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CHAPTER-I INTRODUCTION

PORTFOLIO MANAGEMENT MEANING:


A portfolio is a collection of assets. The assets may be physical or financial like Shares, Bonds, Debentures, Preference Shares, etc. The individual investor or a fund manager ould not like to put all his money in the shares of one company that ould therefore, follo ould amount to great risk. !e the age old ma"im that one should not

put all the eggs into one basket. By doing so, he can achieve ob#ective to ma"imi$e portfolio return and at the same time minimi$ing the portfolio risk by diversification. Portfolio management is the management of various financial assets comprise the portfolio. Portfolio management is a decision % support system that is designed to meet the multi&faced needs of investors. According to Securities and '"change Board of (ndia Portfolio )anager is defined as* +Portfolio means the total holdings of securities belonging to any person,. ith a vie hich

PORTFOLIO MANAGER or arrangement

means any person

ho pursuant to a contract

ith a client, advises or directs or undertakes on behalf of the

client - hether as a discretionary portfolio manager or other ise. the management or administration of a portfolio of securities or the funds of the client. DISCRETIONARY PORTFOLIO MANAGER means a portfolio manager ho e"ercises or may, under a contract relating to portfolio management e"ercises any degree of discretion as to the investments or management of the portfolio of securities or the funds of the client.

FUNCTIONS OF PORTFOLIO MANAGEMENT:


To frame the investment strategy and select an investment mi" to achieve the desired investment ob#ectives To provide a balanced portfolio hich not only can hedge against the inflation but

can also optimi$e returns ith the associated degree of risk To make timely buying and selling of securities To ma"imi$e the after&ta" return by investing in various ta" saving investment instruments.

STRUCTURE / PROCESS OF TYPICAL PORTFOLIO MANAGEMENT


(n the small firm, the portfolio manager performs the #ob of security analyst. (n the case of medium and large si$ed organi$ations, #ob function of portfolio manager and secu rity analyst are separate.

RESEARCH -e.g. Security Analysis.

PORTFOLIO MANAGERS

OPERATIONS -e.g. buying and selling of Securities.

CLIENTS

CHARACTERISTICS OF PORTFOLIO MANAGEMENT:


(ndividuals ill benefit immensely by taking portfolio management services for

the follo ing reasons* 2hatever may be the status of the capital market, over the long period capital markets have given an e"cellent return stock market. The (ndian Stock )arkets are very complicated. Though there are thousands of companies that are listed only a fe hundred hich have the necessary li3uidity. hich are conducive for ishing to invest and sit do n and 'ven among these, only some have the gro th prospects investment. (t is impossible for any individual hen compared to other forms of investment. The return from bank deposits, units, etc., is much less than from the

analy$e all these intricacies of the market unless he does nothing else. 'ven if an investor is able to understand the intricacies of the market and separate chaff from the grain the trading practices in (ndia are so complicated that it is really a difficult task for an investor to trade in all the ma#or e"changes of (ndia, look after his deliveries and payments

NEED & IMPORTANCE OF STUDY:


Portfolio management has emerged as a separate academic discipline in (ndia. Portfolio theory that deals ith the rational investment decision&making process has no become an integral part of financial literature. (nvesting in securities such as shares, debentures 5 bonds is profitable (nvesting in financial securities is no ell as

e"citing. (t is indeed re arding but involves a great deal of risk 5 need artistic skill. considered to be one of the most risky avenues of investment. (t is rare to find investors investing their entire savings in a single security. (nstead, they tend to invest in a group of securities. Such group of securities is called as P67T869(6. :reation of portfolio helps to reduce risk Portfolio management deals ithout sacrificing returns. ell as ith the ith the analysis of individual securities as

theory 5 practice of optimally combining securities into portfolios. The modern theory is of the vie that by diversification, risk can be reduced. The investor can make diversification either by having a large number of shares of companies in different regions, in different industries or those producing different types of product lines. )odern theory believes in the perspective of combinations of securities under constraints of risk and return.

SCOPE OF STUDY:
This study covers the )arko it$ model. The study covers the calculation of correlations bet een the different securities in order to find out at hat percentage funds should be invested among the companies in the portfolio. Also the study includes the calculation of individual Standard Deviation of securities and ends at the calculation of eights of individual securities involved in the portfolio. These percentages help in allocating the funds available for investment based on risky portfolios.

OBJECTIVES OF THE STUDY:

To study the investment pattern and its related risks 5 returns (n (<= =roup. To find out optimal portfolio of (<= =roup, minimi$e risk to the investor in (<= =roup. To see hether the portfolio risk is less than individual risk on hose basis the hich gave optimal return at a

portfolios are constituted To see hether the selected portfolios is yielding a satisfactory and constant return to the investor To understand, analy$e and select the best portfolio

STEPS IN PORTFOLIO MANAGEMENT:

Specification and 3ualification of investor ob#ectives, constraints, and preferences in the form of an investment policy statement. Determination and 3ualification of capital market e"pectations for the economy, market sectors, industries and individual securities. Allocation of assets and determination of appropriate portfolio strategies for each asset class and selection of individual securities. Performance measurement and evaluation to ensure attainment of investor ob#ectives. )onitoring portfolio factors and responding to changes in investor ob#ectives, constrains and > or capital market e"pectations.

7ebalancing the portfolio hen necessary by repeating the asset allocation, portfolio strategy and security selection.

METHODOLOGY AND FRAMEWORK DATA COLLECTION METHODS


The data collection methods include both the primary and secondary collection methods. Prim r! "#$$%"&i#' m%&(#)*: This method includes the data collection from the personal discussion clerks and members of the an#ali financial services. S%"#') r! "#$$%"&i#' m%&(#)*: The secondary collection methods includes the lectures of the superintend of the department of market operations and so on., also the data collected from the ne s, maga$ines and different books issues of this study Superintend ith the authori$ed

LIMITATIONS OF THE STUDY


1. :onstruction of Portfolio is restricted to t o companies based on )arko it$ model. /. @ery fe listings. 1. Data collection as strictly confined to secondary source. <o primary data is associated ith the pro#ect. 4. Detailed study of the topic as not possible due to limited si$e of the pro#ect. ;. There as a constraint ith regard to time allocation for the research study i.e. for a period of t o months. and randomly selected scripts > companies are analy$ed from BS'

CHAPTER-II INDUSTRY PROFILE & COMPANY PROFILE

A + ', is a financial institution that accepts deposits and channels those deposits into lending activities. Banks primarily provide financial services to customers hile enriching investors. =overnment restrictions on financial activities by banks vary over time and location. Banks are important players in financial markets and offer services such as investment funds and loans. (n some countries such as =ermany, banks have historically o ned ma#or stakes in industrial corporations hile in other countries such as the Cnited States banks are prohibited from o ning non&financial companies. (n Dapan, banks are usually the ne"us of a cross&share holding entity kno n as the keiretsu. (n 8rance, bancassurance is prevalent, as most banks offer insurance services -and no estate services. to their clients. I')i ' B ',i'- S%"&#r O.&$##, - /012 6ver the past couple of years, the (ndian banking sector has displayed a high level of resiliency in the face of high domestic inflation, rupee depreciation and fiscal uncertainty in the CS and 'urope. (n order to stimulate the economy and support the gro th of banking sector, the 7eserve Bank of (ndia -7B(. adopted severe policy measures such as increasing the key monetary policy rates such as repo and reverse repo 1? times since April /EFFG to 6ct /F11 and tightening provisioning re3uirements. Amidst this economic scenario, the key challenge for the (ndian banking system continues in improving their operational efficiency and implement prudent risk management practices. Some of the key trends e"pected to emerge in the near future are as under& E"#'#mi" *$#3)#3' $i,%$! &# im4 "& &(% )%m ') 5#r "r%)i& !igh interest rates, subdued industrial production and domestic consumption impacted the gro th of the (ndian economy hich slo ed do n from B.4H in 8I11 to ?.;H dur& at a slo er pace ing 8I1/.The scheduled commercial banksE -S:Bs. overall credit gre real

during 8I1/ at 1AH y&o&y as compared to /1.;H registered during 8Ill.As per the recent 7B( data, the non&food bank credit increased by 1;.;H in 6ct /F1/ over its cor& responding month previous year, as compared to 1B./H itnessed in 6ct /F11 over its corresponding month previous year. Similarly, credit to industry and services sector recorded a slo er gro th of 1;./H and 11.AH respectively as against /1.1H and 1B.4H

during the same period. As per 7B(Es second 3uarter revie of monetary policy for 8I11, the =DP gro th estimates for 8I11 is revised do n ards from ?.;H forecasted earlier to ;.BH.Any further slo do n in the (ndian economic gro th is likely to impact the demand for bank credit. RBI m ! $#3%r ,%! 4#$i"! r &%*6 i5 i'5$ &i#' r! 4r%**.r%* % *% (nflation continued to remain sticky and much above the 7B(Es comfort $one through&out the year. (n fact headline inflation as measured by 2P( remained above A.;H from 8eb to 6ct /F1/. As a result the 7B( has kept the repo rate at an elevated level, reducing it by ;F basis points only once during /F1/, in April&1/ to support gro th. !o ever, in order to support the flo points during the course of the year of funds to the productive sectors of the economy hich stands at 4./;H, as on <ov /F1/. =iven the

and ease the li3uidity crunch in the banking system the 7B( has cut the :77 by 1A; basis easing of international commodity prices, particularly of crude, decline in core inflation as demand conditions moderate, there has been some steady moderation in inflation in the recent period. As a result the 7B( might decide to ease the policy rate during end Dan 11. A**%& 7. $i&! 3i$$ '%%) &# +% "$#*%$! m#'i&#r%) During 8I1/, asset 3uality of banks as severely impaired, as revealed by the steep

increase in non&performing assets -<PAs. of S:Bs, particularly for public sector banks -PSBs. o ing to their significant e"posure to troubled sectors such as po er, aviation, real estate and telecom. There as a significant increase noted in the <PA levels during 8I1/. =ross <PAs value recorded a y&o&y gro th of 4;.1H and net <PAs registered a y&o&y gro th of ;;.?H during 8I1/. As per 7B(, this increase as due to inade3uate credit appraisal process coupled ith unfavorable economic situation in the domestic as ell as foreign market. Apart from increase in <PAs, the eakening asset 3uality trend as also apparent from

the significant increase in restructured assets. 7estructured standard advances of the

1F

S:Bs, recorded a y&o&y gro th of around ;B.;H during 8I1/ and the ratio of restruc& tured standard advances to gross advances also increased from about 1.;H in 8I11 to 4.AH in 8I1/. As per the recent data available been referred to the cell, 7s. 111./ bn ith :D7 cell as on Sep /F1/, a total of 4?? cases have

ith 1/A cases amounting to 7s. 1,BA1.G bn have been approved

since the start of :D7 mechanism. 6f the total cases referred, ?4 cases corresponding to ere under finalisation of restructuring packages as on Sep /F1/ as compared to 14 cases amounting to 7s. /?4.; bn as on Sep /F11. The slo do n in the economy increases in the risk of default and restructuring of loans can increase hich could further lead to deterioration of asset 3uality. !o ever, imple& mentation of stringent policies could prevent a sharp deterioration in asset 3uality. M#r% im4%&.* #' 5%% + *%) ') '#'-i'&%r%*& i'"#m% *%r8i"%* Traditionally, banks have derived limited income from fee based services such as ealth

management, credit card services, treasury services, investment banking and advisory services. !o ever, as the economy is sho ing signs of slo do n and the demand for credit is slo ed banks are struggling to keep their margins intact. Also, times, consumer needs have changed ith changing ith various avenues of investment available. This

is likely to increase banks focus on offering fee based services as the earnings from such services are more stable than interest bearing products and it also helps in mitigating risk via diversification of products and services. Fi' '"i $ i'"$.*i#' &# 4$ ! ,%! r#$% i' &(% '% r 5.&.r%

As per census /F11, huge section of (ndian population is still unbanked. The overall per& centage of households availing banking services in (ndia stood at around ;GH as on /F11, hich means still over 4FH of total households, lacks access to formal banking services. This is largely driven by rural areas and>or lo their financial illiteracy, lo of verifiable credit history. income group -9(=. population, due to level of income and savings, lack of collateral and absence

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Thus, in recent years, the 7B( and =ol have increased its focus on providing formal banking>financial services to the huge unbanked population. (t is encouraging banks to develop lo cost products and services designed to suit the re3uirements of this group of population. 7B( has undertaken several policy initiatives to promote financial inclusion, such as encouraging opening of no&frills accounts, engaging intermediaries to provide financial and banking services. (n the course of action, there has been increase in number of no& frill accounts frorh ;F.1 mn in 8I1F to 1F;.; mn in 8I1/, registering a :A=7 of 44.BH during this period. Similarly, the number of business correspondent -B:. agents also noted a :A=7 of AF./H during the same period. 7B( also advised banks to allocate minimum /;H of the total ne population above /,FFF and less than /,FFF also during 8I1F to 8I1/. 8urther, in (ndia there are several micro&finance institutions -)8(s. and self&help groups -S!=s. hich lend credit to the 9(=. This is e"pected to play a significant role in achieving financial inclusion by e"tendingE credit to the 9(=. The level of government regulation of the banking industry varies such as :hina having a idely, ith countries branches in unbanked ith

rural centres during a year. (n the process, the number of banking outlets in villages

itnessed a :A=7 of A1.;H and ;;.AH

such as (celand, having relatively light regulation of the banking sector, and countries ide variety of regulations but no systematic process that can be follo ed typical of a communist system. The oldest bank still in e"istence is )onte dei Paschi di Siena, head3uartered in Siena, (taly, hich has been operating continuously since 14A/.

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Hi*&#r! Ori-i' #5 &(% 3#r) The name bank derives from the (talian 7enaissance by De ish 8lorentine bankers, ancient times, ord EbancoE. (n fact, the moneylenders ord traces its origins back to the Ancient 7oman 'mpire, hich the here hich indicates that the ord banco Jdesk>benchJ, used during the ho used to make their transactions above a

desk covered by a green tablecloth. !o ever, there are traces of banking activity even in ord EbankE might not necessarily come from the

ould set up their stalls in the middle of enclosed courtyards called ords banco and bank are

macella on a long bench called a bancu, from

derived. As a moneychanger, the merchant at the bancu did not so much invest money as merely convert the foreign currency into the only legal tender in 7omeKthat of the (mperial )int. The earliest evidence of money&changing activity is depicted on a silver drachm coin from ancient !ellenic colony Trape$us on the Black Sea, modern Trab$on, c. 1;F%1/; B:, presented in the British )useum in 9ondon. The coin sho s a bankerEs table -trapeza. laden ith coins, a pun on the name of the city. (n fact, even today in )odern =reek the a bank. Tr )i&i#' $ + ',i'- "&i8i&i%* ord Trape$a -. means both a table and

Banks act as payment agents by conducting checking or current accounts for customers, paying che3ues dra n by customers on the bank, and collecting che3ues deposited to customersE current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, '8TP6S, and AT).

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Banks borro

money by accepting funds deposited on current accounts, by accepting

term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. <on&banks that provide payment services such as remittance companies are not normally considered an ade3uate substitute for having a bank account. Banks borro most funds from households and non&financial businesses, and lend most

funds to households and non&financial businesses, but non&bank lenders provide a significant and in many cases ade3uate substitute for bank loans, and money market funds, cash management trusts and other non&bank financial institutions in many cases provide an ade3uate substitute to banks for lending savings to. E'&r! r%-.$ &i#' :urrently in most #urisdictions commercial banks are regulated by government entities and re3uire a special bank licence to operate. Csually the definition of the business of banking for the purposes of regulation is e"tended to include acceptance of deposits, even if they are not repayable to the customerEs orderKalthough money lending, by itself, is generally not included in the definition. Cnlike most other regulated industries, the regulator is typically also a participant in the market, i.e. a government&o ned -central. bank. :entral banks also typically have a monopoly on the business of issuing banknotes. !o ever, in some countries this is not the case. (n the CL, for e"ample, the 8inancial Services Authority licences banks, and some commercial banks -such as the Bank of Scotland. issue their o n banknotes in addition to those issued by the Bank of 'ngland, the CL governmentEs central bank.

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D%5i'i&i#' The definition of a bank varies from country to country. Cnder 'nglish common la , a banker is defined as a person of banking, hich is specified as*

ho carries on the business

conducting current accounts for his customers paying che3ues dra n on him, and collecting che3ues for his customers. #urisdictions there is a Bills of '"change Act that codifies hether

(n most 'nglish common la the la

in relation to negotiable instruments, including che3ues, and this Act contains a ho carry on the business of bankingE -Section /, (nterpretation.. the bank is

statutory definition of the term banker* banker includes a body of persons, incorporated or not,

Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as che3ues do not depend on ho organised or regulated. The business of banking is in many 'nglish common la countries not defined by statute #urisdictions

but by common la , the definition above. (n other 'nglish common la

there are statutory definitions of the business of banking or banking business. 2hen looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation, and not necessarily in general. (n particular, most of the definitions are from legislation that has the purposes of entry regulating and supervising banks rather than regulating the actual business of banking. !o ever, in many cases the statutory definition closely mirrors the common la '"amples of statutory definitions*

one.

Jbanking businessJ means the business of receiving money on current or deposit account, paying and collecting che3ues dra n by or paid in by customers, the making of advances to customers, and includes such other business as the

1;

Authority may prescribe for the purposes of this ActM -Banking Act -Singapore., Section /, (nterpretation..

Jbanking businessJ means the business of either or both of the follo ing*

1. receiving from the general public money on current, deposit, savings or other similar account repayable on demand or ithin less than N1 monthsO ... or ith a period of call or notice of less than that periodM /. paying or collecting che3ues dra n by or paid in by customersN?O Since the advent of '8TP6S -'lectronic 8unds Transfer at Point 6f Sale., direct credit, direct debit and internet banking, the che3ue has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the che3ue based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect che3ues. A""#.'&i'- 5#r + ', ""#.'&* Bank statements are accounting records produced by banks under the various accounting standards of the orld. Cnder =AAP and (87S there are t o kinds of accounts* debit and credit. :redit accounts are 7evenue, '3uity and 9iabilities. Debit Accounts are Assets and '"penses. This means you credit a credit account to increase its balance, and you debit a debit account to decrease its balance. This also means you debit your savings account every time you deposit money into it -and the account is normally in deficit., hile you credit your credit card account every time you spend money from it -and the account is normally in credit.. !o ever, if you read your bank statement, it ill say the oppositeKthat you credit your

account hen you deposit money, and you debit it hen you ithdra funds. (f you have cash in your account, you have a positive -or credit. balanceM if you are overdra n, you have a negative -or deficit. balance.

1?

The reason for this is that the bank, and not you, has produced the bank statement. Iour savings might be your assets, but the bank's liability, so they are credit accounts - hich should have a positive balance.. :onversely, your loans are your liabilities but the bank's assets, so they are debit accounts - hich should also have a positive balance.. 2here bank transactions, balances, credits and debits are discussed belo , they are done so from the vie point of the account holderK hich is traditionally hat most people are used to seeing. E"#'#mi" 5.'"&i#'* 1. issue of money, in the form of banknotes and current accounts sub#ect to che3ue or payment at the customerEs order. These claims on banks can act as money because they are negotiable and>or repayable on demand, and hence valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by dra ing a che3ue that the payee may bank or cash. /. netting and settlement of payments % banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented ith, and pay payment instruments. This enables banks to economise on reserves held for settlement of payments, since in ard and out ard payments offset each other. (t also enables the offsetting of payment flo s bet een geographical areas, reducing the cost of settlement bet een them. 1. credit intermediation % banks borro as middle men. 4. credit 3uality improvement % banks lend money to ordinary commercial and personal borro ers -ordinary credit 3uality., but are high 3uality borro ers. The improvement comes from diversification of the bankEs assets and capital provides a buffer to absorb losses hich ithout defaulting on its obligations. !o ever, and lend back&to&back on their o n account

banknotes and deposits are generally unsecuredM if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position.

1A

;. maturity transformation % banks borro

more on demand debt and short term ords, they borro short and

debt, but provide more long term loans. (n other

lend long. 2ith a stronger credit 3uality than most other borro ers, banks can do this by aggregating issues -e.g. accepting deposits and issuing banknotes. and redemptions -e.g. ithdra als and redemptions of banknotes., maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources -e.g. holesale cash markets and securities markets.. L 3 #5 + ',i'Banking la is based on a contractual analysis of the relationship bet een the bank hich the bank agrees to

-defined above. and the customerKdefined as any entity for conduct an account.

The la implies rights and obligations into this relationship as follo s* 1. The bank account balance is the financial position bet een the bank and the customer* customerM bank. /. The bank agrees to pay the customerEs che3ues up to the amount standing to the credit of the customerEs account, plus any agreed overdraft limit. 1. The bank may not pay from the customerEs account customer, e.g. a che3ue dra n by the customer. 4. The bank agrees to promptly collect the che3ues deposited to the customerEs account as the customerEs agent, and to credit the proceeds to the customerEs account. ;. The bank has a right to combine the customerEs accounts, since each account is #ust an aspect of the same credit relationship. ?. The bank has a lien on che3ues deposited to the customerEs account, to the e"tent that the customer is indebted to the bank. ithout a mandate from the hen the account is in credit, the bank o es the balance to the hen the account is overdra n, the customer o es the balance to the

1B

A. The bank must not disclose details of transactions through the customerEs account Kunless the customer consents, there is a public duty to disclose, the bankEs interests re3uire it, or the la demands it. B. The bank must not close a customerEs account ithout reasonable notice, since che3ues are outstanding in the ordinary course of business for several days. These implied contractual terms may be modified by e"press agreement bet een the customer and the bank. The statutes and regulations in force #urisdiction may also modify the above terms and>or create ne limitations relevant to the bank&customer relationship. Some types of financial institution, such as building societies and credit unions, may be partly or holly e"empt from bank licence re3uirements, and therefore regulated under separate rules. The re3uirements for the issue of a bank licence vary bet een #urisdictions but typically include* 1. )inimum capital /. )inimum capital ratio 1. E8it and ProperE re3uirements for the bankEs controllers, o ners, directors, and>or senior officers 4. Approval of the bankEs business plan as being sufficiently prudent and plausible. T!4%* #5 + ',* BanksE activities can be divided into retail banking, dealing directly ith individuals and ealth ithin a particular rights, obligations or

small businessesM business banking, providing services to mid&market businessM corporate banking, directed at large business entitiesM private banking, providing management services to high net orth individuals and familiesM and investment banking, relating to activities on the financial markets. )ost banks are profit&making, private enterprises. !o ever, some are o ned by government, or are non&profit organi$ations.

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:entral banks are normally government&o ned and charged

ith 3uasi&regulatory

responsibilities, such as supervising commercial banks, or controlling the cash interest rate. They generally provide li3uidity to the banking system and act as the lender of last resort in event of a crisis.

T!4%* #5 r%& i$ + ',*

:ommercial bank* the term used for a normal bank to distinguish it from an investment bank. After the =reat Depression, the C.S. :ongress re3uired that banks only engage in banking activities, hereas investment banks ere limited to capital market activities. Since the t o no longer have to be under separate o nership, some use the term Jcommercial bankJ to refer to a bank or a division of a bank that mostly deals businesses. ith deposits and loans from corporations or large

:ommunity Banks* locally operated financial institutions that empo er employees to make local decisions to serve their customers and the partners. :ommunity development banks* regulated banks that provide financial services and credit to under&served markets or populations. Postal savings banks* savings banks associated ith national postal systems. Private banks* banks that manage the assets of high net orth individuals. 6ffshore banks* banks located in #urisdictions ith lo ta"ation and regulation. )any offshore banks are essentially private banks.

Savings bank* in 'urope, savings banks take their roots in the 1Gth or sometimes even 1Bth century. Their original ob#ective as to provide easily accessible savings products to all strata of the population. (n some countries, savings banks ere created on public initiativeM in others, socially committed individuals created foundations to put in place the necessary infrastructure. <o adays, 'uropean savings banks have kept their focus on retail banking* payments, savings

/F

products, credits and insurances for individuals or small and medium&si$ed enterprises. Apart from this retail focus, they also differ from commercial banks by their broadly decentralised distribution net ork, providing local and regional outreachKand by their socially responsible approach to business and society.

Building societies and 9andesbanks* institutions that conduct retail banking. 'thical banks* banks that prioriti$e the transparency of all operations and make only hat they consider to be socially&responsible investments. (slamic banks* Banks that transact according to (slamic principles.

T!4%* #5 i'8%*&m%'& + ',*

(nvestment banks Junder riteJ -guarantee the sale of. stock and bond issues, trade for their o n accounts, make markets, and advise corporations on capital market activities such as mergers and ac3uisitions.

)erchant banks

ere traditionally banks

hich engaged in trade finance. The hich provide capital to firms in the

modern definition, ho ever, refers to banks invest in ne companies. B#&( "#m+i'%)

form of shares rather than loans. Cnlike venture capital firms, they tend not to

Cniversal banks, more commonly kno n as financial services companies, engage in several of these activities. These big banks are very diversified groups that, among other services, also distribute insuranceK hence the term bancassurance, a portmanteau ord combining Jban3ue or bankJ and JassuranceJ, signifying that both banking and insurance are provided by the same corporate entity.

/1

COMPANY PROFILE

(<= Brand

(<= is a global financial services brand offering a range of banking and insurance services in over fifty countries. The (<= brand dates from 1GG1 hen a Dutch bank and insurer merged into the (nternationale <ederlanden =roep P(&<&=Q, and the lion in the logo is derived from various logos of predecessor companies. 6ver the years over fifty labels have been rebranded to (<= and steadily gro n. Today, many millions of private, corporate and institutional customers in 'urope, <orth and 9atin America, Asia and Australia are putting their faith in (<= to help them manage their financial future. (n the years to come the structure of the company ill change significantly. (n light of the /FFG Back to Basics strategy the decision has been made to separate the banking and insurance activities and to focus on a smaller number of stronger businesses going for ard. 8or the (<= brand this ill most probably mean that e ill be even more committed to e combine a desire to do the orld ide brand a areness and reputation have

be a brand that stands out and leads the

ay in making finance easier. 6ur businesses

share much more than #ust their name and logo. At (<=, right thing for our customers ith a can&do mentality.

2e aim to provide smart, reliable and sustainable products and services to build and protect financial futures. And e do so in a ay that assures our customers that they have all the right information and insight to make their o n decisions. 2ith every transaction,

//

e communicate in plain language, respond 3uickly and try to keep things clear, simple and straightfor ard. ThatQs hat making finance easier is all about. ThatQs hat the (<= brand is about. :ompany 6vervie (<= @ysya Bank 9td., is an entity formed (<= of Dutch ith the coming together of erst hile, @ysya during 6ct /FF/. Bank 9td, a premier bank in the (ndian Private Sector and a global financial po erhouse, origin, The origin of the erst hile @ysya Bank as pretty humble. (t as in the year 1G1F that a

team of visionaries came together to form a bank that

ould e"tend a helping hand to

those ho erenEt privileged enough to en#oy banking services. (tEs been a long #ourney since then and the Bank has gro n in si$e and stature to encompass every area of present&day banking activity and has carved a distinct identity of being (ndiaEs Premier Private Sector Bank. (n 1GBF, the Bank completed fifty years of service to the nation and post 1GB;M the Bank made rapid strides to reach the coveted position of being the number one private sector bank. (n 1GGF, the bank completed its Diamond Dubilee year. At the Diamond Dubilee :elebrations, the then 8inance )inister Prof. )adhu Dandavate, had termed the performance of the bank PStupendousQ. The A;th anniversary, the Platinum Dubilee of the bank as celebrated during /FF;. The long #ourney of seventy&five years has had several milestonesR 1G1FSet up in Bangalore 1G4BScheduled Bank 1GB;9argest Private Sector Bank 1GBAThe @ysya Bank 9easing 9td. :ommenced 1GBBPioneered the concept of :o branding of :redit :ards 1GGFPromoted @ysya Bank !ousing 8inance 9td. 1GG/Deposits cross 7s.1FFF crores 1GG1<umber of Branches crossed 1FF Signs Strategic Alliance ith BB9., Belgium. T o <ational A ards by =em 5 1GG? De ellery '"port Promotion :ouncil for e"cellent performance in '"port Promotion

/1

:ash )anagement Services, 5 commissioning of @SAT. =olden Peacock A ard & 1GGB for the best !7 Practices by (nstitute of Directors. 7ated as Best Domestic Bank in (ndia by =lobal 8inance -(nternational 8inancial Dournal & Dune 1GGB. State &of & the &art Date :entre at (TP9, Bangalore.

/FFF

7B( clears setting up of (<= @ysya 9ife (nsurance :ompany /FF1(<=&@ysya commenced life insurance business. The Bank launched a range of products 5 services like the @ys @yapar Plus, the range of loan schemes for traders, AT) services, Smartserv, personal assistant /FF/ service, Save 5 Secure, an account that provides accident hospitali$ation and insurance cover, Sambandh, the (nternational Debit :ard and the mi&bSnk net banking service. /FF/(<= takes over the )anagement of the Bank from 6ctober Ath , /FF/ 7B( clears the ne name of the Bank as (<= @ysya Bank 9td, vide their letter of /FF/ 1A.1/.F/ (ntroduced customer friendly products like 6range Savings, 6range :urrent and /FF1 Protected !ome 9oans /FF4(ntroduced Protected !ome 9oans & a housing loan product (ntroduced Solo & )y 6 n Account for youth and :ustomer Service 9ine % Phone /FF; Banking Service Bank has net orked all the branches to facilitate PAAAQ transactions i.e. Any here, /FF? Anytime 5 Anyho Banking T(% #ri-i' #5 ING Gr#.4

6n the other hand, (<= group originated in 1GGF from the merger bet een <ationale % <ederlanden <@ the largest Dutch (nsurance :ompany and <)B Post Bank =roep <@. :ombining roots and ambitions, the ne ly formed company called +(nternationale <ederlanden =roup,. )arket circles soon abbreviated the name to (&<&=. The company follo ed suit by changing the statutory name to +(<= =roup <.@.,.

C#r4#r &% S#"i $ R%*4#'*i+i$i&!


(<= @ysya bank has al ays been committed to making a positive contribution to Society. Promoting education for under&served children is one such cause hich has been very close to the bank. Through the (<= @ysya 8oundation, it seeks to provide less /4

advantaged children an opportunity to secure a better future by providing them education.

ith

Born out of three business entities of (<= in (ndia, (<= @ysya Bank, (<= 9ife (nsurance, and (<= (nvestment )anagement, the 8oundation has been able to strike the right balance bet een supporting organi$ations financially and contributing time and effort of the employees to nurture and mentor these children, for a better future. (<= @ysya 8oundation commenced its activities in December /FF4 initiative provided villagers ith access to clean ith a ater& ells

harvesting pro#ect in the Cdaipur and 7a#asmand districts of 7a#asthan, <orth (ndia. The ater and recharged ground& ater hich in turn support the local agricultural industry. The 8oundation has also been actively involved in relief efforts follo ing the Tsunami that hit the South (ndian coast on /? December /FF4. (n cooperation ith the regional head3uarters of (<= at !ong Long, (<= @ysya 8oundation supported a number of pro#ects, including the rebuilding of homes and schools, and other facilities for a number of villages. Another pro#ect included the micro&financing for 4F fishing boats and the attendant e3uipment for the villages of )udaliyarkuppam and Arcotuthurai, in Tamilnadu. As part of the (<= :hances for :hildren programme, the 8oundation signed a five&year agreement to support 1FF orphansE living and schooling e"penses. Additional funds, set up enabled of a day&care centre ith training facilities hich is used by the community at large. 6ther initiatives include (<= (nvestment )anagementEs auctions of paintings dra n by street children for the <=6 Pratham and (<= @ysya BankEs E7un 7icky 7unE in hich the bank sent a child back to school for each run the Australian cricket captain 7icky Ponting scored in international one&day matches during a one&year period ending September /FFB.

/;

Today, 8oundation partners

ith &(ir&%%' $#" $ "( ri&! #r- 'i9 &i#'* in (ndia. (t helps

children to be in the primary schools to reali$e their right to education as the first step to ards breaking the cycle of poverty. Pr#5i$% (<= has gained recognition for its integrated approach of banking, insurance and asset management. 8urthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries Another specialisation is (<= Direct, an (nternet and direct marketing concept hich (<= is rapidly ith ith emerging economies, such as Lorea, Tai an, !ungary, Poland, )e"ico and :hile. inning retail market share in mature markets. 8inally, (<=

distinguishes itself internationally as a provider of Pemployee benefitsQ, i.e. arrangements of non age benefits, such as pension plans for companies and their employees.

Mi**i#' (<=Ts mission is to be a leading, global, client&focused, innovative and lo &cost provider of financial services through the distribution channels of the clientQs preference in markets here (<= can create value.

T(% '%3 i)%'&i&! SC<DAI STA<DA7D of The <e as the safest bank -mid&si$ed. (ndian '"press =roup has named (<= @ysya Bank

ith a special mention to )D 5 :'6 )r Shailendra

Bhandari. Cnion )inister for Crban Development )r Lamal <ath gave a ay the a ard in a ceremony held at The Ta# )ahal !otel in <e Delhi on September ?./F11.

/?

The immediate benefit to the bank, (<= @ysya Bank, has been the pride of having become a )ember of the global financial giant (<=. As at the end of the year December /FFG, (<=Es total assets e"ceeded 11?4 billion euros, employed around 11FFFF people, served over B; million customers, across 4F countries. This global identity coupled (nternational Bank, ith the back up of a financial po er house and the status of being the first (ndian ould also help to enhance productivity, profitability, to result in improved performance of the bank, for the benefit of all the stake holders. B# r) #5 Dir%"&#r* :.4) &%) * #5 /0;1/;/012< <ame -Sri. Arun Thiagara#an Part&time :hairman Shailendra Bhandari )anaging Director 5 :hief '"ecutive 6fficer Aditya Lrishna Director Philippe Damas Director 7ichard :o" Director Santosh 7amesh Desai Director ) Damodaran Director @aughn <igel 7ichtor Director Peter !enri )aria Staal Director 9ars Lramer Director @ikram Tal ar Director

A3 r)* ') R%"#-'i&i#'


(<= @ysya Bank on the Best Private Sector Bank a ard in Asset Uuality category at the PDun 5 Bradstreet % Polaris Banking A ards /F11Q announced on

/A

August //. )r Shailendra Bhandari received the a ard from )r. Laushal Sampat, President 5 :'6 % (ndia, Dun 5 Bradstreet in a ceremony held in (T: )aratha, )umbai. (<= @ysya Bank BankersQ A ard. (<= as included in the /F11 DDS( 2orld (nde" & the longest&running global orld ide and the 8TS'4=ood hich is designed to as a arded the ESafest BankerE by The <e (ndian '"press,

one of (ndiaEs premier publications, at The Sunday Standard 8(<2(V /F1/ & Best

sustainability benchmarks responsibility standards. 2e

measure the performance of companies that meet globally recognised corporate

ere ranked among the top ; Private Sector Banks in the country by

'conomic Times Brand '3uity & )ost Trusted Banks Survey /F11 under ETrusted BrandsE category. (<= :onverge, our 2holesale Banking Solution, as chosen as the EBest

:orporate (nternet Banking (nitiative, /F1/E across Asia by the Asian Banker Technology A ards /F11, amongst ;F banks from 14 countries. 2e ere rated as the ETop 7upee 8orecasterE -against CS Dollar. for the trailing

si" 3uarters finding December /F11 by Bloomberg in their rankings done across several Asian currencies and market players. 6ur 2holesale Banking Cnit as ranked 1/th in the Cnder riter 7anking of the Bloomberg 9eague Table covering EAll (ndia Private Placement of Bond (ssuancesE. (<= (n ards, an innovative payment solution that helps large corporations manage receivables across multiple geographies and partners, on the :(6 1FF a ard for the 1rd consecutive year in /F11. :(69 /F11 a ard for :orporate and Business Banking Portal, Debt :apital )arkets -D:) business has been ranked among the top 1; banks in (ndia in its /B

first year of operations, buoyed by some high&profile transactions in the bond markets.

/G

CHAPTER-III LITERATURE REVIEW

DISCRETIONARY PORTFOLIO MANAGEMENT SERVICE :DPMS<:


(n this type of service, the client parts ith his money in favor of the manager,

ho in return, handles all the paper ork, makes all the decisions and gives a good return

1F

on the investment and charges fees. (n the Discretionary Portfolio )anagement Service, to ma"imi$e the yield, almost all portfolio managers park the funds in the money market securities such as overnight market, 1B days treasury bills and GF days commercial bills. <ormally, the return of such investment varies from 14 to 1B percent, depending on the call money rates prevailing at the time of investment.

NON-DISCRETIONARY PORTFOLIO MANAGEMENT SERVICE :NDPMS<:


The manager functions as a counselor, but the investor is free to accept or re#ect the managerPs adviceM the paper ork is also undertaken by manager for a service charge. The manager concentrates on stock market instruments ith a portfolio tailor&made to the risk taking ability of the investor.

IMPORTANCE OF PORTFOLIO MANAGEMENT:

'mergence of institutional investing on behalf of individuals. A number of financial institutions, mutual funds and other agencies are undertaking the task of investing money of small investors, on their behalf. =ro th in the number and si$e of ingestible funds % a large part of household savings is being directed to ards financial assets. (ncreased market volatility % risk and return parameters of financial assets are continuously changing because of fre3uent changes in governmentPs industrial and fiscal policies, economic uncertainty and instability. =reater use of computers for processing mass of data.

11

Professionali$ation of the field and increasing use of analytical methods -e.g. 3uantitative techni3ues. in the investment decision % making 9arger direct and indirect costs of errors or shortfalls in meeting portfolio ob#ectives % increased competition and greater scrutiny by investors.

CRITERIA FOR PORTFOLIO DECISIONS:


(n portfolio management emphasis is put on identifying the collective importance of all investorQs holdings. The emphasis shifts from individual assets selection to a more balanced emphasis on diversification and risk&return interrelationships of individual assets on the impact assets held. Portfolio strategy should be molded to the uni3ue needs and characteristics of the portfolioPs o ner. Diversification across securities achieve the desired level. 9arger portfolio returns come only The risk associated ith larger portfolio risk. The most important hen the investment ill be hen the decision to make is the amount of risk hich is acceptable. ith a security type depends on li3uidated. 7isk is reduced by selecting securities portfolio is to be li3uidated. :ompetition for abnormal returns is e"tensive, so one has to be careful in evaluating the risk and return from securities. (mbalances do not last long and one has to act fast to profit from e"ceptional opportunities. ith a payoff close to ill reduce a portfolioPs risk. (f the risk and return are lo er than the desired level, leverages -borro ing. can be used to ithin the portfolio. (ndividual securities are important only to ill have on the aggregate portfolio of all the the e"tent they affect the aggregate portfolio. (n short, all decisions should focus hich the decision

1/

=UALITIES OF PORTFOLIO MANAGER:


1. SOUND GENERAL KNOWLEDGE: Portfolio management is an e"citing and challenging #ob. !e has to ork in an e"tremely uncertain and confliction piece of information affects the value of the ay. !e must be able to #udge and predict environment. (n the stock market every ne

securities of different industries in a different

the effects of the information he gets. !e must have sharp memory, alertness, fast intuition and self&confidence to arrive at 3uick decisions.

/.

ANALYTICAL ABILITY: !e must have his o n theory to arrive at the


instrinsic value of the security. An analysis of the securityPs values, company, etc. is s continuous #ob of the portfolio manager. consultant. The analyst can kno economy, industry and the company. A good analyst makes a good financial eaknesses, opportunities of the the strengths,

1.

MARKETING SKILLS: !e must be good salesman. !e has to convince


the clients about the particular security. !e has to compete ith the stock brokers in the stock market. (n this conte"t, the marketing skills help him a lot.

4.

E>PERIENCE: (n the cyclical behavior of the stock market history is


often repeated, therefore the e"perience of the different phases helps to make rational decisions. The e"perience of the different types of securities, clients, market trends, etc., makes a perfect professional manager.

PORTFOLIO BUILDING:
11

Portfolio decisions for an individual investor are influenced by a programme

ide variety of

factors. (ndividuals differ greatly in their circumstances and therefore, a financial ell suited to one individual may be inappropriate for another. (deally, an individualPs portfolio should be tailor&made to fit onePs individual needs.

I'8%*&#r?* C( r "&%ri*&i"*:
An analysis of an individualPs investment situation re3uires a study of personal characteristics such as age, health conditions, personal habits, family responsibilities, business or professional situation, and ta" status, all of illingness to assume risk. hich affect the investorPs

S& -% i' &(% Li5% C!"$%:


6ne of the most important factors affecting the individualPs investment ob#ective is his stage in the life cycle. A young person may put greater emphasis on gro th and lesser emphasis on li3uidity. !e can afford to time hori$on is large. ait for reali$ation of capital gains as his

F mi$! r%*4#'*i+i$i&i%**
The investorPs marital status and his responsibilities to ards other members of the family can have a large impact on his investment needs and goals.

I'8%*&#r?* %@4%ri%'"%:
The success of portfolio depends upon the investorPs kno ledge and e"perience in financial matters. (f an investor has an aptitude for financial affairs, he may ish to be more aggressive in his investments. 14

A&&i&.)% &#3 r)* Ri*,:


A personPs psychological make&up and financial position dictate his ability to assume the risk. Different kinds of securities have different kinds of risks. The higher the risk, the greater the opportunity for higher gain or loss.

Li7.i)i&! N%%)*:
9i3uidity needs vary considerably among individual investors. (nvestors individuals ays* 1. By allocating an appropriate percentage of the portfolio to bank deposits, and /. By re3uiring that bonds and e3uities purchased be highly marketable. ith regular income from other sources may not orry much about instantaneous li3uidity, but ho depend heavily upon investment for meeting their general or specific needs, must plan portfolio to match their li3uidity needs. 9i3uidity can be obtained in t o

T @ "#'*i)%r &i#'*:
Since different individuals, depending upon their incomes, are sub#ected to different marginal rates of ta"es, ta" considerations become most important factor in individualPs portfolio strategy. There are differing ta" treatments for investment in various kinds of assets.

Tim% H#ri9#':
(n investment planning, time hori$on becomes an important consideration. (t is highly variable from individual to individual. (ndividuals in their young age have long time hori$on for planning, they can smooth out and absorb the ups and do ns of risky combination. (ndividuals avoid volatile portfolios. ho are old have smaller time hori$on, they generally tend to

1;

I')i8i). $?* Fi' '"i $ O+A%"&i8%*:


(n the initial stages, the primary ob#ective of an individual could be to accumulate ealth via regular monthly savings and have an investment programmed to achieve long term capital gains.

S 5%&! #5 Pri'"i4 $:
The protection of the rupee value of the investment is of prime importance to most investors. The original investment can be recovered only if the security can be readily sold in the market ithout much loss of value.

A**.r '"% #5 I'"#m%:


TDifferent investors have different current income needs. (f an individual is dependent of its investment income for current consumption then income received no of dividend and interest payments become primary ob#ective. in the form

I'8%*&m%'& Ri*,:
All investment decisions revolve around the trade&off bet een risk and return. All rational investors ant a substantial return from their investment. An ability to ith security ho does not understand, measure and properly manage investment risk is fundamental to any intelligent investor or a speculator. 8re3uently, the risk associated investment is ignored and only the re ards are emphasi$ed. An investor fully appreciate the risks in security investments positive results.

ill find it difficult to obtain continuing

RISK AND E>PECTED RETURN:

1?

There is a positive relationship bet een the amount of risk and the amount of e"pected return i.e., the greater the risk, the larger the e"pected return and larger the chances of substantial loss. 6ne of the most difficult problems for an investor is to estimate the highest level of risk he is able to assume.

7isk is measured along the hori$ontal a"is and increases from the left to right. '"pected rate of return is measured on the vertical a"is and rises from bottom to top. The line from F to 7 -f. is called the rate of return or risk less investments commonly associated ith the yield on government securities. The diagonal line form 7 -f. to '-r. illustrates the concept of e"pected rate of return increasing as level of risk increases.

1A

TYPES OF RISKS:
7isk consists of t o components. They are 1. Systematic 7isk /. Cn&systematic 7isk

1; S!*&%m &i" Ri*,:


Systematic risk is caused by factors e"ternal to the particular company and uncontrollable by the company. The systematic risk affects the market as a 8actors affect the systematic risk are economic conditions political conditions sociological changes The systematic risk is unavoidable. Systematic risk is further sub&divided into three types. They are a. )arket 7isk b. (nterest 7ate 7isk c. Purchasing Po er 7isk hole.

<; M r,%& Ri*,

1B

6ne

ould notice that

hen the stock market surges up, most stocks post higher ill drop. hile a companyPs idely ithin a short

price. 6n the other hand,

hen the market falls sharply, most common stocks

(t is not uncommon to find stock prices falling from time to time earnings are rising and vice&versa. The price of stock may fluctuate time even though earnings remain unchanged or relatively stable.

b). I'&%r%*& R &% Ri*,:


(nterest rate risk is the risk of loss of principal brought about the changes in the interest rate paid on ne securities currently being issued.

c); P.r"( *i'- P#3%r Ri*,:


The typical investor seeks an investment hich ill give him current income

and > or capital appreciation in addition to his original investment.

2; U'-*!*&%m &i" Ri*,:


Cn&systematic risk is uni3ue and peculiar to a firm or an industry. The nature and mode of raising finance and paying back the loans, involve the risk element. 8inancial leverage of the companies that is debt&e3uity portion of the companies differs from each other. All these factors affect the un&systematic risk and contribute a portion in the total variability of the return. )anagerial inefficiently Technological change in the production process Availability of ra materials :hanges in the consumer preference 9abour problems

1G

The nature and magnitude of the above mentioned factors differ from industry to industry and company to company. They have to be analy$ed separately for each industry and firm. Cn&systematic risk can be broadly classified into* a. Business 7isk b. 8inancial 7isk

B.*i'%** Ri*,:
Business risk is that portion of the unsystematic risk caused by the operating environment of the business. Business risk arises from the inability of a firm to maintain its competitive edge and gro th or stability of the earnings. The volatility in stock prices due to factors intrinsic to the company itself is kno n as Business risk. Business risk is concerned ith the difference bet een revenue and earnings before interest and ta". Business risk can be divided into.

i<; I'&%r' $ B.*i'%** Ri*,


(nternal business risk is associated ith the operational efficiency of the firm. The operational efficiency differs from company to company. The efficiency of operation is reflected on the companyPs achievement of its pre&set goals and the fulfillment of the promises to its investors.

ii<;E@&%r' $ B.*i'%** Ri*,


'"ternal business risk is the result of operating conditions imposed on the firm by circumstances beyond its control. The e"ternal environments in hich it operates e"ert some pressure on the firm. The e"ternal factors are social and regulatory factors, monetary and fiscal policies of the government, business cycle and the general economic environment ithin hich a firm or an industry operates.

+;

Fi' '"i $ Ri*,:


(t refers to the variability of the income to the e3uity capital due to the debt capital. 8inancial risk in a company is associated ith the capital structure of the company. :apital structure of the company consists of e3uity funds and borro ed funds.

PORTFOLIO ANALYSIS:

4F

@arious groups of securities

hen held together behave in a different manner and hich are different to the analysis of ill give a beneficial

give interest payments and dividends also,

individual securities. A combination of securities held together consideration the risk element.

result if they are grouped in a manner to secure higher return after taking into

There are t o approaches in construction of the portfolio of securities. They are Traditional approach )odern approach

TRADITIONAL APPROACH:
Traditional approach security should be chosen as based on the fact that risk could be measured on each here the deviation as the lo est. Traditional approach

individual security through the process of finding out the standard deviation and that believes that the market is inefficient and the fundamental analyst can take advantage of the situation. Traditional approach is a comprehensive financial plan for the individual. (t takes into account the individual need such as housing, life insurance and pension plans. Traditional approach basically deals ith t o ma#or decisions. They are a. b. Determining the ob#ectives of the portfolio Selection of securities to be included in the portfolio

MODERN APPROACH:

41

)odern approach theory can be made in many

as brought out by )arko it$ and Sharpe. (t is the

combination of securities to get the most efficient portfolio. :ombination of securities ays. )arko it$ developed the theory of diversification through scientific reasoning and method. )odern portfolio theory believes in the ma"imi$ation of return through a combination of securities. The modern approach discusses the relationship bet een different securities and then dra s inter&relationships of risks bet een them. )arko it$ gives more attention to the process of selecting the portfolio. (t does not deal ith the individual needs.

MARKOWITB MODEL:
)arko it$ model is a theoretical frame ork for analysis of risk and return and their relationships. !e used statistical analysis for the measurement of risk and mathematical programming for selection of assets in a portfolio in an efficient manner. )arko it$ apporach determines for the investor the efficient set of portfolio through three important variables i.e. 7eturn Standard deviation :o&efficient of correlation )arko it$ model is also called as an +8ull :ovariance )odel+. Through this model the investor can find out the efficient set of portfolio by finding out the trade off bet een risk and return, bet een the limits of $ero and infinity. According to this theory, the effects of one security purchase over the effects of the other security purchase are taken into consideration and then the results are evaluated. )ost people agree that holding t o stocks is less risky than holding one stock. 8or e"ample, holding stocks from te"tile, banking and electronic companies is better than investing all the money on the te"tile companyPs stock. )arko it$ had given up the single stock portfolio and introduced diversification. The single stock portfolio ould be preferable if the investor is perfectly certain that his ould turn out to be real. (n the orld of uncertainty, most e"pectation of highest return

4/

of the risk adverse investors

ould like to #oin )arko it$ rather than keeping a single

stock, because diversification reduces the risk.

ASSUMPTIONS:
All investors ould like to earn the ma"imum rate of return that they can achieve from their investments. All investors have the same e"pected single period investment hori$on. All investors before making any investments have a common goal. This is the avoidance of risk because (nvestors are risk&averse. (nvestors base their investment decisions on the e"pected return and standard deviation of returns from a possible investment. Perfect markets are assumed -e.g. no ta"es and no transition costs. The investor assumes that greater or larger the return that he achieves on his investments, the higher the risk factor surrounds him. 6n the contrary hen risks are lo the return can also be e"pected to be lo . The investor can reduce his risk if he adds investments to his portfolio. An investor should be able to get higher return for each level of risk +by determining the efficient set of securities+. An individual seller or buyer cannot affect the price of a stock. This assumption is the basic assumption of the perfectly competitive market.

41

(nvestors make their decisions only on the basis of the e"pected returns, standard deviation and covarianceQs of all pairs of securities. (nvestors are assumed to have homogenous e"pectations during the decision& making period The investor can lend or borro bills or =overnment securities. (nvestors are risk&averse, so hen given a choice bet een t o other ise identical portfolios, they ill choose the one ith the lo er standard deviation. (ndividual assets are infinitely divisible, meaning that an investor can buy a fraction of a share if he or she so desires. There is a risk free rate at hich an investor may either lend -i.e. invest. money or borro money. There is no transaction cost i.e. no cost involved in buying and selling of stocks. There is no personal income ta". !ence, the investor is indifferent to the form of return either capital gain or dividend. any amount of funds at the risk less rate of

interest. The risk less rate of interest is the rate of interest offered for the treasury

THE EFFECT OF COMBINING TWO SECURITIES:


(t is believed that holding t o securities is less risky than by having only one investment in a personPs portfolio. 2hen t o stocks are taken on a portfolio and if they have negative correlation then risk can be completely reduced because the gain on one can offset the loss on the other. This can be sho n ith the help of follo ing e"ample*

44

INTER- ACTIVE RISK THROUGH COVARIANCE:


:ovariance of the securities ill help in finding out the inter&active risk. 2hen the covariance ill be positive then the rates of return of securities move together either ill be $ero on t o investments if the rates of return are up ards or do n ards. Alternatively it can also be said that the inter&active risk is positive. Secondly, covariance independent. !olding t o securities may reduce the portfolio risk too. The portfolio risk can be calculated ith the help of the follo ing formula*

CAPITAL ASSET PRICING MODEL :CAPM<:


)arko it$, 2illiam Sharpe, Dohn 9intner and Dan )ossin provided the basic structure of :apital Asset Pricing )odel. (t is a model of linear general e3uilibrium return. (n the :AP) theory, the re3uired rate return of an asset is having a linear relationship ith assetPs beta value i.e. un&diversifiable or systematic risk -i.e. market related risk. because non market risk can be eliminated by diversification and systematic risk measured by beta. Therefore, the relationship bet een an assets return and its systematic risk can be e"pressed by the :AP), 9ine. hich is also called the Security )arket

R C R4 >5 R5

R5 >5D Rm:1- >5< W Portfolio return WThe proportion of funds invested in risk free assets W 7isk free rate of return
4;

1- >5 W The proportion of funds invested in risky assets

Rm

W 7eturn on risky assets

8ormula can be used to calculate the e"pected returns for different situations, like mi"ing risk less assets ith risky assets, investing only in the risky asset and mi"ing the borro ing ith risky assets.

THE CONCEPT:
According to :AP), all investors hold only the market portfolio and risk less securities. The market portfolio is a portfolio comprised of all stocks in the market. 'ach asset is held in proportion to its market value to the total value of all risky assets. 8or e"ample, if ipro (ndustry share represents 1;H of all risky assets, then the or lend any amount of money at the risk less market portfolio of the individual investor contains 1;H of ipro (ndustry shares. At this stage, the investor has the ability to borro rate of interest.

'.g.* assume that borro ing and lending rate to be 1/.;H and the return from the
risky assets to be /FH. There is a trade off bet een the e"pected return and risk. (f an investor invests in risk free assets and risky assets, his risk may be less than invests in the risky asset alone. But if he borro s to invest in risky assets, his risk hat he ould

increase more than he invests his o n money in the risky assets. 2hen he borro s to invest, e call it financial leverage. (f he invests ;FH in risk free assets and ;FH in risky assets, his e"pected return of the portfolio ould be

R4C R5 >5D Rm:1- >5< W -1/.; " F.;. X /F -1&F.;. W ?./; X 1F W 1?./;H

4?

if there is a $ero investment in risk free asset and 1FFH in risky asset, the return is R4C R5 >5D Rm:1- >5< W F X /FH W /FH if &F.; in risk free asset and 1.; in risky asset, the return is R4C R5 >5D Rm:1- >5< W -1/.; " &F.;. X /F -1.;. W &?./;X 1F W /1.A;H

EVALUATION OF PORTFOLIO:
Portfolio manager evaluates his portfolio performance and identifies the sources of strengths and eakness. The evaluation of the portfolio provides a feed back about the performance to evolve better management strategy. 'ven though evaluation of portfolio performance is considered to be the last stage of investment process, it is a continuous process. There are number of situations in important. hich an evaluation becomes necessary and

i;

S%$5 V $. &i#': An individual may ant to evaluate ho


over a period of time.

ell he has done.

This is a part of the process of refining his skills and improving his performance

ii;

E8 $. &i#' #5 M ' -%r*: A mutual fund or similar organi$ation might ant


to evaluate its managers. A mutual fund may have several managers each running

4A

a separate fund or sub&fund. (t is often necessary to compare the performance of these managers.

iii;

E8 $. &i#' #5 M.&. $ F.')*: An investor may ant to evaluate the various


mutual funds operating in the country to decide hich, if any, of these should be chosen for investment. A similar need arises in the case of individuals or organi$ations ho engage e"ternal agencies for portfolio advisory services.

i8;

E8 $. &i#' #5 Gr#.4*: have different skills or access to different


information. Academics or researchers may ant to evaluate the performance of a hole group of investors and compare it different techni3ues or ho ith another group of investors ho use

NEED FOR EVALUATION OF PORTFOLIO:


2e can try to evaluate every transaction. 2henever a security is brought or sold, e can attempt to assess hether the decision as correct and profitable. 2e can try to evaluate the performance of a specific security in the portfolio to determine hether it has been orth hile to include it in our portfolio.

2e can try to evaluate the performance of portfolio as a

hole during the period

ithout e"amining the performance of individual securities ithin the portfolio.

PORTFOLIO REVISION:

4B

The portfolio

hich is once selected has to be continuously revie ed over a and revision of the

period of time and then revised depending on the ob#ectives of the investor. The care taken in construction of portfolio should be e"tended to the revie investors. The investor should have competence and skill in the revision of the portfolio. The portfolio management process needs fre3uent changes in the composition of stocks and bonds. (n securities, the type of securities to be held should be revised according to the portfolio policy. An investor purchases stock according to his ob#ectives and return risk frame ork. The prices of stock that he purchases fluctuate, each stock having its o n cycle of fluctuations. These price fluctuations may be related to economic activity in a country or due to other changed circumstances in the market. (f an investor is able to forecast these changes by developing a frame ork for the future through careful analysis of the behavior and movement of stock prices is in a position to make higher profit than if he as to simply buy securities and hold them through the process of diversification. )echanical methods are adopted to earn better profit through proper timing. The investor uses formula plans to help him in making decisions for the future by e"ploiting the fluctuations in prices. portfolio. 8luctuations that occur in the e3uity prices cause substantial gain or loss to the

FORMULA PLANS:
The formula plans provide the basic rules and regulations for the purchase and sale of securities. The amount to be spent on the different types of securities is fi"ed. The amount may be fi"ed either in constant or variable ratio. This depends on the investorPs attitude to ards risk and return. The commonly used formula plans are

4G

i. ii. iii. iv. v.

Average 7upee Plan :onstant 7upee Plan :onstant 7atio Plan @ariable 7atio Plan

ADVANTAGES:
Basic rules and regulations for the purchase and sale of securities are provided. The rules and regulations are rigid and help to overcome human emotion. The investor can earn higher profits by adopting the plans. A course of action is formulated according to the investorPs ob#ectives (t controls the buying and selling of securities by the investor.

DISADVANTAGES:
The formula plan does not help the selection of the security. The selection of the security has to be done either on the basis of the fundamental or technical analysis. (t is strict and not fle"ible ith the inherent problem of ad#ustment. The formula plans should be applied for long periods, other ise the transaction cost may be high. 'ven if the investor adopts the formula plan, he needs forecasting. )arket forecasting helps him to identify the best stocks.

1; OVERVIEW

The main purpose of studying is to e"amine the policy adopted for decision making in the area of Portfolio management in =eneral (nsurance :ompany ith a special focus on Portfolio.

/; SCOPE

(n the presence study cover through e"amination of procedures of decision

;F

making portfolio management environment, selection of securities 2eights of different securities and 'arning of Portfolio.

2; FINDINGS

The trend of Stock '"change, securities in (ndia has sho n increasing trend on an Average the investments in such securities increased by 1;1.4AH yearly over the study period. !o ever the trend of investment in stock e"change, securities both in (ndia and 6utside (ndia has sho n investment incase (s 1;4.AAH per year over the study period.

PORTFOLIO MANAGEMENT USING CAPM


1. OVERVIEW

: Portfolio analysis to measure this actual risk


And return of securities and to calculate the '"pected returns of securities using Security market line to compare the e"pected 7eturn ith actual return to assist investor in )aking rational investment decision to hich Security to buy or sell using security market 9ine hich is to suggested the best portfolio )i" .

/. SCOPE

: The scope of the study is limited to this use of


Security market line as a tool of selecting Security and advising the investors about the Best portfolio mi".

;1

2; FINDINGS

: There is a significant difference bet een the


'"pected returns and actual returns. The ne"t Step is to identify the securities hich are under @alue hen their e"pected returns is more than Actual returns, it can be observed undervalued Securities like :ipla, Dr. 7eddy 9abs, ipro etc., ipro is linear since the 2eights -Y. are the variables

INVESTMENT
(nvestment may be defined as an activity that commits funds in any financial form in the present ith an e"pectation of receiving additional return in the future. The ith it a probability that the 3uantum of return may vary from a e"pectations bring

minimum to a ma"imum. This possibility of variation in the actual return is kno n as investment risk. Thus every investment involves a return and risk. (nvestment is an activity that is undertaken by those ho have savings. Savings

can be defined as the e"cess of income over e"penditure. An investor earns>e"pects to earn additional monetary value from the mode of investment that could be in the form of financial assets. The three important characteristics of any financial asset are*

7eturn&the potential return possible from an asset. 7isk&the variability in returns of the asset form the chances of its value going do n>up. ;/

9i3uidity&the ease ith hich an asset can be converted into cash. (nvestors tend to look at these three characteristics hile deciding on their

individual preference pattern of investments. 'ach financial asset ill have a certain level of each of these characteristics.

I'8%*&m%'& 8%'.%*
There are a large number of investment avenues for savers in (ndia. Some of them are marketable and li3uid, hile others are non&marketable. Some of them are highly risky hile some others are almost risk less. (nvestment avenues can be broadly categori$ed under the follo ing head. 1. :orporate securities /. '3uity shares. 1. Preference shares. 4. Debentures>Bonds. ;. Derivatives. ?. 6thers.

C#r4#r &% S%".ri&i%*


Doint stock companies in the private sector issue corporate securities. These include e3uity shares, preference shares, and debentures. '3uity shares have variable dividend and hence belong to the high risk&high return categoryM preference shares and debentures have fi"ed returns ith lo er risk.The classification of corporate securities that can be chosen as investment avenues can be depicted as sho n belo *

'3uity Shares

Preference shares

Bonds

2arrants

Derivatives

;1

CHAPTER-IV DATA ANALYSES AND INTERPRETATION

;4

S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G /F

Date 1&Duly&11 1&Duly&11 4&Duly&11 ;&Duly&11 ?&Duly&11 B&Duly&11 1F&Duly&11 11&Duly&11 1/&Duly&11 11&Duly&11 1;&Duly&11 1A&Duly&11 1B&Duly&11 1G&Duly&11 /F&Duly&11 //&Duly&11 /4&Duly&11 /;&Duly&11 /G&Duly&11 11&#uly&11

<A@ 14F 14A./G 14B.FA 14A.A4 14A.4F 14;.?B 144.A/ 141.;B 14?.F1 14B.BA 1;F.;; 1;1.F/ 1;/./; 1;/.A4 1;1.?1 1;1.B? 1;F.?A 1;1.1F 1;/.?F 1;1.G; )'A<

7'TC7<S ;./F F.;1 &F.// &F./1 &1.1A &F.?? &F.AB 1.?G 1.G? 1.1/ F.1/ F.B/ F.1/ &F.A4 F.1A &F.AB F.4/ F.B; &F.41 F.44

-Y&YBA7. 4.A? F.;1 F./F F.1G &F.A4 &F./1 &F.1? /.1/ /.1B 1.;; F.A4 1./4 F.A; &F.1/ F.;G &F.1? F.B; 1./B F.FF @A7'A<:'

-Y&YBA7./ //.?B F./B F.F4 F.F4 F.;; F.F; F.11 4.4B ;.?G /.4F F.;; 1.;4 F.;? F.1F F.1; F.11 F.A/ 1.?4 F.FF /./1

SD

1.4G

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 (:(:( (<:6)' 8C<DS 867 T!' )6<T! 68 DC9I&/F11

;;

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF ICICI GROTH FUND FOR THE MONTH OF JULY-2013 6.00 4.00 2.00 0.00 1 -2.00 3 5 7 9 11 13 15 17 19

The above graph represents the returns of (:(:( income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. 7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 (:(:( (<:6)' 8C<DS 867 T!' )6<T! 68 AC=CST&/F11
S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? Date 1&Aug&11 /&Aug&11 1&Aug&11 ?&Aug&11 A&Aug&11 B&Aug&11 G&Aug&11 1F&Aug&11 11&Aug&11 14&Aug&11 1A&Aug&11 /1&Aug&11 //&Aug&11 /1&Aug&11 /?&Aug&11 /A&Aug&11 <A@ 1;/.4/ 1;1.?? 1;4.;A 1;4.4A 1;;.1; 1;4.G? 1;1.AG 1;F.4? 14G.;F 14G.11 1;1.1G 1;1./B 1;1.?/ 1;F.B; 14B.G? 14;.;B 7'TC7<S F.11 F.B/ F.;G &F.F? F.;A &F./; &F.A? &/.1A &F.?4 &F.11 /.;B F.F? &1.FB &F.;1 &1./; &/./A -Y&YBA7. F.?G 1./F F.GA F.11 F.G; F.11 &F.1B &1.AG &F./? F./A /.G? F.44 &F.A1 &F.11 &F.BA &1.BG -Y&YBA7./ F.4A 1.41 F.G1 F.1F F.BG F.F/ F.14 1./F F.FA F.FA B.A; F.1G F.;F F.F/ F.A? 1.;G SD

e see the table the monthly mean is F.44

ith price variation of /./1and risk factor being 1.4G. Thus it can be said that risk is very

;?

1A 1B 1G

/B&Aug&11 /G&Aug&11 11&Aug&11

14;.BB 14;.41 141./1 )'A<

F./1 &F.11 &/.BG &F.1B

F.;B F.FA &/.;1 @A7'A<:'

F.14 F.FF ?.1/ 1.4?

1./1

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF ICICI INCOME FUND FOR THE MONTH OF AUG-2013
3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 -4.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of (:(:( income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is &F.1B ith price variation of 1.4? and risk factor being 1. Thus it can be said that risk is very

;A

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 (:(:( (<:6)' 8C<DS 867 T!' )6<T! 68 S'P&/F11
S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&Sep&11 4&Sep&11 ;&Sep&11 ?&Sep&11 A&Sep&11 G&Sep&11 1F&Sep&11 11&Sep&11 1/&Sep&11 11&Sep&11 14&Sep&11 1A&Sep&11 1B&Sep&11 /F&Sep&11 /1&Sep&11 /4&Sep&11 /;&Sep&11 /?&Sep&11 /B&Sep&11 <A@ 141.?B 14F.;1 114.A4 11?.B? 11;.1A 11B.?G 11B.F1 11G.1G 14F.4? 11?.A; 11A.BA 11?.?? 11B./B 11G.4/ 141.1F 144.// 144.1B 14/.G? 14F./? )'A< 7'TC7<S 1.A1 &/.1G &4.1/ 1.;B &1./4 /.?F &F.4A F.GG F.AA &/.?4 F.B/ &F.BB 1.1G F.B/ 1.1; /.F? &F.F1 &F.B; &1.BG &F.F/ -Y&YBA7. 1.A; &/.1A &4.1F 1.?F &1.// /.?/ &F.4; 1.F1 F.AG &/.?/ F.B4 &F.B? 1./1 F.B4 1.1B /.FB &F.F1 &F.B1 &1.BA @A7'A<:' -Y&YBA7./ 1.FB 4.A/ 1?.B1 /.;; 1.4B ?.BG F./1 1.F/ F.?/ ?.BB F.A1 F.A4 1.4? F.A1 1.BG 4.14 F.FF F.?B 1.4B 1.FA SD

1.A;

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF ICICI INCOME FOR THE MONTH OF SEP-2013

3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 -4.00 -5.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of (:(:( income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. 7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 (:(:( (<:6)' ;B e see the table the monthly mean is &F.F/ ith price variation of 1.FA and risk factor being 1.A; Thus it can be said that risk is very

8C<DS 867 T!' )6<T! 68 6:T&/F11


S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date /&6ct&11 1&6ct&11 4&6ct&11 ;&6ct&11 B&6ct&11 1F&6ct&11 11&6ct&11 1/&6ct&11 1;&6ct&11 1?&6ct&11 1A&6ct&11 1B&6ct&11 1G&6ct&11 //&6ct&11 /1&6ct&11 /4&6ct&11 /;&6ct&11 /?&6ct&11 /G&6ct&11 <A@ 11?.A; 11A.BB 14F.F1 141.F4 144.// 144.4B 144.?/ 141.4F 14?.1? 14G.1A 14B.11 14B./B 14A.?A 14G.AF 14G.?G 1;1.FB 1;1.;? 1;1.A? 1;F.1G )'A< 7'TC7<S &/.;F F.B1 1.;4 F.A4 /./; F.1B F.1F &F.B; /.FA 1.G/ &F.AF F.1F &F.41 1.1A &F.F1 F.G1 F.11 F.11 &1.F1 F.1A -Y&YBA7. &/.BA F.4? 1.1A F.1A 1.BB &F.1G &F./? &1.// 1.AF 1.;; &1.FA &F./? &F.AB 1.FF &F.1B F.;A &F.F; &F./1 &1.4F @A7'A<:' -Y&YBA7./ B./; F./1 1.1B F.14 1.;4 F.F4 F.FA 1.4B /.BG /.41 1.11 F.FA F.?1 1.FF F.14 F.1/ F.FF F.F; 1.G? 1.1; SD

1.1?

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF ICICI INCOME FOR THE MONTH OF OCT-2013
3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of (:(:( income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is F.1A ith price variation of 1.1; and risk factor being 1.1?. Thus it can be said that risk is very

;G

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 (:(:( (<:6)' 8C<DS 867 T!' )6<T! 68 <6@&/F11
S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&<ov&11 /&<ov&11 ;&<ov&11 ?&<ov&11 B&<ov&11 G&<ov&11 1/&<ov&11 11&<ov&11 1;&<ov&11 1?&<ov&11 1G&<ov&11 /F&<ov&11 /1&<ov&11 //&<ov&11 /1&<ov&11 /?&<ov&11 /A&<ov&11 /G&<ov&11 1F&<ov&11 <A@ 1;1.1A 1;1.;/ 1;1.11 1;F.1A 1;F.14 14G.4F 14G.GB 1;/.FG 1;/.?A 1;4.11 1;;.FG 1;4.?A 1;?.1B 1;?.AF 1;?./? 1;;.1A 1;?.1; 1;B.?4 1?F.1A )'A< 7'TC7<S 1.GB &1.FA &F.14 &F.A; &F.F/ &F.4G F.1G 1.4F F.1G 1.FA F.;F &F./A F.GB F.11 &F./B &F.;A F.?1 1.4A F.G? F.14 -Y&YBA7. 1.?4 &1.4/ &F.4B &1.1F &F.1A &F.B1 F.F; 1.F? F.F4 F.A1 F.1? &F.?1 F.?4 &F.F1 &F.?/ &F.G1 F./G 1.1/ F.?/ @A7'A<:' -Y&YBA7./ /.?G /.F1 F./1 1./F F.11 F.?G F.FF 1.1/ F.FF F.;1 F.F1 F.1B F.41 F.FF F.1G F.B4 F.FB 1./? F.1G F.?; SD

F.B1

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF ICICI INCOME FUND FOR THE MONTH OF NOV-2013
2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of (:(:( income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is F.14 ith price variation of F.?; and risk factor being F.B1. Thus it can be said that risk is very

?F

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 (:(:( (<:6)' 8C<DS 867 T!' )6<T! 68 D':&/F11
S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&Dec&11 4&Dec&11 ;&Dec&11 ?&Dec&11 A&Dec&11 1F&Dec&11 11&Dec&11 1/&Dec&11 11&Dec&11 14&Dec&11 1A&Dec&11 1B&Dec&11 1G&Dec&11 /F&Dec&11 /1&Dec&11 /4&Dec&11 /?&Dec&11 /B&Dec&11 11&Dec&11 <A@ 1?1.GF 1?F.BB 1?1.?? 1;G.1; 1;B.;F 1;A.G1 1;B.B; 1;B.A; 1;A.;; 1;G.AB 1;G.G4 1;G.F? 1?F.GA 1?/.?B 1?1.G; 1?1.FF 1?1.4B 1?4./G 1?1.?1 )'A< 7'TC7<S 1.FB &F.?1 F.4B &1.41 &F.;1 &F.1? F.;G &F.FA &F.A? 1.4/ F.1F &F.;; 1./F 1.F? F.AB &F.;B F./G F.;F &F.4/ F.11 -Y&YBA7. F.GA &F.A4 F.1? &1.;4 &F.?; &F.4B F.4A &F.1B &F.BA 1.1F &F.F/ &F.?? 1.FB F.G; F.?A &F.?G F.1B F.1B &F.;1 @A7'A<:' -Y&YBA7./ F.G4 F.;; F.11 /.1A F.4/ F./1 F.// F.F1 F.A? 1.?G F.FF F.44 1.1A F.GF F.44 F.4B F.F1 F.1; F./B F.;G SD

F.AA

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF ICICI INCOME FUND FOR THE MONTH OF DEC-2013
2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 -2.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of (:(:( income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. 7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 L6TAL (<:6)' e see the table the monthly mean is F.11 ith price variation of F.;G and risk factor being F.AA thus it can be said that risk is very

?1

8C<DS 867 T!' )6<T! 68 DC9I&/F11


S.<6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G /F Date /&Duly&11 1&Duly&11 4&Duly&11 ;&Duly&11 ?&Duly&11 G&Duly&11 1F&Duly&11 11&Duly&11 1/&Duly&11 11&Duly&11 1?&Duly&11 1A&Duly&11 1B&Duly&11 1G&Duly&11 /F&Duly&11 /1&Duly&11 /4&Duly&11 /;&Duly&11 /G&Duly&11 11&#uly&11 <A@ /A.1 /A.;/ /A.A? /A.B/ /A.A/ /A.4 /A.// /?.A /A./1 /A.A; /A.G /B.F1 /B.14 /B./? /B.F1 /B.FF /A.4/ /A.;; /A.AG /A.A/ )'A< 7'TC7< F.B1 F.BA F.// &F.1? &1.1; &F.?? &1.G1 1.GG 1.G1 F.;4 F.4A F.1G F.41 &F.B1 &F.11 &/.FA F.4A F.BA &F./; F.FG -Y&YBA7. F.A/ F.AG F.11 &F.4; &1./4 &F.A4 &/.FF 1.GF 1.B/ F.4; F.1B F.11 F.14 &F.GF &F.1G &/.1? F.1G F.AG &F.14 @A7(A<:' -Y& YBA7./ F.;/ F.?/ F.F/ F./F 1.;4 F.;; 1.GG 1.?1 1.11 F./1 F.14 F.FG F.1/ F.B1 F.F4 4.?; F.1; F.?/ F.11 1.1/ SD

1.F?

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF KOTAK INCOME FUND FOR THE MONTH OF JULY-2013
2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 -2.00 -2.50

Series1 1 3 5 7 9 11 13 15 17 19

The above graph represents the returns of L6TAL income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. 7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 L6TAL (<:6)' e see the table the monthly mean is F.FG ith price variation of 1.1/ and risk factor being 1.F? Thus it can be said that risk is very

?/

8C<DS 867 T!' )6<T! 68 AC=&/F11


S.<6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&Aug&11 /&Aug&11 1&Aug&11 ?&Aug&11 A&Aug&11 B&Aug&11 G&Aug&11 1F&Aug&11 11&Aug&11 14&Aug&11 1A&Aug&11 /1&Aug&11 //&Aug&11 /1&Aug&11 /?&Aug&11 /A&Aug&11 /B&Aug&11 /G&Aug&11 11&Aug&11 <A@ /A.; /A.A /A.B? /A.B? /B.F? /A.GB /A.4G /?.11 /?.11 /?.F4 /?.AA /?.G /?.?A /?.AG /?.41 /;.A; /;.AG /;.B1 /4.G? )'A< 7'TC7< &F.AG F.A1 F.;B F.FF F.A/ &F./G &1.A; &4./G &F.A? &F./A /.BF F.4G &F.B? F.4; &1.14 &/.;A F.1? F.FB &1./G &F.;4 -Y&YBA7. &F./? 1./A 1.1/ F.;4 1./? F./; &1./1 &1.A; &F.// F./A 1.14 1.F/ &F.1/ F.GG &F.B1 &/.F1 F.?G F.?/ &/.A? @A7(A<:' -Y& YBA7./ F.FA 1.?F 1./4 F./G 1.;B F.F? 1.4A 14.1F F.F; F.FA 11.1? 1.F; F.1F F.GB F.?; 4.14 F.4B F.1B A.;G /.4B SD

1.;A

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF KOTAK INCOME FUND FOR THE MONTH OF AUG-2013
4.00 3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 -4.00 -5.00

11

13

15

17

19

Series1

The above graph represents the returns of L6TAL income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is &F.;4 ith price variation of /.4B and risk factor being 1.;A. Thus it can be said that risk is very

?1

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 L6TAL (<:6)' 8C<DS 867 T!' )6<T! 68 S'P&/F11
S.<6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&Sep&11 4&Sep&11 ;&Sep&11 ?&Sep&11 A&Sep&11 G&Sep&11 1F&Sep&11 11&Sep&11 1/&Sep&11 11&Sep&11 14&Sep&11 1A&Sep&11 1B&Sep&11 /F&Sep&11 /1&Sep&11 /4&Sep&11 /;&Sep&11 /?&Sep&11 /B&Sep&11 <A@ /;.F? /4.4G /1./G /1.A1 /1.1; /4.1A /1.GA /4./A /4.?A /4.F; /4./1 /4.F; /4.1? /4.?4 /4.B; /;.41 /;.44 /;.1G /4.A? )'A< 7'TC7< F.4F &/./A &4.GF 1.BG &1.?F 1.;1 &F.B1 1./; 1.?; &/.;1 F.A; &F.A4 1./G 1.1; F.B; /./; F.1/ &F.GB &1.A1 &F.F/ -Y&YBA7. F.4/ &/./; &4.BB 1.G1 &1.;B 1.;1 &F.BF 1./A 1.?A &/.4G F.AA &F.A/ 1.11 1.1A F.BB /./B F.14 &F.G? &1.?B @A7'A<:' -Y&YBA7./ F.1B ;.FA /1.AB 1.?? /.4G 1/.4G F.?; 1.?/ /.AG ?./F F.?F F.;/ 1.A/ 1.1A F.AA ;.1B F.F/ F.G/ /.B4 1.B4 SD

1.G?

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAT REPRESENTATION OF RETURNS OF KOTAK INCOME FOND FOR THE MONTH OF SEP-2013
4.00 2.00 0.00 -2.00 -4.00 -6.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of L6TAL income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is &F.F/ ith price variation of 1.B4 and risk factor being 1.G? Thus it can be said that risk is very

?4

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 L6TAL (<:6)' 8C<DS 867 T!' )6<T! 68 6:T&/F11
S.<6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date /&6ct&11 1&6ct&11 4&6ct&11 ;&6ct&11 B&6ct&11 1F&6ct&11 11&6ct&11 1/&6ct&11 1;&6ct&11 1?&6ct&11 1A&6ct&11 1B&6ct&11 1G&6ct&11 //&6ct&11 /1&6ct&11 /4&6ct&11 /;&6ct&11 /?&6ct&11 /G&6ct&11 <A@ /4.FA /4./? /4.1G /4.?; /;./G /;.41 /;.41 /;.1 /?.F1 /?.;; /?./1 /?./4 /?.11 /?.G1 /?.BG /A.41 /A.;G /A.;; /A.F4 )'A< 7'TC7< &/.AG F.AG F.;4 1.FA /.?F F.4A F.FB &F.;1 /.B1 /.FB &1./1 F.F4 F.14 /./F &F.FA /.F1 F.;B &F.14 &1.B; F.4A -Y&YBA7. &1./? F.11 F.F? F.;G /.1/ F.FF &F.4F &F.GG /.11 1.?F &1.?B &F.44 &F.11 1.A1 &F.;; 1.;1 F.11 &F.?/ &/.11 @A7'A<:' -Y&YBA7./ 1F.?4 F.1F F.FF F.1; 4.;F F.FF F.1? F.GA ;.44 /.;? /.B/ F.1G F.F/ /.GG F.1F /.1; F.F1 F.1B ;.41 /.F? SD

1.44

GRAPHICAL REPRESENTATION OF RETURNS OF KOTAK INCOME FOND FOR THE MONTH OF OCT-2013
4.00 3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 -4.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of L6TAL income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is F.4A ith price variation of /.F? and risk factor being 1.44 Thus it can be said that risk is very

?;

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 L6TAL (<:6)' 8C<DS 867 T!' )6<T! 68 <6@&/F11
S.<6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&<ov&11 /&<ov&11 ;&<ov&11 ?&<ov&11 B&<ov&11 G&<ov&11 1/&<ov&11 11&<ov&11 1;&<ov&11 1?&<ov&11 1G&<ov&11 /F&<ov&11 /1&<ov&11 //&<ov&11 /1&<ov&11 /?&<ov&11 /A&<ov&11 /G&<ov&11 1F&<ov&11 <A@ /A.;G /A.1; /A.1G /?.GG /A./? /A.1; /A.11 /A.AA /A.G /B.;G /B.G4 /B.G4 /G./4 /G.1? /G.FA /B.B1 /G.F4 /G.1B /G.;G )'A< 7'TC7< /.F1 &F.BA &F.;G &F.A4 1.FF &F.4F F.?? 1.?1 F.4A /.4A 1.// F.FF 1.F4 F.41 &F.GG &F.B1 F.A1 1.1A F.A1 F.4B -Y&YBA7. 1.;; &1.1; &1.FA &1.// F.;/ &F.BB F.1B 1.11 &F.F1 1.GG F.A4 &F.4B F.;? &F.FA &1.4A &1.11 F./; F.?G F./1 @A7'A<:' -Y&YBA7./ /.41 1.B/ 1.11 1.4B F./A F.AB F.F1 1./B F.FF 1.GA F.;; F./1 F.11 F.FF /.1? 1.A1 F.F? F.4B F.F; F.GG SD

F.GG

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS GOF KOTAK INCOME FOND FOR THE MONTH OF NOV-2013
3.00 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50

Series1 1 3 5 7 9 11 13 15 17 19

The above graph represents the returns of L6TAL income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is F.4B ith price variation of F.GG and risk factor being F.GG thus it can be said that risk is very

??

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 L6TAL (<:6)' 8C<DS 867 T!' )6<T! 68 D':&/F11
S.<6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&Dec&11 4&Dec&11 ;&Dec&11 ?&Dec&11 A&Dec&11 1F&Dec&11 11&Dec&11 1/&Dec&11 11&Dec&11 14&Dec&11 1A&Dec&11 1B&Dec&11 1G&Dec&11 /F&Dec&11 /1&Dec&11 /4&Dec&11 /?&Dec&11 /B&Dec&11 11&Dec&11 <A@ /G.A /G.4G /G.?/ /B.BA /B.?/ /B.1; /B.4/ /B.1G /B.FB /B.A1 /B.A; /B.?A /G.1B /G.?G 1F.F4 1F.1/ 1F./1 1F.4 1F.1/ )'A< 7'TC7< F.1A &F.A1 F.44 &/.;1 &F.BA &F.G4 F./; &F.B1 &F.1G /./4 F.14 &F./B 1.AB 1.A; 1.1B F./A F.1F F.?1 &F./? F.11 -Y&YBA7. F./4 &F.B4 F.11 &/.?A &1.FF &1.FB F.11 &F.G4 &F.;/ /.11 F.FF &F.41 1.?4 1.?1 1.F4 F.11 F.1? F.4G &F.4F @A7'A<:' -Y&YBA7./ F.F? F.A1 F.FG A.11 1.FF 1.1? F.F1 F.BG F./B 4.4; F.FF F.1A /.AF /.?F 1.FG F.F/ F.F1 F./4 F.1? 1./F SD

1.FG

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETUNS OF KOTAK INCOME FOR THE MONTH OF DEC-2013
3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of L6TAL income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is F.11 ith price variation of 1./F and risk factor being 1.FG Thus it can be said that risk is very

?A

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 TATA (<:6)' 8C<DS 867 T!' )6<T! 68 DC9I&/F11
S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date /&Duly&11 1&Duly&11 4&Duly&11 ;&Duly&11 ?&Duly&11 G&Duly&11 1F&Duly&11 11&Duly&11 1/&Duly&11 11&Duly&11 1?&Duly&11 1A&Duly&11 1B&Duly&11 1G&Duly&11 /F&Duly&11 /1&Duly&11 /4&Duly&11 /;&Duly&11 /G&Duly&11 <A@ 11.1 11.// 11.1G 11.11 11.F1 1F.G1 1F.B1 1F.G/ 11.F; 11.1/ 11.1; 11./1 11.11 11./B 11.11 11.1A 11./4 11.1/ 11.1/ )'A< 7'TC7< F.G1 1.FB &F./A &F.;4 &F.GF &1.FG &F.G/ 1.F/ 1.1G F.?1 F./A F.A/ F.BG &F.44 F.44 &1.41 F.?1 F.A1 F.FF F.1; -Y&YBA7. F.A; F.G1 &F.4/ &F.?G &1.F; &1./4 &1.FA F.B? 1.F4 F.4B F.1/ F.;? F.A4 &F.?F F./G &1.;A F.4A F.;? &F.1; @A7'A<:' -Y&YBA7./ F.;A F.B? F.1B F.4B 1.11 1.;4 1.1; F.A; 1.FA F./1 F.F1 F.1/ F.;4 F.1; F.FB /.4; F.// F.11 F.F/ F.?4 SD

F.BF

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF TATA INCOME FUND FOR THE MONTH OF July-2013
1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 -2.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of TATA income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. 7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 TATA (<:6)' ?B e see the table the monthly mean is F.1; ith price variation of F.?4 and risk factor being F.BF thus it can be said that risk is very

8C<DS 867 T!' )6<T! 68 AC=&/F11


S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&Aug&11 /&Aug&11 1&Aug&11 ?&Aug&11 A&Aug&11 B&Aug&11 G&Aug&11 1F&Aug&11 11&Aug&11 14&Aug&11 1A&Aug&11 /1&Aug&11 //&Aug&11 /1&Aug&11 /?&Aug&11 /A&Aug&11 /B&Aug&11 /G&Aug&11 11&Aug&11 <A@ 11.1/ 11.4A 11.4G 11.44 11.;1 11.;1 11./B 1F.BA 1F.B/ 1F.B1 11.1 11.1/ 11.F? 11 1F.G1 1F.A 1F.AA 1F.A4 1F.11 )'A< 7'TC7< F.FF 1.11 F.1A &F.44 F.AG &F.1A &/.FF &1.?1 &F.4? F.FG /.4G F.1B &F.;4 &F.;4 &F.B/ &1.G/ F.?; &F./B &4.FF &F.4B -Y&YBA7. F.4B 1.BF F.?; F.F4 1./A F.11 &1.;/ &1.1? F.F/ F.;A /.GA F.?? &F.F? &F.F? &F.14 &1.4; 1.11 F./F &1.;/ @A7'A<:' -Y&YBA7./ F./1 1./? F.41 F.FF 1.?F F.FG /.11 G.G? F.FF F.11 B.B1 F.41 F.FF F.FF F.11 /.FG 1./B F.F4 1/.4/ /./G SD

1.;1

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF TATA INCOME FUND FOR THE MONTH OF AUG-2013
3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 -4.00 -5.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of TATA income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is &F.4B ith price variation of /./G and risk factor being 1.;1 thus it can be said that risk is very

?G

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 TATA (<:6)' 8C<DS 867 T!' )6<T! 68 S'P&/F11
S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&Sep&11 4&Sep&11 ;&Sep&11 ?&Sep&11 A&Sep&11 G&Sep&11 1F&Sep&11 11&Sep&11 1/&Sep&11 11&Sep&11 14&Sep&11 1A&Sep&11 1B&Sep&11 /F&Sep&11 /1&Sep&1/ /4&Sep&11 /;&Sep&11 /?&Sep&11 /B&Sep&11 <A@ 1F.44 1F.14 G.G4 G.GB G.B4 1F.1 1F.F? 1F.FA 1F.1G G.GG 1F.F/ G.G1 1F.F/ 1F.1/ 1F./1 1F.4 1F.4G 1F.41 1F./B )'A< 7'TC7< 1./? &F.G? &1.BA F.4F &1.4F /.?4 &F.4F F.1F 1.1G &1.G? F.1F &1.1F 1.11 1.FF F.BG 1.B? F.BA &F.;A &1.44 F.FF -Y&YBA7. 1./? &F.G; &1.B? F.41 &1.4F /.?; &F.1G F.1F 1./F &1.G? F.1F &1.FG 1.11 1.FF F.BG 1.B? F.BA &F.;A &1.41 @A7'A<:' -Y&YBA7./ 1.?F F.G1 14.G1 F.1A 1.G? A.FF F.1; F.F1 1.41 1.B4 F.FG 1./F 1./4 1.FF F.BF 1.4B F.A? F.1/ /.F? /./? SD

1.;F

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF TATA INCOME FUND FOR THE MONTH OF SEP-2013
3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 -4.00 -5.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of TATA income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is F.FF ith price variation of /./? and risk factor being 1.;F thus it can be said that risk is very

AF

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 TATA (<:6)' 8C<DS 867 T!' )6<T! 68 6:T&/F11
S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date /&6ct&11 1&6ct&11 4&6ct&11 ;&6ct&11 B&6ct&11 1F&6ct&11 11&6ct&11 1/&6ct&11 1;&6ct&11 1?&6ct&11 1A&6ct&11 1B&6ct&11 1G&6ct&11 //&6ct&11 /1&6ct&11 /4&6ct&11 /;&6ct&11 /?&6ct&11 /G&6ct&11 <A@ G.GB 1F.F; 1F.FG 1F.1B 1F.4 1F.4B 1F.;? 1F.;4 1F.A/ 1F.B1 1F.AG 1F.AG 1F.B1 1F.BB 1F.B; 11.FF 11.FG 11.F1 1F.G )'A< 7'TC7< &/.G/ F.AF F.4F F.BG /.1? F.AA F.A? &F.1G 1.A1 1.F1 &F.1A F.FF F.1G F.?; &F./B 1.1B F.B/ &F.A/ &1.FF F.11 -Y&YBA7. &1./1 F.1G F.FB F.;B 1.B; F.4; F.4; &F.;F 1.1G F.A1 &F.?B &F.11 &F.11 F.11 &F.;G 1.FA F.;F &1.F4 &1.11 @A7'A<:' -Y&YBA7./ 1F.4; F.1; F.F1 F.11 1.41 F./1 F./F F./; 1.G4 F.;1 F.4A F.1F F.F/ F.11 F.1; 1.14 F./; 1.FA 1.A1 1.1G SD

1.FG

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF TATA INCOME FUND FOR THE MONTH OF OCT-2013
3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 -4.00 1 3 5 7 9 11 13 15 17 19 Series1

The above graph represents the returns of TATA income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is F.11 ith price variation of 1.1G and risk factor being 1.FG thus it can be said that risk is very

A1

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 TATA (<:6)' 8C<DS 867 T!' )6<T! 68 <6@&/F11
S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&<ov&11 /&<ov&11 ;&<ov&11 ?&<ov&11 B&<ov&11 G&<ov&11 1/&<ov&11 11&<ov&11 1;&<ov&11 1?&<ov&11 1G&<ov&11 /F&<ov&11 /1&<ov&11 //&<ov&11 /1&<ov&11 /?&<ov&11 /A&<ov&11 /G&<ov&11 1F&<ov&11 <A@ 11./1 11.1/ 11./A 11.1B 11./? 11.14 11.41 11.;? 11.;1 11.?B 11.A; 11.A? 11.B? 11.G/ 11.G1 11.B4 11.G 1/ 1/.FB )'A< 7'TC7< /.B4 F.GB &F.44 &F.BF F.A/ F.A1 F.?/ 1.11 &F./? 1.1F F.?F F.FG F.B; F.;1 &F.FB &F.;G F.;1 F.B4 F.?A F.;; -Y&YBA7. /.1F F.44 &F.GG &1.14 F.1A F.1? F.FA F.AA &F.B1 F.A? F.F; &F.4? F.1F &F.F4 &F.?1 &1.11 &F.F4 F./G F.1/ @A7'A<:' -Y&YBA7./ ;./B F.1G F.GA 1.B1 F.F1 F.F1 F.F1 F.;G F.?; F.;A F.FF F./1 F.FG F.FF F.4F 1./B F.FF F.FG F.F1 F.?4 SD

F.BF

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF TATA INCOME FUND FOR THE MONTH OF NOV-2013
3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00

Series1

11

13

15

17

19

The above graph represents the returns of TATA income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is F.;; ith price variation of F.?4 and risk factor being F.BF thus it can be said that risk is very

A/

7'TC7<S, @A7(A<:', A<D STA<DA7D D'@(AT(6<, 68 TATA (<:6)' 8C<DS 867 T!' )6<T! 68 D':&/F11
S <6 1 / 1 4 ; ? A B G 1F 11 1/ 11 14 1; 1? 1A 1B 1G Date 1&Dec&11 4&Dec&11 ;&Dec&11 ?&Dec&11 A&Dec&11 1F&Dec&11 11&Dec&11 1/&Dec&11 11&Dec&11 14&Dec&11 1A&Dec&11 1B&Dec&11 1G&Dec&11 /F&Dec&11 /1&Dec&11 /4&Dec&11 /?&Dec&11 /B&Dec&11 11&Dec&11 <A@ 1/./ 1/.FB 1/.FG 11.GB 11.GA 11.BA 11.B; 11.A1 11.?; 11.B/ 11.G 11.B4 11.G; 1/.11 1/.1A 1/.1G 1/./1 1/./1 1/./; )'A< 7'TC7< F.GG &F.GB F.FB &F.G1 &F.FB &F.B4 &F.1A &1.F1 &F.?B 1.4? F.?B &F.;F F.G1 1.14 F.;F F.1? F.11 F.FF F.1? F.FB -Y&YBA7. F.G/ &1.F? F.F1 &F.GG &F.1? &F.G1 &F./4 &1.FG &F.A? 1.1B F.?F &F.;B F.B; 1./? F.4/ F.FG F./; &F.FB F.FG @A7'A<:' -Y&YBA7./ F.B4 1.1/ F.FF F.GA F.F1 F.B1 F.F? 1.1G F.;B 1.G1 F.1? F.14 F.A1 1.;G F.1B F.F1 F.F? F.F1 F.F1 F.;A SD

F.A;

=7AP!(:A9 7'P7'S'<TAT(6<
GRAPHICAL REPRESENTATION OF RETURNS OF TATA INCOME FUND FOR THE MONTH OF DEC-2013
2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 1 3 5 7 9 11 13 15 17 Series1

The above graph represents the returns of TATA income fund it sho s that there is continuous rise and fall in net asset value. (f high hen compared to returns. e see the table the monthly mean is F.FB ith price variation of F.;A and risk factor being F.A; thus it can be said that risk is very

A1

CORRELATION OF RETURNS BETWEEN KOTAK & TATA FROM JULY E 12 TO DECEMBER E 12


S;NO 1 / 2 J I L JUL AUG SEP OCT NOV DEC m% ' > KOT:>< 0;0H -0;IJ -0;0/ 0;JM 0;JK 0;12 0;10 m% ' Y TATA:Y< 0;1I -0;JK 0;00 0;21 0;II 0;0K 0;10 >C:>MEAN< -0;0/ -0;LJ -0;12 0;2M 0;2K 0;02 N> 0;00 YCY:-MEAN< 0;0I -0;IK -0;11 0;/1 0;JJ -0;0/ NY 0;00 >FY 0;00 0;2M 0;01 0;0K 0;1M 0;00 N>Y 0;L2 @G/ 0;00 0;J1 0;0/ 0;1J 0;1J 0;00 N@G/ 0;M1 YG/ 0;00 0;2J 0;01 0;0I 0;/0 0;00 NYG/ 0;IH

"#rr%$ &i#' ZYI N>G/NYG/ :677'9AT(6<- r . F.?1 0;J/ F.GA F.?;

GRAPHICAL REPRESENTATION OF KOTAK & TATA


CORRELATION OF RETURNS BET EEN KOTAK TATAFROM JULY-13 TO DEC-13 0.60 0.40 0.20 0.00 -0.20 -0.40 -0.60 1 2 3 4 5 6 KOT(x) TATA(y)

The above graph represents the correlation bet een L6TAL 5 TATAM it reveals that there e"ists a positive correlation bet een both the companies in the half of the year. !ere the correlation lies belo 1 hich indicates a good correlation, thus e can say that both the companies are going according to market conditions.

A4

CORRELATION OF RETURNS BETWEEN KOTAK & ICICI FROM JULY E 12 TO DECEMBER E 12


S NO 1 / 2 J I L KOTAK 0;0H -0;IJ -0;0/ 0;JM 0;JK 0;12 0;10 MEAN Y ICICI 0;JJ -0;2K -0;0/ 0;2M 0;2J 0;11 0;1J >C:>-MEAN< -0;0/ -0;LJ -0;12 0;2M 0;2K 0;02 N> 0;00 YC:Y-MEAN< 0;20 -0;I/ -0;1M 0;// 0;/0 -0;02 NY 0;00 >FY 0;00 0;22 0;0/ 0;0K 0;0M 0;00 N>Y 0;I1 >G/ 0;00 0;J1 0;0/ 0;1J 0;1J 0;00 N>G/ 0;M1 YG/ 0;0H 0;/M 0;02 0;0I 0;0J 0;00 NYG/ 0;JK

JUL AUG SEP OCT NOV DEC MEAN >

:677'9AT(6< ZYI N>G/NYG/ :677'9AT(6<- r . F.;1 0;2J F.BA1/A; F.;B1;11B4/

GRAPHICAL REPRESENTATION OF KOTAK & ICICI


CORRELTION OF RETURNS BET EEN KOTAK ! ICICI FOR THE PERIOD OF JULY-13 TO DEC-13
0.60 0.40 0.20 0.00 -0.20 -0.40 -0.60 1 2 3 4 5 6 Series1 Series2

The above graph represents the correlation bet een L6TAL 5 (:(:(M it reveals that there e"ists a positive correlation bet een both the companies in the half of the year. !ere the correlation lies belo 1 hich indicates a good correlation, thus e can say that both the companies are going according to market conditions.

A;

CORRELATION OF RETURNS BETWEEN ICICI & TATA FROM JULY E 12 TO DECEMBER E 12


S NO 1 / 2 J I L ICICI JUL AUG SEP OCT NOV DEC MEAN > 0;JJ -0;2K -0;0/ 0;2M 0;2J 0;11 0;1J MEAN Y TATA 0;1I -0;JK 0;00 0;21 0;II 0;0K 0;10 >C:>-MEAN< 0;20 -0;I/ -0;1M 0;// 0;/0 -0;02 N> 0;00 YC:Y-MEAN< 0;0I -0;IK -0;11 0;/1 0;JJ -0;0/ NY 0;00 >FY 0;0/ 0;20 0;0/ 0;0I 0;0H 0;00 N>Y 0;JM >G/ 0;0H 0;/M 0;02 0;0I 0;0J 0;00 N>G/ 0;JK YG/ 0;00 0;2J 0;01 0;0I 0;/0 0;00 NYG/ 0;IH

:677'9AT(6< ZYI N>G/NYG/ :677'9AT(6<- r . F.4A 0;/K F.BB?1?/ F.;1/;/;/?B

GRAPHICAL REPRESENTATION OF ICICI & TATA


CORRELTION OF RETURNS BET EEN ICICI ! TATA FOR THE PERIOD OF JULY -13 TO DEC -13 1.00 0.50 0.00 -0.50 -1.00 1 2 3 4 5 6 Series1 Series2

The above graph represents the correlation bet een ICICI & TATAM it reveals that there e"ists a positive correlation bet een both the companies in the first of the year. !ere the correlation lies belo 1 hich indicates a good correlation, thus e can say that both the companies are going according to market conditions.

A?

CHAPTER-V
FINDINGS SUGGESSIONS CONCLUSIONS BIBLIOGRAPHY

FINDINGS
AA

The correlation bet een (:(:( 5 L6TALM it reveals that there e"ists a positive correlation bet een both the companies in the second half of the year. !ere the correlation lies belo 1 hich indicates a good correlation, thus e can say that both the companies are going according to market conditions.

:orrelation bet een (:(:( 5 L6TALM it reveals that there e"ists a positive correlation bet een both the companies in the half of the year. !ere the correlation lies belo 1 hich indicates a good correlation, thus e can say that both the companies are going according to market conditions.

The correlation bet een L6TAL 5 TATAM it reveals that there e"ists a positive correlation bet een both the companies in the second half of the year. !ere the correlation lies belo 1 hich indicates a good correlation, thus e can say that both the companies are going according to market conditions.

The correlation bet een L6TAL 5 TATAM it reveals that there e"ists a positive correlation bet een both the companies in the half of the year. !ere the correlation lies belo 1 hich indicates a good correlation, thus e can say that both the companies are going according to market conditions

The correlation bet een (:(:( 5 TATAM it reveals that there e"ists a positive correlation bet een both the companies in the second half of the year. !ere the correlation lies belo 1 hich indicates a good correlation, thus e can say that both the companies are going according to market conditions.

The correlation bet een (:(:( 5 TATAM it reveals that there e"ists a positive correlation bet een both the companies in the half of the year. !ere the correlation lies belo 1 hich indicates a good correlation, thus e can say that both the companies are going according to market conditions

CONCLUSION
AB

(n the si" month Duly & dec there e"ists a positive correlation bet een kotak 5Tata - F.GA. (n the first half year Duly & dec there e"ists a positive correlation bet een kotak 5icici -F.BA1/A;. (n the first si" month Duly & dec there e"ists a positive correlation bet een icici 5Tata -F.BB?1?/.

AG

SUGGESTIONS
Select your investments on economic grounds. Buy stock ith a disparity and discrepancy bet een the situation of the firm & and the e"pectations and appraisal of the public -:ontrarian approach vs. :onsensus approach.. Buy stocks in companies ith potential for surprises. Take advantage of volatility before reaching a ne e3uilibrium. DonQt put your trust in only one investment. (t is like +putting all the eggs in one basket +. This ill help lessen the risk in the long term. The investor must select the right advisory body about the product hich they are offering. Professionali$ed advisory is the most important feature to the investors. Professionali$ed research, analysis risk to overcome. hich ill be helpful for reducing any kind of hich is has sound kno ledge

BF

BIBILOGRAPHY

1.S':C7(TI A<A9IS(S A<D P67T869(6 )A<A=')'<T &donald.'.8isher,7onald.D.Dordan /.(<@'ST)'<TS &2illiam .8.Sharpe,gordon,D Alle"ander and Deffery.@.Baily 1.P67T869(6)A<A=')'<T &Strong 7.A

WEB REFERENCES http; !!!"nseindia"com http; http; http; http; !!!"bseindia"com !!!"economictimes"com !!!"ans!ers"com !!!"ing"com

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