Dissertation Report

On
PORTFOLIO MANAGEMENT IN MUTUAL FUND
INDUSTRY
Submitted in partial fulfillment for the award of the Degree
Master of Business Administration –
Of

INSTITUTE OF MANAGEMENT STUDIES

BANARAS HINDU UNIVERSITY
VARANASI - 221005

Supervised By: Submitted By:

Prof. Ashish Bajpai Gulshan Kumar
Professor Enrol No – 399013
IMS-BHU Roll No –
17423MBA016
MBA– IV sem
 DECLARATION

I hereby declare that this dissertation report entitled “PORTFOLIO MANAGEMENT IN

MUTUAL FUND INDUSTRY”, which is submitted by me to my faculty in partial fulfillment of
the requirement for the award of the degree of Master of Business Administration from the
Institute of Management Studies, Banaras Hindu University, for the batch of 2017 –2019,
comprises my original work and the materials, reports and other types of texts that have been used,
referred to, quoted or taken help from have duly been acknowledged and mentioned precisely.,

The matter embodied in the report is original and has not been submitted for the award of any
other degree.

GULSHAN KUMAR

MBA

2017-2019 BATCH,

IMS- BHU, VARANASI.

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 CERTIFICATE BY GUIDE/SUPERVISOR

This is to certify that the dissertation report entitled “Portfolio Management In Mutual Fund
Industry” carried out by Gulshan Kumar bearing Enroll No. 399013, carried out under my
supervision as a part of the award of Degree in Master of Business Administration IV Semester of
Institute of Management Studies, Banaras Hindu University, Varanasi.

To the best of my knowledge the report is the outcome of the candidate’s individual efforts. I wish
all the success to the candidate.

(Signature of the Guide)

Prof. Ashish Bajpai

Professor

(IMS-BHU)

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 ACKNOWLEDGEMENT

Dissertation as the partial requirement for the MBA program is considered best as it gives
opportunities to explore the theoretical knowledge in analyzing the real case scenarios. Therefore,
I firstly thank the Institute of Management Studies, Banaras Hindu University for making the
Dissertation as the part of MBA program. In writing this report on “Portfolio Management In
Mutual Fund Industry”, I have drawn on information from several sources like books, reports,
internet sites etc.

It is difficult to draw up the list of individuals who have helped me to complete this project report
on time. This report would not have been completed without the support and guidelines of my
respected project supervisor Prof. Ashish Bajpai (Prof. IMS BHU). So, I owe great respect towards
him for guiding me constantly throughout in the preparation of this report. Moreover, I am also
indebted to MBA team members for providing me valuable ideas, opinion and knowledge to make
my report more pragmatic, informational and on format.

I am also indebted to all those visible and invisible hands that supported me for the successful
completion of this report. Last but not the least, I am grateful to all my friends, their regular
support, guidance and help during the period.

Thank you!!

Gulshan Kumar
MBA IV Semester
Roll No: 17423MBA016
Enrolment No: 399013

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Executive Summary

Investing money where the risk is minimum has always been risky to decide. The first factor,
which an investor would like to analyze before investing, is the risk factor. Diversification of risk
has given birth to the phenomenon called Mutual Fund.

The Mutual Fund Industry is rapidly growing in India, because of the range of mutual funds offered
by the Banks, Financial Institutes & Private Financial Companies.

As a part of my study curriculum, it is necessary to conduct a dissertation project. It provides me

an opportunity to understand the particular topic in depth.

The topic of my project is Portfolio Management services in Mutual Funds, which gives special
attention on the creation of Portfolios, Portfolio revision and the returns gained from different
revision plans.

Managing investor’s portfolio efficiently is the core of Portfolio Management Services. By

efficiently we mean reducing the risk of investor and increasing the return as per their desired
investment objectives.

This project is about how to manage an Investor’s portfolio in a mutual fund and how to diversify
the investments into different schemes of funds so that the risk can be minimized.

The First Phase covers the mutual fund industry, the current economic condition of the economy,
a brief introduction to portfolio Management services, investor’s behavior and types, their
objective and risk appetite.

The Second Phase covers creation of Portfolios as per different types of Investor and Portfolio
revision.

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Table of Contents

Executive Summary .................................................................................................................................. 4

1. Objectives Of The Study ................................................................................................................... 8
2. Research Methodology ..................................................................................................................... 9
Literature Review ....................................................................................................................... 10
3 Introduction To Mutual Fund............................................................................................................ 11
3.1 History Of Mutual Funds ................................................................................................................ 12
3.2 Organization Of A Mutual Fund ..................................................................................................... 15
3.3 Types Of Mutual Funds .................................................................................................................. 15
4. Portfolio Management Services ...................................................................................................... 20
4.3 Managing Portfolio ......................................................................................................................... 23
4.4 Investor Types ................................................................................................................................. 24
4.5 SEBI Guidelines For PMS ................................................................................................................ 26
5 Data Analysis .................................................................................................................................. 27
5.1 Interpretation ..................................................................................................................................... 30
6 Portfolio Creation .................................................................................................................. 31
Portfolio Revision ................................................................................................................................... 35
Portfolio Revision As Per Constant Rupee Plan ................................................................................. 36
Portfolio Revision As Per Constant Ratio Plan................................................................................... 43
Portfolio Revision As Per Variable Plan ............................................................................................. 52
Limitation To The Study ..................................................................................................................... 60
Suggestions ................................................................................................................................. 60
Conclusion .................................................................................................................................. 61
References .................................................................................................................................. 62
Annexure .................................................................................................................................... 63

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List of Tables

SR. NO PARTICULARS PAGE NO

1 1.1 Aggressive Investor Portfolio 27
1.2 Conservative Investor Portfolio 29
1.3 Balanced Investor Portfolio 30
2 Portfolio Revision As Per Constant Rupee Plan
2.1 Portfolio as on Feb 4th 2019 32
2.2 Revised Portfolio as on Feb 19th 2019 34
2.3 Revised Portfolio as on March 5th 2019 35
2.4 Revised Portfolio as on March 20th 2019 36
2.5 Portfolio as on April 5th 2019 38
2.6 Calculation of returns as per Constant rupee plan 39
3 Portfolio revision as per Constant ratio plan
3.1 Portfolio as on Feb 4th 2019 39
3.2 Revised Portfolio as on Feb 19th 2019 41
3.3 Revised Portfolio as on March 5th 2019 43
3.4 Revised Portfolio as on March 20th 2019 45
3.5 Portfolio as on April 5th 2019 46
3.6 Calculation of Returns as Per Constant Ratio Plan 47
4 Portfolio Revision as per Variable plan
4.1 Portfolio as on Feb 4th 2019 48
4.2 Revised Portfolio as on Feb 19th 2019 49
4.3 Revised Portfolio as on March 5th 2019 51
4.4 Revised Portfolio as on March 20th 2019 53
4.5 Portfolio as on April 5th 2019 54
4.6 Calculation of returns as per Variable plan 55
5 Calculation of Portfolio Returns 56

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List of Figures

SR. NO PARTICULARS PAGE NO

1 Mutual fund 7
1.1 History of mutual fund 10
1.2 Organization of a Mutual fund 11
1.3 Types of mutual funds 11
1.4 Types of Portfolio Management 18
2 2.1 Aggressive Investor Portfolio 21
2.2 Conservative Investor Portfolio 21
2.3 Balanced Investor Portfolio 21
3 3.1 Demographics 23
3.2 Age group 23
3.3 Monthly income 24
3.4 Expected liquidation period 24
3.5 Expected return 24
3.6 Decrease in Portfolio 25
3.7 Portfolio Allocation 25
3.8 Capital or Return preference 25

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1. Objectives Of The Study

Primary objectives
 The main objective of this study is doing an In-depth analysis of Mutual Fund
Portfolio by taking sample of funds and comparing it with it others

Secondary objectives
 To understand the concept of portfolio management and its relation to Mutual
funds.
 To evaluate and create a portfolio’s consisting the best mutual fund schemes
which will earn highest possible returns and will minimize the risk.

 To understand the process Portfolio revision using different types of plans.

 Also to analyze the performance of mutual fund schemes on the basis of various
parameters.

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2. Research Methodology

2.1 Research Design

 Exploratory Research & Analytical Research

 Quantitative research

2.2 Data Collection Method

Primary data: The study is conducted through a survey, falling under three distinct Age –
Brackets, being:
 22- 35
 35 – 50
 Above 50

The information gives us an overall understanding of the respondent’s investment profile and helps
us to understand what investment mix and which mutual fund will be appropriate, or inappropriate,
in helping to achieve his financial goals.

Secondary data:

 For data collection purpose the secondary source was used like mutual fund factsheet, books,
websites.
 This data was used to create Portfolios as per Investor type and Portfolio revision 
2.3 Sample Design
Sample Size:22
Type of sample: Convenience sampling
The sample size consist of students of IM-BHU
2.4 Null Hypothesis

 Passive Management gives more return compared to Active Management.

 Passive Management has better approach compared to Active Management.

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Literature Review

Literature available on mutual funds is tremendous. Over the Years, mutual funds have attracted a
lot of attention of academicians, researchers and investors and have been a focus of research. It
has also led to the development of various measures and models to evaluate the Performance.

Rashmi Sharma and N. K. Pandya (2013), have done an overview of Investing in Mutual Fund.
In this paper, structure of mutual fund, comparison between investments in mutual fund and other
investment options and calculation of NAV etc. have been considered. In this paper, the impacts
of various demographic factors on investors’ attitude towards mutual fund have been studied. For
measuring various phenomena and analyzing the collected data effectively and efficiently for
drawing sound conclusions, drawing pie charts has been used and for analyzing the various factors
responsible for investment in mutual funds.

Vibha Lamba (Feb 2014), has done an analysis of Portfolio Management in India. The purpose
of present study is to analyse the scope and importance of portfolio management in India. This
paper also focuses on the types and steps of portfolio management which a portfolio manager
should take to provide maximum returns and minimum risk to his clients for their investments.

Megha Pandey, (2013) has done Comparative Study of Performance of Actively Managed Funds
and Index Funds in India. Actively Managed funds always overlapped passively managed funds
or Index Funds this research deals with a comparative analysis between the performance of both
of the funds, actively managed and passively managed. T test is applied to compare their means
and by this research the derived results shows that though actively managed funds gives more
returns.





 


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3 Introduction To Mutual Fund

A mutual fund is an investment vehicle made up of a pool of moneys collected from many investors
having some predetermined objectives for the purpose of investing in securities such as stocks,
bonds, money market instruments and other assets. The mutual fund has a fund manager who is
responsible for investing the pooled money into different classes of securities (stocks or bonds).
When an investor invests in a mutual fund, he or she is buying the units or portions of the mutual
fund and thus on investing becomes a unit holder or a shareholder of the fund.

Mutual funds are considered as one of the best available investment vehicle as compared to others
as they are very cost efficient and are also easy to invest in, thus by pooling money together in a
mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they
have tried to do it on their own. But the biggest advantage of investing in a mutual fund is
diversification, which minimizes risk & maximizes returns.

Fig 1 Mutual fund

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3.1 History Of Mutual Funds
The mutual fund industry in India was incorporated in 1963 with the formation of Unit Trust of
India, by the initiative of the Government of India and Reserve Bank of India. The history of
mutual funds in India can be broadly divided into four distinct phases.

First Phase – 1964-87

Unit Trust of India (UTI) was established in 1963 under the Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first
scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of
assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and
Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI
Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank
Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund
(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its
mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry,
giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the
first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to
be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton)
was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised
Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)

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Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting up
funds in India and also the industry has witnessed several mergers and acquisitions. As at the end
of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit
Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual
funds.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets
under management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes.

The Specified Undertaking of Unit Trust of India is functioning under an administrator and the
rules framed by Government of India and does not come under the purview of the Mutual Fund
Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with
SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI
in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of
a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers
taking place among different private sector funds, the mutual fund industry has entered its current
phase of consolidation and growth.

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The graph indicates the growth of assets over the years.

Fig 2.1 History of mutual fund (Source: AMFI website)

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3.2 Organization Of A Mutual Fund

Fig 2.2 Organization structure

3.3 Types Of Mutual Funds

Objective

Money

Fig 2.3 Types of Mutual Fund

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1. Equity fund:
The aim of growth funds is to provide capital appreciation over medium to long-term. These
schemes normally invest a major part of their portfolio in equities and have comparatively high
risks. They provide different options to the investors like dividend option, capital appreciation, etc.
and investors may choose one depending on their preferences. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for investors having a
long-term outlook seeking appreciation over a period of time. It can be further classified into
following depending upon objective: 
 Large-Cap Funds: These funds invest in companies from different sectors. However, they put a
restriction in terms of the market capitalization of a company, i.e., they invest largely in BSE 100
and BSE 200 Stocks. 
 Mid-Cap Funds: These funds invest in companies from different sectors. However, they put a
restriction in terms of the market capitalization of a company, i.e., they invest largely in BSE Mid
Cap Stocks. 
 Sector Specific Funds: These are schemes that invest in a particular sector, for example, IT. 
 Thematic: These schemes invest in various sectors but restrict themselves to a particular theme
e.g., services, exports, consumerism, infrastructure etc. 
 Diversified Equity Funds: All non-theme and non-sector funds can be classified as equity
diversified funds. 
 Tax Savings Funds (ELSS): Investments in these funds are exempt from income tax at the time of
investment, upto a limit of Rs 1 lakh. 


2. Debt funds:

The aim of income funds is to provide regular and steady income to investors. These schemes
generally invest in fixed-income securities such as bonds, corporate debentures, Government
Securities and money-market instruments and are less risky as compared to equity schemes.
However, opportunities of capital appreciation are limited in such funds. The NAVs of such funds
are impacted because of change in interest rates in the economy. If the interest rates fall, NAVs of
such funds are likely to increase in the short run and vice versa. However, long-term investors do
not bother about these fluctuations.

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 Debt funds are further classified as:

 Gilt Funds
 Income Funds
 MIP.
 Short Term Plans (STP)
 Liquid Funds:

3. Balanced funds:
The aim of the balanced funds is to provide both growth and regular income as such schemes invest
both in equities and fixed income instruments in the proportion indicated in their offer documents.
These are appropriate for investors looking for moderate growth. They generally invest between
65% and 75% in equity and the rest in debt instruments. They are impacted because of fluctuation
in stock markets but NAVs of such funds are less volatile compared to pure equity funds. 

Further, the mutual funds can be broadly classified based on investment parameter viz, By
investment objective:

 Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these schemes
is to provide capital appreciation over medium to long term.

 Income Schemes: Income Schemes are also known as debt schemes. The aim of these schemes is
to provide regular and steady income to investors. These schemes generally invest in fixed income
securities such as bonds and corporate debentures.

 Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically
distributing a part of the income and capital gains they earn. These schemes invest in both shares
and fixed income securities, in the proportion indicated in their offer documents (normally 50:50).

 Money Market Schemes: These funds are also income funds and their aim is to provide easy
liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer

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short-term instruments such as Treasury Bills, Certificates of Deposits, Commercial Paper and
inter-bank call money, Government Securities, etc. Returns of these schemes fluctuate much less
than other funds. These are appropriate for investors as a means of short-term investments.

Other schemes

 Tax Saving Schemes:

 Index Schemes:

 Sector Specific Schemes

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 3.4 Fund Management

Actively Managed Funds:

Mutual Fund managers are professionals. They are considered professionals because of their
knowledge and experience. Managers are hired to actively manage mutual fund portfolios. Instead
of seeking to track market performance, active fund management tries to beat it. To do this, fund
managers "actively" buy and sell individual securities. For an actively managed fund, the
corresponding index can be used as a performance benchmark.

Actively managed fund styles:

Fund styles usually fall within the following three categories.

Fund Styles:

 Value: The manager invests in stocks believed to be currently undervalued by the market.

 Growth: The manager selects stocks they believe have a strong potential for beating the market.

 Blend: The manager looks for a combination of both growth and value stocks.

Passively Managed Funds:

Passively managed mutual funds are an easily understood, relatively safe approach to investing in
broad segments of the market. They are used by less experienced investors as well as sophisticated
institutional investors with large portfolios.

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4. Portfolio Management Services

What is Portfolio Management?

Portfolio Management Services, called, as PMS are the advisory services provided by corporate
financial intermediaries. It enables investors to promote and protect their investments that help
them to generate higher returns. It devotes sufficient time in reshuffling the investments on hand
in line with the changing dynamics. It provides the skill and expertise to steer through these
complex, volatile and dynamic times. It is a choice of selecting and revising spectrum of securities
to it with the characteristics of an investor. It prevents holding of stocks of depreciating- value. It
acts as a financial intermediary and is subject to regulatory control of SEBI.

4.1 Phases Of Portfolio Management

 Security Analysis
 Portfolio Analysis
 Portfolio Selection
 Portfolio Revision
 Portfolio Evaluation

 Security Analysis

(a) Fundamental analysis: This analysis concentrates on the fundamental factors affecting the
company such as EPS (Earning per share) of the company, the dividend Payout ratio, competition
faced by the company, market share, quality of management etc.
(b) Technical analysis: The past movement in the prices of shares is studied to identify trends
and patterns and then tries to predict the future price movement. Current market price is compared
with the future predicted price to determine the mispricing. Technical analysis concentrates on
price movements and ignores the fundamentals of the shares.
(c) Efficient market hypothesis: This is comparatively more recent approach. This approach
holds that market prices instantaneously and fully reflect all relevant available information. It
means that the market prices will always be equal to the Intrinsic value.
(d) Portfolio Analysis: A portfolio is a group of securities held together as investment. It is an

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attempt to spread the risk all over. The return & risk of each portfolio has to be calculated
mathematically and expressed quantitatively. Portfolio analysis phase of portfolio Management
consists of identifying the range of possible portfolios that can be constituted from a given set of
securities and calculating their risk for further analysis.

 Portfolio Selection
The goal of portfolio construction is to generate a portfolio that provides the highest returns at a
given level of risk. Harry Markowitzh portfolio theory provides both the conceptual framework
and the analytical tools for determining the optimal portfolio in a disciplined and objective way.

 Portfolio Revision

The investor/portfolio manager has to constantly monitor the portfolio to ensure that it continues
to be optimal. As the economy and financial markets are highly volatile dynamic changes take
place almost daily. As time passes securities which were once attractive may cease to be so. New
securities with anticipation of high returns and low risk may emerge.

 Portfolio Evaluation

Portfolio evaluation is the process, which is concerned with assessing the performance of the
portfolio over a selected period of time in terms of return & risk.
The evaluation provides the necessary feedback for better designing of portfolio the next time
around.

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 4.2 Types Of Portfolio Management

Types of Portfolio Management

Discretionary portfolio management Non Discretionary portfolio

services (DPMS) management services (NDPMS)

Types of

Fig: 2.4 Types

The Discretionary portfolio management services (DPMS):

In this type of services, the client parts with his money in favor of manager, who in return, handles
all the paper work, makes all the decisions and gives a good return on the investment and for this
he charges a certain fees

The Non-discretionary portfolio management services:

The manager function as a counselor, but the investor is free to accept or reject the manager’s
advice; the manager for a services charge also undertakes the paper work. The manager
concentrates on stock market instruments with a portfolio tailor made to the risk taking ability of
the investor

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 4.3 Managing Portfolio

Asset Allocation

The process of dividing a portfolio among major asset categories such as bonds, stocks or cash.
The purpose of asset allocation is to reduce risk by diversifying the portfolio. The ideal asset
allocation differs based on the risk tolerance of the investor.
To help determine which securities, asset classes and subclasses are optimal for your portfolio;
let's define some briefly:
 Large-cap stock -These are shares issued by large companies with a market capitalization
generally greater than $10 billion.
 Mid-cap stock - These are issued by mid-sized companies with a market cap generally between
$2 billion and $10 billion.
 Small-cap stocks – These represent smaller-sized companies with a market cap of less than $2
billion. These types of equities tend to have the highest risk due to lower liquidity.
 International securities These types of assets are issued by foreign companies and listed on a
foreign exchange. International securities allow an investor to diversify outside of his or her
country, but they also have exposure to country risk - the risk that a country will not be able to
honor its financial commitments.
 Emerging markets – This category represents securities from the financial markets of a
developing country. Although investments in emerging markets offer a higher potential return,
there is also higher risk, often due to political instability, country risk and lower liquidity.
 Money market - Money market securities are debt securities that are extremely liquid investments
with maturities of less than one year. Treasury bills make up the majority of these types of
securities.
 Real-estate investment trusts (REITs) REITs trade similarly to equities, except the underlying
asset is a share of a pool of mortgages or properties, rather than ownership of a company

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4.4 Investor Types

There are many different types of investors in the stock market, investors can be classified into the
following types: Aggressive, Conservative, and Balanced

Aggressive Investor

Aggressive investors tend to concentrate on equity investments such as individual stocks and
mutual funds. They are open to more risk, willing to see large short term swings in market
performance on an annualized basis. They aim for large growth in the market.

Balanced investors

Balanced investors will have a time horizon of 5 to 10 years and choose to diversify across both
aggressive growth-oriented investments and more conservative interest-earning investments. They
emphasize income over growth. Balanced investors are medium risk investors.

Conservative Investor

Conservative investors have a 2 to 5 year time horizon, typically because they are nearing
retirement or have a short-term need for their investment. They prefer a higher level of income
than does the stable investor. Conservative investors are low to medium risk investors.

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 Equities
Cash and equivalents

Fig 3.1: Conservative Portfolio

Equities
Cash and equivalents

Fig 3.2 Aggressive portfolio

Equities
Cash and equivalents

Fig 3.3 Balanced portfolio

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4.5 SEBI Guidelines For PMS
 For investment in listed securities, an investor is required to open a Demat account in his/her own
name
 Minimum investment amount of clients for such schemes to Rs 25 lakh from the earlier Rs 5 lakh.
 Portfolio manager will not be allowed to hold the unlisted securities, besides the listed securities,
belonging to the portfolio account, in its own name on behalf of its clients.
 Portfolio manager cannot offer/ promise indicative or guaranteed returns to clients.
 The portfolio manager is required to have a minimum net worth of Rs. 2 crore.

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5 Data Analysis

The data collected through the Profiler provided for an Analysis of an Individual’s Risk – taking
capacity through the Risk – Analyzer. The Questionnaire, after being administered on the
Respondents categorizes each of them on the basis of their risk – taking, as Investors of the

following classes: Conservative, Balanced, and Aggressive

1. Demographic Analysis: The data of 22 respondents included 19 males and 3 females.

Demographics

13%
Males
Females

87%

Fig 4.1 Demographics

2. Age Group

Age
Fig 4.2 Age group
0%
3. Income level Between 0 to 10,00,000

4. .What percentage of monthly income can be invested?

18-35
35-50
50+

100%

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 Monthly Income

23%
0 to 10 %
32%
11 to 20%
21 to 30%
More than 30%
32%
4% 9% I currently have no income

Fig 4.3: Monthly Income

3. When do you expect to liquidate your investment?

14% 9%
4% Less than 1 year
1 to 2 years
23%
3 to 5 years
6 to 7 years
50% More than 7 years

Fig 4.4 expected liquidation period

4. What is your expected rate of return from your investments.

ERR

Potential return of 6% per

annum
41%
Potential return of 7 to 9%
59% per annum
Potential return of 10 to
15% per annum

Fig 4.5 expected rate of return

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5. I would start to worry about my investments if my portfolio value falls

0%

18%
23% Less than 5% per annum
5%-10% per annum
14% 10%-20% per annum
20%-30% per annum
More than 30% per annum
45%

Fig 4.6: Decrease in Portfolio

6. Maximum allocation in your current portfolio pertains to

Savings and fixed deposits

5%

Bonds
36%
Equities
41%

Mutual Funds

14% Derivatives options, swaps

4% andfutures

Fig 4.7: Portfolio Allocation

7. I prefer to keep capital safe rather than have high return

Sales

9%
Strongly Agree
Neutral
36% 55% Strongly Disagree

Fig 4.8: capital or return preference

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5.1 Interpretation

 Out of 22 respondents 19 were male and 22 female with Income level between 0 to 10,00,000
Lakhs

 All the respondent are of the age between 18 to 35 Years.

 64% of the respondents prefer investing monthly 0% to 20%
 50% of the respondents are ready to liquidate their investments with range of 3 to 5years
 40.9% of the investor’s portfolio consist of Mutual Funds.
 Age Group of 22 to 35 young working class with limited liability prefers to take higher risk and
get higher returns of 15% and more. They belong to Aggressive class of Investors. Mutual funds
is the most preferred option.
 Age group of 36 to 50 is those respondents who have dependents on them emphasize income over
growth. They are medium risk investors. They prefer to keep capital safe rather than having high
return. They belong to balanced class of Investors.
 Age groups of 50 and above are those respondents nearing retirement or have a short-term need
for their investment. They are low to medium risk investors. They prefer a higher level of income
than does the stable investor. They belong to Conservative class of investors. Debt Funds are most
preferred by them.

30 | P a g e
6 Portfolio Creation

6.1 Aggressive Investor Portfolio (80%Equity And 20%Debt)

Table 1.1

SCHEME NAME NATURE RETURNS BETA Rs

EQUITY
SBI SMALL CAP FUND 27.30 0.88 800000
DIVERSIFIED

MIRAE ASSET EMERGING EQUITY

25.16 1.01 600000
BLUECHIP FUND DIVERSIFIED

CANARA ROBECO
EMERGING EQUITY
EQUITIES 24.42 1.09 400000
DIVERSIFIED

RELIANCE SMALL CAP EQUITY

24.40 0.91 200000
FUND DIVERSIFIED

EQUITY 2000000

ICICI PRUDENTIAL
DEBT 11.59 0.98 125000
REGULAR SAVINGS FUND

ADITYA BIRLA SUN LIFE

DEBT 11.19 1.51 125000
REGULAR SAVINGS FUND

ICICI PRUDENTIAL ALL

DEBT 10.47 0 125000
SEASONS BOND FUND

31 | P a g e
UTI REGULAR SAVINGS
DEBT 10.29 1.12 125000
FUND

DEBT 500000
TOTAL PORTFOLIO 25,00,000

Source- MutualfundIndia.com

32 | P a g e
6.2 Conservative Investor Portfolio (80% Debt 20% Equity)

Table 1.2

SCHEME NAME NATURE RETURNS BETA Rs

EQUITY
SBI SMALL CAP FUND 27.30 0.88 200000
DIVERSIFIED

L&T MIDCAP FUND EQUITY 22.18 0.82 150000

KOTAK EMERGING EQUITY

EQUITY 22.11 0.82 100000
SCHEME

FRANKLIN BUILD INDIA FUND 50000

EQUITY 21.48 0.73

EQUITY 500000

ICICI PRUDENTIAL REGULAR

DEBT 11.59 0.98 400000
SAVINGS FUND

ADITYA BIRLA SUN LIFE

DEBT 11.19 1.51 400000
REGULAR SAVINGS FUND

ICICI PRUDENTIAL ALL

DEBT 10.47 0 400000
SEASONS BOND FUND

UTI REGULAR SAVINGS FUND DEBT 10.29 1.12 400000

FRANKLIN INDIA DYNAMIC

DEBT 10.02 0.29 400000
ACCRUAL FUND
DEBT 20,00,000
TOTAL PORTFOLIO 25,00,000

33 | P a g e
6.3 Balanced Investor Portfolio (50% Debt 50% Equity)

Table 1.3

SCHEME NAME NATURE RETURNS BETA

ADITYA BIRLA SUN LIFE B&FS

FUND 450000
EQUITY 21.45 0.80

L&T INDIA VALUE FUND 300000

EQUITY 20.92 0.86

PRINCIPAL EMERGING BLUECHIP FUND EQUITY 20.87 0.71 200000

ADITYA BIRLA SUN LIFE MNC FUND 100000

EQUITY 20.45 0.80

EQUITY 1050000

250000
RELIANCE HYBRID BOND FUND DEBT 9.98 0.82

HDFC HYBRID DEBT FUND 250000

DEBT 9.98 1.38

ICICI PRUDENTIAL LONG TERM 250000

BOND FUND DEBT 9.96 0

ICICI PRUDENTIAL ULTRA SHORT 250000

TERM BOND FUND DEBT 9.84 1.72

DEBT 10,00,000
TOTAL PORTFOLIO 25,00,000

34 | P a g e
 Portfolio Revision
Portfolio revision is done in 3 following ways, in order to find out which of give them higher
returns in the span of 2months from Feb 2nd 2019 to April 2nd 2019.

Portfolios are revised every 15 days in span of two months.

1. Constant Rupee Plan

The objective of this plan is to balance the division between the conservative and aggressive
components of the portfolio in terms of the target value.
The target value could be fixed initially by the investor in a desirable proportion.

2. Constant Ratio Plan

In this plan, we maintain a ratio between the aggressive and conservative components of a
portfolio. The initial ratio is fixed by the investor and could be, say, 1:1 or any other desirable
ratio.

3. Variable Plan

This plan gives more flexibility to the investors to revise the portfolio components.
When share price falls, the investor may shift major component of the conservative and aggressive
components. The desired ratio of investment holding between aggressive and conservative
components of a portfolio, hence, may vary according to the flexibility that an investor wishes to
incorporate in the portfolio revision decision.

35 | P a g e
Portfolio Revision As Per Constant Rupee Plan
In Constant Rupee Plan, for an Aggressive Investor its Equity is kept Rs 20, 00,000 and Debt is
Rs 5, 00,000. Every 15th day it is revised as per constant rupee plan.

Portfolio As On Feb 4th 2019

Table 2.1

NAV as
on Market Excess
SCHEME NAME th Returns Rank % Rs Units
4 return return
FEB

SBI SMALL CAP

47.73 27.30 15.06 12.24 4 0.2 800000 16761
FUND

MIRAE ASSET
EMERGING BLUECHIP 49.47 25.16 16.91 8.25 2 0.1 600000 12128
FUND

CANARA ROBECO
EMERGING EQUITIES 87.78 24.42 16.91 7.51 1 0.3 400000 4556

RELIANCE SMALL
37.57 24.40 15.06 9.34 3 0.4 200000 5331
CAP FUND

EQUITY 10 2000000

ICICI PRUDENTIAL
REGULAR SAVINGS 41.36 11.59 - - - - 125000 3022
FUND

ADITYA BIRLA
SUN LIFE
37.88 11.19 - - - - 125000 3299
REGULAR
SAVINGS FUND
ICICI
PRUDENTIAL
22.61 10.47 - - - - 125000 5528
ALL SEASONS
BOND FUND

36 | P a g e
 UTI REGULAR
40.3 10.29 - - - - 125000 3101
SAVINGS FUND
DEBT
500000

TOTAL PORTFOLIO 2500000

37 | P a g e
Revised Portfolio As On Feb 19th 2019

Table 2.2

New
NAV as
Rs Increase Revised on units on
SCHEME NAME on 19th
Decrease 19th FEB 19th
FEB
FEB

SBI SMALL CAP

46.93 786593.73 -1.68% 786832.89 16766
FUND

MIRAE ASSET
EMERGING 47.81 579839.60 -3.36% 579839.60 12127.99
BLUECHIP FUND
CANARA ROBECO
EMERGING EQUITIES 85.49 389492.44 -2.62% 389492.44 4556

RELIANCE SMALL
35.66 190103.46 -4.94% 190103.46 5331
CAP FUND

EQUITY 1946029.23 1946268.42

ICICI PRUDENTIAL
REGULAR SAVINGS 41.43 125201.46 0.16% 125000 3017.13
FUND

ADITYA BIRLA
SUN LIFE
37.73 124471.27 -0.42% 125000 3313.01
REGULAR
SAVINGS FUND

38 | P a g e
 ICICI PRUDENTIAL ALL SEASONS
22.72 125596.16 0.47% 125000 5501.76
BOND FUND

UTI REGULAR SAVINGS FUND 40.3 124970.30 -0.02 125000 3101.73

DEBT 500239.19 500000

TOTAL PORTFOLIO 2500000

In constant Rupee Plan the equity and Debt is to be kept constant throughout. Here equity value
has fallen and debt value has risen by Rs 239.16. In order to keep the portfolio value constant, the
equity is bought worth Rs 239.16, whose value has fallen the least ie SBI SMALL CAP FUND.

Revised Portfolio As On 5th March 2019

Table 2.3

NAV as Revised New units

Increase/ on 5th
SCHEME NAME on 5th Rs on 5th
Decrease March
March March

SBI SMALL
49.25 825725.5 4.94% 800000 16243.65
CAP FUND

MIRAE ASSET
EMERGING 50.62 613918.85 5.8% 600000 11853.02
BLUECHIP FUND
CANARA ROBECO
EMERGING EQUITIES 90.18 410860.08 400000 4435.57
5.48%

RELIANCE SMALL
38.98 207802.38 9.3% 200000 5130.83
CAP FUND

EQUITY 2058306.81 2000000

39 | P a g e
 ICICI PRUDENTIAL REGULAR SAVINGS
41.84 126236.71 0.98% 125000 2987.57
FUND

ADITYA BIRLA SUN LIFE REGULAR

SAVINGS FUND 38.24 126689.50 1.35% 125000 3268.82

ICICI PRUDENTIAL ALL SEASONS

22.75 125165.04 0.13% 125000 5494.50
BOND FUND

UTI REGULAR SAVINGS FUND 40.67 126147.35 0.91% 125000 3073.51

DEBT 504238.6 500000

TOTAL PORTFOLIO 2562545.41 2500000

On March 5th 2019 the portfolio value got increased. The portfolio is rebalanced by selling units
from both equity and bond funds. The total value of the portfolio is maintained at Rs 2500000.

Revised Portfolio As On 20th March 2019

Table 2.4

NAV as Revised on New units

Increase
SCHEME NAME on 20th Rs 20th on 20th
(Decrease)
March March March

SBI SMALL
51.14 830700.26 3.83% 800000 15643.33
CAP FUND

MIRAE ASSET
EMERGING 52.66 624180.03 4.03% 600000 11393.84
BLUECHIP FUND

40 | P a g e
 CANARA ROBECO
EMERGING
EQUITIES 92.89 412020.09 3.0% 400000 4306.16

RELIANCE SMALL
CAP FUND 39.88 204617.50 2.3% 200000 5015.04

EQUITY 2071517.88 2000000

ICICI PRUDENTIAL
REGULAR SAVINGS 42.37 126583.34 125000 2950.20
FUND

ADITYA BIRLA SUN

LIFE REGULAR 38.71 126536.02 125000 3229.13
SAVINGS FUND

ICICI PRUDENTIAL
ALL SEASONS BOND 22.95 126098.77 125000 5446.62
FUND

UTI REGULAR
SAVINGS FUND 41.21 126659.34 125000 3033.24

DEBT 505877.47 500000

TOTAL PORTFOLIO 2577395.35 2500000

The portfolio value has again increased from its original value, therefore the gained amount is sold
and the portfolio is rebalanced.

41 | P a g e
Portfolio As On April 5TH 2019

Table 2.5

NAV as on April
SCHEME NAME Rs
5th

SBI SMALL CAP FUND 52.29 817989.72

MIRAE ASSET EMERGING BLUECHIP FUND 53.19 606038.34

CANARA ROBECO EMERGING EQUITIES
94.17 405511.08

RELIANCE SMALL CAP FUND 40.53 203259.57

EQUITY 2032798.71

ICICI PRUDENTIAL REGULAR SAVINGS FUND 42.66 125855.55

ADITYA BIRLA SUN LIFE REGULAR SAVINGS

39.00 125936.07
FUND
ICICI PRUDENTIAL ALL SEASONS BOND FUND 23.12 125925.85

UTI REGULAR SAVINGS FUND 41.53 125970.45

DEBT 503687.89

TOTAL PORTFOLIO as May 29th 2012 2536486.6

Calculation Of Returns As Per Constant Rupee Plan

Table 2.6

PORTFOLIO
PORTFOLIO AS ON AS ON APRIL 5th Excess
FEB 4th 2019 2019 Returns Returns %

25,00,000 2536486.6 132250.54 5.30%

Opting for Constant Rupee Plan would give return of 5.30% in the span of 2months

42 | P a g e
Portfolio Revision As Per Constant Ratio Plan
In Constant Ratio Plan a fixed ratio is kept between Debt (40%) and Equity (60%).

Portfolio as on 4th FEB 2019

Table 3.1
NAV
as Market Excess
SCHEME NAME Returns Rank % Rs Units
on 4th return return
FEB

SBI SMALL CAP FUND 47.73 27.30 15.06 12.24 4 0.4 600000 12570.71

MIRAE ASSET EMERGING

49.47 25.16 16.91 8.25 2 0.2 300000 6064.28
BLUECHIP FUND

CANARA ROBECO
EMERGING EQUITIES 87.78 24.42 16.91 7.51 1 0.1 150000 1708.81

RELIANCE SMALL CAP FUND 37.57 24.40 15.06 9.34 3 0.3 450000 11977.64

EQUITY 10 1500000

ICICI PRUDENTIAL
41.36 11.59 - - - - 250000 6044.48
REGULAR SAVINGS FUND

ADITYA BIRLA SUN LIFE

37.88 11.19 - - - - 250000 6599.78
REGULAR SAVINGS FUND

ICICI PRUDENTIAL ALL

22.61 10.47 - - - - 250000 11057.05
SEASONS BOND FUND

43 | P a g e
UTI REGULAR SAVINGS
40.3 10.29 - - - - 250000 6203.47
FUND

DEBT 1000000

TOTAL PORTFOLIO 2500000

44 | P a g e
Revised Portfolio As On Feb 19th 2019

Table 3.2
NAV as on Increase/ Revised on New units on
SCHEME NAME Rs
19th FEB decrease 19th FEB 19th FEB

SBI SMALL CAP FUND 46.93 589943 -1.67% 588896 12548.4

MIRAE ASSET EMERGING

47.81 289933 -3.35% 294448 6158.71
BLUECHIP FUND

CANARA ROBECO
EMERGING EQUITIES 85.49 146086 -2.60% 441672 5166.35

RELIANCE SMALL CAP FUND 35.66 427123 -5.08% 147224 4128.54

EQUITY 1453085 1472240

ICICI PRUDENTIAL REGULAR

41.43 250423 0.16% 245373 5922.6
SAVINGS FUND

ADITYA BIRLA SUN LIFE

37.73 249010 -0.39% 245373 6503.4
REGULAR SAVINGS FUND
ICICI PRUDENTIAL ALL
22.72 251216 0.48% 245373 10799.9
SEASONS BOND FUND
UTI REGULAR SAVINGS
40.3 250000 0.00% 245373 6088.66
FUND

DEBT 1000648 981494

2453734 2453734
TOTAL PORTFOLIO

45 | P a g e
The portfolio value has declined on FEB 19th. The portfolio is rebalanced in the constant ratio of
60% equity and 40% bonds.

46 | P a g e
Revised Portfolio As On March 5th 2019

Table 3.3

NAV as on Increase Revised on 5th New units on

SCHEME NAME RS
5th March decrease March 5th March

SBI SMALL CAP FUND 49.25 618008.21 4.94% 152784.52 3102.22

MIRAE ASSET EMERGING

50.62 311753.90 5.88% 458353.57 9054.79
BLUECHIP FUND

CANARA ROBECO
EMERGING EQUITIES 90.18 465901.44 5.49% 305569.05 3388.43

RELIANCE SMALL CAP

38.98 160930.49 9.31% 611138.09 15678.25
FUND
EQUITY 1556594.04 1527845.23
ICICI PRUDENTIAL
41.84 247801.58 0.99% 254640.87 6086.06
REGULAR SAVINGS FUND

ADITYA BIRLA SUN LIFE

38.24 248690.02 1.35% 254640.87 6659.02
REGULAR SAVINGS FUND

ICICI PRUDENTIAL ALL

22.75 245697.27 0.13% 254640.87 11193.01
SEASONS BOND FUND
UTI REGULAR SAVINGS
40.67 247625.80 0.92% 254640.87 6261.15
FUND
DEBT 989814.67 1018563.48
TOTAL PORTFOLIO 2546408.71 2546408.71

47 | P a g e
As on March 5th 2019 Portfolio value has increased. The gained value is divided in the portfolio
as 60% equity and 40% bonds. The proportion of the equity distributed is according to the return
gained from previous amount.

48 | P a g e
Revised Portfolio As On March 20th 2019

Table 3.4

NAV as on Increase/ Revised on New units on

SCHEME NAME Rs
March 20th decrease March 20th March 20th

SBI SMALL CAP FUND 51.14 158647.53 3.84% 469082.02 9172.51

MIRAE ASSET
EMERGING BLUECHIP 52.66 476825.24 4.03% 625442.70 11877.00
FUND
CANARA ROBECO
EMERGING EQUITIES 92.89 314751.26 3.00% 312721.35 3366.58

RELIANCE SMALL CAP

39.88 625248.61 2.31% 156360.67 3920.78
FUND
EQUITY 1575472.64 1563606.75
ICICI PRUDENTIAL
REGULAR SAVINGS 42.37 257866.36 1.27% 260601.12 6150.60
FUND
ADITYA BIRLA SUN LIFE
REGULAR SAVINGS 38.71 257770.66 1.23% 260601.12 6732.14
FUND
ICICI PRUDENTIAL ALL
22.95 256879.58 0.88% 260601.12 11355.17
SEASONS BOND FUND
UTI REGULAR SAVINGS
41.21 258021.99 1.33% 260601.12 6323.74
FUND

DEBT 1030538.60 1042404.50

TOTAL PORTFOLIO 2606011.24 2606011.24

49 | P a g e
As on March 20th 2019 Portfolio has increased, Debt and equity has increased. Overall Portfolio
has been revised as Constant ratio Plan, fixed ratio of 60% equity and 40% debt. There Total
portfolio as on March 20th 2019 ie, Rs 2606011.24 is allocated to equity 60% and Debt 40%.

Portfolio as On April 5th 2019

Table 3.5
NAV as on
SCHEME NAME Rs
5th April

SBI SMALL CAP FUND 52.29 479630.5

MIRAE ASSET EMERGING BLUECHIP FUND 53.19 631737.6

CANARA ROBECO EMERGING EQUITIES

94.17 317030.8

RELIANCE SMALL CAP FUND 40.53 158909.2

1587308.23
EQUITY

ICICI PRUDENTIAL REGULAR SAVINGS FUND 42.66 262384.6

ADITYA BIRLA SUN LIFE REGULAR SAVINGS FUND 39.00 262553.5

ICICI PRUDENTIAL ALL SEASONS BOND FUND 23.12 262531.5

UTI REGULAR SAVINGS FUND 41.53 262624.9

1050094.51
DEBT

TOTAL PORTFOLIO as APRIL 5TH 2019 2637402.74

50 | P a g e
Calculation Of Returns As Per Constant Ratio Plan

Table 3.6

PORTFOLIO
PORTFOLIO AS ON MAY 2ND 2012 Excess Returns
AS ON JUNE 29TH 2012 Returns %

25,00,000 2637402.74 1,37,403 5.50%

Opting for Constant Ratio Plan would give return of 5.50% in the span of 2m

51 | P a g e
Portfolio Revision As Per Variable Plan
As per Variable Plan the portfolio is revised every time there is any change in economy or the
market fluctuates. As on FEB 4th, Portfolio is divided into 60% equity 40% debt. In Equity,
Schemes are allocated on basis of comparing its returns with market returns. Scheme giving higher
returns are given more weightage.

Portfolio As On Feb 4th 2019

Table 4.1
NAV as
Market Excess
SCHEME NAME on 4th Returns Rank % Rs Units
return return
FEB

SBI SMALL CAP FUND 47.73 27.30 15.06 12.24 4 0.4 600000 12570.71

MIRAE ASSET EMERGING

49.47 25.16 16.91 8.25 2 0.2 300000 6064.28
BLUECHIP FUND

CANARA ROBECO
EMERGING EQUITIES 87.78 24.42 16.91 7.51 1 0.1 150000 1708.81

RELIANCE SMALL CAP

37.57 24.40 15.06 9.34 3 0.3 450000 11977.64
FUND

EQUITY 10 1500000

ICICI PRUDENTIAL
41.36 11.59 - - - - 250000 6044.48
REGULAR SAVINGS FUND

ADITYA BIRLA SUN LIFE

37.88 11.19 - - - - 250000 6599.78
REGULAR SAVINGS FUND

ICICI PRUDENTIAL ALL

22.61 10.47 - - - - 250000 11057.05
SEASONS BOND FUND

52 | P a g e
 UTI REGULAR SAVINGS
40.3 10.29 - - - - 250000 6203.47
FUND

DEBT 1000000
Total 2500000

Revised Portfolio As On Feb 19th 2019

Table 4.2

NAV as
Increase/ Revised on New units on
SCHEME NAME on 19th RS Rank
decrease 19th FEB 19th FEB
FEB

SBI SMALL CAP FUND 46.93 589943 -1.67% 0.40 490746.80 10456.99

MIRAE ASSET
EMERGING BLUECHIP 47.81 289933 -3.35% 0.3 368060.10 7698.39
FUND
CANARA ROBECO
EMERGING EQUITIES 85.49 146086 -2.60% 0.2 245373.40 2870.20

RELIANCE SMALL CAP

35.66 427123 -5.08% 0.1 122686.70 3440.45
FUND
EQUITY 1453085 1226867
ICICI PRUDENTIAL
REGULAR SAVINGS 41.43 250423 0.16% 306716.8 7403.25
FUND
ADITYA BIRLA SUN LIFE
REGULAR SAVINGS 37.73 249010 -0.39% 306716.8 8129.25
FUND

53 | P a g e
 ICICI PRUDENTIAL ALL
22.72 251216 0.48% 306716.8 13499.86
SEASONS BOND FUND

UTI REGULAR SAVINGS

40.3 250000 0.00% 306716.8 7610.84
FUND

DEBT 1000648

TOTAL PORTFOLIO 2453733

As on FEB 19th 2019 Portfolio has fallen, Debt has increased by Rs 648 and equity has fallen by
Rs 46,915. Therefore Overall Portfolio has been revised and is given equal allocation of Debt and
equity. Hence total portfolio as on FEB 19th 2019 ie, 50% Debt Rs 12,26,866.50 and 50% equity
Rs 12,26,866.50

54 | P a g e
Revised Portfolio As On March 5th 2019

Table 4.3
NAV as New units
Increase Revised on
SCHEME NAME on 5th RS Weightage th
on 5th
decrease 5 March
March March

SBI SMALL CAP FUND 49.25 515006.76 4.94% 0.1 177443.83 3602.92

MIRAE ASSET
EMERGING BLUECHIP 50.62 389692.50 5.88% 0.3 532331.48 10516.22
FUND
CANARA ROBECO
EMERGING EQUITIES 90.18 258834.64 5.49% 0.2 354887.65 3935.32

RELIANCE SMALL
38.98 134108.74 9.31% 0.4 709775.31 18208.70
CAP FUND
EQUITY 1297642.64 5.77% 1 1774438.27
ICICI PRUDENTIAL
REGULAR SAVINGS 41.84 309751.98 0.99% 190118.39 4543.93
FUND
ADITYA BIRLA SUN
LIFE REGULAR 38.24 310862.52 1.35% 190118.39 4971.71
SAVINGS FUND
ICICI PRUDENTIAL
ALL SEASONS BOND 22.75 307121.82 0.13% 190118.39 8356.85
FUND

UTI REGULAR
40.67 309532.86 0.92% 190118.39 4674.65
SAVINGS FUND

DEBT 1237269.18 0.85% 760473.54

55 | P a g e
 TOTAL PORTFOLIO 2534911.81 2534911.81

As on 5th March 2019 overall Portfolio has risen, Debt has increased by 0.85% and equity has
increased by 5.77%. Therefore Overall Portfolio has been revised given more allocation of
Portfolio to equity 70% and debt 30%. Therefore Total portfolio as on 5th March 2019 ie, 70%
equity Rs 17,74,438.27 and 30% debt Rs 7,60,47.54.

56 | P a g e
Revised Portfolio As On March 20th 2019

Table 4.4
NAV as New units
Increase Revised on
SCHEME NAME on 20th RS Weightage th
on 20th
decrease 20 March
March March

SBI SMALL CAP

51.14 184253.33 3.84% 0.3 623799.73 12197.88
FUND

MIRAE ASSET
EMERGING 52.66 553784.15 4.03% 0.4 831732.98 15794.40
BLUECHIP FUND
CANARA ROBECO
EMERGING EQUITIES 92.89 365551.87 3.00% 0.2 415866.49 4476.98

RELIANCE SMALL
39.88 726162.96 2.31% 0.1 207933.24 5213.97
CAP FUND
EQUITY 1829752.30 3.12% 1 2079332.44
ICICI PRUDENTIAL
REGULAR SAVINGS 42.37 192526.31 1.27% 129958.28 3067.22
FUND
ADITYA BIRLA SUN
LIFE REGULAR 38.71 192454.89 1.23% 129958.28 3357.23
SAVINGS FUND
ICICI PRUDENTIAL
ALL SEASONS BOND 22.95 191789.71 0.88% 129958.28 5662.67
FUND

UTI REGULAR
41.21 192642.33 1.33% 129958.28 3153.56
SAVINGS FUND

DEBT 769413.24 1.18% 519833.10

TOTAL PORTFOLIO 2599165.55 2599165.55

57 | P a g e
As on March 20th 2019 overall Portfolio has increased, Debt has increased by 1.18% and equity
has increased by 3.12%. Therefore Overall Portfolio has been revised given more allocation of
Portfolio to equity 80% and Debt 20% because equity is giving more returns than Debt.. There
Total portfolio as on March 20th 2019 ie Rs 2599165.55, 20% Debt Rs 5,19,833.10 and 80% equity
Rs 20,79,332.44.

Portfolio As On April 5th 2019

Table 4.5
NAV as on 5th
SCHEME NAME Rs
April

SBI SMALL CAP FUND 52.29 637827.15

MIRAE ASSET EMERGING BLUECHIP FUND 53.19 840104.14

CANARA ROBECO EMERGING EQUITIES

94.17 421597.21

RELIANCE SMALL CAP FUND 40.53 211322.20

2110850.69
EQUITY

ICICI PRUDENTIAL REGULAR SAVINGS FUND 42.66 130847.61

ADITYA BIRLA SUN LIFE REGULAR SAVINGS FUND 39.00 130931.97

ICICI PRUDENTIAL ALL SEASONS BOND FUND 23.12 130920.93

UTI REGULAR SAVINGS FUND 41.53 130967.35

523667.85
DEBT

2634518.54
TOTAL PORTFOLIO as May 29th 2012

58 | P a g e
Calculation Of Returns As Per Variable Plan
Table 4.6
PORTFOLIO AS ON
PORTFOLIO AS ON MAY 2ND Excess
JUNE Returns
2012 Returns
29TH 2012 %
2634518.54 134518.54
25,00,000 5.9%

Opting for Variable would give return of 5.90% in the span of 2months.

7.4 Calculation Of Portfolio Returns

Table 5

PLAN NAME RETURNS RANKINGS

CONSTANT RUPEE 5.3% 3

CONSTANT RATIO 5.50% 2

VARIABLE PLAN 5.9% 1

Variable Plan gives highest returns of 5.90% compared to other two plans in span of 2months 4th
FEB 2019 to 5th APRIL 2019 because in variable plan continuous revision is done according to
market Fluctuation.

Therefore Null hypothesis of the project has been proved wrong through analysis done above.

Here in variable plan active management style is adopted where continuous revision is required to
get higher returns. of 5.9

59 | P a g e
 Limitation To The Study

Although the report has been made on the relevant facts and figures but certain problems have
been faced, which are as follows: -
 The respondents were sometimes biased while answering the questions.

 The study only covers the students of IM BHU

 The time constraint was one of the major problems.
 To get an insight in the process of portfolio allocation and deployment of funds by a Fund manager
is difficult.
 The portfolio of mutual fund investments is subjected to market conditions. This project is carried
out and evaluated on the basis of the market conditions from 4th Feb 2019 to 5th April 2019.

Findings

 Active Management of funds are far better approach than passive management of Funds because
Portfolio’s are continuously checked and revised to take into account the effect market fluctuations
on Investors Portfolio and take appropriate measure.
 Variable plan in portfolio revision gives higher returns in short term period.
 Beta is useful tool in measuring risk in mutual funds.
 Less affordable by Middle class Investor as minimum investment needed is 25 lakhs.
 Portfolio Diversification is necessary in order to manage the risk.
 Portfolio created as per Investor class and risk is more preferable.

Suggestions

 Portfolio managers should reanalyze their portfolios as similar funds of different companies have
better performance than their competitors.
 Before investing the past performance of several years should be considered and consistency
should be checked rather going for higher returns in recent period

 Active management style should be adopted for short term period

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 Conclusion

After studying & analyzing different portfolio’s the following conclusions can be made:

 Winning with stocks means performing at least as well as a major market index over the long haul.
If one can sidestep the common investor mistakes, then one has taken the first and biggest step in
the right direction.
 Portfolio Management services in mutual funds reduces risk without sacrificing returns.
 PMS involves a proper investment decision with regards to what to buy and sell. It involves proper
money management. It is also known as Investment Management
 If you wish to reap substantial benefits from your various investments & want your small pile of
investment to grow, the right portfolio management service (PMS) is a prerequisite for it
 Diversified stock portfolios have offered superior long term inflation protection.
 To understand stock funds, one needs to be familiar with the characteristics of the different types
of companies they hold.
 PMS could end up being a well paying affair if you get this one right. So if you are ready to put
your nest egg & step into this world, put each step with a fine-toothed comb.

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 References

Webliography

 http://www.amfiindia.com/showhtml.aspx?page=mfconcept

 http://finance.wikia.com/wiki/Portfolio_Management_Services_-

_a_customized_investing_option_for_HNI_individuals

 http://www.mbaknol.com/investment-management/portfolio-investment-process/

 http://www.mutualfundsindia.com/

 http://www.valueresearchonline.com/

 http://www.moneycontrol.com/mf/portfolio/portupmore.php

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 Annexure
What is your current age?
 18 to 35 years old
 35 to50 years old
 Above 50 years old

What percentage of monthly income can be invested?

 0 to 10%
 11% to 20%
 21% to 30%
 More than 30%
 I currently have no income

When do you expect to liquidate your investment?

 Less than 1 year
 1 to 2 years
 3 to 5 years
 6 to 7 years
 More than 7 years

In order to achieve high returns I am willing to choose high risk investments.

 Strongly agree
 Neutral
 Strongly disagree

What is your expected rate of return from your investments?

 Potential return of 6% per annum
 Potential return of 10% to 15% p. a

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 Potential return of more than 15% per annum

I would start to worry about my investments if my portfolio value falls

 Less than 5% per annum
 5%-10% per annum
 10%-20% per annum
 20%-30% per annum
 More than 30% per annum

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 Maximum allocation in your current portfolio pertains to
 Savings and fixed deposits
 Bonds
 Equities
 Mutual Funds
 Derivatives options, swaps and futures

I prefer to keep capital safe rather than have high returns

 Strongly agree
 Neutral
 Strongly disagree

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