Professional Documents
Culture Documents
PROJECT REPORT
ON
FOR
INDIA INFOLINE STOCK BROKING LTD.
SUBMITTED
TO
UNIVERSITY OF PUNE
In Partial Fulfillment of Requirement for the Award of Degree of
SUBMITTED
BY
SHIVPRASAD R. BAWAGE
THROUGH
(2009-2011)
ACKNOWLEDGEMENT
I also extend my sincere thanks to all respondents who gave me excellent co-
operation in my endeavour and willing responses while interviewing them.
SHIVPRASAD R. BAWAGE
DECLARATION
Place:
Date:
SHIVPRASAD R. BAWAGE
MBA – II Semi – III
Executive Summary
The project at India infoline Stock Broking Ltd. Nanded Branch i.e. “A
study of Portfolio management of Individual Investor” helps the individual
investors in constructing a portfolio from the funds they want to put in the various
securities or financial instruments that are available in the market.
Chapter 1st of the study deal with what is Portfolio Management (PM) what
are the types of PM what are the different avenues available in India i.e. financial
assets and real assets their feature and how many percentage of return we can get
from these instrument etc.
Chapter 3rd discuss with, objective of the study. I gather the information from
the questionnaire and with the help of that information we prepare some models of
portfolio. Limitation I face while doing the project.
Chapter 4th is the most important part of the study i.e. data Analysis it is done
with the help of graphs and table so that one can easily understand and find the
conclusion.
Chapter No. 5th consists of my learning’s from the project and few
suggestions for the organization which I feel will be useful for them in improving
their services even further and at last but not the least this phase of the project talks
about the final CRUX of the report under the name of conclusion, it talks all about the
findings and my beautiful experience with “India infoline.
INDEX
2 9-14
COMPANY PROFILE
3 16
OBJECTIVE OF STUDY
4 18 – 40
CONCEPTUAL BACKGROUND
5 42
RESEARCH METHODOLOGY
6 44 – 58
DATA ANALYSIS AND INTERPRETATION
7 60
FINDINGS
8 62
SUGGESTION
9 64
CONCLUSION
10 66
LIMITATIONS
67
BIBLIOGRAPHY
68 - 88
ANNEXURES
Chapter 1st
Introduction about Project
Introduction
Portfolio Management is an immerging financial service in India. In this
slowdown period people are reducing their expenses and putting more emphasis on
saving. Investors want more return on what they invest. But continuously falling of
interest rates people thinking of investing in different instrument but due to lac of
knowledge they are not getting expected return. So there is huge scope for Portfolio
management.
I want to know different angles of portfolio management their risk factor and
so on. I think after reading one can get some information on Portfolio management
and how to draw a model.
Chapter 2nd
Company Profile
Company Profile
India infoline has 2100 offices over 450 cities across India and overseas at
Dubai and Singapore, New York. Over 12,000 highly qualified people working under
India infoline.
3.2 Background
analysis and research covering Indian businesses, financial markets and economy, to
in May 1999 and started providing news and market information, independent
research, interviews with business leaders and other specialized features. It became a
public limited company on April 28, 2000 and the name of the Company was changed
to Probity Research and Services Limited. In May 2000, the name of our Company
Its broking services was launched under the brand name of 5paisa.com through its
broking portal, was launched for online trading in July 2000. It combined competitive
advice from an experienced team of research analysts, it also offer real time stock
quotes, market news and price charts with multiple tools for technical analysis.
India infoline acquire of Agri Marketing Services Limited (Agri) In March 2000,
we acquired 100% of the equity shares of Agri Marketing Services Limited, from
their owners in exchange for the issuance of 508,482 of our equity shares. Agri was a
direct selling agent of personal financial products including mutual funds, fixed
Agri operated 32 branches in South and West India serving more than 30,000
The instances when the name of the Company was changed are cited below:
1995
-Incorporated as an equity research and consulting firm with a client base that
1999
2000
2004
2005
- India Infoline fixes a price band between Rs 70 and Rs 80 for its forthcoming
public issue. The company is coming out with public issue of 1.18 crore shares with a
face value of Rs 10 through the book building route. The issue is slated to open on
April 21 and close on April 27. Enam Financial Consultants Private Ltd would be the
sole book running lead manager to the issue while Intime Spectrum Registry Ltd is
-India Infoline Ltd has informed that the Company has entered into a advertising
agreement with Times Group where in the Company and other group companies
would spend about Rupees Thirty Crores over the next 5 years in print as well as non
2006
2007
formed a Singapore subsidiary; raised over USD 300 mn in the group; launched
2008
-Launched wealth management services under the ‘IIFL Wealth’ brand;set up India
Infoline Private Equity fund; received the Insurance broking license from IRDA;
mutual fund; received ‘Best broker- India’ award from Finance Asia; ‘Most Improved
- The Company has splits its face value from Rs10/- to Rs2/-.
2009
3.3 Achievement
Has more than 30,000 investors and 2100 offices all over India
Mails 20,000 envelopes, containing Annual Reports, dividend cheques
advises, allotment / refund advises
Every 50th is serviced by India infoline
Every 10th investor in India invest through India infoline
Every 20th D-mat a/c is held at India infoline
Every 20th trade in stock market is done through India infoline
India’s No. 5 Registrar and Transfer Agent
Ranks among the top 5 commodity brokers in the country.
3.5 Mission
3.5 Slogan
1. Equity
2. Derivatives
3. Commodity
4. Currency
5. Future and Option
6. Internet Trading
7. IPO
8. Mutual Fund
9. Other Investment Products.
• Sharkhan
• Indiabulls
• ICICI Direct
• Karvy
• Motilal oswal
• Relience money
• Religare Securities ltd.
• IL&FS Investsmart (HSBC Invest mart)
Chapter 3rd
Conceptual Background
1.1 Introduction
In general investors did not have much knowledge of Share market and other
investment instrument. Investor invests in securities as he/she feels. So many times
they have to scarify. To avoid this highly professional people do this job and they
charge certain amount and they design investors’ portfolio and invest money these
people are called as Portfolio Managers
Portfolio management comprises all the processes involved in the creating and
maintenance of an investment portfolio. It deals specifically with security analysis,
portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation.
management is a complex process which tries to make investment activity more
rewarding and less risky.
Portfolio management services ensure optimum use of people, money and
other resources. In short, “The art and science of making decisions about investment
mix and policy, matching investments to objectives, asset allocation for individuals
and institutions, and balancing risk against performance.”
In general following are the objective behind offering the portfolio management
services
1. Safety of Fund: The investment should be preserved, not be lost and remain in
the returnable position in cash or kind.
2. Liquidity: Portfolio must consist if such securities which could be en-cashed
without any difficulty or involvement of time to meet urgent need for funds.
3. Reasonable returns: The investment should earn a reasonable return to upkeep
the declining value of money and must be compatible with the opportunity cost
of money in terms of current income in the form of interest or dividend.
4. Appreciation in capital: The money invested in portfolio must grow and result
in capital gains.
5. Tax planning: Efficiently portfolio management is concerned with composite
tax planning covering income tax, capital gains tax, wealth tax and gift tax.
6. Minimize risk: Risk avoidance and minimization is very important and are
most important objectives of portfolio management. Portfolio managers must
ensure these objectives by effective investment planning and periodical review
of marketing and economy.
7. Marketability: The investment made in securities should me marketable that
means, the securities must be listed and traded in stock exchange so as to avoid
risk and difficulty in their encashment. Marketability ensures liquidity to the
portfolio.
8. Last but most important objective of PFM is to understand client need
accurately and according to that invest the money.
1.3 Types of Portfolio
1. Conservative model:-
Generally allocate a large percent of the present portfolio to lower risk securities such
as fixed-income and money market securities. The main goal with a conservative
model portfolio is to protect the principal value of your portfolio. As such these
models are often referred to as “Capital Preservation portfolios”.
Even if they are very conservative and prefer to avoid the stock market
entirely, some exposure can help offset inflation. They could invest the equity portion
in high quality blue chip companies only
Figure 1
2. Moderately Conservative:-
It is ideal for those who wish to preserve a large portion of the portfolio’s total
value, but are willing to take on a higher amount of risk to get some inflation
protection. A common strategy within the risk level is called “current income”. With
this strategy, you can choose securities that pay a high level of dividends or coupon
payments.
Figure 2
3. Moderately Aggressive:-
Figure 3
4. Aggressive:-
Figure 4
5. Very Aggressive:-
Note that the above outline of portfolios and the associated strategies offer
only a loose guideline - we modify the proportions above to suit individual investment
needs. Also, the amount of cash and equivalents, or money market instruments to be
placed in a portfolio will depend on the amount of liquidity and safety the investor
needs. If they need investments that can be liquidated quickly or they would like to
maintain the current value of your portfolio, they might want to put a larger portion
of their investment portfolio in money market or short-term fixed-income securities.
Those investors who do not have liquidity concerns and have a higher risk tolerance
will have a small portion of their portfolio within these instruments. As each asset
class has varying levels of return for a certain risk, their risk tolerance, investment
objectives, time horizon and available capital will provide the basis for the asset
composition of their portfolio.
Portfolio Manager must no how many different avenues available in India
and what are the return and risk in different assets. So before we move further
we will see different investment avenues available in India.
Introduction:-
Investment alternatives
Financial assets are paper or in electronic form. Generally these assets are
issue under the authority of government or some corporate body. The important
financial assets are equity shares, corporate debenture, government securities, bank
deposits, mutual fund, insurance policies and derivative instruments.
On the other hand Real Assets are represented by tangible assets like
Residential House, Commercial Property, Agricultural Farm, Gold, Precious Stone,
and Art Object etc.
Further financial asset divide into sub parts that is shown in following tree
diagram.
Financial assets
Instruments Derivatives
In this the main feature is its personal transaction between the investor and the
issuer. Middleman is not playing any part. For example if one investor wants to
deposit money in bank than that investor go to the bank and open the account
personally. On the other hand if you want to buy other financial assets there are
middlemen. For example if you want to purchase share of XYZ Co. then through
share broker you can purchase the share.
This is the simplest investment avenue. One can open the bank account
deposit the money and can make a bank deposit. There are 3 different types of
account namely Saving a/c Current a/c and Bank Deposit a/c.
Loans can be raised against bank deposits. Bank deposits enjoy exceptionally
high liquidity.
A post office saving account is similar to the saving bank account. Its salient
features are as follows
Post Office Time Deposits (POTDs) are similar to the fixed deposits of
commercial banks, POTDs have following feature
One of the most popular schemes of the post office is the MISPO. It is meant
to provide regular monthly income to the depositors. The salient features of the
scheme are as follows
a) The min. amount of investment is Rs. 1,000 & there is no max. limit
b) The investment doubles in 8 yrs. and 7 months so compound int. rate works
out to 8.4%
c) There is no tax deduction at source
d) There is withdrawal facility after 2 ½ yrs.
e) KVP can be pledged as a collateral security for raising loans.
f. National Saving Certificate (NSC):-
Issued at the post office National Saving Certificate has the following feature
g. Company Deposits:-
Many companies large and small solicit fixed deposits from the public. FD
mobilized by manufacturing companies is regulated by the Company Law Board and
FD mobilized by non-banking finance companies is regulated by the RBI. The salient
features of the scheme are as follows,
a) For manufacturing company the term of deposits can be one to three yrs. and
for non-banking finance company it can vary between 25 months to five yrs.
b) Interest rates on company deposits are higher than those on bank fixed
deposits.
c) Company deposits have to be necessarily credit rated.
d) Depositors don’t get any tax benefit on company deposits but there is no tax
deduction at source if the int. income is up to Rs. 5,000 in a financial year.
e) Companies offer some incentives like facility for premature withdrawal or free
personal accident insurance cover to attract deposits.
h. Employee Provident Fund Scheme (EPF): -
a) Each employee has a separate PF a/c in which both the employer and
employee are required to contribute a certain min. amt. on a monthly basis
b) The employee can choose to contribute additional amt. subject to certain
restriction
c) Contribution made by the employer is fully tax exempt from the point of view
of the employee the contribution made by the employee can be deducted
before computing the taxable income under Sec. 80C.
d) PF contribution currently earns a compound int. rate of 8.5% p.a. and it is
totally exempt from tax. The int. accumulated in the PF a/c and not paid
annually to the employee.
e) The balance in the PF a/c is fully exempt from wealth tax.
f) PF a/c amount can be pledged as a collateral security for raising loans.
This is one of the most attractive investment avenues in India. PPF has the
following features:
a) Only individual and HUF can participate in this scheme. This a/c can be open
in any branch of SBI or its subsidiaries or at specified branches of other Public
Sector banks.
b) The period of PPF is 15 yrs.
c) The subscriber to a PPF a/c is required to make a min. deposit of Rs. 500 and
max. is Rs. 70,000
d) Deposit in PPF a/c can be deducted before computing the taxable income
under Sec. 80 C.
e) The balance in the PPF a/c is fully exempt from wealth tax.
f) PPF deposit currently earns a compound int. rate of 8% p.a. which is totally
exempt from tax. The int. accumulated in the PPF a/c and not paid annually to
the employee.
g) The subscriber to a PPF /ac is eligible to take a loan from the third year to the
sixth year after opening the PPF a/c. The amount of loan cannot exceed 25%
of the balance standing to the credit of the PPF a/c at the end of the second
preceding financial year.
h) The subscriber to a PPF can make one withdrawal every year from the sixth
year to the fifteenth year.
i) On maturity the credit balance in a PPF a/c can be withdraw. However, at the
option of the subscriber the a/c can be continue for three successive block
period of five year each with or without deposit.
2. Money Market Instruments:-
Debt instrument, which have a maturity of less than one year at the time of
issue are called money market instrument. These instruments are highly liquid and
have negligible risk.
a. Treasury Bills:-
Treasury bills represent the obligations of the Govt. of India which have a
primary tenor like 91 days and 364 days. They are sold on an auction basis every
week in certain minimum denominations by the RBI. They do not carry an explicit
interest rate. They are sold at a discount and redeemed at par. Treasury bills have nil
credit risk and negligible price risk
b. Certificate of Deposits:-
c. Commercial Paper:-
3. Bonds or Debenture
Company can stay in market, expand and get profit only when they get
adequate funding timely. With the help of issuing shares company may fell short in
funding at that time these company issues debenture and bonds. Bonds or debentures
represent long term debt instrument. These generally comprises of periodic interest
payment over the life of the instrument and principal payment at the time of
redemption. In this risk is negligible. Company has to pay fix rate of int. as decided
earlier.
Bonds or Debenture
Public Sector
Undertaking Bonds
a. Government Securities:-
b. Saving Bonds:-
They are also called as Govt. of India Saving Bonds. Since they are issued by
the RBI they are popularly referred to as RBI Saving Bonds. The basic features of the
bonds are,
Public sector undertaking issue debentures that are called as PSU bonds.
There are two broad varieties of PSU bonds taxable bonds and tax free bonds. While
PSUs are free to set the int. rates on taxable bonds. PSU can issue tax free bonds only
with the prior approval of the Finance Ministry. There is no deduction of tax at source
on the int. paid on these bonds.
e. Preference Share:-
These shares are redeemable. The redemption period is usually 7-12 yrs.
4. Equity Shares
Introduction:-
There are two types of market where we can buy these share Primary market
and Secondary market.
a. Primary market:-
b. Secondary Market:-
In Bonds, Debenture, Fixed Deposits we get interest but in equity share we get
dividends. Dividends are exempt from tax.
In stock market common investor can buy or sell the equity share with the help
of broker. Presently there are 23 stock exchanges in India. The most traded markets
are NSC (National Stock Exchange) and BSC (Bombay Stock Exchange). There are
about 10,000 companies listed on different stock exchanges in India.
a) Blue Chip Shares: - Shares of large, well established, and financially strong
companies with an impressive record of earning and dividends.
c) Income Shares: - Shares of companies that gave fairly stable operation, relatively
limited growth opportunities and high dividend payout rations.
e) Defensive Share: - Share of companies that are relatively unaffected by the ups
and downs in general business condition.
f) Speculative Share: - Shares that tend to fluctuate widely because there is a lot of
speculative trading in them.
5. Mutual Fund:
Those who did not want to take risk in equity market but want more returns
can invest in Mutual Funds. This is the most popular form of investing money.
A mutual fund is a pool of money, which is collected from many investors and
is invested by an Asset Management Company (AMC) to achieve some common
objective of the investors.
Thus, a mutual Fund is a collective investment process. An AMC collects
money from investors. It invests this money in various securities to generate returns
for the investors. Investors get the net return after deducting the related expenses. This
does not apply to profits. If there is any loss, it would also be borne by the investors.
It is also an indirect form of investment for investor.
All the investor though have same aim of getting more returns but there are
some other different objective such as tax benefit, high return at high risk an so on
hence AMC will make many schemes each having different investment objective to
cater to different set of investors.
Figure 6
AMC sell units to the investor and profit is distributed according to the no. of units
hold by an investor. Thus a Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost.
Mutual Funds started in India in 1963 when the first mutual fund (UTI-Unit
Trust of India) was formed. The first scheme was US 64. At present there are about 31
AMC offering over 1000 schemes.
Mutual fund schemes invest in three broad categories of financial assets, viz.
stocks bonds, and cash (bank deposits & debt instrument that have a maturity of less
than one year).
The advantages of investing in a Mutual Fund are:
Depending on the asset mix, mutual fund schemes are classified into three
broad types, viz. equity scheme, Hybrid scheme and Debt schemes.
R Sector Funds
N Equity Funds
Balanced Funds
Income Funds
Liquid Funds
RISKS
The above Graph shows the Risk and Returns generated by different
Funds. Liquid Funds are less Risky and also generate less Returns where as Sector
Funds are more Risky but generate more Returns by the example of above two Funds
it is clear that Risk and Returns are directly proportional to each other.
i. Open-End Fund:
An open-end fund is one, which is always open to accept money from
investors and to return the money back to them. An open end fund indicates that the
AMC is always ready to accept money from investor and is always willing to return
the amount to the investor. This gives the investor the flexibility to enter into the
scheme or to exit from the scheme as and when required as per their needs.
ii. Closed-End Schemes:
Schemes that have a stipulated maturity period, limited capitalization and the
units are listed on the stock exchange are called close-ended schemes.
Life Insurance:-
The basic need of any investor is to money growth and gets life protection and
these needs are fulfilled by life insurance. One of the basic advantages of life
insurance is tax benefit. Investor/ people get compensation amount if they get
physically handicap or their family/nominees get compensatory amount due to sudden
death of ?investor/person.
There are many government and privet sector companies giving these
insurance policies but in that government owned Life Insurances Corporation is one
of the dominating agencies.
The Common types of insurance policies are:
i. Endowment Assurance
ii. Money Back Plan
iii. Whole Life Assurance
iv. Unit Link Plan
v. Term Assurance
vi. Immediate Annuity
vii. Deferred Annuity
viii. Riders
Assets which are tangible or physical in nature are called as Real Asset.
Residential house, land gold, silver, diamonds, paintings and so on are the example of
real assets. Real assets are denominated in physical units and no rupees.
Benefits
a. Inflation hedge
b. Efficient diversification
c. Psychic Pleasure
d. Safe Haven
e. Tax benefits
Disadvantage
a. illiquid Market
b. High Spreads and commission
c. No current Income
Risk Factor:-
Returns are very high and risk is also very low as compare to other financial
assets but it require huge amount to invest and for normal user it is not possible to
gather huge amount and invest.
Chapter 5th
Research Methodology
Sources of Data:
a) Primary Data:-
b) Secondary Data
For my research I have taken a sample size of 100 people in Nanded and it’s
random. Due to time and finance limit I can gathered only data from 100 people. I am
assuming that the information given by the customer is unbiased.
Chapter 6th
Sample Size of our questionnaire is 100 and we have collected data from
Nanded city only. The date is collected during our internship i.e. from 25 may 2010 to
25 June 2010.
First 3 questions are personal information i.e. name, address, mobile No. and
email id etc. this information is not important for our project but it is important for the
India infoline. So the above date we have given to India infoline.
********************************************************************
**
Part –I
Part II
1. Age group:-
1 20 to 30 yrs 50
2 30 to 40 yrs 24
3 40 to 50 yrs 10
4 50 & above 16
Where;
Y Axis = Investors.
Interpretation of data:-
From the above data we can say that 50 investors are of the age group of 20 to
30 yrs. After that 24 are of the age group of 30-40 yrs and so on. We interact more
with young people so the majority are of the younger group. Due to this recession
and uncertain future younger people are also cautious about their saving.
2. Occupation:-
1 Business 23
2 Professional 10
3 Service 67
Where;
X Axis = Occupation.
Y Axis = Investors.
Interpretation of data:-
Mostly the investors are working service sectors like govt.departments, private
sector, they have huge salary so it’s easy to draw their portfolio. 67 out of 100
investors we interact are from service sectors 23 are doing their own business and
remaining 10 are profession like doctor, lawyer, and professor.
1 Below 2 Lac. 10
2 2 to 4 Lac. 48
3 4 to 6 Lac. 36
4 6 to 8 Lac. 6
Where;
Y Axis = Investors.
Interpretation of Graph:-
4. In which Financial Sector did you invested most? (Tick only one)
1 Insurance 17
2 Stock 16
3 Mutual Fund 22
4 Gold/ Silver 15
5 Bank 30
Where;
Y Axis = Investors.
Interpretation of Graph:-
In this question out of 100 investors 30 says they have invested mostly in bank
/fixed deposits. After that 22 invest in mutual funds, 17 invested mostly in insurance.
16 investors have invested in stock market. 15 preferred in traditional investment
instrument i.e. gold and silver. From that we can say that most of the investor
preferred secured investment.
1 > 10K 48
2 10 to 15K 27
3 15 to 20K 17
4 20 to 25K 8
Where;
X Axis = Expenses.
Y Axis = Investors.
Interpretation of Data:-
1 Below 10% 15
2 10 -20% 28
3 20-30% 36
4 30-40% 14
5 40 & above 7
Where;
Y Axis = Investors.
Interpretation of data:-
As per our research 36 out of 100 investors are investing 20-30% of their
investment. 28 investors are investing 10 - 20% of their investment. It shows that
people are now becoming more and more conservative. They are saving more.
1 None 34
2 1 23
3 2 36
4 3 7
5 4 & above 0
Where;
X Axis = People.
Y Axis = Investors.
Interpretation of Data:-
From the data collected of 100 investors 34 are the one on whom no one is
depended. 1 person is depend up on 23 investors each. On 36 investors 2 person each
are depends it shows that when less person are depend upon investors they can take
more risk and vice versa. Number of person are very important while drawing the
model.
1 Insurance 15
2 Stock 27
3 Mutual Fund 40
4 Gold/ Silver 18
Where;
Interpretation of data:-
From the above data we can say that 40 out of 100 investors are willing to
invest in Mutual funds. One of the major reasons is low investment with medium/
high return with medium/high risk. Due to falling interest rates of banks people are
turning to different investment avenues like stock market. 18 investors are still stick
with tradition instrument
1 Yes 38
2 No 62
Where;
Y Axis = Investors.
Interpretation of Graph:-
From the above graph it shows 38 people out of 100 have taken loan. So while
preparing model we have to take care of those who have taken loan. Those who have
liability/ loan they take minimum risk.
10. I) if yes then mark it
Sample size: - 38
1 Personal loan 05
2 Home Loan 17
3 Car Loan 13
4 Education Loan 03
Where;
X Axis = Liability.
Y Axis = Investors.
Interpretation of Graph:-
From the data collected out of 38 investors 17 are having Home loan. And 13
are having car loan. 5 are having personal loan and 3 are having educational loan.
People prefer home loan to avail the benefit of tax.
2 April - June 14
3 July - September 0
4 October - November 0
5 Not Fixed 46
Where;
Y Axis = Investors.
Interpretation of Graph:-
Out of 100 sample size 46 investors’ investment period is not fixed whenever
they have surplus money they invest. 40 investors invest in the 1st quarter of the year
i.e. Jan- Mar to get the benefit of tax.
Where;
Y Axis = Investors.
Interpretation of Graph:-
It is clear from the graph that 66 investors are willing to invest for long term
purpose. I.e. more than one year. And remaining 34 are interested for short term
purpose. Those who are investing for short term they are mostly younger investor.
1 Tax Rebate 43
2 Money Growth 24
4 Pension 24
5 Insurance 02
Where;
Y Axis = Investors.
Interpretation of Graph:-
From the above graph we can say that 43 investors are investing because to
save the tax. It shows that majority of the investor are invest only to save tax. 24
investors invest for their pension. Investors are now becoming cautious about their
future. 24 investors want to invest for money growth.
Chapter 7th
Findings
6.1 Findings
From the data collected through questionnaire these are the major findings:-
Since the young age group is able to undertake more risk portfolio manager
has to design aggressive portfolio where in the individuals’ investments
contains stocks in more proportion.
People of old age have to follow a more conservative approach in their
portfolios. Their investments also contain bonds and real estate in greater
proportion.
Most of the investors are already having different Insurance and Mutual funds
schemes.
Expenses of the investors are decreasing one of the main reason for that is
uncertainty of future
Person who have more dependent person take minimum risk.
Those who have loans and liability are taking minimum risk
Most of the investors invest to maximize the investment.
Most of the investors are investing 30-40 percentage of their total income.
Chapter 8th
Suggestions and
Recommendations
Suggestion and Recommendation
Suggestion to Company
• India infoline advertising is done mainly through word of mouth and IPO
releases, which attracts only a fraction of the investors and thereby bringing
down its market capitalization. India infoline like the other leading brokerage
and electronic media if it looks to keep pace with the cut throat competition in
To Clients
Don’t come under panic when share mkt. is falling because ups and downs are
the part of market.
Chapter 9th
Conclusion
Conclusion
After going through this report one can actually see that all the advisory is
done once the financial advisor analyses the actual need of the customers, and this all
is done once we know what to offer and when to offer.
Due to this slow down and recession people are becoming more conservative
and savvy. They do not want to take more risk. They want more liquidity.
Young people these days are particularly more interested in mutual funds
because they see mutual fund as safe bet. Also these people have large disposable
incomes and risk taking capability too. Advertising can also play a major part as it has
been seen that people buy mutual fund looking at the brand name.
As far as the investment sector is considered, women are also taking interest in
share market and Mutual funds. So organization has to concentrate on woman
segment.
Chapter 10th
Limitations
Limitation
The main limitation of my study is from the investor side, as for providing them
the PMS I need to know their past investments in detail which they hesitate to
disclose as they find it hard to trust anyone regarding their investments, so I have
to first built up the trust & then talk about the investments, as the main limitation
is time so it takes me at least few days for this procedure through regular visits &
follow up’s.
Time period undertaken for the project was also one of the limiting factors as
the investor as well as keeping a track record of his past investments and then
finally analyzing the portfolio & for this the proposed time period was a limiting
factor.
The sample size taken for drawing a conclusion is too small to get an accurate
Services.
It’s hard to change the typical psychological mindset of the investor, limiting the
options available, although feasible.
Difficult to overcome investors who wants return in less time & at times it’s
difficult to get the documents required for formalities from investors.
Bibliography
2. Websites:
• www.nscindia.com
• www.India infoline.com
• www.bseindia.com
Annexure
1. Specimen of Questionnaire of Investor.
2. Model of Portfolio
Return Risk Volatilit Tax Liquidity Return
Instrument Current Capital y Shelter in %
Yield Appreciation
Equity Low High High High Nil High 20-40
Shares
Mutual Moderate High Moderate Moderate Yes Moderate 15-25
Funds
Real Estate Moderate Moderate Low Average Yes Low 30-40
Bonds Moderate Nil Low Nil Nil Low 8-10
Debentures High Nil Low Nil Nil Average 10-15
Life Nil Moderate Nil Nil Yes Average 10-12
insurance
Gold/Silver Nil Moderate Moderate Average Nil High 10-20
Bank Moderate Nil Nil Nil Nil High 7-11
Deposits
NSC/KVP Nil Moderate Nil Nil Yes Low 7-9
PPF Nil Moderate Nil Nil Yes Average 7-9
Base on the above date we can make 5 models for different class of the investor
1. Conservative Portfolio
2. Moderately Conservative Portfolio
3. Moderately Aggressive Portfolio
4. Aggressive Portfolio
5. Very Aggressive Portfolio
1. Conservative Portfolio:-
Age:- 50 yrs
Children: - Two
Expenses Income
Other Expenses: -
Mutual Funds.
2. Equity Market
Equity Stocks
Bank Sector
i. ITC, Dabur
Housing Sector
i. LIC, HDFC
Auto Sector
i. ONGC, Reliance
2. Moderately Conservative Portfolio:-
As we discuss in Chapter 1st in moderately conservative we invest mostly
in fixed income securities and 25-to 35% in Equity and Mutual fund.
Age: - 52 yrs
Occupation: - Service
Children: - One
Expenses Income
1. Equity Market
Stock Name
3. Fixed Income
\
3. Moderately Aggressive Portfolio:-
Age:- 45 yrs
Occupation: - Businessman
Children: - Two
Expenses Income
Other Expenses: -
1. Mutual fund
Assets % to Monthly Monthly Annual Annual
Allocation Invest (Saving) (Invest)
(Invest) (saving)
Mutual Funds.
2. Equity Market
Equity Stocks
Bank Sector
ii. Bank of India, SBI, Axis Bank, HDFC Bank, ICICI Bank
FMCG Sector
Age:- 33 yrs
Occupation: - Businessman
Children: - One
Expenses Income
Other Expenses:
1. Mutual fund
2. Equity Market
Equity Stocks
Bank Sector
i. BPCL,GAIL Reliance
5. Very Aggressive Portfolio:-
Age: - 35 yrs
Occupation: - Artist
Children: - Two
Expenses Income
Other Expenses: -
1. Mutual fund
Mutual Funds.
3 Birla SL Millennium-G
2. Equity Market
Equity Stocks
Bank Sector
*********************************************************************
****************
(The Information gathered from this questionnaire will be used for research purpose
only)
Part I
Personal Information
1. Name: - _______________________________________________________
2. Address: - _____________________________________________________
______________PinNo.________________MobileNo._____________
3. Email ID:-_____________________________________________________
Part -II
4. Age group:-
20 to 30 30 to 40 40 to 50 50 to 60
5. Occupation:-
Gold/Silver Other
Yes. No.
Not Fixed