 130.60
140.00
9.40
7.20
0.72
0.94
139.06
Year4 139.06
192.00
52.94
38.07
3.81
5.29
186.71
Year5 186.71
215.00
28.29
15.15
1.52
2.83
212.17
30
Assuming Performance based Fee is paid from the Corpus.

NAV would be calculated as under:
NAV= (Market Value of Equity investment) + (NAV of Equity Mutual Funds) + (Debt & Fixed
Income Securities on face value + accrued interest) + (NAV of Debt Mutual Funds) + (Cash) +
(Balances with Broker) + (Dividend / Interest / any other receivables) (Liabilities) (Accrued
Expenses i.e. taxation / portfolio management fees, and other statutory liabilities)
High Watermarking is arrived at after deducting performance based fees from the closing
NAV.
Opening NAV (for purpose of calculating performance based fee) would be highest of all
previous year closing NAV (adjusted for Infusions and Withdrawals).
Absolute return is calculated as a difference between Closing NAV and the High Watermark
as at the end of the previous year.
Return % is computed as a percentage of Absolute returns on the Opening NAV.
SERVICE STANDARDS:
Valuation Report (NAV Report) would be sent on monthly basis.
Transaction Statement would be sent every month.
Depository & Bank Statement would be sent every month.
31
Scheme 2:
Product Features:
Minimum Portfolio Size: Rs 50 lacks cash or approved securities per individual or group.
Fee Structure:
Management Fees: Base Minimum fees charged based on opening NAV for the quarter or corpus
amount whichever is higher.
Rs 50 lacks to Rs 100 lacks: 0.625% per quarter (2.5% p.a) (maximum group members 4)
Rs 100 lacks & above: 0.5625% per quarter (2.25% p.a).
Management fees on any infusion and with-drawls with in quarter would be charged on weighted
basis.
Broker:
Motilal Oswal Securities Ltd would be appointed a broker. Brokerage will be charged based
on segmentation of clients.
Withdrawals:
All withdrawals would be with the mutual consent of the client and the fund manager. The
withdrawals may be in form of share or in cash at the end of the agreed period.
Service Tax, Securities Transaction Tax and other statutory levies, if any will be charged as
applicable from time to time.
Note 1:
The fixed management fees will be charged on weighted average corpus of the portfolio
during the period of reference which is quarterly.
Note 2:
All the above fees would be charged pro-rata for account opened during the quarter for fixed
Service Standards:
Depository & bank statements would be sent every month.
Scheme 3:
Product features:
Fee structure:
32
Management Fees: Base Minimum fees charged based on opening NAV for the quarter or
corpus whichever is higher.
Rs 50 lacks to Rs 100 lacks: 0.25% per quarter (maximum group members 4)
Rs 100 lacks & above: 0.1875% per quarter.
basis.
Performance based management fees would be charged based on performance in terms of
positive returns on the portfolio. This effectively works out to 20% of profit above 7% p.a. return.
PROFITS
0 to 7%
8%
10%
15%
20%
25%
FEES AS % OF OPEINING
0.0%
0.2%
0.6%
1.6%
2.6%
3.6% and so on
Broker:
Motilal Oswal Securities Ltd. (MOSL) would be appointed as the broker.
Brokerage rate would be as applicable by MOSL.
Withdrawals:
All withdrawals would be with the mutual consent.
Service tax, Securities Turnover Tax and other taxes as applicable from time to time.
Note 1:
profits (High Watermarking) and not on all profits. High Watermarking Would is adjusted for infusion
and withdrawal.
Note 2:
weighted average corpus of the portfolio during the period of reference management fees.
Note 3:
management fees and subsequently normalized quarterly basis.
Note 4:
33
March. It would subsequently be normalized on a financial year- basis i.e. April 1 st to March 31st.
NAV= (Market Value of Equity investments) + (NAV of Equity Mutual Funds) + (Debt & Fixed
(Balances with Broker) + (Dividend / Interest/ any other receivables) (Accrued Expenses i.e.
taxation (NRI) / portfolio management fees, and other statutory liabilities)
High Watermarking is arrived at after deducting performance-based fees from the closing
NAV.
Absolute return is calculated as a difference between Closing NAV and the High
Watermark as at the end of the previous year.
Return % is computed as a percentage of absolute returns on the opening NAV.
Service Standards:
BULLS EYE PMS
Bulls Eye strategy gives better returns.
Bulls Eye PMS is meant for investors who want to take moderate risk and generate healthy returns
from the medium term movements in the Equity markets.
Bulls Eye is about identifying the right stocks, picking and exiting at the right times and then
continuing the cycle.
Identifying the right stocks: Our strong, proven Fundamental Analysis skill allows us to
understand the profile and the performance of various companies. This allows us to pick the wheat
from the chaff.
Determining entry and Exit points: After identifying the companies for investment, we resort
to technical analysis, read the market condition and pick up the stocks in opportune sectors. We
believe that apart from the right entry levels, selling at the right time is equally important. Therefore,
we employ similar strategy while exiting the stock. And this completes our hunt for good returns.
34
Moderate risk is the key philosophy: We take moderate risk while making any investment.
Duration of the investment is one to six month. So even while a stock may look fundamentally strong,
the age of our investment in it may depend on the reality based on technical research along with the
prevailing market conditions (markets are overheated, over expectations build-up etc).
Bulls Eye is managed by Mr. Manish Sonthalia. Mr. Sonthalia has a total experience of 15
years in the markets and equity research. He is a qualified A.C.A, C.W.A, C.S & M.B.A (Finance). He
has been with Motilal Oswal Securities Ltd. For the past 3 years. Besides managing Bulls Eye PMS,
Mr.Sonthalia is also the chief Equity Strategist of the company.
Scheme 1:
Product Features:
Fee Structure:
Rs 100 lakh & above: 0.1875% per quarter.Management fees on any infusion and withdrywalls within quarter would be charged on weighted basis.
PROFITS
1%
2%
3%
4%
5%
FESS AS % OF OPENING
0.1%
0.2%
0.3%
0.4%
.05% and so on

(See example below)
Broker: Motilal Oswal Securities Ltd would be appointed as a broker. Brokerage as applicable to
broking segment clients.
The withdrawals may be in form of shares or in cash at the end of the agreed period Service Tax,
35
securities transaction tax and other statutory Levis, if any will be charged as applicable from time to
time.
Note 1:
and withdrawal.
Note 2:
Note 3:
Note 4:
Assuming performance based fee is paid from the Corpus.
NAV would be calculated as under: NAV= (market Value of Equity investments) + (NAV of
Equity Mutual Funds) + (Debt & Fixed Income Securities on face value + accrued interest) + (NAV of
Debt Mutual Funds) + (Cash) + (Balances with Broker) + (Dividend / Interest/ any other receivables)
(Accrued Expenses i.e. taxation (NRI) / portfolio management fees and other statutory liabilities)
NAV.
Service Standards:
36
Scheme 2:
Product Features:
Fee Structure:
basis.
Broker:
Withdrawals:
Note 1:
Note 2:
Service Standards:
Scheme 3:
37
Product features:
Fee structure:
basis.
PROFITS
0 to 7%
8%
10%
15%
20%
25%
FEES AS % OF OPEINING
0.0%
0.2%
0.6%
1.6%
2.6%
3.6% and so on
Broker:
Withdrawals:
Note 1:
profits (High Watermarking) and not on all profits. High Watermarking Would is adjusted for infusion
and withdrawal.
Note 2:
38
Note 3:
Note 4:
NAV.
Service Standards:
VALUE HEDGING PMS
Value Hedging PMS is a promising scheme that may be a unique and pioneering effort in its
segment. Not only will our clients benefit from our exceptional stock-picking ability, but also capitalize
on short-term price volatility.
Through this scheme we offer that delicate balance between long-term return and short-term gains.
How do we do that?
39
This is primarily a hedging based discretionary PMS product. We will do the following to
bring you best results:
We will pick stocks based on our value investing philosophy
Various derivatives strategies will be used to hedge your portfolio based on prevailing market
conditions. For example, in a bearish market we can hedge our position by writing the calls and
collecting premiums and at the same time we can buy the puts to avoid the fail in asset value vis-vis market fall
Needless to say, most of the stocks we pick will have to be on the derivatives list. With an
increasing list, almost every important stock will be a part of the derivatives segment. The value
hedging PMS might also invest in some non F&O stocks in case the investment rationale is very
compelling.
Value Hedging PMS is managed by Mr. Jigar Shah. Mr. Shah has a proven track record of
more than 5 years advising our top High Net worth Clients on their equity investments. Looking at his
performance history and his expertise in value-investing and hedging strategies over the years, we
realized it was time his expertise was made available to many more of our clients.
Scheme 1:
Product Features:
Fee Structure:
Rs 100 lakh & above: 0.1875% per quarter.
Management fees on any infusion and with-drywalls within quarter would be charged on
weighted basis.
PROFITS FESS AS % OF OPENING
1%
0.1%
2%
0.2%
40
3%
4%
5%
0.3%
0.4%
.05% and so on

(See example below)
Broker: Motilal Oswal Securities Ltd would be appointed as a broker. Brokerage will be charged
based on clients segmentation.
The withdrawals may be in form of shares or in cash at the end of the agreed period.
Service Tax, securities transaction tax and other statutory Levis, if any will be charged as applicable
from time to time.
Note 1:
and withdrawal.
Note 2:
Note 3:
Note 4:
Assuming performance based fee is paid from the Corpus.
NAV would be calculated as under: NAV= (market Value of Equity investments) + (NAV of
Equity Mutual Funds) + (Debt & Fixed Income Securities on face value + accrued interest) + (NAV of
Debt Mutual Funds) + (Cash) + (Balances with Broker) + (Dividend / Interest/ any other receivables)
(Accrued Expenses i.e. taxation (NRI) / portfolio management fees and other statutory liabilities)
NAV.
41
Service Standards:
Scheme 2:
Product Features:
Fee Structure:
basis.
Broker:
Withdrawals:
Note 1:
42
Note 2:
Service Standards:
Scheme 3:
Product features:
Fee structure:
basis.
PROFITS FEES AS % OF OPEINING
0 to 7%
0.0%
8%
0.2%
10%
0.6%
15%
1.6%
20%
2.6%
25%
3.6% and so on
Broker:
43
Withdrawals:
Note 1:
profits (High Watermarking) and not on all profits. High Watermarking Would is adjusted for
infusion and withdrawal.
Note 2:
Note 3:
Note 4:
High Watermarking is arrived at after deducting performance-based fees from the closing NAV.
Opening NAV (for purpose of calculating performance based fee) would be highest of all previous
year closing NAV (adjusted for Infusions and Withdrawals).
Absolute return is calculated as a difference between Closing NAV and the High Watermark as at
the end of the previous year.
Service Standards:
BENEFITS OF PMS:
44
End to End wealth management solution in Equities.

Personalized or Customized.
Absolutely HASSLE FREE.
MODUS OPERANDI:
To initiate our relationship you will need to open a separate bank account with HDFC Bank
and a separate DP account with Motilal Oswal Securities in the name of the investor.
These accounts are operated by Motilal Oswal Securities on the basis of a limited power of
Attorney.
Individuals as well as corporate can open the accounts.
There is no lock-in clause or penalty for withdrawal for any of the PMS schemes.
Groups are also allowed, limited to a size of a maximum of 4 people per group.
For investment of Rs. 25 lacks, the maximum group size is limited to 2, for Rs 50 lacks 3 and for Rs 1
crore and above, the maximum group size allowed is 4 members.
Service standards:
Monthly reporting on Account performance.
A Relationship Manager for Service Clients.
PMS on web whereby customers are given access to their account information on Motilal Oswal
website.
Quarterly Meeting with the Fund Manager.
Value PMS
Fund Manager- Mr. Raamdeo Agarwal (30% CAGR on Portfolio for last 7 years).
A well known, respected investor and Joint MD of the company. Author of annual Wealth Creation
Study.
Salient features low portfolio Turnover, Blue Chip Equities, Investing in companies and following
margin of safety concept. Investment horizon of 12 to 24 months.
Investment philosophy Long term Capital Appreciation.
Minimum Requirements Rs 50 lacks in cash or stock.
BULLS EVY PMS
Fund manager Mr. Manish sonthalia.
Salient features High portfolio turnover depending on price movements, trying to find value in
momentum, research stocks selected, stocks selected on the basis of a mix of Fundamental and
Technical analysis, higher madcap stock orientation. Investment horizon up to 6 months.
Investment Philosophy short/ medium term Capital Appreciation.
45
Minimum Requirements Rs 50 lacks in cash or stock.

Value Hedging PMS
Fund Manager Mr. Jigar Shah.
Salient Features Investing in value Stocks, use of various Derivatives strategies to Hedge portfolio
and optimize returns (not risk- free though), mix of large and mid cap stocks (provide a kicker).
Investment Philosophy capital appreciation by adopting moderate risk philosophy.
KOTAK PORTFOLIO MANAGEMENT SERVICES

STRUCTURED PRODUCTS:
Kotak offers a range of innovative financial instruments. These products offer portfolio
diversification by creating risk return profiles, which cannot be replicated by traditional assets, like
only equity or bedt. Traditional investment usually benefit only from the rise or of a particular asset
class like equity or debt. Structured products can generate returns under a much wider range of
market conditions.
There are 4 types of portfolios.
Select portfolio
Classic portfolio flexi
Core portfolio
Dividend yield portfolio
These structured products are offered through the following platforms:
Kotak Mahindra Asset Management company ltd.
Dynamic Fund of Funds.

Flexi Funds of Funds (series)
Kotak securities Ltd.

46
Arbitrage fund
Mf- Nifty
Select portfolio
Description:
The scheme will seek to achieve returns through broad based participation in equity markets
by constructing a concentrated portfolio of sizably capitalized companies.
Portfolio style:
1. Aggressive Concentrated Portfolio consisting of 10 12 stocks.
2. Buy & hold approach
Portfolio characteristics:
Multi cap portfolio with companies spread across large cap, mid cap and small cap.
Investment domain & composition:
1. Sectors expected to be beneficiaries of demographic patterns & reforms.
2. Sectors expected to benefit from infrastructure spending.
Portfolio tenure:
Long term (approx 18 months)
Investor profile:
An investor willing to invest for medium to long term without being perturbed about
short term returns, volatility and market momentum.
Any investor with a penchant for medium to high risk taking qualifies for the portfolio
Portfolio Performance (concentrated strategy)
Absolute Return as on 31st October 2008.
Absolute
return
Activation
date
Benchmark
Portfolio
returns %
Benchmark
return %
Series 1
16-nov-2006
BSE Mid cap
90.3
68.5
Series 2
1-mar-2007
BSE Mid cap
86.5
62.1
Series 3
1-apr-2007
BSE Small cap
251.7
7.5
Series 4
05-oct-2007
BSE small cap
38.1
21.9
Series 5
21-apr-2008
BSE small cap
13.1
3.8
47
Classic portfolio flexi

Description:
The scheme will seek to achieve returns through broad based participation in equity markets
by creating a diversified equity portfolio of small, medium and large capitalized companies.
Investment strategy:
Present market conditions hints at growth as a central premise to support valuations.
Scan the investment universe.
Identify companies with higher growth as compared to the market.
Scout for discount in valuations as compared to the market.
Select valuations which provide a case for higher returns potential as compared to the market.
Scout for companies which can result in higher growth in earnings on a sustained basis.
Sect oral composition:
Across all market capitalization
No of stocks:
Up to 20
Investor profile:
1) An investor willing to invest for medium to long term without being perturbed about short term
returns, volatility and market momentum.
2) Any investor with a penchant for medium to high risk taking qualifies for the portfolio.
48
Core portfolio
Description:
Core portfolio aims to capture the long term upside of the India Growth story by diversifying
across the major themes.
The scheme will invest in all equity and equity related instrument with emphasis on
companies in the business areas driven by consumerism, outsourcing, real estate plays as
well as core infrastructure plays.
The portfolio will be a mix of small, medium and large capitalization companies. The
investments may pertain to any sector either in the private or public/ state domain. Stock
selection driven by good order visibility mitigates downside risk invest with long term
appreciation 7 value unlocking potential.
The portfolio manager may invest in future and options to hedge, to generate returns, or to
balance the portfolio, the quantum of exposure to derivatives will not normally exceed 50% of
the portfolio invested by the client.
Sect oral composition:
Diversified across sectors and market capitalization with focus on companies benefiting from:
No of stocks:
Increases in consumer spend.

Outsourcing.
Increase in Infrastructure spending.
Real Estate Growth.
1. Focused portfolio of 15-20 stocks.

2. Bottom up selection.
Investor profile:
Core portfolio is aimed at investors seeking to benefit from the growth in India economy. An
investor willing to keep aside funds for at least 18 months without being perturbed about short term
returns, volatility and market momentum.
Why portfolio management?
49
As you drive towards your objective of creating wealth, you need to employ the right
investment vehicles, at the right time. Given the unpredictable nature of equity markets, staying on
course requires expert maneuvering, time and effort.
Thats where portfolio management comes in. It gives your portfolio the edge by skillfully
sifting through available investment opportunities to help you reduce risk and maximize your returns,
even as you are left with ample time to focus on more pressing matters.
Benefits from our Portfolio Management.
Kotak portfolio management lets you effortlessly build and maintain a safe and healthy investment,
providing you with multiple benefits.
Dividend yield portfolio

Description:
The objective of the scheme is to generate returns through a combination of dividend income
and capital appreciation through an optimally diversified portfolio.
The investment strategy is to identify and invest in equity stocks offering reasonably dividend
yield, while maintaining an optimal portfolio exposure to various business and sectors.
Parameter driving investment decision:
o Investing in steady state businesses with stable cash-flows
o Investing in companies with history of consistent dividend payout
o Target stocks offering high dividend yield.
o Disciplined approach towards profit booking subsequent to dividend yield falling below a
particular threshold level.
o Optimal diversification of business risk through optimal mix of companies from various
sectors
50
o Investment shall be undertaken in a gradual manner leading to high cash levels at different
points in time.
o Target stocks offering stable returns.
No of stocks:
Diversified portfolio of about 20-25 stocks
Investor profile:
Investor seeking absolute returns over a period of 12 18 months.
Investor seeking an option as a proxy to interest bearing securities.
Investor seeking return primarily through dividend income and capital appreciation.3
Risk return equation for a dividend yield portfolio is favorable for investors willing to take
lower market risk.
INDIA INFOLINE PORTFOLIO MANAGEMENT SERVICES

Our Portfolio Management style is a product wherein an equity investment portfolio is
created to suit the investment objectives of a client. We at India Infoline invest your
resources into stocks from different sectors, depending on your risk-return profile. This
service is particularly advisable for investors who cannot afford to give time or dont
have that expertise for day-to-day management of their equity portfolio. It is all about
your money, being managed by the experts, while you continue with your routine life.
Isnt it simple and totally hassle free.
Whats more, you can keep track of your dividends / bonus/ rights issues
with paperless tracking. So you always know how fast your investment is growing. It
basically means assigning the right job to the right person.
Salient features of India Infoline PMS:
Expert team of Research Analysis.
Stock Picking done by the Investment Committee.
Dedicated Relationship Manager.
Technology and Service driven Back-Office.
SCHEMES:
Growth portfolio
51
This is for those who would rather run a marathon than a sprint. They are not
concerned with day-to-day price movements. The portfolio comprises the choicest of
fundamentally sound companies. The focus is on medium to large capitalization blue chip
companies, considered to be undervalued from the point of vies of their long-term growth
prospect and well placed to deliver extra-ordinary capital appreciation over the long term.
Momentum portfolio
This is for those who want to live life in the fast lane. The main objective of this
portfolio is to generate capital appreciation through short to medium term investments in
equities and equities and equity related instruments. The investment choice is primarily
influenced by technical factors like price and volume indicators, RSI, MACD, and other
studies. Secondary factors will be reasonable levels of market capitalization, good liquidity,
competitive position in the industry, sectors with good growth prospects, etc.
NRI PORTFOLIO
The main objective of the scheme is to generate capital appreciation through
investments in equities with a long-term perspective. The scheme will invest in all equity and
equity related instruments with emphasis on fundamentally sound, well-researched blue chip
companies perceived to be undervalued from the point of view of their long term growth
prospects. The focus will be on medium to large capitalization companies which have a
proven track record or earning capability, quality management, leadership status in sectors
or potential to achieve such status, etc and that have the potential to deliver growth over the
long term. The scheme is aimed at medium risk taking investors willing to invest in
companies over a long term period.
Customized Portfolio
The objective of this scheme is to generate optimum returns based on the assessment
and understanding of the risk profile of the client. The scheme will be customized to suit the
needs of the client. Based on the assessment of the client profile, the optimum portfolio mix
will be formalized. Asset classes include equity or equity related instruments including Mutual
Funds, debt and debt related instruments including debt mutual funds, commodities markets,
etc. The clients can specify the asset mix they prefer. They can also opt for 100 percent
investment in a particular asset class. Within the asset class, the portfolio manager will have
the discretion to choose the instruments to generate optimum return. This scheme can also
52
be managed on non-discretionary basis. This scheme is suitable for investors who are willing
to invest across a varied range of assets, with a medium to long-term perspective. Chance of
growing faster. In India, like in most other countries, the regulator (SEBI) undertakes its own
due diligence before granting portfolio management licenses. Even after granting the license,
SEBI requires the Portfolio Managers to adhere to adhere to certain rules, audit procedures
and submit periodic returns.
ANAND RATHI PORTFOLIO MANAGEMENT SERVICES
Invest in Indias best private companies the private NAVRATNAS.
Portfolio is principal protected- No downside.
Full liquidity Exit at any time.
On maturity (after 3 years) get at least 80% of the peak portfolio value reached at
any time during the life of the scheme.
CONCEPT:
The Navratnas portfolio is designed to generate high returns by investing in
leading private sector companies while protecting the downside completely. Using a unique
Active Portfolio Insurance (API) methodology, the scheme will ensure capital protection on
maturity. In addition, the API model will guarantee at maturity, 80% of the peak value of the
portfolio reached at any time during the life of the scheme.
53
UNDERLYING EQUITY BASKET CHARACTERISTICS:

The funds would be principally invested in equities of handpicked Navratnas as shown
below. Moreover, the scheme may invest up to 30% of the portfolio value into stocks that it
believes could be the future Navratnas would focus on criteria like industry leadership,
industry outlook, and corporate governance etc.
EMERGING NAVRATNAS
Up to 30%
NAVRATNAS:
Up to 70% they are in

1.
Reliance
2.
ITC
3.
Infosys
4.
HDFC Bank
5.
Ultratech
6.
L&T
7.
Randaxy
8.
Reliance Communications.
9.
Tata Motors.
The handpicked Navratnas above given stellar stock market performance in the past
justifying their place in this portfolio. They have returned more than 2 x the Sensex in last 5
years.
OPTIMIZATION
The stocks chosen in the underlying basket will be constantly monitored by
the portfolio manager. The baskets constituents may be changed in case of their failing to
meet the internal criteria and could be triggered by changes in business circumstances,
liquidity, valuations, corporate restructurings etc.
UNDERLYING DEBT BASKET
1. A mix of liquid mutual funds, fixed maturity plans and similar short term debt
instruments.
54
INITIAL EXPOSURE TO EQUITY BASKET

1. 100%
PORTFOLIO ALLOCATION METHODOLOGY
Initially at launch, the exposure of the basket will be 100% subsequently, as the value of
the equity basket changes, the exposure can change from 0-100% of the value of the
portfolio based on the performance of the underlying basket and the multiplier.
Better the performance of the Navratnas, higher the exposure.
The model will preserve 100% of the capital invested or 80% of the peak value attained by
the portfolio at any time, whichever is higher.
If the portfolio value drops below the floor needed to protect money at any point of time,
Rathi Global Finance Private Limited will guarantee this amount and ensure that the portfolio
value remains at the level of the floor before putting all the money into debt.
SCHEME:
NAVRATNA
Maturity Date:
24th 2010.
Minimum Amount of Subscription:
Resident
: INR 10,00,000/-
NRO (any bank)
: INR 25,00,000/-
NRE UTI Bank and PIS UTI Bank : INR 25,00,000/-
Note: NRE other than UTI Bank not acceptable.

Fees (excluding Applicable Taxes):
1. Entry Loads Nil.
55
2. AMC 2.5%.
3. Administrative Expenses 0.45% per annum.
4.
Exit Load Nil.
5. Brokerage - 0.5% per transaction.

LIQUIDITY:
T + 5 days; payoff on realized value
PMS Registration No: INP000000282
GEOJIT PORTFOLIO MANAGEMENT SERVICES

Geojit, a SEBI registered portfolio manager (Reg No.
INP000000316) offers discretionary portfolio management services. Geojit has a team of
experts who carefully take investment decisions based on the clients objectives. The
portfolio Management team has a successful track record of more than 10 years in the
capital market. The team has access to Geojits strong equity research and Fundamental &
Technical analysis.
INVESTMENT OBJECTIVE
To generate medium to long-term capital growth (2-3 years) by identifying undervalued
stocks and those with growth opportunities form a select list of well researched stocks.
STRATEGY
Identifying growth stocks from a select list through extensive research.
Minimum Portfolio
Rs.10 lacks for resident Indians and Rs 25 lacks for Non-Resident Indians.
Reports
Portfolio and NAV are communicated be-weekly via e-mail.
56
Risk Factors
As the stocks are normally held for medium to long term, the net asset will be affected by
market volatility.
PMS FEE
Option 1. 3 % p.a. (charged @ 0.75% at the end of every quarter on the average of
beginning and ending NAV)
Option 2. 1% p.a. (charged @ 0.25% at the end of every quarter on the average of beginning
and ending NAV) and performance fee.
Performance Fee
20% on gain in NAV over and above 12% p.a. based on the high watermark concept charged
at the year or on withdrawal.
RELIGARE PORTFOLIO MANAGEMENT SERVICES
Religare is driven by ethical and dynamic process for wealth creation. Based on this, the
company started its endeavour in the financial market.
Religare Enterprises Limited (A Randaxy Promoter Group Company) through Religare
Securities Limited, Religare Finevest Limited, Religare Commodities Limited and Religare
Insurance Broking Limited provides integrated financial solutions to its corporate, retail and
wealth management clients. Today, we provide various financial services which include
Investment Banking, Corporate Finance, portfolio management services, Equity &
Commodity broking, Insurance and Mutual funds. Plus, theres a lot more to come your way.
Religare is proud of being a truly professional financial service provides managed
by a highly skilled team, who have proven track record in their respective domains. Religare
operations are managed by more than 3000 highly skilled professionals who subscribe to
Religare philosophy and are spread across its country wide branches.
57
Today, we have a growing network of more than 300 branches and more than 580
business partners spread across more than 300 cities/ towns in India and a fully operational
international office at London.
Unlike a traditional broking firm, Religare group works on the philosophy of partnering for
wealth creation. We not only execute trades for our clients but also provide them critical and
timely investment advice. The growing list of financial institutions with which Religare is
empanelled as an approved broker is a reflection of the high level service standard
maintained by the company.
INTRODUCTION
Whats the idea behind PMS?
Portfolio Management Services manage our clients wealth more efficiently, reduce risk by
diversifying across assets, sectors and funds, and maximizing returns. Expert Portfolio
Managers find best of avenues to achieve optimum returns at managed levels of risk.
This service could also be called as Transparent Collective Investment. You get an upper
hand in many ways.
Benefits of Portfolio Management Services:
Constant monitoring of portfolios asset mix to ensure effectively position to meet

long-term objectives. Our portfolio managers adjust the asset mix to reflect the
current economic climate and to benefit from opportunities.
Performance linked fees, constant disclosure of the portfolio on daily and monthly
basis.
It defines the customized risk and return.
Great flexibility of deploying and exposing the initial investment in the market.
High watermark level for profit sharing.
Diversification across asset classes and investment styles.
Investment objectives and goals presented clearly through a personalized profile.
Encourages a disciplined approach to investing over a longer time horizon.
Offerings
58
Five different schemes for investors according to their varying tastes, objectives and risk
tolerance.
Tortoise
Panther
Elephant
Leo
Caterpillar
Each benefits from professional management that aims to provide you consistent returns at a
reduced level of risk.
1. TORTOISE
Objective:
Aims to achieve gradual in the portfolio value over a period of time by way of careful and
judicious investment in fundamentally strong and attractive valued shares.
STRATEGY:
Investment strategy would be to invest in companies having consistency in earnings,
growth and financial performance. The scheme would select the companies for investment
after a careful, research oriented due diligence procedure and consideration of various risk
involved. Emphasis would also be laid on subjective parameters like corporate governance,
management track record and intellectual capability. The scheme will be open to investment
in companies with improving fundamentals as well.
Suitability:
Medium Risk, Medium Return.
Investment Horizon:
2 3 years.
2. PANTHER
Objective:
Aim to achieve gradual growth in the portfolio value over a period of time by way of careful
and judicious investment in fundamentally strong and attractive valued shares.
Strategy:
Investment strategy would be to invest in companies having consistency in earnings,
growth and financial performance. The scheme would select the companies for investment
59
after a careful, research oriented due diligence procedure and consideration of various risk
involved. Emphasis would also be laid on subjective parameters like corporate governance,
management track record and intellectual capability. The scheme will be open to investment
in companies with improving fundamentals as well.
Suitability:
Medium risk, medium return
Investment Horizon:
2-3 years.
3. ELEPHANT
Objective:
Aims to generate steady return over a longer period by investing in securities selected only
from BSE 100 index.
Strategy
Investment strategy would be to invest in the companies which form part of BSE 100
index as the companies have steady performance and reduces the liquidity risk in the
market. The scheme shall invest across the sectors from within this predefined space and
shall select with long-term growth prospects trading at modest relative valuations.
Suitability
Low risk, low return
Investment Horizon
3 to 4 years.
4. LEO
Objective:
The scheme seeks to provide medium to long term capital appreciation by investing in
stocks across the market capitalization range.
Strategy:
The investment strategies followed in Leo involves a mix of both moderate and aggressive
investment strategies. The aim is to have a balanced portfolio comprising selected picks from
both Tortoise and Panther besides other stocks. The investment horizon for every stock is
different and depends upon market conditions. Exposure to derivatives is taken within
permissible regulations.
Investment policy
60
Stock specific selection procedures based on fundamental research for making sound
investment decisions. Focus on minimizing investment risk by following rigorous valuation
disciplines. Effort is to enhance absolute returns for investors. Belief in serving investors by a
disciplined investment approach- which combines an understanding of the goals and
objectives of the investor with a fine tuned strategy backed by research. Capital preservation.
Selling discipline and use of derivatives are volatile.
5. CATERPILLAR
Objective:
The scheme aims to achieve capital appreciation over a long period of time by investing
in a diversified portfolio.
Strategy:
Investment strategy would be to invest in scrips which are poised to get a re-rating
either because of change in business, potential fancy for a particular sector in the coming
years/ months, business diversification leading to a better operating performance. We would
be looking for stocks in their early stages of an upturn and for those which are in sectors
currently ignored by the market.
Suitability:
This scheme is suitable for investors with a high risk appetite.
Investment Horizon:
1 to 2 years.
COMPARISON OF OTHER SECURITIES WITH RESPECT TO SHAREKHAN

Name of
security
Types
Brokerage
Minimum
investment
Returns
sharekhan
Protech
0.05% for
derivatives&
0.30% for
delivery
Rs. 5 lacks
48 %
Proprime
0.5%
Rs. 5 lacks
36%
Proarbitrage
0.035% for
cash&
0.075% for
delivery
Rs. 5 lacks
34%
61
Motilal
Oswal
Kotak
Value eyes
PMS
0.25
Per
quarter
Rs.
lacks
50
25%
Bulls eyes
PMS
0.25
per
quarter
Rs.
lacks
25
29%
Value
Hedging
PMS
0.25
per
quarter
Rs. 25lacks
27%
Select
portfolio
10
stocks
-12
10-25 lacks
31%
Classic
portfolio
flexi
Up to 20
stocks
10-25 lacks
27%
Core
portfolio
15 to
stocks
10-25 lacks
30%
Dividend
yield
portfolio
20-25
stocks
10-25 lacks
34%
62
20
INTERPRETATION:
The comparison of the data between the three security
institutions is interpreted as that compare to SHAREKHAN with other security institutions like
MOTILAL OSWAL,KOTAK securities it is performing well in terms of the brokerage, service,
returns in all the aspects it is performing well because of few reasons also if we compare
these three it is very effective and as well as experienced also 8 years experienced in the
stock broking operations if the investors are interested to invest their valuable investments in
the securities it is the right option to invest their money in the effective and experienced
securities institution with regarding hope fully gets good returns.
63
India
Growth
0.5%
Infoline
portfolio
quarter
Momentum
0.5%
portfolio
quarter
Customized
0.5%
portfolio
quarter
navratna
05%
Anand
rathi
Geojit
per
10
-25
33%
-25
27%
-25
28%
-25
30%
-25
28%
30%
32%
29%
25%
30%
lacks
per
10
lacks
per
10
lacks
per
quarter
10
lacks
Minimum
0.75%
&
10
portfolio
0.25%
per
lacks
per
Rs.
quarter
Religare
Tortoise
0.30%
quarter
Panther
0.30%
lacks
per
quarter
Elephant
0.30%
lacks
per
quarter
Leo
0.30%
0.30%
quarter
64
Rs.
lacks
per
quarter
caterpillar
Rs.
Rs.
lacks
per
Rs.
lacks
INTERPRETATION:
The comparison of the data between the three security
institutions is interpreted as that compare to RELIGARE with other security institutions like
INDIA INFOLINE,ANAND GEOJIT it is performing well in terms of the brokerage, service,
returns in all the aspects it is performing well because of few reasons also if we compare
these three it is very effective and as well as experienced also in the stock broking
operations if the investors are interested to invest their valuable investments in the securities
it is the right option to invest their money in the effective and experienced securities
institution with regarding hope fully gets good returns.
65
INTERPRETATION:
The comparison of the data between the six security institutions
is interpreted as that compare to SHAREKHAN with other security institutions like MOTILAL
OSWAL,KOTAK,RELIGARE,INDIA INFOLINE,ANAND,GEOJIT securities it is performing
well in terms of the brokerage, service, returns in all the aspects it is performing well because
of few reasons also if we compare these three it is very effective and as well as experienced
also 8 years experienced in the stock broking operations if the investors are interested to
invest their valuable investments in the securities it is the right option to invest their money in
the effective and experienced securities institution SHARE KHAN with regarding hope fully to
get good returns.
66
ADVANTAGES & DISADVANTAGES OF SHAREKHAN SECURITIES

WITH OTHER SECURITIES:
Advantages:
1. Brokerage is less compared to any other securities.
2. Investment limit is also less compared to any other securities because of
which of middle class / middle income person can also afford to invest.
3. Minimum lock in period is 3 months, which is also beneficial from the point
of view of an investor.
4. AMC charges are NIL; no other securities in this industry are offering this
features / benefits.
5. Regular / Continuous reporting for every 15 days about portfolio net worth
and portfolio holdings.
6. Exposure never exceeds value of portfolio.
7. This company has very experienced fund managers.
8. Profits are shared with the customers on a quarterly basis.
9. On the whole, it is risk- free when compared to RBI bonds & GILZ funds.
Disadvantages:
1. Since investments are based on price movements, during the periods of
falling prices shows returns may fall/ decrease.
2. Sharekhan has less number of schemes compared to other companies.
3. Discount percentage is very less for an investment of Rs. 1 core.
67
CONCLUSION
It has been concluded that the Sharekhan Securities is performing well

when compared to other securities. The minimum investment required
is also less i.e. Rs. 5, 00,000/- against other company securities. The
Sharekhan Securities is offering highest returns when compared to
other Securities Companies. Overall the Sharekhan has been
performing well.
68

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INTRODUCTION

include More than one security.

OBJECTIVES OF PORTFOLIO MANAGEMENT:

Return From the angle of securities can be fixed income

Money market securities like treasury bills commercial papers etc.

NEED FOR PORTFOLIO MANAGEMENT:

PORTFOLIO MANAGEMENT PROCESS:

ELEMENTS OF PORTFOLIO MANAGEMENT:

Identification of the investors objectives, constraints and preferences.

Strategies are to be developed and implemented in tune with investment policy

Review and monitoring of the performance of the portfolio.

Finally the evaluation of the portfolio.

The two major types of risks are:

Systematic or market related risk.

Unsystematic or company related risks.

RISK RETURN ANALYSIS;

Who can be a portfolio manager?

Advice new investments, review the existing ones, identification of objectives,

Conducting market and economic service:

Trend analysis based on past share prices.

OBJECTIVE OF THE STUDY:

Live streaming quotes

Instant order execution and confirmation

Single screen for equities and derivatives

Multiple market watch windows

Real time portfolio tracking.

3. Unwavering focus on the Science of Research

You get the best of both worlds by:

Having positions in cash and options.

Low impact cost.

Product details / features:

Minimum investment: Rs. 5 lakh

Lock in period: 3 months.

Proprime Portfolio categories:

2. In-depth, independent fundamental research

Lock in period is 3 months.

Reporting; online access to portfolio holdings, Monthly reporting of Portfolio Holdings/

Minimum investment: Rs 5 lakh.

Lock in: 3 months.

Reporting: Fortnightly reporting of Portfolio Net Worth, Monthly reporting of

portfolio Holdings/ Transactions.

Charges: 0.035% brokerage for cash, 0.075% fir delivery.

MOTILAL OSWAL PORTFOLIO MANAGEMENT SERVICES:

Bulls Eye PMS

Value Hedging PMS

Performance based fee would be subject to High Watermarking

Pre-Tax Performance Abs.

Scene 2: Bullish Markets:

Pre-Tax Performance Abs.

Assuming Performance based Fee is paid from the Corpus.

Performance based fee would be subject to High Watermarking

Performance based fee would be subject to High Watermarking

End to End wealth management solution in Equities.

Minimum Requirements Rs 50 lacks in cash or stock.

KOTAK PORTFOLIO MANAGEMENT SERVICES

Dynamic Fund of Funds.

Kotak securities Ltd.

BSE Mid cap

BSE Mid cap

BSE Small cap

BSE small cap

BSE small cap

Classic portfolio flexi

Increases in consumer spend.