An Equity Portfolio Management Services

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

N.R. Institute of Business Management

Submitted by: Dhaval Nayak (080) Amish Soni (08108)

Guided by: Prof. Viral Pandya

II

Research Proposal
Sr. No.
1) 2) 3) 4)

Particulars
Introduction Objective Hypothesis Research Methodology • Population
• •

Page no.
III IV VI VII

Sampling Unit Sample Size

• Sampling Method
5)

Data Sources 1. Primary data 2. Secondary data

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6) 7)

Chapter Plan Expected contribution of the study

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1) Introduction:
Indian economy is becoming part of biggest economies of the world. And with the expansion of the world as a global market important of capital market is also increasing day by day. Gone are the days where people deposite their savings in Post-offices or Banks for the sake of just 3-5% safe return on their investment. Risk is present in virtually every decision. When a production manager selects equipment, or a marketing manager an advertising campaign, or a financial manager a portfolio of securities all of them face uncertain cash flows. Assessing risks and incorporating the same in the final decision is an integral part of financial analysis. The objective in decision making is not to eliminate or avoid risk-often it may be neither feasible nor desirable to do so-but to properly assess it and determine whether it is worth bearing. Once the risk characterising future cash flows is properly measured, an appropriate risk-adjusted discount rate should be applied to convert future cash flows into their present values. Stock exchange transactions are made either for the purpose of investment or for speculation. Investment transactions are made with the intention of earning a return on the securities by holding them more or less permanently whereas speculative transactions are made with the intention of making gains by disposing of the securities at favourable prices. Thus people generally prefer one or more of the following options to invest their savings. • • Banks Money market instruments

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• • • •

Capital market instruments Post office schemes Mutual funds Insurance scheme

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

1.1) Portfolio Management Services (PMS):

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

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2) Objective:

 Prime Objective:
Our project objective mainly emphasis on making the Portfolio on equity market shares of ten sectors of the Indian economy and to measure the performance with other Portfolio Management Services.

Subsidiary objectives :

 To study the top 20 companies out of 60 selected companies of different sectors.  To divide the amount in the 20 selected companies and make the Portfolio.  Compare our portfolio with other Portfolio Management Services (PMS), National Stock Exchange (NSE), and Bombay Stock Exchange (BSE).

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3) Hypothesis:

Hypothesis is a statistical tool that is used to test the validity of the assumption. First of all the assumption is made about the population parameter. Then sample data is collected, sample statistics is produced and based on this information, it is decided how likely it is that the hypothesized population parameter is correct. In short, the difference between the hypothesized value and the actual value of the sample mean is determined and validity of the assumption is tested. In our study we will test two hypotheses, which are as under: o Hypothesis 1 H0: There is no significant difference in the preference for any particular sectors considered Portfolio. H1: Investors may prefer specific sectors provided Portfolio Management Services.

o Hypothesis 2

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H0: There is no significance difference in the preference offered by the Portfolio Management Services. H1: Investors may prefer some other Portfolio Management Services providers.

4) Research methodology:

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

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

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

Sampling Method:

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

5) Data Sources:

Primary Data:
 BSE and NSE

• Secondary Data:
 Balance Sheet  Cash flow  Ratios  Income Statement  Library Research

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 Internet Surfing

6) Chapter Plan:
a. Research proposal b. Industry profile
c. Analysis of companies listed in BSE and NSE

d. Criteria of selection of companies e. Criteria of dividing the amount between companies to make Portfolio f. Comparison of portfolio with other Portfolio Management Service Provider g. Findings h. Suggestion i. Conclusion

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7) Expected Contribution of the study:

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

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