An

Equity

Portfolio Management Services

In partial fulfilment of two years-full time M.B.A. Programme of

Gujarat University

N.R. Institute of Business Management

Submitted by: Guided by:

Dhaval Nayak (080) Prof. Viral Pandya
Amish Soni (08108)
 II

Research Proposal
Sr. No. Particulars Page no.

1) Introduction III

2) Objective IV

3) Hypothesis VI

4) Research Methodology VII

• Population

• Sampling Unit

• Sample Size

• Sampling Method

5) Data Sources VIII

1. Primary data

2. Secondary data

6) Chapter Plan IX

7) Expected contribution of the study

15:23:33 a7/p7 7/31/2010 GLS NRIBM

 III

1) Introduction:

Indian economy is becoming part of biggest economies of the world. And with the
expansion of the world as a global market important of capital market is also increasing day
by day. Gone are the days where people deposite their savings in Post-offices or Banks for the
sake of just 3-5% safe return on their investment.

Risk is present in virtually every decision. When a production manager selects

equipment, or a marketing manager an advertising campaign, or a financial manager a
portfolio of securities all of them face uncertain cash flows. Assessing risks and incorporating
the same in the final decision is an integral part of financial analysis.

The objective in decision making is not to eliminate or avoid risk-often it may be

neither feasible nor desirable to do so-but to properly assess it and determine whether it is
worth bearing. Once the risk characterising future cash flows is properly measured, an
appropriate risk-adjusted discount rate should be applied to convert future cash flows into
their present values.

Stock exchange transactions are made either for the purpose of investment or for
speculation. Investment transactions are made with the intention of earning a return on the
securities by holding them more or less permanently whereas speculative transactions are
made with the intention of making gains by disposing of the securities at favourable prices.

Thus people generally prefer one or more of the following options to invest their savings.

• Banks

• Money market instruments

15:23:33 a7/p7 7/31/2010 GLS NRIBM

 IV

• Capital market instruments

• Post office schemes

• Mutual funds

• Insurance scheme

But above all Portfolio Manager is give personal one to one service and advice
to their investor and their all talk remain private and confidential between the
investor and their Manager. In short Portfolio Manager Give personal touches
and advises to their investor at every level which will not give in above
schemes.

1.1) Portfolio Management Services (PMS):

Portfolio Management Services is mostly to give advice to their investor to invest in the pool,
their money and then invest accordingly. Each unit of any fund represents the proportion of
pool owned by the investor. Pool is managed by a fund manager who by his knowledge and
perception manages the whole fund. He only decides where to invest, how much percent to
invest in each company. Appreciation or reduction in value of investments is reflected in Net
Asset Value (NAV) of the scheme. Each Portfolio Management Services are being managed
by Portfolio Manager.

15:23:33 a7/p7 7/31/2010 GLS NRIBM

 V

2) Objective:

 Prime Objective:

Our project objective mainly emphasis on making the Portfolio on equity

market shares of ten sectors of the Indian economy and to measure the
performance with other Portfolio Management Services.

 Subsidiary objectives :

 To study the top 20 companies out of 60 selected companies of different

sectors.

 To divide the amount in the 20 selected companies and make the Portfolio.

 Compare our portfolio with other Portfolio Management Services (PMS),

National Stock Exchange (NSE), and Bombay Stock Exchange (BSE).

15:23:33 a7/p7 7/31/2010 GLS NRIBM

 VI

3) Hypothesis:

Hypothesis is a statistical tool that is used to test the validity of the assumption. First of
all the assumption is made about the population parameter. Then sample data is collected,
sample statistics is produced and based on this information, it is decided how likely it is
that the hypothesized population parameter is correct. In short, the difference between the
hypothesized value and the actual value of the sample mean is determined and validity of
the assumption is tested.

In our study we will test two hypotheses, which are as under:

o Hypothesis 1

H0: There is no significant difference in the preference for any particular sectors
considered Portfolio.

H1: Investors may prefer specific sectors provided Portfolio Management Services.

o Hypothesis 2

15:23:33 a7/p7 7/31/2010 GLS NRIBM

 VII

H0: There is no significance difference in the preference offered by the Portfolio

Management Services.

H1: Investors may prefer some other Portfolio Management Services providers.

4) Research methodology:

• Population:

The population of our research is taken of ten sectors of Indian economy.

• Sampling unit:

Sampling unit will be primarily consisting of the top six companies listed in the BSE
or NSE out of selected ten sectors.

• Sample size:

Sample size will be of two companies out of selected six companies of above

• Sampling Method:

15:23:33 a7/p7 7/31/2010 GLS NRIBM

 VIII

The sampling method will be on the basis of the Fundamental and Technical Analysis
of the companies.

5) Data Sources:

• Primary Data:

 BSE and NSE

• Secondary Data:

 Balance Sheet

 Cash flow

 Ratios

 Income Statement

 Library Research

15:23:33 a7/p7 7/31/2010 GLS NRIBM

 IX

 Internet Surfing

6) Chapter Plan:

a. Research proposal

b. Industry profile

c. Analysis of companies listed in BSE and NSE

d. Criteria of selection of companies

e. Criteria of dividing the amount between companies to make Portfolio

f. Comparison of portfolio with other Portfolio Management Service Provider

g. Findings

h. Suggestion

i. Conclusion

15:23:33 a7/p7 7/31/2010 GLS NRIBM

 X

7) Expected Contribution of the study:

The Research will be useful to other students as reference. It will also be useful to Portfolio
managers to see comparison and to know the current situation of the top Indian companies.

15:23:33 a7/p7 7/31/2010 GLS NRIBM