Slide 1: Greeting Line

A very good evening to all the panel members.

I would like to share my work done on the topic “ Risk Perception and Portfolio Management of
Equity Investors” for my 14-week SIP done at Sharekhan LTD.

Slide 2: AGENDA

The following are the sequence of my presentation. Starting with company profile, followed by
Introduction to Financial Markets, and lastly I have findings, conclusion and future prospects.

Slide 3: Company Profile

1st I have is the Background of Sharekhan LTD. which is Founded by Mumbai-based entrepreneur
Shripal Morakhira in 2000

Next, I have is the SWOT Analysis

In this, I would like to tell u first about Strengths of Sharekhan that it has developed quite strong
infrastructure in IT

Next its weakness, that Sharekhan is unable to penetrate its services in rural cities

Third, Opportunities, nowadays youth are more inclined towards financial markets/equity
investments

Lastly, Threat, for sharekhan is its competitors coming up with Tough brokerage and service as
compared to other full service brokers

-Top 3 brokers:

Zerodha

ICICI Securities

Kotak Securities

Slide 4: Introduction to Financial Markets

What I have learnt so far from my past two semesters during the course of PGPM was about markets
such as equity, debt, primary and secondary markets, but as and when I started my Internship with
sharekhan, I was introduced with other forms of market as well as mentioned on the screen like
Commodity, Currency, Exchange traded, and F&O.
Slide 5: Brief Analysis: Risk Perception and Portfolio Management of Equity Investors

My topic explains about the risk taking abilities of investor in equity markets.

Risk is further categorised as :

i) Low Risk: investors here are more concerned with fixed returns

ii) Moderate Risk: invest into well diversified asset class with little risk

iii) Traditional: investors herein tend to invest huge capital into various projects, plans, or into asset
class

iv) High: Herein investors are more concerned about taking high risk with high reward

v) Emerging: These are investors who are more inclined towards trying out new ways of investment
and growth with known risk

-PMS(facility offered by AMC for HNI’S for investment purpose into stocks, debt, and other securities
which is then managed by a professional manager) etc.

-Hedge fund( part of asset management strategy adopted by an individual which is based on 220
principle; 2% fees, 20% profit)

-Cryptocurrency(is a digital currency that can be used to buy goods and services, but uses an online
ledger with strong cryptography to secure online transactions. Much of the interest in these
unregulated currencies is to trade for profit, with speculators at times driving prices skyward)

eg. Motilal Oswal, Kotak securities, ICICI Prudential, etc. (PMS)

After understanding the risk taking capability, we need to look at other factors as well, like
demography(which place they belong to), experience( time invested) ; knowledge( information and
facts well read about); and awareness( alertness with currents news and updates)

When all this is clear, next step is to differentiate between mutual fund and PMS; because investors,
and new players, tend to get puzzled between the two, because of number of similarities, but they
are certain differences too to be taken care of which are mentioned here.

Slide 6&7: SIP Activities

As far as activities are concerned, we were given task to analyse company’s performance of our own
choice, do regular trades in our own DEMAT account, and also attend Sharekhan classroom sessions
available on its website.

Further, we were told to cross-sell DEMAT account to other people, later were exposed to learn
about derivatives and trade into it and also were supposed to trade on intra-day as well as delivery
basis.
Slide 8&9: SIP Learnings

From my 14 week SIP, I have learnt about how brokerage is generated for intra-day and delivery
trades; we also learnt about how different accounts are activated on Sharekhan, why mutual fund is
an important investment opportunity for investors; live example and trading into derivatives and
currency, and learning about Trade Tiger software, a better and smooth way to carry out trades, i.e.,
directly from desktop site.

Slide 10: Application of SIP

Firstly, I conducted a survey about perception of risk with people residing in Delhi NCR through the
questionnaire designed by me, as presented here.

Further, I back-tested the strategies introduced to us for trading into derivatives on Opstra website.

1st graph is a long futures graph, in which the green part shows the profit and red part shows loss as
futures have unltd. Profit and loss potential.

When we sell a futures contract, price starts falling, so we make profit, as shown by green part, on
the other hand, when price starts rising, we incur loss as shown by red part.

This helps me to analyse and get better position beforehand.

Slide 11: Basic Analysis

I have done descriptive analysis using SPSS Software based on responses collected from the
respondents.

The major factors are capital appreciation, annual income, financial advisor, risk-reward, and age.

Slide 12: Findings and Conclusion

Based on the analysis, my findings are shown on the pie chart.

26%-young

18%- are respondents that fall below 2lacs income

18% - are respondents who high influence from financial advisors such as stock brokers, analysts,
etc.

18% - are respondents that majorly regard capital appreciation .i.e., return on investment with
respect to time value

20% - respondents majorly invest into well diversified asset class between low to high risk, as they
are better aware of new strategies, techniques, and have less capital to loose.

Conclusion

Thus, I can summarise my analysis as per my report that, youth are more inclined towards equity
investment into financial markets and thereby take calculated risk with respect to calculated profit
they tend to earn on their investment.
Slide 13: Future Prospects

• Swing Trading/Intra-day trading

• Resistance and Support patterns

• Margin Exposure etc.

At the end, I would like to end my presentation with a famous quote by Paul Tudor Jones:

“The secret to become successful from a trading perspective is to have an indefatigable and an
undying and unquenchable thirst for information and knowledge”.

Thankyou