Roll No-12PGP051 Name-Vikash Pandey Client Profile

Mr R K Singh is AVP in ITC e- chaupal. His annual income is 20 lakhs and recently he celebrated his 45th birthday. In his family there are four members excluding him, Mother, wife, son and daughter. Mother has crossed 70 and has yearly medical bill of around 50k to 60k. Wife holds a position partner in DLH law firm which is renowned name in corporate law. She has an income of around 15 lakhs per annum. Son has just got in IIT and daughter is preparing for medical. Mr Singh wants to build a retirement corpus and for that he wants to start saving from now on. He has allocated one crore rupee for the same which he had saved so far. He is not averse of taking risk and ok with 80% to 85% of his corpus going to equity. Minimum 15% he wants to be in risk free liquid funds.

Investment Policy Statement

Objective- To have sufficient money after retirement so that he can cover all his expenses and can go for a world tour which he has planned for long. As per his risk taking capacity and comparing it with similar profiles client has been awarded a

of 1.04. In last 15 years BSE has given annualised return of 14.4% and prevailing risk

free rate is 7% so using CAPM we have calculated expected return for client 14% to 15% in next 15 years. His retirement age is 60 years.

Economic outlook
It is said that every business cycle has a circle and it comes to full circle in that period. If global market is analysed then Asian crisis was last big crisis which hit the Asian market though that time India was more or less insulated as it didnt have much contribution in world GDP. After that 2008 global crisis which has prolonged for a longer duration. India has also been impacted severely this time but keeping this crisis in mind and demographic condition of India we can expect worst is over and economy will start recovering from 2014 once elections are completed and new government comes in power. Even though CAD is a big worry for country but rupee depreciation and inflation, which has arisen because of supply

side problems, are the main contributors of this CAD which can be tamed brought under control. Keeping in mind growing young population of India and pressure from all around government will go for full-fledged second round reforms. So considering this entire factor I have a positive outlook for country and it will provide good opportunity for investment.

Initial investment
Initial investment was done in below mentioned stocks keeping in mind their beta value and last one year return in market weight were assigned as per their market share in BSE. Stock HDFC Bank Price 612 Invested amount 600000 600000 200000 800000 800000 300000 350000 350000 100000 0 200000 300000 300000 600000 200000 Reason Beta, price 52 week low, liquidity is at worse condition from here on we can only hope for improvement which will help the stock prices of banking industry Beta, last one year market return, industry outlook Beta, last one year return and ever growing industry pharma Last one year return, beta, rupee depreciation, change at helm Last one year return ,beta Last one year return and beta Last one year return and beta Last one year return and beta Last one year return and beta Last one year return and beta Last one year return and beta Last one year return and beta Last one year return and beta Last one year return and beta

HDFC 752 Dr Reddy 2224 Lab Infosys Reliance ind M&M Ltd Tata motors HUL ITC Wipro Sun pharma Bharti TCS Bajaj Auto 2970 865 869 282 600 329 444 521 337 1840 1794

20 lakhs has been invested in FD as per client choice.