Q. : Why have you chosen this topic?

- My MRP topic is Security Analysis and Portfolio Management

- I recently took a side course on BASICS of stock market provided by our college.So I got interested in this
field and decided to take a topic related to stock market.
- I even did some stock trading on a dummy platform as part of that course.

Q. : How did you prepare the report ?

- My MRP topic is Security Analysis and Portfolio Management
- I recently took a side course on BASICS of stock market provided by our college.
- I got some of the ideas from the course itself
- I also did some research on various blogs and financial sites like ticker tape.
- Also we have some financial courses as part of this Semester like <subject1> <subject2> which has
references to this field.

SUMMARY OF THE REPORT :

- My major report topic is Security Analysis and Portfolio Management.

- Security analysis majorly revolves around calculating the value of various assets and also to find out the
effect of various market fluctuations on the value of tradable financial instruments (also called securities).
- There are three kind of analysis that can be done : Fundamental Analysis , Technical Analysis and
Quantitative Analysis

- Going further into each of them , Fundamental Analysis refers to the evaluation of securities with the help
of certain fundamental business factors such as financial statements, current interest rates as well as
competitor’s products and financial market.
- Fundamental analysis is a must when an investor wishes to invest in a business for the long term (say 3 –
5 years) so that he understands the business from various perspectives.This involves analyzing the
company’s annual report , Profit and loss statements , balance sheets and understanding policies
related to the company’s vertical .

- On the other hand , Technical analysis refers to the analysis of securities and helps the finance
professionals to forecast the price trends through past price trends and market data.
- As part of Technical analysis , we analyze the open ,close high and low prices (OHLC prices) of a
security over a period of time using various charts like line chart , bar chart and candlestick.

- Quantitative analysis is an approach that emphasizes mathematical and statistical analysis to help
determine the value of a financial asset, such as a stock or option.

- Portfolio basically refers to the securities owned by an individual or an organization.It can involve stocks,
bonds , mutual funds and other securities.
- Portfolio management refers to the art of selecting the best investment plans for an individual concerned
which guarantees maximum returns with minimum risks involved.It involves answering the basic questions
like when to invest , where to invest and how much to invest

PRACTICAL STUDY:
- As part of the major report I performed a comparison between two portfolios based on the risks and the
returns involved.
- Each of the portfolios comprised 3 stocks of some of the major listed companies like NTPC ,
Britannia ,Reliance etc.
- The data consisted of per day stock closing prices of the stocks for one month from 2021-11-29 and 2021-
12-20. (Nov 2021 to Dec 2021)
- The data was manually collected from the NSE official site.
- The expected return of each stock was calculated by taking an average of the closing prices of the stock
per day.
- On the other hand, the risk associated with each stock was calculated as the standard deviation of the
closing prices of the stock per day
- It was concluded that the portfolio associated with high returns is also having high risk while the portfolio
with relatively lesser return is having less risk compared to the first one.
- So, it is advisable for an investor to work out his portfolio in such a way where he can optimize his returns by
evaluating and revising his portfolio on a continuous basis.