Print Project

A
PROJECT REPORT
ON
“A STUDY OF PORTFOLIO MANAGEMENT SERVICES”
FOR
INDIA INFOLINE STOCK BROKING LTD.
SUBMITTED
TO
UNIVERSITY OF PUNE
In Partial Fulfillment of Requirement for the Award of Degree of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED
BY
SHIVPRASAD R. BAWAGE
UNDER THE GUIDANCE

OF
Dr. MEHROTRA
THROUGH
Bansilal Ramnath Agarwal Charitable Trust’s

Vishwakarma Institute of Management,
Survey No 3/4, Kondhwa Budruk, Pune - 411 048
(2009-2011)
ACKNOWLEDGEMENT
A study of “A STUDY OF PORTFOLIO MANAGEMENT SERVICES”

would not have been possible in the absence of kind co-operation of the management
of INDIAINFOLINE STOCK BROKING LTD. I therefore express my gratitude to
the management of the company particularly Mr. RAJVINDERSINGH BHATIA
for having allowed me to conduct the study.
I also extend my sincere thanks to all respondents who gave me excellent co-
operation in my endeavour and willing responses while interviewing them.
I would like to take this opportunity of expressing my special gratitude to our

institute and Dr. MEHROTRA internal guide of my project and our Director Dr. S. P.
KASANDE
DECLARATION
I, SHIVPRASAD R. BAWAGE the undersigned, hereby declare that the

Project Report entitled A STUDY OF PORTFOLIO MANAGEMENT
SERVICES written and submitted by me to the University of Pune, in partial
fulfillment of the requirement for the award of degree of Master of Business
Administration under the guidance of Dr. MEHROTRA is my original work and the
conclusions drawn therein are based on the material collected by myself.
Place:
Date:
MBA – II Semi – III
Executive Summary
The project at India infoline Stock Broking Ltd. Nanded Branch i.e. “A
study of Portfolio management of Individual Investor” helps the individual
investors in constructing a portfolio from the funds they want to put in the various
securities or financial instruments that are available in the market.
Chapter 1st of the study deal with what is Portfolio Management (PM) what
are the types of PM what are the different avenues available in India i.e. financial
assets and real assets their feature and how many percentage of return we can get
from these instrument etc.
Chapter 2nd is the company profile in that I have done my internship. It

consists of history, achievement, mission and services provided by India infoline.
Chapter 3rd discuss with, objective of the study. I gather the information from
the questionnaire and with the help of that information we prepare some models of
portfolio. Limitation I face while doing the project.
Chapter 4th is the most important part of the study i.e. data Analysis it is done
with the help of graphs and table so that one can easily understand and find the
conclusion.
Chapter No. 5th consists of my learning’s from the project and few
suggestions for the organization which I feel will be useful for them in improving
their services even further and at last but not the least this phase of the project talks
about the final CRUX of the report under the name of conclusion, it talks all about the
findings and my beautiful experience with “India infoline.
INDEX
Chapter No. Particular Page No.

1 7
INTRODUCTION OF STUDY
2 9-14
COMPANY PROFILE
3 16
OBJECTIVE OF STUDY
4 18 – 40
CONCEPTUAL BACKGROUND
5 42
RESEARCH METHODOLOGY
6 44 – 58
DATA ANALYSIS AND INTERPRETATION
7 60
FINDINGS
8 62
SUGGESTION
9 64
CONCLUSION
10 66
LIMITATIONS
67
BIBLIOGRAPHY
68 - 88
ANNEXURES
Chapter 1st
Introduction about Project
Introduction
Portfolio Management is an immerging financial service in India. In this
slowdown period people are reducing their expenses and putting more emphasis on
saving. Investors want more return on what they invest. But continuously falling of
interest rates people thinking of investing in different instrument but due to lac of
knowledge they are not getting expected return. So there is huge scope for Portfolio
management.
The main aim of study is providing a basic understanding of Portfolio

management to any person who is interested in. So I have chosen this subject as my
internship project of MBA.
I want to know different angles of portfolio management their risk factor and
so on. I think after reading one can get some information on Portfolio management
and how to draw a model.
The future is bright for portfolio management services. And my area of

interest is also stocks and mutual fund so I chosen this topic.
Chapter 2nd
Company Profile
Company Profile
3.1 India infoline at a Glance:

The India infoline group was formed in 1995 at Mumbai, India. India infoline
Stock Brokers Limited, started from 1999.India infoline Stock Brokers Limited,
member of National Stock Exchange of India and the Bombay Stock Exchange, ranks
among the top most stock brokers in India. With over 10,00,000 active accounts, it
ranks among the top most Depositary Participant in India, registered with NSDL and
CDSL. India infoline Insurance Brokers is registered as a Broker with IRDA and
ranks among the top most insurance agent in the country. Registered with AMFI as a
corporate Agent, India infoline is also among the top Mutual Fund mobilize with over
Rs. 8,000 crores under management.
India infoline has 2100 offices over 450 cities across India and overseas at
Dubai and Singapore, New York. Over 12,000 highly qualified people working under
India infoline.
3.2 Background
India infoline commenced his operations as an independent provider of information,
analysis and research covering Indian businesses, financial markets and economy, to
institutional customers. Hence it launched his Internet portal, www.indiainfoline.com
in May 1999 and started providing news and market information, independent
research, interviews with business leaders and other specialized features. It became a
public limited company on April 28, 2000 and the name of the Company was changed
to Probity Research and Services Limited. In May 2000, the name of our Company
was changed to India Infoline.com.
Its broking services was launched under the brand name of 5paisa.com through its
subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-
broking portal, was launched for online trading in July 2000. It combined competitive
brokerage rates and research, supported by Internet technology besides investment
advice from an experienced team of research analysts, it also offer real time stock
quotes, market news and price charts with multiple tools for technical analysis.
India infoline acquire of Agri Marketing Services Limited (Agri) In March 2000,
we acquired 100% of the equity shares of Agri Marketing Services Limited, from
their owners in exchange for the issuance of 508,482 of our equity shares. Agri was a
direct selling agent of personal financial products including mutual funds, fixed
deposits, corporate bonds and post-office instruments. At the time of it acquisition,
Agri operated 32 branches in South and West India serving more than 30,000
customers with a staff of, approximately 180employees. After the acquisition, It
changed the company name to India
Infoline.com Distribution Company Limited.
Reason for Change
The instances when the name of the Company was changed are cited below:
Previous Name New Name
Probity Research and Probity Research and

Services Private-Limited Services Limited
Probity Research and India Infoline.com Limited

Services Limited
India Infoline.com Limited India Infoline Limited
Date of Change Reason for Change
April 28, 2000 Conversion from Private Limited to

Public Limited Company
May 23, 2000 To focus on the retail financial

Intermediary business through an
Online set-up.
March 23, 2001 To focus on the retail financial

intermediary business through offline
as well as online set-up.
Milestones
1995
-Incorporated as an equity research and consulting firm with a client base that
included leading FIIs, banks, consulting firms and corporate.
1999
-Restructured the business model to embrace the internet; launched
archives.indiainfoline.com mobilised capital from reputed private equity investors.
2000
-Commenced the distribution of personal financial products; launched online equity
trading; entered life insurance distribution as a corporate agent. Acknowledged by
Forbes as ‘Best of the Web’ and must read for investors’.
2004
-Acquired commodities broking license; launched Portfolio Management Service.
2005
- Listed on the Indian stock markets
- India Infoline fixes a price band between Rs 70 and Rs 80 for its forthcoming
public issue. The company is coming out with public issue of 1.18 crore shares with a
face value of Rs 10 through the book building route. The issue is slated to open on
April 21 and close on April 27. Enam Financial Consultants Private Ltd would be the
sole book running lead manager to the issue while Intime Spectrum Registry Ltd is
the registrar to the issue.
-India Infoline public issue gets 6.6 times oversubscription
-India Infoline Ltd has informed that the Company has entered into a advertising
agreement with Times Group where in the Company and other group companies
would spend about Rupees Thirty Crores over the next 5 years in print as well as non
print media of The Times Group.
-India Infoline to buy 75-pc stake in Money tree.
2006
-India Infoline launches exclusive SMS Value Added Service
-India Infoline enters into strategic agreement with Saraswat Bank
-India Infoline to launch stock trading on cell phones
-India infoline to roll out MCX, NCDEX, DGCX software
-Acquired membership of DGCX; launched investment banking services
2007
-Launched a proprietary trading platform; inducted an institutional equities team;
formed a Singapore subsidiary; raised over USD 300 mn in the group; launched
consumer finance business under the ‘Money line’ brand.
2008
-Launched wealth management services under the ‘IIFL Wealth’ brand;set up India
Infoline Private Equity fund; received the Insurance broking license from IRDA;
received the venture capital license; received in principle approval to sponsor a
mutual fund; received ‘Best broker- India’ award from Finance Asia; ‘Most Improved
Brokerage- India’ award from Asia money.
- The Company has splits its face value from Rs10/- to Rs2/-.
2009
-Received registration for a housing finance company from the
National Housing Bank; received ‘Fastest growing Equity Broking House

- Large firms’ in India by Dun & Bradstreet.
3.3 Achievement
 Has more than 30,000 investors and 2100 offices all over India
 Mails 20,000 envelopes, containing Annual Reports, dividend cheques
advises, allotment / refund advises
 Every 50th is serviced by India infoline
 Every 10th investor in India invest through India infoline
 Every 20th D-mat a/c is held at India infoline
 Every 20th trade in stock market is done through India infoline
 India’s No. 5 Registrar and Transfer Agent
 Ranks among the top 5 commodity brokers in the country.
3.4 Board of Director
• Mr. Nirmal Jain CMD

• Mr. R Venkataraman MD
• Mr. Nilesh Vikamsey Director
• Mr. Sat Pal Khattar Director
3.5 Mission
“Our vision is to be the most respected company in the financial

services space”
3.5 Slogan
“ It’s All About Money, Honey ! ”
3.6 Services provided by India infoline

It provides comprehensive range of investment services. That’s advantage of having
all the services investor need under one roof.
1. Equity
2. Derivatives
3. Commodity
4. Currency
5. Future and Option
6. Internet Trading
7. IPO
8. Mutual Fund
9. Other Investment Products.
3.7 Major Competitors of India infoline
• Sharkhan
• Indiabulls
• ICICI Direct
• Karvy
• Motilal oswal
• Relience money
• Religare Securities ltd.
• IL&FS Investsmart (HSBC Invest mart)
Chapter 3rd
Objectives of the Study

Objective
i. To understand the concept of portfolio management

ii. To Guide a client to determine the level of investment risk they are willing to
take and then suggest them an appropriate asset allocation.
iii. To study and compare various investment instruments available in the market.
iv. To know the investment pattern of the individuals & hence creating a better
portfolio of investment for these individual clients.
v. To Understanding Investors behavior towards various investment options
available.
Chapter 4th
Conceptual Background
1.1 Introduction
Investing in securities such as shares, debentures and bonds is profitable as

well as exciting. It is indeed rewarding, but involves a great deal of risk and calls for
scientific knowledge as well as artistic skill. Investing in financial securities is now
considered to be one of the best avenues for investing one’s savings while it is
acknowledge to be one of the most risky avenues of investment.
It is rare to find investors investing their entire savings in a single security.

Instead, they tend to invest in a group of securities. Such a group of securities is called
a portfolio. Creation of a portfolio helps to reduce risk without sacrificing returns.
Portfolio management deals with the analysis of individual securities as well

as with the theory and practice of optimally combining securities into portfolios. An
investor who understands the fundamental principles and analytical aspects of
portfolio management has a better chance of success.
What is Portfolio Management Services?
In general investors did not have much knowledge of Share market and other
investment instrument. Investor invests in securities as he/she feels. So many times
they have to scarify. To avoid this highly professional people do this job and they
charge certain amount and they design investors’ portfolio and invest money these
people are called as Portfolio Managers
As the economic and financial environment keeps changing, the risk-return

characteristics of individual securities as well as portfolios also change. This calls for
periodic review and revision of investment portfolios of investors.
An investor invests his funds in a portfolio expecting to get a good return

consistent with the risk that he has to bear. The return realized from the portfolio has
to be measured and the performance of the portfolio has to be evaluated.
Portfolio management comprises all the processes involved in the creating and
maintenance of an investment portfolio. It deals specifically with security analysis,
portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation.
management is a complex process which tries to make investment activity more
rewarding and less risky.
Portfolio management services ensure optimum use of people, money and
other resources. In short, “The art and science of making decisions about investment
mix and policy, matching investments to objectives, asset allocation for individuals
and institutions, and balancing risk against performance.”
1.2 Objective behind PMS
In general following are the objective behind offering the portfolio management
services
1. Safety of Fund: The investment should be preserved, not be lost and remain in
the returnable position in cash or kind.
2. Liquidity: Portfolio must consist if such securities which could be en-cashed
without any difficulty or involvement of time to meet urgent need for funds.
3. Reasonable returns: The investment should earn a reasonable return to upkeep
the declining value of money and must be compatible with the opportunity cost
of money in terms of current income in the form of interest or dividend.
4. Appreciation in capital: The money invested in portfolio must grow and result
in capital gains.
5. Tax planning: Efficiently portfolio management is concerned with composite
tax planning covering income tax, capital gains tax, wealth tax and gift tax.
6. Minimize risk: Risk avoidance and minimization is very important and are
most important objectives of portfolio management. Portfolio managers must
ensure these objectives by effective investment planning and periodical review
of marketing and economy.
7. Marketability: The investment made in securities should me marketable that
means, the securities must be listed and traded in stock exchange so as to avoid
risk and difficulty in their encashment. Marketability ensures liquidity to the
portfolio.
8. Last but most important objective of PFM is to understand client need
accurately and according to that invest the money.
1.3 Types of Portfolio
1. Conservative model:-
Generally allocate a large percent of the present portfolio to lower risk securities such
as fixed-income and money market securities. The main goal with a conservative
model portfolio is to protect the principal value of your portfolio. As such these
models are often referred to as “Capital Preservation portfolios”.
Even if they are very conservative and prefer to avoid the stock market
entirely, some exposure can help offset inflation. They could invest the equity portion
in high quality blue chip companies only
Figure 1
2. Moderately Conservative:-
It is ideal for those who wish to preserve a large portion of the portfolio’s total
value, but are willing to take on a higher amount of risk to get some inflation
protection. A common strategy within the risk level is called “current income”. With
this strategy, you can choose securities that pay a high level of dividends or coupon
payments.
Figure 2
3. Moderately Aggressive:-
It is often referred as “balanced portfolios” since the asset composition is

divided almost equally between fixed-income securities and equities in order to
provide a balance of growth and income. Since these moderately aggressive portfolios
have a higher level of risk than those conservative portfolios mentioned above, select
this strategy only if you have a longer time horizon (generally more than five years),
and have a medium level of risk tolerance.
Figure 3
4. Aggressive:-
It mainly consists of equities, so these portfolios’ value tends to fluctuate

widely. If you have an aggressive portfolio, your main goal is to obtain long term
growth of the capital. As such the strategy of an aggressive portfolio is often called a
“capital growth” strategy. To provide some diversifications, investors with aggressive
portfolios usually add some fixed-income securities.
Figure 4
5. Very Aggressive:-
It consists almost entirely of equities. As such, with a very aggressive

portfolio, your main goal is aggressive capital growth over a long term horizon. Since
these portfolios carry a considerable amount of risk, the value of the portfolio will
vary widely in the short term.
Figure 5
Nothing Is Set in Stone
Note that the above outline of portfolios and the associated strategies offer
only a loose guideline - we modify the proportions above to suit individual investment
needs. Also, the amount of cash and equivalents, or money market instruments to be
placed in a portfolio will depend on the amount of liquidity and safety the investor
needs. If they need investments that can be liquidated quickly or they would like to
maintain the current value of your portfolio, they might want to put a larger portion
of their investment portfolio in money market or short-term fixed-income securities.
Those investors who do not have liquidity concerns and have a higher risk tolerance
will have a small portion of their portfolio within these instruments. As each asset
class has varying levels of return for a certain risk, their risk tolerance, investment
objectives, time horizon and available capital will provide the basis for the asset
composition of their portfolio.
Portfolio Manager must no how many different avenues available in India
and what are the return and risk in different assets. So before we move further
we will see different investment avenues available in India.
1.4 Investment Avenues available in India
Introduction:-
In India a lots of investment alternatives are available. Due to lack of

knowledge people get confused. Very few people know the risk and return out of
them. Therefore many people prefer only few investment alternatives. There are two
broad categories namely Financial Asset and Real Asset
Investment alternatives
Financial assets Real Assets
Financial assets are paper or in electronic form. Generally these assets are
issue under the authority of government or some corporate body. The important
financial assets are equity shares, corporate debenture, government securities, bank
deposits, mutual fund, insurance policies and derivative instruments.
On the other hand Real Assets are represented by tangible assets like
Residential House, Commercial Property, Agricultural Farm, Gold, Precious Stone,
and Art Object etc.
1.4.1 Financial assets
Further financial asset divide into sub parts that is shown in following tree
diagram.
Financial assets
Non Marketable Bonds or Mutual Fund Life Insurance
Financial Assets Debentures Schemes
Money Market Equity Shares Financial
Instruments Derivatives
1. Non Marketable Financial Assets:-
In this the main feature is its personal transaction between the investor and the
issuer. Middleman is not playing any part. For example if one investor wants to
deposit money in bank than that investor go to the bank and open the account
personally. On the other hand if you want to buy other financial assets there are
middlemen. For example if you want to purchase share of XYZ Co. then through
share broker you can purchase the share.
Non Marketable Financial Assets
Bank Post Office National Saving Company PPF
Deposits Time Deposits Certificate Deposits
Post Office Monthly Income Kisan Vikas EPF
Saving a/c Scheme of Post Office Patra

a. Bank Deposits:-
This is the simplest investment avenue. One can open the bank account
deposit the money and can make a bank deposit. There are 3 different types of
account namely Saving a/c Current a/c and Bank Deposit a/c.
In saving a/c there is fixed rate of interest (generally in nationalized bank it is

3.25%) current a/c did not have any type of Interest. Fixed Deposits (FD) have more
interest as compare to saving but FD’s have to put for long period. Interest rates are
start from 7.25% onwards. Senior Citizen (above 65yrs.) has .5% more interest as
compare to other people.
Loans can be raised against bank deposits. Bank deposits enjoy exceptionally
high liquidity.
b. Post Office Saving Account: -
A post office saving account is similar to the saving bank account. Its salient
features are as follows
a) The int. rate is 3.5% p.a.

b) The interest is tax exempt.
c) The amount of first deposit should be at least Rs. 20 for ordinary account and
Rs. 250 for a checking account.
d) The maximum balance that can be held is Rs. 50,000 for a single account and
Rs.100,000 for a joint account.
c. Post Office Time Deposits:-
Post Office Time Deposits (POTDs) are similar to the fixed deposits of
commercial banks, POTDs have following feature
a) Deposits can be made in multiplies of Rs. 50 without any limit

b) The 1-year POTD provides 6.25% per year while for 3-year POTDs give a rate
of 7.25%.
c) The int. is calculated half yearly and paid annually.
d) No withdrawal is permitted up to six months.
e) After six months, withdrawals are permitted but no int. will be given on such
withdrawal up to one year.
f) Deposits in 10 yrs to 15 yrs. POTD a/c can be deducted before computing the
taxable income under Sec. 80C
g) The lower limit of the money that may be invested in a Post Office Time
Deposit (POTD) account is Rs. 200. However, there is no upper limit to the
money that can be invested in a Post Office Time Deposits
d. Monthly Income Scheme of Post Office: - (MISPO)
One of the most popular schemes of the post office is the MISPO. It is meant
to provide regular monthly income to the depositors. The salient features of the
scheme are as follows
a) the term of the scheme is 6 yrs.

b) The min. amount of investment is Rs. 1000.
c) The Max. amount of investment is Rs. 300,000 in single a/c and in joint it is
Rs. 600,000
d) The rate of int. is Rs. 8% p.a payable monthly. A bonus of 10% is payable on
maturity
e) There is no tax deduction at source
f) There is a facility of premature withdrawal after one year with 5% deduction
before 3 yrs.
e. Kisan Vikas Patra (KVP) :-
A scheme of the post office has following feature
a) The min. amount of investment is Rs. 1,000 & there is no max. limit
b) The investment doubles in 8 yrs. and 7 months so compound int. rate works
out to 8.4%
c) There is no tax deduction at source
d) There is withdrawal facility after 2 ½ yrs.
e) KVP can be pledged as a collateral security for raising loans.
f. National Saving Certificate (NSC):-
Issued at the post office National Saving Certificate has the following feature
a) It comes in denominations of Rs. 100, Rs. 500, 1,000, Rs. 10,000.

b) It has a term of 6 yrs. over this period Rs. 100 becomes Rs. 160.1 hence the
compound rate of return works out to 8.16%
c) The investment in NSC can be deducted before computing the taxable income
under Sec. 80C. Max. limit is 1,00,000
d) There is no tax deduction at source.
e) NSC can be used as a security for mortgage and other purposes.
g. Company Deposits:-
Many companies large and small solicit fixed deposits from the public. FD
mobilized by manufacturing companies is regulated by the Company Law Board and
FD mobilized by non-banking finance companies is regulated by the RBI. The salient
features of the scheme are as follows,
a) For manufacturing company the term of deposits can be one to three yrs. and
for non-banking finance company it can vary between 25 months to five yrs.
b) Interest rates on company deposits are higher than those on bank fixed
deposits.
c) Company deposits have to be necessarily credit rated.
d) Depositors don’t get any tax benefit on company deposits but there is no tax
deduction at source if the int. income is up to Rs. 5,000 in a financial year.
e) Companies offer some incentives like facility for premature withdrawal or free
personal accident insurance cover to attract deposits.
h. Employee Provident Fund Scheme (EPF): -
It is popularly known as EPF. And it is major vehicle of saving for salaried

employees. The EPF has the following feature.
a) Each employee has a separate PF a/c in which both the employer and
employee are required to contribute a certain min. amt. on a monthly basis
b) The employee can choose to contribute additional amt. subject to certain
restriction
c) Contribution made by the employer is fully tax exempt from the point of view
of the employee the contribution made by the employee can be deducted
before computing the taxable income under Sec. 80C.
d) PF contribution currently earns a compound int. rate of 8.5% p.a. and it is
totally exempt from tax. The int. accumulated in the PF a/c and not paid
annually to the employee.
e) The balance in the PF a/c is fully exempt from wealth tax.
f) PF a/c amount can be pledged as a collateral security for raising loans.
i. Public Provident Fund Scheme (PPF):-
This is one of the most attractive investment avenues in India. PPF has the
following features:
a) Only individual and HUF can participate in this scheme. This a/c can be open
in any branch of SBI or its subsidiaries or at specified branches of other Public
Sector banks.
b) The period of PPF is 15 yrs.
c) The subscriber to a PPF a/c is required to make a min. deposit of Rs. 500 and
max. is Rs. 70,000
d) Deposit in PPF a/c can be deducted before computing the taxable income
under Sec. 80 C.
e) The balance in the PPF a/c is fully exempt from wealth tax.
f) PPF deposit currently earns a compound int. rate of 8% p.a. which is totally
exempt from tax. The int. accumulated in the PPF a/c and not paid annually to
the employee.
g) The subscriber to a PPF /ac is eligible to take a loan from the third year to the
sixth year after opening the PPF a/c. The amount of loan cannot exceed 25%
of the balance standing to the credit of the PPF a/c at the end of the second
preceding financial year.
h) The subscriber to a PPF can make one withdrawal every year from the sixth
year to the fifteenth year.
i) On maturity the credit balance in a PPF a/c can be withdraw. However, at the
option of the subscriber the a/c can be continue for three successive block
period of five year each with or without deposit.
2. Money Market Instruments:-
Debt instrument, which have a maturity of less than one year at the time of
issue are called money market instrument. These instruments are highly liquid and
have negligible risk.
Money Market Instruments
Treasury Bills Certificate of Deposit Commercial Paper
a. Treasury Bills:-
Treasury bills represent the obligations of the Govt. of India which have a
primary tenor like 91 days and 364 days. They are sold on an auction basis every
week in certain minimum denominations by the RBI. They do not carry an explicit
interest rate. They are sold at a discount and redeemed at par. Treasury bills have nil
credit risk and negligible price risk
b. Certificate of Deposits:-
Certificate of deposits (CDs) represents short term deposits which are

transferable from one party to another. Banks and financial institutions are the major
issuers of CDs. The principal investors in CDs are banks, financial institutions
corporate and mutual funds. CDs are issued in bearer or registered form. They
generally have a maturity of 3 months to 1 year. CDs carry a certain int. rate. CDs are
generally risk free. CDs are transferable. CDs generally offer a higher rate of interest
than Treasury bills or term deposits.
c. Commercial Paper:-
Commercial paper (CP) represents short-term unsecured promissory notes

issued by firms that are generally considered to be financially strong. CP usually has a
maturity period of 90 days to 180 days. It is sold at a discount and redeemed at par.
3. Bonds or Debenture
Company can stay in market, expand and get profit only when they get
adequate funding timely. With the help of issuing shares company may fell short in
funding at that time these company issues debenture and bonds. Bonds or debentures
represent long term debt instrument. These generally comprises of periodic interest
payment over the life of the instrument and principal payment at the time of
redemption. In this risk is negligible. Company has to pay fix rate of int. as decided
earlier.
Similarly Government also need fund so they also issue bonds.
Bonds or Debenture
Government Saving Bonds Public Sector Preference Share
Securities Undertaking Bonds
Public Sector
Undertaking Bonds
a. Government Securities:-
Debt securities issued by the Central Government, State Government and

Quasi-Government agencies are referred to as government securities or gilt-edged
securities. These securities have maturities ranging from 3-20 yrs. and carry int. rates
that usually vary between 7-10%. Even though these securities carry some tax
advantages, they have traditionally not applied to individual investor because of low
rate of Int. and long maturity and illiquid.
b. Saving Bonds:-
They are also called as Govt. of India Saving Bonds. Since they are issued by
the RBI they are popularly referred to as RBI Saving Bonds. The basic features of the
bonds are,
a) These are the popular instrument for earning tax-exempt income.

b) Individual HUFs and NRIs can invest in these bonds.
c) The minimum amt. of investment is Rs. 1,000. And there is no maximum
limit.
d) The maturity period is 5 years from the date of issue.
e) There are 2 options the cumulative and the non cumulative option.
f) The interest rate is 8% payable half yearly.
g) The int. earn is taxable. Bonds are exempt from wealth tax without any limit.
h) Bonds can be pledged as a collateral security for raising loans.
i) Bonds are transferable.
c. Private Sector Debenture:-
Debenture is just similar to the promissory note. Debenture-holders are long-

term creditors of the company. The obligation of a company towards its debenture
holders is similar to that of a borrower who promises to pay int. and principal at the
specified time. Generally the rate of int. is fixed and it is higher than fix deposit int.
rates in banks. There is no risk in debenture.
d. Public Sector Undertaking Bonds:-
Public sector undertaking issue debentures that are called as PSU bonds.
There are two broad varieties of PSU bonds taxable bonds and tax free bonds. While
PSUs are free to set the int. rates on taxable bonds. PSU can issue tax free bonds only
with the prior approval of the Finance Ministry. There is no deduction of tax at source
on the int. paid on these bonds.
e. Preference Share:-
Preference Share capital is a unique type of long term financing in that it

combines some of the feature of equity as well as debenture. As a hybrid security
form of financing it is similar to debenture in so far as
It carries fixed stated rate of Dividend.
Therefore no risk. It rank higher than equity
Preference dividend is tax exempt
These shares are redeemable. The redemption period is usually 7-12 yrs.
4. Equity Shares
Introduction:-
It is most popular form of investing money. Equity capital represents

ownership capital. Equity shareholder collectively owns the company. They bear the
risk and enjoy the rewards of ownership. Of all the forms of investment equity shares
appear to be most risky. Stock market is based on risk theory more you take risk more
you get profit.
There are two types of market where we can buy these share Primary market
and Secondary market.
a. Primary market:-
When a corporation needs capital to expand facilities, build inventories and so

on it must issue debt or equity securities. Newly issued securities are sold in Primary
market. The first issue of equity shares to the public by an unlisted company is called
the Initial public offering (IPO). Primary market brings together buyers and seller-
either directly or through intermediaries.
b. Secondary Market:-
All subsequent trading of those securities is done in the Secondary market.

Secondary market involves the organization trading of outstanding securities on
exchanges and over the counter market. The NSE BSE are the Secondary market.
Those who want to trade in this market must have PAN (Permanent Account No.)
Card after having PAN card they can go to broker and open D-mat & trading a/c. after
opening the accounts investor can purchase or sell the share of listed companies.
Shares prices are fluctuating in the market so one can not predict how much return
one can get after investing xyz amount. Some time investor get double the amount or
some time they can get less amount than invested amount. If one have the proper
study on market can earn healthy return.
In Bonds, Debenture, Fixed Deposits we get interest but in equity share we get
dividends. Dividends are exempt from tax.
In stock market common investor can buy or sell the equity share with the help
of broker. Presently there are 23 stock exchanges in India. The most traded markets
are NSC (National Stock Exchange) and BSC (Bombay Stock Exchange). There are
about 10,000 companies listed on different stock exchanges in India.
Major Stock Exchanges in India
i. National Stock Exchange:-
The National Stock Exchange of India Limited (NSE), was established in

1994. it is the largest stock exchange in India in terms of daily turnover and number
of trades, The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index
of fifty major stocks weighted by market capitalisation. NSE is the third largest Stock
Exchange in the world in terms of the number of trades in equities. It is the second
fastest growing stock exchange in the world with a recorded growth of 16.6%
ii. Bombay stock exchange:-
The Bombay stock exchange of India Ltd (BSE) was established in 1875. It is the
oldest stock exchange in Asia. The BSE Index, SENSEX, is India's first stock market
index that enjoys an iconic stature, and is tracked worldwide. It is an index of 30
stocks representing 12 major sectors. The SENSEX is constructed on a 'free-float'
methodology, and is sensitive to market sentiments and market realities. Apart from
the SENSEX, BSE offers 21 indices, including 12 sectoral indices. The regulatory
agency which oversees the functioning of stock markets is the Securities and
Exchange Board of India (SEBI).
Stock Market Classification
a) Blue Chip Shares: - Shares of large, well established, and financially strong
companies with an impressive record of earning and dividends.
b) Growth Shares: - Shares of companies that have a fairly entrenched position in a

growing market and which enjoy an above avg. rate of growth as well as profitability.
c) Income Shares: - Shares of companies that gave fairly stable operation, relatively
limited growth opportunities and high dividend payout rations.
d) Cyclical Share: - Shares of Companies that have a pronounced cyclicality in their

operation.
e) Defensive Share: - Share of companies that are relatively unaffected by the ups
and downs in general business condition.
f) Speculative Share: - Shares that tend to fluctuate widely because there is a lot of
speculative trading in them.
5. Mutual Fund:
Those who did not want to take risk in equity market but want more returns
can invest in Mutual Funds. This is the most popular form of investing money.
A mutual fund is a pool of money, which is collected from many investors and
is invested by an Asset Management Company (AMC) to achieve some common
objective of the investors.
Thus, a mutual Fund is a collective investment process. An AMC collects
money from investors. It invests this money in various securities to generate returns
for the investors. Investors get the net return after deducting the related expenses. This
does not apply to profits. If there is any loss, it would also be borne by the investors.
It is also an indirect form of investment for investor.
All the investor though have same aim of getting more returns but there are
some other different objective such as tax benefit, high return at high risk an so on
hence AMC will make many schemes each having different investment objective to
cater to different set of investors.
Figure 6
AMC sell units to the investor and profit is distributed according to the no. of units
hold by an investor. Thus a Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost.
Mutual Funds started in India in 1963 when the first mutual fund (UTI-Unit
Trust of India) was formed. The first scheme was US 64. At present there are about 31
AMC offering over 1000 schemes.
Mutual fund schemes invest in three broad categories of financial assets, viz.
stocks bonds, and cash (bank deposits & debt instrument that have a maturity of less
than one year).
The advantages of investing in a Mutual Fund are:
• Increases the purchasing power of the investor

• Reduction of Risk
• Enables them to have a well-diversified portfolio even with very small amount
of investment.
• Money would be managed by a professional at low costs.
• Flexibility to change investment objectives
• Convenience of investing the money and tracking the performance of
money(investor can invest money without DMAT a/c )
• Liquidity (Fast redemption) , Low cost, Transparency, Tax advantage
Depending on the asset mix, mutual fund schemes are classified into three
broad types, viz. equity scheme, Hybrid scheme and Debt schemes.
Mutual Fun Scheme
Equity Hybrid (Balance) Debt
Diversified equity Equity-oriented Gilt
Index Debt-oriented Mixed
Sectoral Variable asset allocation Floating rate debt
Tax planning Cash (liquid)

R
R Sector Funds
N Equity Funds
Balanced Funds
Income Funds
Liquid Funds
RISKS
The risk return graph for various funds:-
The above Graph shows the Risk and Returns generated by different
Funds. Liquid Funds are less Risky and also generate less Returns where as Sector
Funds are more Risky but generate more Returns by the example of above two Funds
it is clear that Risk and Returns are directly proportional to each other.
Classification of Mutual Funds
i. Open-End Fund:
An open-end fund is one, which is always open to accept money from
investors and to return the money back to them. An open end fund indicates that the
AMC is always ready to accept money from investor and is always willing to return
the amount to the investor. This gives the investor the flexibility to enter into the
scheme or to exit from the scheme as and when required as per their needs.
ii. Closed-End Schemes:
Schemes that have a stipulated maturity period, limited capitalization and the
units are listed on the stock exchange are called close-ended schemes.
Life Insurance:-
The basic need of any investor is to money growth and gets life protection and
these needs are fulfilled by life insurance. One of the basic advantages of life
insurance is tax benefit. Investor/ people get compensation amount if they get
physically handicap or their family/nominees get compensatory amount due to sudden
death of ?investor/person.
There are many government and privet sector companies giving these
insurance policies but in that government owned Life Insurances Corporation is one
of the dominating agencies.
The Common types of insurance policies are:
i. Endowment Assurance
ii. Money Back Plan
iii. Whole Life Assurance
iv. Unit Link Plan
v. Term Assurance
vi. Immediate Annuity
vii. Deferred Annuity
viii. Riders
1.4.2 Real Asset:-
Assets which are tangible or physical in nature are called as Real Asset.
Residential house, land gold, silver, diamonds, paintings and so on are the example of
real assets. Real assets are denominated in physical units and no rupees.
Benefits
a. Inflation hedge
b. Efficient diversification
c. Psychic Pleasure
d. Safe Haven
e. Tax benefits
Disadvantage
a. illiquid Market
b. High Spreads and commission
c. No current Income
Risk Factor:-
Returns are very high and risk is also very low as compare to other financial
assets but it require huge amount to invest and for normal user it is not possible to
gather huge amount and invest.
Chapter 5th
Research Methodology
Sources of Data:
a) Primary Data:-
This research is solely based on primary research done by means of

questionnaires targeted to respondents who primarily belong to the business and
service sector. We fill up this questioner mostly who are the client of India infoline
Stock Broking ltd. Our data is mainly focus to Nanded region only.
b) Secondary Data
Visiting various sites of mutual funds and companies’ reading leaflets,

broachers that already exist in company; this study is highly dependent on the
secondary data for various facts and figures.
4.4 Sample Size:-
For my research I have taken a sample size of 100 people in Nanded and it’s
random. Due to time and finance limit I can gathered only data from 100 people. I am
assuming that the information given by the customer is unbiased.
Chapter 6th
Data Analysis &

Interpretation
5.1 Graphically Presentation of Questionnaire of Investor
Sample Size of our questionnaire is 100 and we have collected data from
Nanded city only. The date is collected during our internship i.e. from 25 may 2010 to
25 June 2010.
First 3 questions are personal information i.e. name, address, mobile No. and
email id etc. this information is not important for our project but it is important for the
India infoline. So the above date we have given to India infoline.
India infoline Stock Broking Ltd

___________
A Study of Portfolio Management Services
Questionnaire for Research Purpose
Project Guide: -Dr. Mehrotra Project by: - Shivprasad R.Bawage
********************************************************************
**
(The Information gathered from this questionnaire will be used for

research purpose only)
Part –I
Part II
1. Age group:-
Sample Size: - 100
Sr. No. Options Ans.
1 20 to 30 yrs 50
2 30 to 40 yrs 24
3 40 to 50 yrs 10
4 50 & above 16
Where;
X Axis = Age Group.
Y Axis = Investors.
Interpretation of data:-
From the above data we can say that 50 investors are of the age group of 20 to
30 yrs. After that 24 are of the age group of 30-40 yrs and so on. We interact more
with young people so the majority are of the younger group. Due to this recession
and uncertain future younger people are also cautious about their saving.
2. Occupation:-
Sample Size: - 100
1 Business 23
2 Professional 10
3 Service 67
Where;
X Axis = Occupation.
Y Axis = Investors.
Mostly the investors are working service sectors like govt.departments, private
sector, they have huge salary so it’s easy to draw their portfolio. 67 out of 100
investors we interact are from service sectors 23 are doing their own business and
remaining 10 are profession like doctor, lawyer, and professor.
3. Income Group (P.A.) :-
Sample Size: - 100
1 Below 2 Lac. 10
2 2 to 4 Lac. 48
3 4 to 6 Lac. 36
4 6 to 8 Lac. 6
5 8 Lac & above 00
Where;
X Axis = Income Group.
Y Axis = Investors.
Interpretation of Graph:-
Mostly portfolio is done of investors whose income is high so we try to find

out the investors whose income is high. But unfortunately we get very few high
income group investors investment. 48 out of 100 investors income is between 2 to 4
lakhs. 36 investors income is between 4 to 6 lakhs.
4. In which Financial Sector did you invested most? (Tick only one)
Sample Size: - 100
1 Insurance 17
2 Stock 16
3 Mutual Fund 22
4 Gold/ Silver 15
5 Bank 30
Where;
X Axis = Investment Instrument.
Y Axis = Investors.
In this question out of 100 investors 30 says they have invested mostly in bank
/fixed deposits. After that 22 invest in mutual funds, 17 invested mostly in insurance.
16 investors have invested in stock market. 15 preferred in traditional investment
instrument i.e. gold and silver. From that we can say that most of the investor
preferred secured investment.
5. What are your monthly expenses?
Sample size: - 100
1 > 10K 48
2 10 to 15K 27
3 15 to 20K 17
4 20 to 25K 8
5 25K & above 0
Where;
X Axis = Expenses.
Y Axis = Investors.
Interpretation of Data:-
48 out of 100 investor expending below Rs.10,000. 27 investors expenses are

between 10 to 15 thousand. 17 investors are expending between 15 to 20 thousand
and so on. Its shows that people are becoming more and more conserve. While
designing the portfolio we have to keep in mind the expenses of the investors.
6. What percentage of your income do you invest?
Sample size: - 100
1 Below 10% 15
2 10 -20% 28
3 20-30% 36
4 30-40% 14
5 40 & above 7
Where;
X Axis = Percentage of Income.
Y Axis = Investors.
As per our research 36 out of 100 investors are investing 20-30% of their
investment. 28 investors are investing 10 - 20% of their investment. It shows that
people are now becoming more and more conservative. They are saving more.
7. How many people depend upon you?
Sample size: - 100
1 None 34
2 1 23
3 2 36
4 3 7
5 4 & above 0
Where;
X Axis = People.
Y Axis = Investors.
Interpretation of Data:-
From the data collected of 100 investors 34 are the one on whom no one is
depended. 1 person is depend up on 23 investors each. On 36 investors 2 person each
are depends it shows that when less person are depend upon investors they can take
more risk and vice versa. Number of person are very important while drawing the
model.
8. In which investment would you like to invest? (Mark only one)
Sample size: - 100
1 Insurance 15
2 Stock 27
3 Mutual Fund 40
4 Gold/ Silver 18
5 Other (KVP, NSC, PPF etc) 0
Where;
X Axis = Investment Instrument, Y Axis = Investors.
From the above data we can say that 40 out of 100 investors are willing to
invest in Mutual funds. One of the major reasons is low investment with medium/
high return with medium/high risk. Due to falling interest rates of banks people are
turning to different investment avenues like stock market. 18 investors are still stick
with tradition instrument
9. Do you have any liability/ loan?
Sample size: - 100
1 Yes 38
2 No 62
Where;
X Axis = Liability Loan.
Y Axis = Investors.
From the above graph it shows 38 people out of 100 have taken loan. So while
preparing model we have to take care of those who have taken loan. Those who have
liability/ loan they take minimum risk.
10. I) if yes then  mark it
Sample size: - 38
1 Personal loan 05
2 Home Loan 17
3 Car Loan 13
4 Education Loan 03
Where;
X Axis = Liability.
Y Axis = Investors.
From the data collected out of 38 investors 17 are having Home loan. And 13
are having car loan. 5 are having personal loan and 3 are having educational loan.
People prefer home loan to avail the benefit of tax.
11. What will be the Preferable Period for an investment?
Sample size: - 100

1 January - March 40
2 April - June 14
3 July - September 0
4 October - November 0
5 Not Fixed 46
Where;
X Axis = Period (months).
Y Axis = Investors.
Out of 100 sample size 46 investors’ investment period is not fixed whenever
they have surplus money they invest. 40 investors invest in the 1st quarter of the year
i.e. Jan- Mar to get the benefit of tax.
12. What Kind of Investment would you like to make?
Sample size: - 100
1 Long Term (More than 1 year) 66

2 Short Term (Less than 1 year) 34
Where;
X Axis = Term Of Investment.
Y Axis = Investors.
It is clear from the graph that 66 investors are willing to invest for long term
purpose. I.e. more than one year. And remaining 34 are interested for short term
purpose. Those who are investing for short term they are mostly younger investor.
13. What are the purposes of Investments?
Sample size: - 100
1 Tax Rebate 43
2 Money Growth 24
3 Child Education & Marriage 07
4 Pension 24
5 Insurance 02
Where;
X Axis = Purpose Of Investment.
Y Axis = Investors.
From the above graph we can say that 43 investors are investing because to
save the tax. It shows that majority of the investor are invest only to save tax. 24
investors invest for their pension. Investors are now becoming cautious about their
future. 24 investors want to invest for money growth.
Chapter 7th
Findings
6.1 Findings
From the data collected through questionnaire these are the major findings:-
 Since the young age group is able to undertake more risk portfolio manager
has to design aggressive portfolio where in the individuals’ investments
contains stocks in more proportion.
 People of old age have to follow a more conservative approach in their
portfolios. Their investments also contain bonds and real estate in greater
proportion.
 Most of the investors are already having different Insurance and Mutual funds
schemes.
 Expenses of the investors are decreasing one of the main reason for that is
uncertainty of future
 Person who have more dependent person take minimum risk.
 Those who have loans and liability are taking minimum risk
 Most of the investors invest to maximize the investment.
 Most of the investors are investing 30-40 percentage of their total income.
Chapter 8th
Suggestions and
Recommendations
Suggestion and Recommendation
Suggestion to Company
• India infoline advertising is done mainly through word of mouth and IPO
releases, which attracts only a fraction of the investors and thereby bringing
down its market capitalization. India infoline like the other leading brokerage
firms should indulge in a more aggressive form of advertising in both print
and electronic media if it looks to keep pace with the cut throat competition in
the years to come.
To Clients
 Invest and monitor portfolio from time to time.
 Don’t come under panic when share mkt. is falling because ups and downs are
the part of market.
Chapter 9th
Conclusion
Conclusion
After going through this report one can actually see that all the advisory is
done once the financial advisor analyses the actual need of the customers, and this all
is done once we know what to offer and when to offer.
Their is lot of scope of promoting PMS in Nanded as in the present scenario.

Today in Nanded has become one of the most recognized businesses center in
Marathwada.
Due to this slow down and recession people are becoming more conservative
and savvy. They do not want to take more risk. They want more liquidity.
There is great opportunity for Mutual Fund companies as there is a rise in

number of people who want to invest in share market but don’t have time and
knowledge to do so, also these people want to take less risk.
Young people these days are particularly more interested in mutual funds
because they see mutual fund as safe bet. Also these people have large disposable
incomes and risk taking capability too. Advertising can also play a major part as it has
been seen that people buy mutual fund looking at the brand name.
While offering them the “Portfolio Management Services” we see that we

offer them the best after carrying out the total analysis on various schemes running in
the market we give them what satisfies their need the most efficiently.
As far as the investment sector is considered, women are also taking interest in
share market and Mutual funds. So organization has to concentrate on woman
segment.
Chapter 10th
Limitations
Limitation
 The main limitation of my study is from the investor side, as for providing them
the PMS I need to know their past investments in detail which they hesitate to
disclose as they find it hard to trust anyone regarding their investments, so I have
to first built up the trust & then talk about the investments, as the main limitation
is time so it takes me at least few days for this procedure through regular visits &
follow up’s.
 Time period undertaken for the project was also one of the limiting factors as
“Portfolio Management” is such a vast subject which involves in-depth study
analysis. As a portfolio has to be diversified keeping in mind the risk appetite of
the investor as well as keeping a track record of his past investments and then
finally analyzing the portfolio & for this the proposed time period was a limiting
factor.
 The sample size taken for drawing a conclusion is too small to get an accurate
result & is only small portion of actual population.
 Changing the mentality of people for investing through a particular Advisory
Services.
 It’s hard to change the typical psychological mindset of the investor, limiting the
options available, although feasible.
 Difficult to overcome investors who wants return in less time & at times it’s
difficult to get the documents required for formalities from investors.
Bibliography
1. Books and magazines
• Chandra Prasanna, Investment Analysis and Portfolio Management, Tata

McGraw-Hill, Third Edition 2008.
• Gururani Akhilesh, Mutual Funds by Akhilesh, Pooja Copier’s Pune 2007.
• Kevin S., Portfolio Management, Prentice-Hall of India, Second Edition April
2007.
2. Websites:
• www.nscindia.com
• www.India infoline.com
• www.bseindia.com
Annexure
1. Specimen of Questionnaire of Investor.
2. Model of Portfolio
Return Risk Volatilit Tax Liquidity Return
Instrument Current Capital y Shelter in %
Yield Appreciation
Equity Low High High High Nil High 20-40
Shares
Mutual Moderate High Moderate Moderate Yes Moderate 15-25
Funds
Real Estate Moderate Moderate Low Average Yes Low 30-40
Bonds Moderate Nil Low Nil Nil Low 8-10
Debentures High Nil Low Nil Nil Average 10-15
Life Nil Moderate Nil Nil Yes Average 10-12
insurance
Gold/Silver Nil Moderate Moderate Average Nil High 10-20
Bank Moderate Nil Nil Nil Nil High 7-11
Deposits
NSC/KVP Nil Moderate Nil Nil Yes Low 7-9
PPF Nil Moderate Nil Nil Yes Average 7-9
Summary Evaluation of Various Investment Avenues
Base on the above date we can make 5 models for different class of the investor
1. Conservative Portfolio
2. Moderately Conservative Portfolio
3. Moderately Aggressive Portfolio
4. Aggressive Portfolio
5. Very Aggressive Portfolio
1. Conservative Portfolio:-
As we discuss in Chapter 1st in conservative we invest mostly in fixed income

securities and 15-to 20% in Equity and Mutual fund.
Name of the Client: Sunil Atmaram Navle
Age:- 50 yrs
Occupation: - Software Engineer in Persistent Co.
Annual Income: - Rs. 6,00,000
Marital Status: - Married
Wife’s Occupation: - Household
Children: - Two
Portfolio of Mr. Sunil Atmaram Navle
Expenses Income
Particular p.a. p.m. Particular p.a. p.m.
House Loan 120,000 10,000 Salary 6,00,000 50,000
Other Expenses: -
Son's Education 30,000 2,500
Day-today 120,000 10,000

Expenses
Car 60,000 5,000

Expenses(Petrol &
Maintenance)
Misllenious Exp. 60,000 5,000
Total Expenses 3,90,000 32,500 Total 6,00,000 50,000

Income
Net Worth (Total 2,10,000

Income- Total
Expenses)
Total money to 2,10,000

Invest (Annual)
Total money to 17,500

Invest (Monthly)
Assets Allocation % to Monthly Monthly Annual Annual

Invest (Saving) (saving) (Investme
nt)
Mutual Funds 10% 17,500 1,750 2,10,000 21,000
Stock Market 10% 17,500 1,750 2,10,000 21,000
Insurance 20% 17,500 3,500 2,10,000 42,000
Fixed Income (G- 30% 17,500 5,250 2,10,000 63,000

Sec, Bonds etc.)
Real assets 30% 17,500 5,250 2,10,000 63,000
Total 100% 2,10,000 17,500 2,10,000

1. Mutual fund
Assets % to Monthly Monthly Annual Annual

Allocation Invest (Saving) (Invest)
(saving)
Mutual 10% 17,500 1750 2,10,000 21,000

Funds
Mutual Funds.
1 HDFC Tax Saver –G
2 Sundaram Select Midcap-G
3 SBI magnum Comma.
4 Tata Equity Opportunity (G)
2. Equity Market

Allocation Invest (Saving) (Invest.)
(saving)
Stock 10% 17,500 1,750 2,10,000 21,000

Market
Equity Stocks
Bank Sector
i. ICICI Bank, SBI, Axis Bank, HDFC Bank

FMCG Sector
i. ITC, Dabur
Housing Sector
i. LIC, HDFC
Auto Sector
i. Maruti, Bajaj Auto

Oil Sector
i. ONGC, Reliance
2. Moderately Conservative Portfolio:-
As we discuss in Chapter 1st in moderately conservative we invest mostly
in fixed income securities and 25-to 35% in Equity and Mutual fund.
Name of the Client: - Sagar Tambade
Age: - 52 yrs
Occupation: - Service
Annual Income: - Rs. 6, 00,000
Wife’s Occupation: - Service
Children: - One
Portfolio of Mr. Sagar Tambade
Expenses Income
Major Expenses: Salary 6,00,000 50,000
Home Loan 1,80,000 15,000
Car Loan 1,20,000 10,000

Other Expenses:
Daughter’s 30,000 2,500

Education
Day-today 60,000 5,000

Expenses
Car 60,000 5,000

Expenses(Petrol &
Maintenance)
Miscellaneous 12,000 1,000

Exp.
Total Expenses 4,62,000 38,500 Total 6,00,000 50,000

Income

Income- Total
Expenses)
Surplus amt. 2,00,000

available
Total money to 3,38,000

Invest (Annual)

Invest (Monthly)

Invest (Saving) (saving) (Invest.)
Equities 15% 28,167 4,225 3,38,000 50,700
Mutual Fund 20% 28,167 5,633 3,38,000 67,600
Fixed Income 55% 28,167 15,492 3,38,000 1,85,900

Securities
Cash & 10% 28,167 2,817 3,38,000 33,800

Equivalents
Total 100% 28167 3,38,000
1. Equity Market

(saving)
Stock 15% 28,167 4,225 3,38,000 50,700

Market
Stock Name
1. Bharat Heavy Electricals Ltd.

2. Bharati Airtal Ltd.
3. Maruti Suzuki India Ltd.
4. Reliance Industries Ltd.
5. Larsen & Toubro Ltd.
6. ICICI Bank Ltd.
2. Mutual fund

(saving)
Mutual 20% 28,167 5,633 3,38,000 67,600

Funds
Scheme Name
1. SBI Magnum Tax Gain Scheme
2. Reliance Growth Fund
3. Kotak Mahindra 30 Unit Scheme
4. ICICI Prudential Balance Fund
3. Fixed Income

Invest (Saving) (Invest.
(saving )
)
Fixed Income 55% 28,167 15,492 3,38,00 1,85,90

0 0
(G-Sec, Bonds
etc.)
Bank Deposit in any Bank will give near about 7% p.a.
Shriram Transport Finance Co. Ltd. 11% p.a.
\
3. Moderately Aggressive Portfolio:-
As we discuss in Chapter 1st in moderately aggressive we invest mostly in equity

income securities and 10-to 35% in fixed securities.
Name of the Client: Madhukar Shyamrao Mane.
Age:- 45 yrs
Occupation: - Businessman
Wife’s Occupation: - Household
Children: - Two
Portfolio of Mr. Madhukar shyamrao Mane.
Expenses Income
House Loan 3,00,000 25,000 Income 12,00,000 1,00,000
Other Expenses: -
Day-today 3,00,000 25,000

Expenses
Car 96,000 8,000

Expenses(Petrol &
Maintenance)
Total Expenses 8,10,000 67,500 Total 12,00,000 1,00,000

Income

Income- Total
Expenses)

available

Invest (Monthly)

Invest (Saving) (saving) (Investme
nt)
Mutual Funds 20% 50,000 10,000 6,00,000 1,20,000
Stock Market 35% 50,000 17,500 6,00,000 2,10,000
Insurance 10% 50,000 5,000 6,00,000 60,000
Fixed Income (G- 20% 50,000 10,000 6,00,000 1,20,000

Sec, Bonds etc.)
Real assets 15% 50,000 7,500 6,00,000 90,000
Total 100% 6,00,000 50,000 6,00,000
1. Mutual fund
(Invest) (saving)
Mutual 20% 50,000 10,000 6,00,000 1,20,000

Funds
Mutual Funds.
1 HDFC Tax Saver –G
2 UTI Banking Sector Services -G
3 Kotak Gold ETF
4 ICICI Pure Bkg & Fin Services (G)
2. Equity Market

(Invest.) (saving)
Stock 35% 50,000 17,500 6,00,000 2,10,000

Market
Equity Stocks
Bank Sector
ii. Bank of India, SBI, Axis Bank, HDFC Bank, ICICI Bank
FMCG Sector
ii. Nestly, Dabur, Hul Ltd.

Housing Sector
ii. LIC, HDFC,Reliance

Auto Sector
ii. Maruti, Bajaj Auto, TATA Motors.

Oil Sector
ii. HPCL,ONGC, Reliance ,

4. Aggressive Portfolio:-
As we discuss in Chapter 1st in aggressive we invest mostly in equity income

securities and 10-to 30% in fixed securities.
Name of the Client: Ashok Munilal Dhoot.
Age:- 33 yrs
Occupation: - Businessman
Wife’s Occupation: - Teacher
Children: - One
Portfolio of Mr. Ashok Munilal Dhoot.
Expenses Income
Other Expenses:
Day-today 3,00,000 25,000

Expenses
Car 1,00,000 8,333

Expenses(Petrol
& Maintenance)
Medical Exp. 90,000

Income

Income- Total
Expenses)

available

Invest (Monthly)

Allocation Invest (Saving) (Invest) (saving) (Invest)
Mutual Funds 25% 62,500 15,625 7,50,000 1,87,500
Stock Market 40% 62,500 25,000 7,50,000 3,00,000
Insurance 5% 62,500 3,125 7,50,000 37,500
Fixed Income (G- 15% 62,500 9,375 7,50,000 1,12,500

Sec, Bonds etc.)
Real assets 15% 62,500 9,375 7,50,00 1,12,500
Total 100% 62,500 7,50,000
1. Mutual fund

(Invest) (saving)
Mutual 25% 62,500 15,625 7,50,000 1,87,500
Funds
Mutual Funds Stocks
1 J M Money Manger Fund –G
2 UTI Short Term-
3 SBI Mangum FMCG -G
4 LIC MF Income Plus Fund (G)
2. Equity Market

(Invest.) (saving)
Stock 40% 62,500 25,000 7,50,000 1,87,500

Market
Equity Stocks
Bank Sector
i. Andhra Bank, ICICI Bank, HSBC Bank,

FMCG Sector
i. Dabur, HUL Ltd, P & G

Housing Sector
i. HDFC, Birla, Tata Aig Sons Ltd.

Auto Sector
i. Maruti, Bajaj Auto ,TVS Motors, Ashok Leland’s

Oil Sector
i. BPCL,GAIL Reliance
5. Very Aggressive Portfolio:-
As we discuss in Chapter 1st in aggressive we invest mostly in equity

income securities and 5 to 10% in fixed securities.
Name of the Client: Vijay M. Maddi.
Age: - 35 yrs
Occupation: - Artist
Wife’s Occupation: - Professor
Children: - Two
Portfolio of Mr. Vijay M Maddi.
Expenses Income
Other Expenses: -
Son's Education 1,20,000 10,500
Day-today 4,00,000 33,333

Expenses
Car 1,00,000 8,334

Expenses(Petrol &
Maintenance)

Income

Income- Total
Expenses)

available
Invest (Monthly)

Invest (Saving) (Invest) (saving) (Invest)
Mutual Funds 35% 66,000 23,100 7,92,000 2,77,200
Stock Market 55% 66,000 36,300 7,92,000 4,35,600
Insurance 5% 66,000 3,300 7,92,000 39,600
Fixed Income (G- 5% 66,000 3,300 7,92,000 39,600

Sec, Bonds etc.)
Total 100% 66,000 7,92,000
1. Mutual fund

(Invest) (saving)
Mutual 35% 66,000 23,100 7,92,000 2,77,200

Funds
Mutual Funds.
1 Franklin FMCG Fund –G
2 ICICI Pru Fund-G
3 Birla SL Millennium-G
4 Reliance Phrama Fund (G)
2. Equity Market

(Invest.) (saving)
Stock 55% 66,000 36,300 7,92,000 4,35,600

Market
Equity Stocks
Bank Sector
ii. IDBI Bank, RBS Bank ,Axis Bank , Bank

FMCG Sector
ii. ITC, Dabur, P&G, Nestle

Housing Sector
ii. LIC, HDFC ,Reliance, M&M

Auto Sector
ii. Maruti, Bajaj Auto ,M&M Motors ,TVS Motors

Oil Sector
ii. HPCL, Essar Oil ,ONGC, Reliance

India infoline Stock Broking Ltd
A Study of Portfolio Management of Individual Investors
Questionnaire for Research Purpose

Project Guide: - Dr. Mehrotra Project by: - Shivprasad R. Bawage
*********************************************************************
****************
(The Information gathered from this questionnaire will be used for research purpose
only)
Part I
Personal Information
1. Name: - _______________________________________________________
2. Address: - _____________________________________________________
______________PinNo.________________MobileNo._____________
3. Email ID:-_____________________________________________________
Part -II
4. Age group:-
20 to 30 30 to 40 40 to 50 50 to 60
5. Occupation:-
Business Professional Service
6. Income Group (P.A.):-
> 2 Lac. 2 to 4 Lac 4 to 6 Lac
6 to 8 Lac. 8 Lac & above
7. What do you know about share market?
Average Maximum Nothing
8. In which Financial Sector did you invest? (Tick Only One)
Insurance Equity Mutual Funds
Gold/Silver Fix Deposits

9. What are your monthly expenses?
> 10K 10 to 15K 15 to 20K
20 to 25K 25K & above
10. What percentage of your income do you invest?
>10% 10-20% 20-30%
30-40% 40 & above
11. How many people depend upon you?
None 1 2 3 4 & above
12. In which Financial Sector would you like to invest?
Insurance Equity Mutual Funds
Gold/Silver Other
13. Do you have any liability / Loan?
Yes. No.
14. If yes then  mark it
Personal Loan Home Loan Car Loan
Education Loan Other_____________
15. What will be the Preferable Period for an investment?
January – March April – June
July–September October – December
Not Fixed
16. What Kind of Investment would you like to make?
Short Term Long Term
17. What are the purposes of Investments?

Tax Rebate Money Growth Child Education
Child Marriage Pension Insurance

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A

“A STUDY OF PORTFOLIO MANAGEMENT SERVICES”

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE

Bansilal Ramnath Agarwal Charitable Trust’s

A study of “A STUDY OF PORTFOLIO MANAGEMENT SERVICES”

I would like to take this opportunity of expressing my special gratitude to our

I, SHIVPRASAD R. BAWAGE the undersigned, hereby declare that the

Chapter 2nd is the company profile in that I have done my internship. It

Chapter No. Particular Page No.

The main aim of study is providing a basic understanding of Portfolio

The future is bright for portfolio management services. And my area of

3.1 India infoline at a Glance:

India infoline commenced his operations as an independent provider of information,

institutional customers. Hence it launched his Internet portal, www.indiainfoline.com

was changed to India Infoline.com.

subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-

brokerage rates and research, supported by Internet technology besides investment

deposits, corporate bonds and post-office instruments. At the time of it acquisition,

customers with a staff of, approximately 180employees. After the acquisition, It

changed the company name to India

Infoline.com Distribution Company Limited.

Reason for Change

Previous Name New Name

Probity Research and Probity Research and

Probity Research and India Infoline.com Limited

India Infoline.com Limited India Infoline Limited

Date of Change Reason for Change

April 28, 2000 Conversion from Private Limited to

May 23, 2000 To focus on the retail financial

March 23, 2001 To focus on the retail financial

included leading FIIs, banks, consulting firms and corporate.

-Restructured the business model to embrace the internet; launched

archives.indiainfoline.com mobilised capital from reputed private equity investors.

-Commenced the distribution of personal financial products; launched online equity

trading; entered life insurance distribution as a corporate agent. Acknowledged by

Forbes as ‘Best of the Web’ and must read for investors’.

-Acquired commodities broking license; launched Portfolio Management Service.

- Listed on the Indian stock markets

the registrar to the issue.

-India Infoline public issue gets 6.6 times oversubscription

print media of The Times Group.

-India Infoline to buy 75-pc stake in Money tree.

-India Infoline launches exclusive SMS Value Added Service

-India Infoline enters into strategic agreement with Saraswat Bank

-India Infoline to launch stock trading on cell phones

-India infoline to roll out MCX, NCDEX, DGCX software

-Acquired membership of DGCX; launched investment banking services

-Launched a proprietary trading platform; inducted an institutional equities team;

consumer finance business under the ‘Money line’ brand.

received the venture capital license; received in principle approval to sponsor a

Brokerage- India’ award from Asia money.

-Received registration for a housing finance company from the

National Housing Bank; received ‘Fastest growing Equity Broking House

3.4 Board of Director

• Mr. Nirmal Jain CMD

“Our vision is to be the most respected company in the financial

“ It’s All About Money, Honey ! ”

3.6 Services provided by India infoline

3.7 Major Competitors of India infoline

Objectives of the Study

i. To understand the concept of portfolio management

Investing in securities such as shares, debentures and bonds is profitable as

It is rare to find investors investing their entire savings in a single security.