DR.

REDDY'S LABORATORIES

FINSIGHT

STEPS OF PORTFOLIO INVESTMENT

As a group we were given hypothetical 1 crore of amount, of which 75, 00,000 were suggested to invest into
one’s own portfolio and balance of 25,00,00 into other groups portfolios; after which, following steps were
taken.
i. Determination of investment portfolio (Distribution of cash between sectors)
ii. Justification of Portfolio Selection (Issue buy order)
iii. Review of Portfolio (weekly) (Issue buy/sell order)
iv. Review of portfolio performance (justification of final value of portfolio/produce financial statements)

KEY LEARNINGS OF GROUP

 We have learned that past performance does not guarantee the same performance of stocks in future
results as the results or performances are bound to change in accordance with the market conditions
and the company decisions for its future.
 Different strategies for selecting stocks and to make our portfolio more efficient in terms of gaining
more profit. While doing the investment one should consider the investment objectives, risks, charges,
and expenses factors carefully.
 The return of investment and the principle value of an investment will fluctuate during the time of
trading it may go high or it may end up in losses, also there are possibilities that the investor’s account
may be worth less than the original investment when liquidated or will gain more profit than the
original investment.
 One of the important learning is that, it is very important to stay updated with market news and
developments, since every news has its impacts on market and therefore to our portfolio.
 The concept of rebalancing and implementation in our portfolio on fortnight bases helped us in
tracking our portfolio and identify new opportunities in the market.
 More research on the risk profile to identify how best we can build our portfolio should have been
done/taken into consideration.
 We also learned that it is always safe to diversify our portfolio as this will help to spread our risk
proportion in different stocks in different sector as different sectors react differently to the market
conditions.
 We also learned that it is not always possible that blue chip companies will perform good and will
give high returns, as investment in blue chip companies is less or low risky it will give returns low,
compared to mid or small cap companies as investing in this types of companies are more riskier
compare to large cap companies and therefore this type of companies generate higher returns.
 Before investing into any stock strong research is needed to make right decisions. Active tracking of
portfolio is necessary as to know where the portfolio stands and are the selected stock performing well
or not.
 Thus, a portfolio assessment provides an opportunity for us to reflect on their learning, to self-assess,
and to formulate a deeper understanding of the concepts they are learning beyond a simple surface
explanation. To read and monitor the financial newspapers as well as internet updates on the NSE and
the global financial market.
 FINSIGHT

CONTRIBUTION OF GROUP MEMBERS

Sr. No. Roll No. Name Contribution

20191004 Divya Wagaralkar Last rebalancing, Product note,
1. Preparation of Final report, Maintaining
Group 2 Tradebook
20191041 Tejas Meena Product note, Maintaining Tradebook &
2. ET Portfolio, Fund Management, Portfolio
Rebalancing & Investment & decision.
20191042 Vinay Verma Last rebalancing and help in previous
3. rebalancing, Maintaining Group 5
Tradebook, Preparation of Final report,
20191052 Sahar Kapadi Product note, Preparation of Final report,
4.
1-week tradebook calculation.
20191135 Jayesh Sawadkar Initial stock selection decisions, Help in
5. Rebalancing, Maintaining Group 7
Tradebook.
20191137 Shashank Talewar Product note, Initial investment decision
6.
& Tradebook Preparation.