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anual intervention and executed thereon in a matter of a few seconds.

There are 2 types of online trading service: discount brokers and full service online broker. Discount online
brokers allow you to trade via Internet at reduced rates. Some provide quality research, other dont. Full
service online brokerage is linked to existing brokerages. These brokers allow their clients to place online
orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher.
5Paisa.com,

ICICIDirect.com,

IndiaBulls.com,

sharekhan.com,

HDFCsec.com,

Tatatdw.com,

HMRstreet.com are some of the online broking sites in India.

Stock Market
With the backing of the World Bank group, many developing countries started giving prominence to stock
markets for financing enterprises and allocation of savings. In India too, the process started in the early
eighties. In the wake of increased pace of economic liberalization initiated in 1991, the Capital Issues
Control Act, 1947, which till then regulated the issue and pricing of new capital, was done away with and
even greater emphasis was placed on the stock market. As a part of the measures to develop the stock market
and liberalization of the external sector, foreign institutional investors were invited to trade directly on the
Indian stock exchanges. The main expectations were that the market would help corporate raise resources
directly from investors, help attract foreign portfolio capital and facilitate the process of privatization. The
entry of foreign portfolio/institutional investors (FIIs) was expected to broaden the base of the market and
also help in the markets development by forcing developing country governments to follow consistent and
market friendly policies. Through their expert analysis and research, FIIs were expected to help in better
price discovery. Since 1991, a number of measures at improving share trading and delivery mechanisms and
investor protection ranging from more periodic disclosures, takeover regulations, insider trading rules,
corporate governance code, etc. have been introduced by the Securities and Exchange Board of India
( SEBI), the market regulator.

PARTIES INVOLVED IN SHARE TRADING


1.

BOMBAY STOCK EXCHANGE (BSE)

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known
as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock
exchange in the country to obtain permanent recognition in 1956 from the Government of India under the
Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development
of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an
Association of Persons (AOP), the Exchange is now a demutualised and corporative entity incorporated
under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and
Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).
The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and
processes of the Exchange are designed to safeguard market integrity and enhance transparency in
operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth.
The Exchange provides an efficient and transparent market for trading in equity, debt instruments and
derivatives. The BSE's On Line Trading System (BOLT) is a proprietary system of the Exchange and is BS
7799-2-2002 certified. The surveillance and clearing & settlement functions of the Exchange are ISO
9001:2000 certified.

2. NATIONAL STOCK EXCHANGE (NSE)


Capital market reforms in India have outstripped the process of liberalization in most other sectors of the
economy. However, the creation of an independent capital market regulator was the initiation of this reform
process. After the formation of the Securities Market regulator, the Securities and Exchange Board of India
(SEBI), attention were drawn towards the inefficiencies of the bourses and the need was felt for better
regulation, discipline and accountability. A Committee recommended the creation of a 2nd stock exchange in
Mumbai called the "National Stock Exchange". The Committee suggested the formation of an exchange
which would provide investors across the country a single, screen based trading platform, operated through a
VSAT network.

It was on this recommendation that setting up of NSE as a technology driven exchange was conceptualized.
NSE has set up its trading system as a nation-wide, fully automated screen based trading system. It has
written for itself the mandate to create a world-class exchange and use it as an instrument of change for the
industry as a whole through competitive pressure. NSE was incorporated in 1992 and was given recognition
as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt
Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading
platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments.
NSE was set up with the objectives of:
(a) Establishing a nationwide trading facility for all types of securities;
(b) Ensuring equal access to investors all over the country through an appropriate communication network;
(c) Providing a fair, efficient and transparent securities market using electronic trading system;
(d) Enabling shorter settlement cycles and book entry settlements; and
(e) Meeting international benchmarks and standards.
NSE has been able to take the stock market to the doorsteps of the investors. The technology has been
harnessed to deliver the services to the investors across the country at the cheapest possible cost. It provides
a nation-wide, screen-based, automated trading system, with a high degree of transparency and equal access
to investors irrespective of geographical location. The high level of information dissemination through online system has helped in integrating retail investors on a nation-wide basis. The standards set by the
exchange in terms of market practices, products, technology and service standards have become industry
benchmarks and are being replicated by other market participants.
Within a very short span of time, NSE has been able to achieve all the objectives for which it was set up. It
has been playing a leading role as a change agent in transforming the Indian Capital Markets to its present
form. The Indian Capital Markets are a far cry from what they used to be a decade ago in terms of market
practices, infrastructure, technology, risk management, clearing and settlement and investor service.

FUTURE OUTLOOK

With increasing globalisation and consolidation amongst exchanges, the future of the regional stock
exchanges, around 22 in India, is likely to be very uncertain and even their very survival is a question mark.
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SEBI has permitted the regional exchanges to form subsidiary companies, which are akin to super brokers.
These companies have acquired membership of both BSE and NSE at confessional entry fees and permitted
their members to trade on the BSE and NSE thus increasing trade volumes and business in both BSE and
NSE.
The stock markets of the future will have a redefined purpose and reinvented architecture due to the advent
and widespread use of technology. Information and stock price quotations are available almost
instantaneously and more importantly investors can act on this data by executing a trade from anywhere at
any time.
This new market will bring benefits to investors, listed companies, and the economies of countries. Trading
will be cheaper, faster and settlement will be simpler and with reduced risk. Raising capital for companies
will be easier, thus contributing directly to economic expansion.
The leaders in this new world of investing will be the ones willing to be agents of change, to best meet the
needs of investors and companies, and to do what is best for these two principal stakeholders in the capital
markets.
If done right, the stock markets of the future will be even better vehicles than today in helping companies
grow, creating jobs, providing fair investment opportunities for people, and in improving economies.
Both the exchanges, BSE and NSE, are visionary, proactive and increasingly use leading-edge technologies
to effectively compete in the global environment.

1.2

PROFILE OF EDELWEISS

Edelweiss is one of the leading financial services company in India. Its current businesses include
investment banking, securities broking, and investment management. It provides a wide range of services to
corporations, institutional investors and high net-worth individuals.

1.3 Evolution of the company:

The Edelweiss Group is a conglomerate of 31 entities including 28 Subsidiaries and 2 Associate companies,
engaged in the business of providing financial services, primarily linked to the capital markets. It operates
from 43 other offices in 19 Indian cities. Since its commencement of business in 1996, it has grown into a
diversified Indian financial services company organized under agency and capital business lines operated by
the Company and its thirteen subsidiaries. The Managing Director and C.E.O of the company is Mr.Rashesh
Shah. Edelweiss Capital Limited (www.edelcap.com), incorporated in 1995, today has emerged as one of
Indias leading integrated financial services conglomerates. The Edelweiss group offers one of the largest
ranges of products and services spanning varied asset classes and diversified consumer segments. Its
businesses are broadly divided into Investment Banking, Asset Management, Broking Services and Loans.
The companys research driven approach and consistent ability to capitalize on emerging market trends has
enabled it to foster strong relationships across corporate, institutional and HNI clients. Edelweiss Capital
Limited employs over 1500 employees, leveraging a strong partnership culture and unique model of
employee ownership
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1.4 Organizational structure

The Board comprises of four independent and two non-executive directors out of a total of eight directors,
each of whom brings in his own expertise in diverse areas. The focus is on strong corporate governance.
There is an Independent Risk Committee headed by an external director.
4.2.1 BOARD OF DIRECTORS
The Board comprises of four independent and two non-executive directors out of a total of eight directors,
each of whom brings in his own expertise in diverse areas. The focus is on strong corporate governance.
There is an Independent Risk Committee headed by an external director.

4.3 Financial Performance at a Glance


Edelweiss over the past few years has delivered strong operating and financial performance. It has a strong
track record of high growth and profitability. Our revenues have grown at a 4-year CAGR of 149% while our
net profits have increased at a 4-year CAGR of 143% upto March 08. As on March 31, 2008 Edelweiss
Group Net worth stood at over Rs. 23 billion including minority interest, indicating a strong balance sheet.
Equity capital is the primary source of funding for the company besides debt. The leverage as on 31st March
2008 is below 1:1 indicating the healthy position whereby the balance sheet can be further levered easily for
improving the ROEs.

4.3.1 Consolidated Financial Performance of Edelweiss Capital Limited

4.4 Business Overview


Edelweiss operations are broadly divided into Agency and Capital business lines. The strategies employed
ensure that the divide would broadly remain equal among the two. The Agency business line includes
Investment Banking, Broking - both Institutional and HNI, Asset management and Investment advisory
services. The Capital business line includes Lending and Treasury Operations.

4.4.1 Investment Banking


Edelweiss has one of the most extensive product offerings within Investment Banking in India, catering to
different market and client segments. The verticals within Investment Banking include Equity Capital
Markets, Mergers & Acquisitions Advisory, Private Equity Syndication, Structured Finance Advisory, Real
Estate Advisory and Infrastructure Advisory.

4.4.2 Broking
Institutional Equities
Edelweiss has one of the leading institutional equities businesses in India backed by a large and experienced
research team and a large and diversified client base. Intense servicing, seamless execution and innovative
research products have helped Edelweiss build strong relationships with over 300 institutional investors,
including FIIs and domestic institutional investors. Research coverage presently extends to over 200
companies across 19 sectors.
Private Client Broking
Edelweiss offers dedicated brokerage services to high net-worth individuals with a strong emphasis on
building long-term relationships with clients. Product offerings include specialized trading execution for
active trading clients and structured products like equity linked capital protection products.

Wealth Management
The Primary focus is on understanding each HNI client's profile including life style, risk appetite, growth
expectations, current financial position and income requirements to create comprehensive and tailored
investment strategies. Edelweiss offers customized products along with practice models and advisory teams
specializing in servicing the underserved NRI segment. The broad range of offerings includes asset
allocation
advisory to Structured Products, Portfolio Management, Mutual Funds, Insurance, Derivatives Strategies,
Direct Equity, Private Equity, and Real Estate Funds etc.

Asset Management
Alternative Asset Management focuses on advisory/management expertise for Private Equity Fund, India
focused Multi-Strategy Fund, Real Estate Fund and a Bonds Fund. Recent Initiatives that have been
announced include setting up an ARC and a Distressed Assets Fund. On the Domestic AMC side, Edelweiss
Mutual Fund has launched two Debt Funds, one Liquid Fund and one ELSS Fund.

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Treasury
The Treasury Operations in Edelweiss is similar to that of a Treasury in a Commercial Bank and focuses on
liquidity management and yield optimization. This division has adopted a multistrategy/multi-book
approach to diversify and grow its portfolio while imparting liquidity in the balance sheet. The Company
follows a disciplined and conservative approach to cash management with emphasis on strong risk policies
and capital preservation.

Lending
With a deep knowledge and understanding of capital markets, the Companys primary offering in the lending
business includes products such as promoter funding, loan against shares, IPO financing, Loan against
ESOPs etc. Its prudent financing norms and a conservative margin of safety ensures low or nil non
performing loans.

Financial Products Distribution


Among the recent initiatives, Financial Products Distribution focuses on giving advice and analyzing the
best financial product options available in the market. It involves the distribution of the full range of third
party financial products and services for the retail customer.

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COMPETITORS INFORMATION
ICICIDIRECT.COM

Products and Services


A product for every need: ICICIdirect.com is the most comprehensive website, which allows you to invest in
Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. Simply put we offer
you a product for every investment need of yours.
ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited
and the Website is owned by ICICI Bank
Limited
Product & Services :
1.Trading in shares:ICICIdirect.com offers you various options while trading in shares.
Cash Trading: This is a delivery based trading system, which is generally done with the intention of taking
delivery of shares or monies.
Margin Trading: You can also do an intra-settlement trading upto 3 to 4 times your available funds,
wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within
the same day settlement cycle. (ONLY for intraday)
Margin PLUS Trading: Through Margin PLUS you can do an intra-settlement trading upto 25 times your
available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off
the position within the same day settlement cycle. Margin PLUS will give a much higher leverage in your
account against your limits.
Spot Trading: When you are looking at an immediate liquidity option, 'Cash on Spot' may work the best for
you, On selling shares through "cash on spot", money is credited to your bank a/c the same evening & not on
the exchange payout date. This money can then be withdrawn from any of the ICICIBank ATMs.
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BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1 st and 2nd day
after the buy order date, without you having to wait for the receipt of shares into your demat account.
CallNTrade: CallNTrade allows you to call on a local number in your city & trade on the telephone
through our Customer Service Executives. This facility is currently available in over 11 major states across
India.
Trading on NSE/BSE: Through ICICIdirect.com, you can trade on NSE as well as BSE.
2. TRADE IN DERIVATIVES:
FUTURES
Through ICICIdirect.com, you can now trade in index and stock futures on the NSE. In futures trading, you
take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months.
Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for
futures trading.
Calculate Index and Know your Margin are tools to help you in calculating your margin requirements and
also the index & stock price movements..
OPTIONS
To take the buy/sell position on index/stock options, you have to place certain % of order value as margin.
With options trading, you can leverage on your trading limit by taking buy/sell positions much more than
what you could have taken in cash segment.
3. Mutual Funds:
4. IPOs and Bonds Online:
You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of
filling ANY application form/ paperwork.
Get in-depth analyses of new IPOs issues (Initial Public Offerings), which are about to hit the market and
analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents, and IPO analysis are few of
the features, which help you, keep on top of the IPO markets.
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INDIA BULLS

Indiabulls Group is one of the top business houses in the country with business interests in Real Estate,
Infrastructure, Financial Services, Retail, Multiplex and Power sectors. Indiabulls Group companies are
listed in Indian and overseas markets and have a market capitalization of over USD 7 billion. The Networth
of the Group exceeds USD 2.5 billion. Indiabulls Group companies enjoy highest ratings from CRISIL, a
subsidiary of Standard and Poors. Indiabulls has been conferred the status of a Business Superbrand by
The Brand Council, Superbrands India.
Indiabulls Financial Services is an integrated financial services powerhouse providing Consumer Finance,
Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services. Indiabulls
Financial Services Ltd is amongst 68 companies constituting MSCI - Morgan Stanley India Index. Indiabulls
Financial is also part of CLSAs model portfolio of 30 Best Companies in Asia. Indiabulls Financial Services
signed a joint venture agreement with Sogecap, the insurance arm of Societ Generale (SocGen) for its
upcoming life insurance venture. Indiabulls Financial Services in partnership with MMTC Limited, the
largest commodity trading company in India, is setting up Indias 4th Multi-Commodities Exchange.

Indiabulls Real Estate Limited is Indias third largest property company with development projects
spread across residential projects, commercial offices, hotels, malls, and Special Economic Zones (SEZs)
infrastructure development. Indiabulls Real Estate partnered with Farallon Capital Management LLC of
USA to bring the first FDI into real estate. Indiabulls Real Estate is transforming 14 million sqft in 16 cities
into premium quality, high-end commercial, residential and retail spaces. Indiabulls Real Estate has
diversified significantly in the following three business verticals within the real estate space: Real Estate
Development, Project Advisory & Facilities Management: Residential, Commercial (Office and Malls)
and SEZ Development. Power: Thermal and Hydro Power Generation. Retail: Departmental Stores,
Hypermarket Stores, Daily Needs Neighborhood Stores.
Indiabulls Securities Limited is Indias leading capital markets company with All-India Presence and an
extensive client base. Indiabulls Securities possesses state of the art trading platform, best broking practices
and is the pioneer in trading product innovations. Power Indiabulls, in-house trading platform, is one of the
fastest and most efficient trading platforms in the country. Indiabulls Securities Limited is the first and only
brokerage house to be assigned the highest rating BQ 1 by CRISIL.
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S.W.O.T. ANALYSIS OF EDELWEISS LIMITED


STRENGTHS

The `do-it-yourself' framework of online share trading offers retail investors the three benefits of
transparency, access and efficiency. Paperwork diminishes significantly, and no more painful trips to your
broker to check if everything's in order. Online trading has made it possible to universalize access to retail
investors. This was earlier very difficult, as the cost of servicing often-outweighed transaction volumes.
Online brokerage ranges between 0.05-0.20 per cent of the value of transactions for non-delivery-based
trades, and between 0.25-0.95 per cent for delivery-based trades. Once major investments in online
infrastructure are over and done with - and with the economies of scale coming into play - it is expected that
brokerage rates would head further downwards.

Access to online trading and latest financial happenings, apart from quotes and unbiased investment
analyses, all consolidate into a value-added product mix in tandem with evolving markets that are freer and
fairer. The Net result: An inquisitive, informed and demanding investor. Today's investor is more involved in
managing his or her assets and analyzing a vast array of investment options. Technology and today's enabled
investor have, in turn, driven competition, resulting in reduced costs of trading, transparency in dealings, and
pricing info that is accurate and real-time. More and more investors now want to know how their trades are
executed, and whether they have received the best possible price. Critical components of execution quality
include the prices at which orders were executed as well as the speed of execution. The quality of execution,
in turn, hinges on efficient order routing. We owe this to our investor fraternity.

Weakness

Everything in the world has a flip side to it - Transaction velocity is crucial. And more often than not,
connections are lousy. There's also a degree of investor skepticism about online payment and settlement
mechanisms in spite of all the encryption and fire walling brought into play. Time and technology will soon
assuage these concerns, which hark back to the `physical' days.
The three main technology obstacles which have prevented Internet broking from taking off are:

Lack of Internet penetration

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Bandwidth infrastructure

Poor quality of ISP infrastructure.

Opportunities

You have some money to dabble with. Trading shares on BSE/NSE has always been your
dream. When will you ever find the time? And besides, the hassle of finding a broker is not easy. This is your
main opportunity.

Realizing there is untapped market of investors who want to be able to execute their own
trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers,
they allow you to buy and sell shares via Internet.

There are 2 types of online trading service: discount brokers and full service online broker.
Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other
dont. Full service online brokerage is linked to existing brokerages. These brokers allow their clients to place
online orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are
higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Geojit securities.com, HDFCsec.com,
Tatatdw.com, Kotakstreet.com are some of the online broking sites in India.

And daily trading turnover is estimated in the vicinity of 0.75 per cent of the combined BSE
and NSE daily turnover of about RS 11,000 crore!!! The point is, there's tremendous scope for growth.
Especially when you consider the US, where trading over the Net accounts for about 55 per cent of the total
volumes. And, I believe, in some Asian markets the figures as high as 70 per cent.

Threats

On to some threat perception - Domestic funds, foreign institutional investors and operators comprise the
three main market constituents. And all three include term investors as well as opportunists in their pecking
order. Some, for instance, hitch their fate with what the FIIs are up to. All this spells spurting volumes. But
nobody gives a damn about the resultant volatility.

And some, not all, offer free investment advice over the Net to lure rookie investors with misleading
information. Prices of scripts can also be influenced to the advantage of vested interests, courtesy the Net.

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Unlike in the US, stockbrokers out here willingly (or under the force of circumstance) assume the role of
`advisors',

1.3

INTRODUCTION ABOUT THE TOPIC

Portfolio (finance) means a collection of investments held by an institution or a private individual. Holding a
portfolio is often part of an investment and risk-limiting strategy called diversification. By owning several
assets, certain types of risk (in particular specific risk) can be reduced. There are also portfolios which are
aimed at taking high risks these are called concentrated portfolios.
Investment management is the professional management of various securities (shares, bonds etc) and other
assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. Investors may be
institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via
investment contracts and more commonly via collective investment schemes e.g. mutual funds).
The term asset management is often used to refer to the investment management of collective investments,
whilst the more generic fund management may refer to all forms of institutional investment as well as
investment management for private investors. Investment managers who specialize in advisory or
discretionary management on behalf of (normally wealthy) private investors may often refer to their services
as wealth management or portfolio management often within the context of so-called "private banking".
The provision of 'investment management services' includes elements of financial analysis, asset selection,
stock selection, plan implementation and ongoing monitoring of investments. Outside of the financial
industry, the term "investment management" is often applied to investments other than financial instruments.
Investments are often meant to include projects, brands, patents and many things other than stocks and
bonds. Even in this case, the term implies that rigorous financial and economic analysis methods are used.

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Need of PMS
As in the current scenario the effectiveness of PMS is required. As the PMS gives investors periodically
review their asset allocation across different assets as the portfolio can get skewed over a period of time.
This can be largely due to appreciation / depreciation in the value of the investments.
As the financial goals are diverse, the investment choices also need to be different to meet those needs. No
single investment is likely to meet all the needs, so one should keep some money in bank deposits and /
liquid funds to meet any urgent need for cash and keep the balance in other investment products/ schemes
that would maximize the return and minimize the risk. Investment allocation can also change depending on
ones risk-return profile.

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Objective of PMS
There are the following objective which is full filled by Portfolio Management Services.

1. Safety Of Fund: The investment should be preserved, not be lost, and should remain in the returnable position in cash or kind.

2. Marketability: The investment made in securities should be marketable that means, the securities must be listed and traded
in stock exchange so as to avoid difficulty in their encashment.

3. Liquidity: The portfolio must consist of such securities, which could be en-cashed without any difficulty or
involvement of time to meet urgent need for funds. Marketability ensures liquidity to the portfolio.

4. Reasonable return: The investment should earn a reasonable return to upkeep the declining value of money and be compatible
with opportunity cost of the money in terms of current income in the form of interest or dividend.
5. Appreciation in Capital: The money invested in portfolio should grow and result into capital gains.
6. Tax planning: Efficient portfolio management is concerned with composite tax planning covering income tax, capital gain
tax, wealth tax and gift tax.
7. Minimize risk: Risk avoidance and minimization of risk are important objective of portfolio management. Portfolio
managers achieve these objectives by effective investment planning and periodical review of market,
situation and economic environment affecting the financial market.

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MYTHS ABOUT PMS

There are two most common myths found about Portfolio Management Services (PMS) which we found
among most of the Investors. They are as follows.

Myth No. 1: PMS and Mutual Fund are Similar as the investment option

As in the Finance Basket both the PMS and Mutual Fund are used for minimizing risk and maximize the
profit of the Investors. The objectives are similar as in both the product but they are different from each other
in certain aspects. They are as follows.
Management Side
In PMS, its ongoing personalized access to professional money management services. Whereas, in Mutual
fund gives personalize access to money.
Customization
In PMS, Portfolio can be tailored to address each investor's specific needs. Whereas in Mutual Fund
Portfolio structured to meet the fund's stated investment objectives.
Ownership
In PMS, Investors directly own the individual securities in their portfolio, allowing for tax management
flexibility, whereas in Mutual Fund Shareholders own shares of the fund and cannot influence buy and sell
decisions or control their exposure to incurring tax liabilities.
Liquidity
In PMS, managers may hold cash; they are not required to hold cash to meet redemptions, whereas, Mutual
funds generally hold some cash to meet redemptions.

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Minimums
PMS generally gives higher minimum investments than mutual funds. Generally, minimum ranges from: Rs.
1 Crore + for Equity Options Rs. 5 Crore + for Fixed Income Options Rs. 20 Lacs + for Structured Products,
whereas in Mutual Fund Provide ongoing, personalized access to professional money management services.

Flexibility
PMS is generally more flexible than mutual funds. The Portfolio Manager may move to 100% cash if it
required. The Portfolio Manager may take his own time in building up the portfolio. The Portfolio Manager
can also manage a portfolio with disproportionate allocation to select compelling opportunities whereas, in
Mutual Fund comparatively less flexible.

Myth No. 2:

PMS is more Risk free than other Financial Instrument

In Financial Market Risk factor is common in all the financial products, but yes it is true that Risk Factor
vary from each other due to its nature. All investments involve a certain amount of risk, including the
possible erosion of the principal amount invested, which varies depending on the security selected . For
example, investments in small and mid-sized companies tend to involve more risk than investments in larger
companies.

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PORTFOLIO CONSTRUCTION
The Portfolio Construction of Rational investors wish to maximize the returns on their funds for a given
level of risk. All investments possess varying degrees of risk. Returns come in the form of income, such as
interest or dividends, or through growth in capital values (i.e. capital gains).
The portfolio construction process can be broadly characterized as comprising the following steps:
1. Setting objectives.
The first step in building a portfolio is to determine the main objectives of the fund given the constraints (i.e.
tax and liquidity requirements) that may apply. Each investor has different objectives, time horizons and
attitude towards risk. Pension funds have long-term obligations and, as a result, invest for the long term.
Their objective may be to maximize total returns in excess of the inflation rate. A charity might wish to
generate the highest level of income whilst maintaining the value of its capital received from bequests. An
individual may have certain liabilities and wish to match them at a future date. Assessing a clients risk
tolerance can be difficult. The concepts of efficient portfolios and diversification must also be considered
when setting up the investment objectives.
2. Defining Policy.
Once the objectives have been set, a suitable investment policy must be established. The standard procedure
is for the money manager to ask clients to select their preferred mix of assets, for example equities and
bonds, to provide an idea of the normal mix desired. Clients are then asked to specify limits or maximum
and minimum amounts they will allow to be invested in the different assets available. The main asset classes
are cash, equities, gilts/bonds and other debt instruments, derivatives, property and overseas assets.
Alternative investments, such as private equity, are also growing in popularity, and will be discussed in a
later chapter. Attaining the optimal asset mix over time is one of the key factors of successful investing.
3. Applying portfolio strategy.
At either end of the portfolio management spectrum of strategies are active and passive strategies. An active
strategy involves predicting trends and changing expectations about the likely future performance of the
various asset classes and actively dealing in and out of investments to seek a better performance. For
example, if the manager expects interest rates to rise, bond prices are likely to fall and so bonds should be
sold, unless this expectation is already
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factored into bond prices. At this stage, the active fund manager should also determine the style of the
portfolio. For example, will the fund invest primarily in companies with large market capitalizations, in
shares of companies expected to generate high growth rates, or in companies whose valuations are low? A
passive strategy usually involves buying securities to match a preselected market index. Alternatively, a
portfolio can be set up to match the investors choice of tailor-made index. Passive strategies rely on
diversification to reduce risk. Outperformance versus the chosen index is not expected. This strategy requires
minimum input from the portfolio manager. In practice, many active funds are managed somewhere between
the active and passive extremes, the core holdings of the fund being passively managed and the balance
being actively managed.
4. Asset selections.
Once the strategy is decided, the fund manager must select individual assets in which to invest. Usually a
systematic procedure known as an investment process is established, which sets guidelines or criteria for
asset selection. Active strategies require that the fund managers apply analytical skills and judgment for asset
selection in order to identify undervalued assets and to try to generate superior performance.
5. Performance assessments
In order to assess the success of the fund manager, the performance of the fund is periodically measured
against a pre-agreed benchmark perhaps a suitable stock exchange index or against a group of similar
portfolios (peer group comparison). The portfolio construction process is continuously iterative, reflecting
changes internally and externally. For example, expected movements in exchange rates may make overseas
investment more attractive, leading to changes in asset allocation. Or, if many large-scale investors
simultaneously decide to switch from passive to more active strategies, pressure will be put on the fund
managers to offer more active funds. Poor performance of a fund may lead to modifications in individual
asset holdings or, as an extreme measure; the manager of the fund may be changed altogether.

23

Steps to Stock Selection Process

Types of Assets
The structure of a portfolio will depend ultimately on the investors objectives and on the asset selection
decision reached. The portfolio structure takes into account a range of factors, including the investors time
horizon, attitude to risk, liquidity requirements, tax position and availability of investments. The main asset
classes are cash, bonds and other fixed income securities, equities, derivatives, property and overseas assets.

Cash and cash instruments


Cash can be invested over any desired period, to generate interest income, in a range of highly liquid or
easily redeemable instruments, from simple bank deposits, negotiable certificates of deposits, commercial
paper (short term corporate debt) and Treasury bills (short term government debt) to money market funds,
24

which actively manage cash resources across a range of domestic and foreign markets. Cash is normally held
over the short term pending use elsewhere (perhaps for paying claims by a non-life insurance company or
for paying pensions), but may be held over the longer term as well. Returns on cash are driven by the general
demand for funds in an economy, interest rates, and the expected rate of inflation. A portfolio will normally
maintain at least a small proportion of its funds in cash in order to take advantage of buying opportunities.

Bonds
Bonds are debt instruments on which the issuer (the borrower) agrees to make interest payments at periodic
intervals over the life of the bond this can be for two to thirty years or, sometimes, in perpetuity. Interest
payments can be fixed or variable, the latter being linked to prevailing levels of interest rates. Bond markets
are international and have grown rapidly over recent years. The bond markets are highly liquid, with many
issuers of similar standing, including governments (sovereigns) and state-guaranteed organizations.
Corporate bonds are bonds that are issued by companies. To assist investors and to help in the efficient
pricing of bond issues, many bond issues are given ratings by specialist agencies such as Standard & Poors
and Moodys. The highest investment grade is AAA, going all the way down to D, which is graded as in
default. Depending on expected movements in future interest rates, the capital values of bonds fluctuate
daily, providing investors with the potential for capital gains or losses. Future interest rates are driven by the
likely demand/ supply of money in an economy, future inflation rates, political events and interest rates
elsewhere in world markets. Investors with short-term horizons and liquidity requirements may choose to
invest in bonds because of their relatively higher return than cash and their prospects for possible capital
appreciation. Long-term investors, such as pension funds, may acquire bonds for the higher income and may
hold them until redemption for perhaps seven or fifteen years. Because of the greater risk, long bonds
(over ten years to maturity) tend to be more volatile in price than medium- and short-term bonds, and have a
higher yield.

Equities
Equity consists of shares in a company representing the capital originally provided by shareholders. An
ordinary shareholder owns a proportional share of the company and an ordinary share carries the residual
risk and rewards after all liabilities and costs have been paid. Ordinary shares carry the right to receive
income in the form of dividends (once declared out of distributable profits) and any residual claim on the
companys assets once its liabilities have been paid in full. Preference shares are another type of share

25

capital. They differ from ordinary shares in that the dividend on a preference share is usually fixed at some
amount and does not change. Also, preference shares usually do not carry voting rights and, in the event of
firm failure, preference shareholders are paid before ordinary shareholders. Returns from investing in
equities are generated in the form of dividend income and capital gain arising from the ultimate sale of the
shares. The level of dividends may vary from year to year, reflecting the changing profitability of a company.
Similarly, the market price of a share will change from day to day to reflect all relevant available
information. Although not guaranteed, equity prices generally rise over time, reflecting general economic
growth, and have been found over the long term to generate growing levels of income in excess of the rate of
inflation. Granted, there may be periods of time, even years, when equity prices trend downwards usually
during recessionary times. The overall long-term prospect, however, for capital appreciation makes equities
an attractive investment proposition for major institutional investors.

Derivatives
Derivative instruments are financial assets that are derived from existing primary assets as opposed to being
issued by a company or government entity. The two most popular derivatives are futures and options. The
extent to which a fund may incorporate derivatives products in the fund will be specified in the fund rules
and, depending on the type of fund established for the client and depending on the client, may not be
allowable at all.
A futures contract is an agreement in the form of a standardized contract between two counterparties to
exchange an asset at a fixed price and date in the future. The underlying asset of the futures contract can be a
commodity or a financial security. Each contract specifies the type and amount of the asset to be exchanged,
and where it is to be delivered (usually one of a few approved locations for that particular asset). Futures
contracts can be set up for the delivery of cocoa, steel, oil or coffee. Likewise, financial futures contracts can
specify the delivery of foreign currency or a range of government bonds. The buyer of a futures contract
takes a long position, and will make a profit if the value of the contract rises after the purchase. The seller
of the futures contract takes a short position and will, in turn, make a profit if the price of the futures
contract falls. When the futures contract expires, the seller of the contract is required to deliver the
underlying asset to the buyer of the contract. Regarding financial futures contracts, however, in the vast
majority of cases no physical delivery of the underlying asset takes place as many contracts are cash settled
or closed out with the offsetting position before the expiry date.

26

An option contract is an agreement that gives the owner the right, but not obligation, to buy or sell
(depending on the type of option) a certain asset for a specified period of time. A call option gives the holder
the right to buy the asset. A put option gives the holder the right to sell the asset. European options can be
exercised only on the options expiry date. US options can be exercised at any time before the contracts
maturity date. Option contracts on stocks or stock indices are particularly popular. Buying an option involves
paying a premium; selling an option involves receiving the premium. Options have the potential for large
gains or losses, and are considered to be high-risk instruments. Sometimes, however, option contracts are
used to reduce risk. For example, fund managers can use a call option to reduce risk when they own an asset.
Only very specific funds are allowed to hold options.

Property
Property investment can be made either directly by buying properties, or indirectly by buying shares in listed
property companies. Only major institutional investors with long-term time horizons and no liquidity
pressures tend to make direct property investments. These institutions purchase freehold and leasehold
properties as part of a property portfolio held for the long term, perhaps twenty or more years. Property
sectors of interest would include prime, quality, well-located commercial office and shop properties, modern
industrial warehouses and estates, hotels, farmland and woodland. Returns are generated from annual rents
and any capital gains on realization. These investments are often highly illiquid.

27

Types of Portfolios
The different types of Portfolio which is carried by any Fund Manager to maximize profit and minimize
losses are different as per their objectives .They are as follows.

Aggressive Portfolio:

Objective: Growth. This strategy might be appropriate for investors who seek High growth and who can
tolerate wide fluctuations in market values, over the short term.

28

Growth Portfolio:
Objective: Growth. This strategy might be appropriate for investors who have a preference for growth and
who can withstand significant fluctuations in market value.

Balanced Portfolio:
Objective: Capital appreciation and income. This strategy might be appropriate for investors who want the
potential for capital appreciation and some growth, and who can withstand moderate fluctuations in market
values

29

Conservative Portfolio:
Objective: Income and capital appreciation. This strategy may be appropriate for investors who want to
preserve their capital and minimize fluctuations in market value.

30

TECHNIQUES OF PORTFOLIO MANAGEMENT


Various types of portfolio require different techniques to be adopted to achieve the desired objectives. Some
of the techniques followed in India by portfolio managers are summarized below.

(1). Equity portfolioEquity portfolio is affected by internal and external factors:

(a) Internal factors


Pertain to the inner working of the particular company of which equity shares are held. These factors
generally include:

Market value of shares


Book value of shares
Price earnings ratio (P/E ratio)
Dividend payout ratio

(b) External factors

Government policies
Norms prescribed by institutions
(3) Business environment
(4) Trade cycles

(2). Equity stock analysis


The basic objective behind the analysis is to determine the probable future value of the shares of the
concerned company. It is carried out primarily fewer than two ways. :

Trend of earning: A higher price-earnings ratio discount expected profit growth. Conversely, a downward trend in earning
results in a low price-earnings ratio to discount anticipated decrease in profits, price and dividend. Rising

31

EPS causes appreciation in price of shares, which benefits investors in lower tax brackets? Such investors
have not pay tax or to give lower rate tax on capital gains.
Many institutional investor like stability and growth and support high EPS.
Growth of EPS is diluted when a company finances internally its expansion program and offers new stock.
EPS increase rapidly and result in higher P/E ratio when a company finances its expansion program from
internal sources and borrowings without offering new stock.

Quality of reported earning: Quality of reported earnings affects P/E ratio. The factors that affect the quality of reported earnings are as
under:

Depreciation allowances: Larger (Non Cash) deduction for depreciation provides more funds to company to finance profitable
expansion schemes internally. This builds up future earning power of company.
Research and development outlets: There is higher P/E ratio for a company, which carries R&D programs. R&D enhances profit earning
strength of the company through increased future sales.
Inventory and other non-recurring type of profit: Low cost inventory may be sold at higher price due to inflationary conditions among profit but such profit
may not always occur and hence low P/E ratio.

(C) Dividend policy: Dividend policy is significant in affecting P/E ratio. With higher dividend ratio, equity price goes up and
thus raises P/E ratio. Dividend rates are raised to push in share prices up. Dividend cover is calculated to find
out the time the dividend is protected, In terms of earnings. It is calculated as under:

Dividend Cover = EPS / Dividend per Share


(D) Investors demand: -

32

Demand from institutional investors for equity also enhances the P/E ratio.EDELWEISS

LIMITED PORTFOLIO MANAGEMENT SERVICES

PMS

Pro Prime

Pro Arbitrage

Pro Tech

Pro Prime
Product Approach
Investment will be keeping in mind 3 investment tenets.

Consistent, steady and sustainable returns.


Margin of Safety
Low Volatility

Product Offering
Pro Prime is the ideal for investors looking at steady and superior with low and medium risk appetite.
The portfolio consists of a blend of quality blue chip and growth stocks ensuring a balanced portfolio with
relatively medium risk profile.
The portfolio constitutes of relatively large capitalization stocks, based on sector and themes which have
medium to long term growth potential.

33

Product Characteristics
Bottom up stock selection
In depth ,independent fundamental research
High quality companies with relatively large capitalization
Disciplined valuation approach applying multiple valuation measure.
Medium to long term vision, resulting in low portfolio turnover.

How to invest?
Minimum Investment : 10 Lacs
Lock in : 6 months
Reporting: Access to website showing clients holding .Monthly reporting of portfolio holding /transaction.
Charges: 2.5% pa AMC (Annual Maintenances Charges) fees charged every quarter ,0.5% brokerage ,20%
profit sharing after 15% hurdle is crossed chargeable at the end of fiscal year.

Pro Arbitrage
Product Approach
An opportunity lies in basis which is the difference between cash and future. Whenever basis is high we buy
the stocks and sell the future to lock in difference .The difference is bound to be zero at expiry.

Product Offered
Cash future arbitrage:
The product intends to spot low risk opportunities which will yield more than the normal low risk product.
Whenever such opportunity is spotted stocks will be bought and to lock in the basis, future will be sold .This
position will be liquated in the expiry or before that if the basis vanishes early .Similarly the scheme will
move on from opportunity to opportunity.

Product Characteristics
Low Risk: This is relatively low risk product which can be compared with liquid funds issued by mutual
funds.

High return: Compared with other low risk products, this products offers an indicative post tax return of
8 to 10% plus.

Product Details

34

Minimum Investment:Rs.1 Crore


Lock in :6 months
Reporting: Fortnightly for portfolio Net worth, Monthly reporting pf portfolio Holding
/transaction.
Charges: 0.035% brokerage for future ,0.07% for delivery

Pro Tech
Protech using the knowledge of technique analysis and the power of depravities markets to identify trading
opportunities in the market .The protech line of the product is designed around various risk /reward
/volatility profiles for the different kind of investment needs.

Product Approach
Better performance is possible from superior market timing and from picking stocks before inflation points
in their trading cycles. Linear return are possible from having hedged/ sell market positions in downtrends.
Absolute return are targeted by focusing on finding trading opportunities & not out performance of an index.

Product offered
1. Nifty Thirty :
Nifty futures will be bought and sold on the basis of an automated trading system generated calls to go
long/short. The exposure will never exceed the value of portfolio i.e. no leveraging; but allows us to be
short /hedged in Nifty in falling market therefore allowing the client to earn irrespective of the market
direction.

2. Beta Portfolio :
Positional trading opportunities are identified in the future segment based on technical analysis. Inflection
points in the momentum cycles are identified to go long /short on stock/index futures with 1-2 months time
horizon .The idea is to generate the best possible return in the medium term irrespective of the direction of
the market without really leveraging beyond the portfolio value. Risk protection is done based on stop losses
on daily closing prices.

3. Star Nifty:
35

Swing trading technique and Dow theory is used to identify short term reversal levels for Nifty futures and
ride with trend both on the long and short side .This return can be earned in bull and bear market .Stop and
reverse means to reverse ones position from long to short or vice a versa at the reversal levels
simultaneously .The exposure never exceeds value of portfolio i.e. there is no leveraging.

4. Trailing Stops.
Momentum trading techniques are used to spot short term momentum of 5-10 days in stocks and stocks
/index futures .Trailing stop loss method of risk management or profit protection is used to lower the
portfolio volatility and maximize return .Trading opportunities are exposed both on the long side and the
short side as the market demands to get the best of both upward and downward trends.

Product Characteristics
Using swing based index trading systems stop and reverse .trend following and momentum trading
technique.
Nifty based products for low impact cost and low product volatility

Both long and short strategies to earn returns even in falling market.
Trading in future market to allow for active risk protection using trailing stop losses.
How to invest?
Minimum : Rs.10 Lacs
Lock in : 6 months
Reporting: Fortnightly reporting of portfolio Net Worth, monthly reporting of portfolio Holding
/Transaction.
Charges: 0% AMC (Annual Maintenance Charges), 0.05% brokerage for derivatives, 20% profit sharing on
booked profit quarterly basis.

36

CHAPTER- II
Research & Methodology

37

2.1

OBJECTIVES

To know the concept of Portfolio Management Services.

To know about the awareness in public towards stock brokers and share market.

To study about the competitive position of Edelweiss Limited in Competitive Market.

To study about the effectiveness & efficiency of Edelweiss Limited in relation to its competitors

2.2

METHODOLOGY ADOPTED

Research Methodology
The methodology section is the blue print for researcher activity and specifies bow the investigator intents to
study the people or describe social settings. In other words the methodology section make explicit the study
desire and constitutes the how to do it phase.
The project study has been conducted by collecting primary data only using structured questionnaire.
I have put my best possible effort to do this research and collect the necessary information to learn about this
topic thoroughly.

RESEARCH DESISGN OF THE STUDY


This report is based on primary as well secondary data, however primary data collection was given more
importance since it is overhearing factor in attitude studies.

Sampling Technique: The tool used for smpling is Simple random sampling.
Types of researches:The type of research conducted is Descriptive Research.
Primary data: The tool used for collection of primary data is Questionnaire.
Secondary data: secondary data is collected through Company database, magazines, newspaper.
Sample size: The sample size on which the reseach is conducted is 100.

38

Area of Observation: The sample was selected from the area of Delhi.
2.3

LIMITATIONS

This research is a descriptive research and in these types of researches, the researcher has no control over the
variables. He can only report what has happened or what is happening.
For such a wide research topic, a sample size of around 100 is not sufficient.
Insufficient sample unit.
Time constraint.
Matching the time with the clients.
Getting in contact with the clients.
Communication Gap between the clients and the surveyor.
Downfall of the secondary market made people reluctant of opening a trading account.
People involved in trading were not in favor of switching over to some other company for trading.

39

CHAPTER- 3
Data Analysis & Interpretation

40

DATA ANALYSIS
1.

Do you know about the Investment Option available?

15%

yes
no

85%

Interpretation

As the above table shows the knowledge of Investor out of 100 respondent carried throughout the DelhiNCR Area is only 85%. The remaining 15% take his/her residential property as an investment. According to
law purpose this is not an investment because of it is not create any profit for the owner. The main problem
is that in this time from year 2012-2013 , the recession and the Inflation make the investor think before
investing a even a Rs. 100.So , it also create the problem for the Investor to not take interest in Investment
option.

41

2.

What is the basic purpose of your Investments?

Others
Risk Covering
Tax Benefits
Capital Appreciation
Return
Liqidity
0%

5%

10%

15%

20%

25%

30%

%AGE

Interpretation

As with the above analysis, it is found 75% people are interested in liquidity, returns and tax benefits. And
remaining 25% are interested in capital appreciations, risk covering, and others. In the entire respondent it is
common that this time everyone is looking for minimizing the risk and maximizing their profit with the short
time of period.
As explaining them About the Portfolio Management Services of Edelweiss Limited, they were quite
interested in Protech Services.

42

3.

What is the most important factor you consider at the time of Investment?

70%
60%
65%

50%
40%
30%
20%
10% 12%

23%

0%
Risk
Return
Both
%AGE

Interpretation

As the above analysis gives the clear idea that most of the Investors considered the market factor as around
12% for Risk and 23% Return, but most important common things in all are that they are even ready for
taking both Risk and Return in around 65% investor.
Moreover, the Market is fluctuating now days, so as it also getting improvement. So, Investor are looking for
Investment in long term and Short-term.

43

4.

From which option you will get the best returns?

PERCENATGE OF RESPODENTS
Others

2%
14%

Property
Bonds

8%
18%

Fixed Deposits

16%

Commodities Market

22%

Shares

20%

Mutual Funds

Interpretation
Most of the respondents say they will get more returns in Share Market. Since Share Market is said to be the
best place to invest to get more returns. The risk in the investment is also high.
Similarly, the Investor are more Interested in Investing their money in Mutual Fund Schemes as that is also
very important financial product due to its nature of minimizing risk and maximizing the profit. As the
commodities market is doing well from last few months so Investor also prefer to invest their money in
Commodities Market basically in GOLD nowadays.
Moreover, even who dont want to take Risk they are looking for investing in Fixed Deposit for long period
of time.

44

5.

Investing in PMS is far safer than Investing in Mutual Fund. Do you agree?

80%
70%
60%
50%

76%

40%
30%
20%

24%

10%
0%
Yes
No

Interpretation
In the above graphs its clear that 24% of respondent out of hundred feel that investing their money in
Mutual Fund Scheme are far safer than Investing in PMS. this is because of lack of proper information about
the Portfolio management services. As the basis is same for the mutual fund and PMS but the investment
pattern is totally different from each other and which depends upon different risk factor available in both the
Financial Products.

45

6. How much you carry the expectation in Rise of your Income from Investments?

Interpretation
The optimism is shown in the attitude of the respondents. The confidence was appreciable with which they
are looking forward to a rise in their investments. Major part of the sample feels that the rise would be of
around 15%. Only 8% of the respondents were confident enough to expect a rise of upto 35%.
As all the respondents were considering the Risk factor also before filling the questionnaire and they were
asking about the performance report of all the PMS services offered by Edelweiss Limited.

46

7.

If you invested in Share Market, what has been your experience?

Interpretation

20% of the respondents have invested in Share market and received satisfactory returns, 40% of the
respondents have not at all invested in Share Market. Some of the investors face problems due to less
knowledge about the market. Some of the respondents dont have complete overview of the happenings and
invest their money in wrong shares which result in Loss. This is the reason most of the respondents prefer
Portfolio Management Services to trade now a days, which gives the Investor the clear idea when is the right
time to buy and right time to sell the shares which is recommended by their Fund Manger.

47

8.

How do you trade in Share Market?

Interpretation

As we know that Share market is totally based on psychological parameters of Investors, which changed as
per the market condition, but at the same time the around 45% investor trade on the basis of speculation and
31% depend upon Investment option Bonds, Mutual Funds etc.
Moreover, the now a days Hedging is most common derivatives tools which is used by the Investor to get
more return from the Market ,this is mostly used in the Commodities Market.

48

9. How do you manage your Portfolio?

%of Respodents

Depends on the Company for Portfolio; 43%


Self ; 57%

Interpretation

About 57% of the respondents say they themselves manage their portfolio and 43% of the respondents say
they depends on the security company for portfolio Management. 43% of the respondents prefer PMS of the
company because they dont have to keep a close eye on their investment; they get all the information time
to time from their Fund Manager.
Moreover, talking about the Edelweiss Limited PMS services they are far satisfied with the Pro tech and
Prop rime Performance during last year. They are satisfied with the quick and active services of Edelweiss
Limited customer services where, they get the updated knowledge about the scrip detail everyday from their
Fund Manager.

49

10. If you trade with Edelweiss Limited then why?

Research; 35%

Services; 22%
Investment Tips are good; 15%

Brokerage; 28%

Interpretation
As the above research shows the reasons and the parameters on which investor lie on Edelweiss Limited and
they do the trade.
Among hundred respondents 35% respondents do the trade with the company due to its research Report,
28% based on Brokerage Rate whereas 22 % are happy with its Services.
Last but not the least, 15% respondents are depends upon the tips of Edelweiss Limited which gives them
idea where to invest and when to invest.
At the time of research what I found is that still Edelweiss Limited need to make the clients more knowledge
about their PMS product.

50

11.

Are you using Portfolio Management services (PMS) of Edelweiss Limited?

No; 44%
Yes; 56%

Interpretation
As talking about the Investment option, in most of clients it was common that they know about the Option
but as the PMS of Edelweiss Limited have different Product offering, Product Characteristics and the
Investment amount is also different this makes the clients to think differently.
It is found that 56% of Edelweiss Limited client where using PMS services as for their Investment Option.

51

12.

Which Portfolio Type you preferred?

50%
45% 45%
40%
35%
30%
25%

28%
27%

20%
15%
10%
5%
0%
Equity

Debt

Balanced

Interpretation
The above analysis shows, in which portfolio the investor like to deal more in PMS.
As 45% investor likes to go for Equity Portfolio and 28% with Balanced Portfolio, whereas around 27%
investor like to, go for Debt Portfolio.

52

13. How was your experience about Portfolio Management services (PMS) of Edelweiss
Limited?

No Profit No Loss Situation

Faced Loss

Earned

0%

10% 20% 30% 40% 50% 60%

Interpretation

In the above analysis it is clear that the Investor have the good and the bad experience both with the IIFL
PMS services.
In this current scenario 52% of the Investor earned, whereas around 18% have to suffer losses in the market.
Similarly 30% of the Respondents are there in Breakeven Point (BEP), where no loss and no profit.

53

14.

Does Edelweiss Limited keep it PMS process Transparent?

37%
63%

Yes
No

Interpretation

The above analysis is talking about the Edelweiss Limited Transparency of their PMS services. In hundred
respondents 63% said that they get all the information about their scrip buying and selling information day
by day, where as 37% of respondents are not satisfied with the PMS information and Transparency because
they dont get any type of extra services in PMS as they were saying.

54

15.

Do you recommend Edelweiss Limited PMS to others?

No; 14%

Yes; 86%

Interpretation
The above analysis shows the Investor perception toward the Edelweiss Limited PMS as on the basis of their
good and bad experience with Edelweiss Limited. Among hundred respondents 86% respondents were agree
to recommend the PMS of Edelweiss Limited to their peers, relatives etc.

55

CHAPTER- 4
Findings

56

FINDINGS
About 85% Respondents knows about the Investment Option, because remaining 15% take his /her
residential property as Investment, but in actual it not an investment philosophy carries that all the
Investment does not create any profit for the owner.
More than 75% Investors are investing their money for Liquidity, Return and Tax benefits.
At the time of Investment the Investors basically considered the both Risk and Return in more %age around
65%.

As among all Investment Option for Investor the most important area to get more return is share around
22%after that Mutual Fund and other comes into existence.

More than 76% of Investors feels that PMS is less risky than investing money in Mutual Funds.

As expected return from the Market more than 48% respondents expect the rise in Income more than 15%,
32% respondents are expecting between 15-25% return.

As the experience from the Market more than 34% Investor had lose their money during the concerned year,
whereas 20% respondents have got satisfied return.

57

About 45% respondents do the Trade in the Market with Derivatives Tools Speculation compare to 24%
through Hedging .And the rest 31% trade their money in Investments.

Around 57% residents manage their Portfolio through the different company whereas 43%Investor manage
their portfolio themselves.

The most important reasons for doing trade with Edelweiss Limited is Edelweiss Limited Research
Department than its Brokerage rate Structure.

Out of hundred respondents 56% respondents are using Edelweiss Limited PMS services.

Investors preferred more than 45% equity Portfolio, 28%Balanceed Portfolio and about 27% Debt Portfolio
with Edelweiss Limited PMS.

About 52% Respondents earned through Edelweiss Limited PMS product, whereas 18% investor faced loses
also.

More than 63% Investor are happy with the Transparency system of Edelweiss Limited.

As based on the good and bad experience with Edelweiss Limited around 86% are ready to recommended
the PMS of Edelweiss Limited to their peers, relatives etc.

58

CHAPTER- 5
Recommendations

59

RECOMMENDATIONS

The company should organize seminars and similar activities to enhance the knowledge of prospective and
existing customers, so that they feel more comfortable while investing in the stock market.

Companies must make Investors feel safe about their money invested.

Investors accounts must be kept more transparent as compared to other companies.

Edelweiss Limited must try to promote more its Portfolio Management Services through Advertisements

Edelweiss Limited needs to improve its Customer Services

There is need to change the lock in period in all three PMS i.e .Protech, Proprime, Pro Arbitrage.

60

CONCLUSION :
On the basis of the study it is found that Edelweiss Limited is better services provider than the other
stockbrokers because of their timely research and personalized advice on what stocks to buy and sell.
Edelweiss Ltd. provides the facility of Trade tiger as well as relationship manager facility for encouragement
and protects the interest of the investors. It also provides the information through the internet and mobile
alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the
IPO. We can conclude the following with above analysis.

Edelweiss Ltd has better Portfolio Management services than Other Companies

It keeps its process more transparent.

It gives more returns to its investors.

It charges are less than other portfolio Management Services

It provides daily updates about the stocks information.

Investors are looking for those investment options where they get maximum returns with less returns.

Market is becoming complex & it means that the individual investor will not have the time to play stock
game on his own.

People are not so much ware aware about the Investment option available in the Market.

61

ANNEXURE

62

QUESTIONNAIRE

1.

NAME:

AGE:

OCCUPATION:

PHONE NO:

Do you know about the Investments Option available?

a.

YES

b.

NO

2.

What is the basic purpose of your Investments?

a.

Liquidity

b.

Return

c.

Tax Benefits

d.

Risk Covering

e.

Capital Appreciation

f.

Others

3.
a.

What is the most important factor you consider at the time of Investment?
Risk
63

b.

Return

c.

Both

4.

From which option you will get the best returns?

a.

Mutual Funds

b.

Shares

c.

Commodities Market

d.

Bonds

e.

Fixed Deposits

f.

Property

g.

Others

5.

Investing in PMS is far safer than Investing in Mutual Fund. Do you agree?

a.

Yes

b.

No

6.

How much you carry the expectation in Rise of your Income from Investments?

a.

Upto 15%

b.

15-25%

c.

25-35%

d.

More than 35%

7.

If you invested in Share Market, what has been your experience?

a.

Satisfactory Return

b.

Burned Finger

c.

Unsatisfactory Results

d.

No

8.

How do you trade in Share Market?

a.

Hedging

64

b.

Speculation

c.

Investment

9.

How do you manage your Portfolio?

a.

Self

b.

Depends on the company for portfolio

10.

If, you trade with Edelweiss Limited then why?

a.

Research

b.

Brokerage

c.

Services

d.

Investments Tips

11.

Are you using Portfolio Management services (PMS) of Edelweiss Limited?

a.

Yes

b.

No

12.

Which Portfolio Type you preferred?

a.

Equity

b.

Debt

c.

Balanced

13.

How was your experience about Portfolio Management services (PMS) of Edelweiss Limited?

a.

Earned

b.

Faced Loss

c.

No profit No loss

14.

Does Edelweiss Limited keep it PMS process Transparent?

a.

Yes

b.

No

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15.

Do you recommend Edelweiss Limited PMS to others?

a.

Yes

b.

No

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BIBLIOGRAPHY

67

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BIBLIOGRAPHY
MAGAZINE: Business World
WEBSITES: www.sebi.gov.in
www.moneycontrol.com
www.karvy.com
www.yahoofinance.com
www.nseindia.com
www.bseindia.com
www.indiainfoline.com

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