IAPM Group Assignment

Problem Statement:

Assume that your group has been asked to manage an investment portfolio worth INR 10 million for
your individual or institutional clients for a period of 1 month. (You will manage the fund for 1 month,
but the investment horizon of the portfolio may be longer than this duration, as per the investment
goal of your clients, as assumed and explicitly mentioned in the investment objective by your group.)
Your group has also been asked to adopt an active portfolio investment management strategy, and
try to generate alpha by outperforming a passive benchmark portfolio which consists of 50% Indian
equities (an “index fund” tracking Nifty 50 Index), 35% long-term government bonds (of 10 year time
to maturity) and 15% short-term money market instruments (consisting of Treasury bills and
investment grade Commercial Papers). Apply the concepts learnt in the course to (a) Decide your
investment strategy, (b) Select the portfolio securities, and (c) Evaluate the relative performance of
the portfolio.

Report Submission Details:

As a part of the group assignment, your group is required to submit three brief portfolio investment
reports, each of preferably a couple of pages, along with back-up excel sheets containing sample data
and portfolio analysis.

Report 1: Investment Strategy Report – Submission Deadline: 31st August, 6 AM IST.

In this report, articulate your investment strategy, covering the following areas:

- Investment Objective (including Investment Goal, Investment Philosophy and Investment

Horizon)
- Key Investment Strategies
- Indicative Asset Allocation (across equity, debt and money market instruments)
- Key Investment Risks
- Any Other Information

Reference: In case you need additional information for structuring your investment strategy report,
you may read the following document available on the SEBI website:
https://www.sebi.gov.in/sebi_data/attachdocs/1356331038553.pdf

Report 2: Investment Analysis and Portfolio Selection Report – Submission Deadline: 31st August, 6
AM IST.

In this report, share your investment analysis and portfolio selection choices, covering following areas:

- For each security, the estimated inputs including expected risk and return
- For each asset class allocation, the expected risk and return based on the estimated inputs
- Arguments in favour of your security selection
- Any Other Information (For example, security / portfolio betas, risk-reward ratios, etc.)
Report 3: Portfolio Performance Report – Submission Deadline: 8th October, 6 AM IST.

Based on Investment Holding Period of 1 month from 1st September to 30th September, 2020, your
group is required to evaluate the performance of your portfolio relative to your investment objective
and benchmark portfolio performance, covering the following areas:

- Absolute and relative performance (with respect to benchmark portfolio)

- Performance relative to risk-adjusted expected return, based on portfolio risk exposure
- Portfolio rebalancing recommendation, in case your portfolio investment horizon is longer
- Any Other Information (for example, Sharpe Ratio, Treynor Ratio and Jensen Alpha)

Reference: You may read the mutual fund factsheets to see how they report their historical
performances as an illustration - https://www.invescomutualfund.com/docs/default-source/default-
document-library/factsheet---august-2019.pdf?sfvrsn=0

You will be required to present all the three reports in the class during the last two sessions of the
course (as per MBA Class Schedule ~ most likely, in the second week of October). Presence of group
members during the group presentation is mandatory. The following is the break-up of marks for the
group assignment:

- Report 1 ~ 5 marks
- Report 2 ~ 5 marks
- Report 3 ~ 5 marks
- Group Presentation and Individual Q&As ~ 10 marks

Note: Submission deadlines are sacrosanct.

Format of Submission: Please name all your report submissions (word documents and excel sheets)
in the format “SecN_GroupN_ReportN” for report N submitted by Group N of Section N. Please email
all your submissions to Mr. Subhankar Parbat (subhankarp_tta@iimcal.ac.in) only, NO need to mark
me in the submission emails. Please put subject of email as “IAPM_SecN_GroupN” for ease of data
download by Subhankar

Note: There should not be any instance of plagiarism in the submitted assignment. No part of the
report should be copied either from another group assignment or from the website or any other
available material. Please provide reference for sources, wherever applicable.
Few Selected Online Data Sources:

1. AMFI Website (https://www.amfiindia.com/): This website contains Historical Net Asset

Values (NAVs) of all Mutual Fund Schemes in India.
2. SEBI Website
(https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doMutualFund=yes&mftype=2)
and
(https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doMutualFund=yes&mftype=3):
This website contains Scheme Information Document (SID) and Key Information Document
(KID) of all Mutual Fund Schemes offered to individual and institutional investors in India.
3. Here are few websites providing information and historical performance about their Pension
Fund schemes:
a. Aditya Birla Capital Pension Fund Scheme:
https://pensionfund.adityabirlacapital.com/nps-nav/latest-history
b. UTI Retirement Fund Scheme: https://www.utimf.com/retirement-solutions/nps-
schemes/
c. ICICI Prudential Pension Fund Scheme:
https://www.iciciprupensionfund.com/NPS/#/public-disclosure/nav-history
d. SBI Pension Funds Scheme: https://www.sbipensionfunds.com/historical-nav/
e. HDFC Pension Funds Scheme: https://www.hdfcpension.com/about-hdfc-
pmc/nav/nav-history.aspx
4. CRISIL Indices (https://www.crisil.com/en/home/what-we-do/financial-
products/indices.html): This website provides you lots of benchmark indices for different
asset class and sub-asset class group of securities.
5. NSE Indices (https://www.nseindia.com/market-data/live-market-indices): This website
provides you with lots of benchmark indices for different asset class and sub-asset class group
of securities.
6. BSE Indices (https://www.bseindia.com/Sensex/IndexHighlight.html ): This website provides
you with lots of benchmark indices for different asset class and sub-asset class group of
securities.

This list is only indicative, and not exhaustive. You should also explore other available resources,
including institute subscribed databases and online library resources.