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INVESTMENTS "Investments" refers to the process of applying resources so as to increase wealth.

Direct investment is the actual acquisition and management of assets by the individual. For many assets such direct investment is cumbersome and unavailable to smaller investors. Direct investments are often difficult to manage, are of limited liquidity, and require expertise on the part of the investor. For larger direct investments, the required concentration of investor wealth in a few ventures increases risk. Consequently, investors using this direct form of investment demand higher return and are hesitant to undertake new ventures without substantial safeguards. If this were the only form of investment, formation of new ventures would be difficult and economic growth would be slow. Many of these problems can be reduced or avoided by indirect investment through securities. Securities are instruments that represent an interest in, or claim on, other assets. Use of securities separates ownership from possession and management of assets. This separation allows widespread ownership and easy transfer, dispersion of wealth over investments, use of professional management, and access to broader sources of capital. This in turn helps create capital markets with more efficient allocation of resources, encouraging economic growth. The advantages of the security form of investment are not limited to physical assets. The appeal of securities over direct acquisition is evidenced by the recent "securitization" of financial assets. In this process normally illiquid assets are pooled, and shares in this diversified pool are then issued. Securities simplify the investment process, but do not remove all problems. Analysis of securities, and their combination into portfolios, is a complicated problem requiring a high level of expertise. The investor must be concerned with both the level of and uncertainty about the anticipated returns. Investment theory is not so much directed toward the actual physical assets, or even to the predicted cash flows from the investments. Instead it is concerned with investment return, which is increasingly treated as a random variable described by a probability distribution. Securities exhibit a "risk return tradeoff"i.e., assets with greater uncertainty about the actual outcome (higher risk) must on average provide a higher anticipated return to induce investors to accept the risk. Over the period 1926 to 1995, a study by Ibbotson Associates indicated that 1

U.S. Treasury bills (T-bills), the asset class with the most uncertain returns, had an average annual return of 3.7 percent, while small capitalization stocks had the highest uncertainty and an average annual return of 17.7 percent. As uncertainty of returns increased over asset classes, returns also increased. It is commonly accepted that greater risk accompanies greater anticipated return. Finally, the investor must consider the interactions between securities, combining them into portfolios that reduce risk through diversification.

SECURITIES An amazing diversity of securities has developed over time, and there are variations on the general types of securities described here. The pace of innovation has increased in recent years with the development of quantitative analysis and investment models. New types of securities are being created, and old types modified, at an unprecedented pace. Financial engineering, which is the design of new and often very complex instruments and strategies, has emerged as a separate new discipline. Some standard forms of securities are apparent, however, and are typically classified according to various common characteristics into equity, fixed income, andderivatives. It should be noted that there are exceptions to every common characteristic investors must carefully consider each individual security. EQUITY SECURITIES Equity securities, or stocks, are simply evidence of a partial share in the ownership of an enterprise. Thus, individual common stocks are referred to as "shares." Sale of shares is more attractive to the firm than seeking direct investment. Since many shares can be issued for the same enterprise, the firm has access to a much wider pool of capital. This enables the firm to raise larger amounts and so consider larger projects. Sale of shares is also attractive to management, at least in part, because it has more control over the firm due to the diffusion of ownership. The holder of a share does not have a direct voice in the management of the enterprise, but has an indirect control through the election of the 2

directors, who in turn choose the management of the firm. Voting for directors may be through simple majority voting or through cumulative voting. In the majority system, each investor may cast one vote per position for each share held, and the director receiving more than 50 percent of the votes wins. Under majority voting, a group holding more than 50 percent of the voting stock could lock out minority groups. In the cumulative system, each investor receives one vote per position for each share held, but may cumulate the votes received by casting them all for one candidate. Under cumulative voting, fewer shares are required to guarantee election of a director, so that excluding minority stockholder groups is more difficult. Managements of firms that are takeover targets or are facing challenges from stockholders prefer to be under majority voting. Even under cumulative voting mounting a successful dissident drive faces formidable hurdles, however, since management may dominate the board of directors and controls the assets of the firm. If there is a disagreement with management, the conventional wisdom of Wall Street has been to sell the stock rather than mount a challenge. This conventional wisdom has changed somewhat in recent times because of a willingness of stockholders to take on the role of activists. Also, large positions held by institutions such as mutual or pension funds make challenges to management easier to pursue. The cash flows to an equity investor are not specified in advance. They depend on the success of the enterprise, are uncertain or risky, and are properly described in terms of probability distributions. As part owner of the firm, the owner shares in the success or failure of the firm in two ways. The first way is through returns from capital gains and capital losses arising from increases or decreases in the value of the stock. The second way is through cash flows arising from the distribution of earnings in the form of dividends. The distribution of earnings through dividends is not automatic. Dividends are not an obligation, but instead are declared at the discretion of the board of directors. In practice, dividends are usually not just a function of earnings. Dividends are thought to be a signal to investors as to firm performance. Management prefers to present positive signals, smoothing dividends by avoiding decreases and increasing dividends only if it is likely that the higher level can be maintained. In some cases, firms have raised funds in the capital markets so as to maintain the dividend. An exception is the "extraordinary" dividend, so labeled by management as a sign that the increase is not permanent.

Despite the fact that shares are evidence of part ownership of a firm, common stock has limited liability in bankruptcy. Legally, the firm is considered to be an individual, able to assume its own liabilities separately from the shareholders. As a result, liability is separated from ownership. Limited liability means that the investor is not liable for the debts of the firm, and should the firm fail the investor's loss will be limited to no more than the amount invested. The development of this limited liability form of investment was a major factor in the rise of the corporate form of business, and greatly encourages investment in productive undertakings by individuals because of the risk limitation. In bankruptcy the various claims on the firm follow a well-defined priority, with common stockholders assigned the lowest priority. It is for this reason that the common stockholders are sometimes called the "residual owners" of the firm. There are other characteristics of equity that are less universal, and there are other exceptions to these general properties of equity securities. Some firms have multiple classes of stock with different voting power and/or share of dividends. Other stock may be restricted as to trading. Common stocks are traded in both organized securities exchanges and over the counter. The size of the underlying firm, and the trading volume of the stock, vary widely. Consequently, the liquidity and the amount of information available on a stock also vary widely.

PORTFOLIO MANAGEMENT THEORY The theory of portfolio management describes the resulting risk and return of a combination of individual assets. A primary objective of the theory is to identify asset combinations that are efficient. Here, efficiency means the highest expected rate of return on an investment for a specific level of risk. The primary starting point for portfolio theory requires an assumption that investors are risk averse. This simply means that they will not consider a portfolio with more risk unless it is accompanied by a higher expected rate of return. Modern portfolio theory was largely defined by the work of Harry Markowitz (1927-) in a series of articles published in the late 1950s. This theory was extended and refined by William Sharpe (1934-), John Lintner (1916 1983), James Tobin (1918-), and others in the subsequent decades. Portfolio theory integrates the process of efficient portfolio formation to the pricing of individual assets. It explains that some sources of risk associated with individual assets can be eliminated, or diversified away, by holding a proper combination of assets. To begin the development of a theory of effective portfolio management, consider the following set of four individual securities as shown in Figure 1.

Figure 1 Risk and Return for Individual Securities If investors are restricted to holding a single security, and since they prefer higher returns to lower returns, they will prefer B to C. Likewise, investors prefer less risk to more risk, so they will prefer B to D and A to C. Thus no rational, risk-averse investor will hold C or D. But what about the remaining portfolios A and B? The decision here is less clear. Neither portfolio is dominated by any of the others. Thus, investors must decide whether the additional expected 5

return of B is adequate compensation for the additional risk it also exhibits. If these are the only four alternatives, then A and B are efficient portfolios since they exhibit the highest return for a given risk level. Rational investors, however, may now disagree on which of the two portfolios to select. Now, suppose that investors can apportion their investment into A, B, or some of each. The expected return of this new set of two security portfolios will be a simple weighted average of the expected returns of the individual elements. For example, if the expected return on A were 12 percent and the expected return on B were 20 percent, then a portfolio with an equal proportion of each would be expected to return 16 percent. If the proportion of B was increased, the expected return would rise. Conversely, it would decline if the proportion of A was enhanced. Determining the risk inherent in these two security portfolios is somewhat more complex. There is a risk component contributed from A, another from B, and a third that results form the comovement of A and B. Statistically, this third component is referred to as covariance, or correlation. This comovement term can be strong or weak. It can also positive, indicating that the returns from A and B tend to move in the same direction, or negative, indicating that A and B tend to move in opposite directions. Although the comovement component makes risk analysis of portfolios more complicated, it also represents the source of risk diversification and provides superior investment alternatives for many investors than can be attained by holding A or B in isolation. This is the insight that Markowitz was able to formalize. For example, if the returns generated by A and B exhibit moderate and positive comovement (or correlation), then portfolios of A and B would have expected return and risk characteristics as illustrated in Figure 2. The set of combinations of A and B illustrated in Figure 2 are referred to as the opportunity set. Note that some portfolios that are attainable would not be desirable to a savvy risk-averse investor. For example, no investor will hold a 100 percent A portfolio since there is a combination containing some B that has the same level of risk and greater expected return. In fact, this is true for all portfolios represented on the lower half of the curve. The efficient frontier is the name given to the subset of the opportunity set containing

Figure 2

Risk and Return for Combinations of A and B the highest expected return portfolio for every possible level of risk. The shape of the graph and the resulting efficient frontier are both a function of the strength and direction of the correlation between the two securities. If the correlation were stronger and more positive, the curve would flatten and eventually become a straight line connecting the two points if the correlation became perfect. On the other hand, the curve would become more pronounced and approach the vertical axis of the graph if the correlation became weaker and possibly negative. Next, consider this same problem with more than two securities to consider. The expected return of any combination of any number of securities remains a weighted average of the expected returns of the individual components, but the risk calculation must now contain a comovement, or correlation term for each unique pair of securities under consideration. Even though this requires a large amount of calculation, it can be accomplished. The resulting opportunity set is now represented by the area behind the curve in Figure 3. The efficient frontier of combinations of these risky individual securities, however, are the portfolios represented along the upper edge of the curve itself.

Figure 3 Risk and Return for Combinations of Many Securities Which of these efficient portfolios is best for an individual investor? It depends upon that investor's personal level of risk aversion. Investors with high risk tolerance will choose portfolios to the right and those with low levels of risk tolerance will choose portfolios toward the left. Regardless, all investors should consider only those portfolios that are members of the efficient frontier. A further refinement in this analysis can be obtained if there is a risk-free asset to consider as well. A truly riskless security will have a certain return and will therefore have no correlation with the uncertain returns from other individual securities or portfolios. Combinations of the risk-free security and a risky portfolio, Y, lie on the lowest broken line in Figure 4.

Figure 4 Risk and Return for Combinations of Risky Portfolis and a Risk Free Secruity Note that investors can now achieve lower risk positions than are possible by holding only combinations of risky securities. Investors choosing to place a portion of their wealth in Y and the rest in the risk-free security will attain a portfolio that appears on the straight-line segment connecting those two components. If it were possible to borrow at the risk-free rate, investors could actually attain higher returns (for higher risk). These portfolios are represented by points on the broken line to the right of Y. These combinations, however, would not be efficient since there are pure combinations of risky securities that offer higher returns at similar risk levels. Since portfolio Y is not unique, consider a different combination of risky assets, Z. Combinations of Z and the risk-free security lie upon a line connecting these two points. Clearly, 8

any investors, regardless of their attitude toward risk, would prefer to select among combinations of Z and the risk-free security than combinations of Y and the risk-free security since there are higher expected returns at all risk levels. Portfolio Z, however, is not unique either and there are other risky portfolios that would provide superior returns when combined with the risk-free security. This process can be repeated until a particular portfolio M is identified. The line defining the expected returns and risk of combinations of M and the risk-free security is tangent to the former efficient frontier. Risky portfolios with higher expected return than M would not offer superior alternatives in conjunction with the risk-free security. Therefore, M is a unique combination. Investors who prefer a level of risk below that of M will hold a combination of M and the risk-free security. Their portfolios would plot between these two points on the graph. Investors who desire a risk level in excess of M can borrow at the risk-free rate and invest more than 100 percent of their original wealth in M. This will allow them to position themselves at points on the line above and to the right of M. In this scenario, the new efficient frontier is the solid line in Figure 4. While M is unique in geometric terms, it is also unique in economic terms. Once this portfolio is identified, every investor, regardless of risk preferences, should choose combinations of M and the risk-free security. All investors should be allocating their wealth between M and the risk-free security. This has several important implications. First, all risky assets must be included in M. If not, then the price of excluded assets will quickly fall to a point where its rate of return will suggest membership in M. Since all assets are included in M, it is commonly referred to as the market portfolio. The line passing through M is called the capital market line (CML). The slope of this line represents the price of additional units of expected return per unit of additional risk. Once the CML is defined, the next step is to determine the implications of portfolio M in deriving proper required returns for the individual securities it contains. One model that does this is the capital asset pricing model (CAPM). The CAPM indicates that the proper expected return for an individual security is related to its risk relative to the overall risk level of M. This relationship can be defined in the following equation.

The return a security (or portfolio) is expected to generate in excess of the risk-free rate is called a risk premium. The expected return for a security must include a risk premium that is some multiple of the risk premium for the entire market. In this equation, 0 (or beta) is the risk of the individual security relative to the overall risk level of the market. A security with above-average risk would have a in excess of 1 and a below-average risk security would have a below 1. Since the aggregate of individual securities is the market itself, for portfolio M is exactly 1. Recall that the main benefit of forming portfolios is the potential to create combinations with lower risk and possibly higher expected returns than can be obtained from individual securities. Now consider the risk associated with an individual security as the sum of two parts. One part is represented by risk factors that are truly unique to the specific security. The other part is represented by risk factors that are essentially common with all other securities. For example, the potential for a key employee to leave the firm unexpectedly or the possibility of discovering gold under corporate headquarters are unique risk factors that are not shared with other firms. On the other hand, risk factors concerning the potential for unexpected and rapid growth in the national (or international) economy or the enactment of new legislation that affects the operating costs for all firms represent examples of common risk factors. While portfolio formation reduces the influence of unique risks associated with individual securities, it cannot eliminate exposure to common risk factors. Stated differently, properly constructed portfolios allow for diversification of unsystematic (unique) risk, but not for systematic (market) risk. Using this latest interpretation, represents the level of systematic risk of an individual security. Since investors have the potential to eliminate unsystematic risk from their portfolios, the return they expect should only include compensation for the systematic risk component. This is the underlying message of the CAPM. There are other theories that attempt to explain how individual securities are priced. One prominent one is arbitrage pricing theory (APT). While CAPM essentially uses the market's risk premium as the sole determinant of a security's return, APT allows for multiple systematic risk factors. A simple representation of the APT model is provided below.


Systematic risk is now measured with respect to a variety of factors, not just market returns. While three factors are listed here, there may be more or fewer. Furthermore, the factors themselves are not specified by the theory. This means that any application of the theory requires the user to commit to a specific set of factors that can be justified both economically and statistically. This is a good place to review the implications of portfolio theory. First, investors are risk averse and will accept more risk only if there is the expectation of higher return as well. This suggests that they will seek and hold only efficient combinations of securities. These efficient combinations have exploited the role of comovement among the individual securities to eliminate all diversifiable, or unsystematic risk. The returns expected from individual securities will therefore include no premium for diversifiable risk since it can be eliminated. The only source of risk requiring compensation is systematic, or market, risk. It is also worth noting that if a risk-free asset is also available, there is a single risky portfolio (referred to as M, or the market portfolio) that is optimal for all investors. Investors will seek their desired level of risk exposure by selecting the proper proportions of the risky portfolio, M, and the risk-free asset. As a practical matter, it is difficult to identify the true market portfolio since it, by definition, must contain proportions of all assets that have value. This means that investors and portfolio managers must create proxies for the market portfolio from some subset of all possible investments. Even if this proxy can be identified and created, the efficient frontier moves around as expected return and risk of the individual securities, and correlation among these elements, change over time. Moreover, it is impossible to estimate future risk and return without error. This leads some practitioners to view the efficient frontier as "fuzzy." Three alternative approaches to portfolio management arise from these considerations. Many investors default to a passive portfolio strategy. A passive strategy requires the investor to buy and hold some replica of the market portfolio and accept an expected return equal to the market. For example, an investor may choose to hold a portfolio of stocks that is identical to the Standard & Poor's 500 or some other broad market index. This becomes the risky component of the


portfolio and is combined with a proportion of a risk-free security (e.g., U.S. Treasury bills) to achieve the desired risk level. Underlying this strategy is the assumption that markets are reasonably efficient and that any attempt to improve the rate of return from risky securities is not likely to succeed. The broad market index is likely to reside within the "fuzzy" domain of the efficient frontier. Active portfolio management strategies attempt to "beat the market" by identifying "mispriced" securities and forming efficient portfolios from those securities. This strategy clearly requires more effort from the investor. If such securities can be identified and the market eventually prices them properly, the active portfolio will generate returns in excess of those provided by the market on a risk adjusted basis. A third approach relies on intensive quantitative analysis of securities specified by an investor. An optimization algorithm can provide an efficient allocation of funds among a given set of alternatives. This approach can be applied to an existing passive or active strategy. In summary, portfolio management theory assesses risk and return relationships for combinations of securities. While the expected return of a portfolio is the simple weighted average of the expected returns of its component securities, portfolio risk must also consider the correlation among the returns of individual securities. Since part of the price fluctuation of a security is unique, it does not relate to price fluctuations of other securities held. This allows the investor to diversify, or eliminate, a portion of each security's risk. With additional analysis, the subset of portfolios with the highest expected return for a given risk level can be identified. If a risk-free asset can also be purchased or sold, then there is a unique combination of risky securities that will allow all investors to achieve superior returns for a given risk level. The capital asset pricing model and other models use this result to infer the risk-return relationship for individual securities. Although there is imprecision when attempting to implement these theories, they provide a useful way to evaluate and improve a variety of investment strategies.


DEFINITION OF A PORTFOLIO ANALYSIS Portfolio analysis is the process of looking at every investment held within a portfolio and evaluating how it affects the overall performance. Portfolio analysis seeks to determine the variance of each security, the overall beta of the portfolio, the amount of diversification and the asset allocation within the portfolio.

The analysis seeks to understand the risks associated with the current composition of the portfolio and identify ways to mitigate the identified risks.

Diversification Modern portfolio theory relies on diversification to minimize individual security risk in a portfolio. The idea is that by holding a large number of different securities, no individual security can seriously affect the performance of the portfolio and the investor is left with only systemic risk, which is the risk that the entire sector or market will decline. It is possible to hedge against systemic risk, but it cannot be fully mitigated without giving up a significant portion of the potential returns. Asset Allocation Asset allocation is the second part of reducing risk. An investor can hold 200 different securities in his portfolio, but if they are all in one sector, he will be seriously exposed to the systemic risk of the individual sector. To mitigate the systemic risk of a sector, investors look to allocate different portions of their portfolio into different sectors and asset classes. For example, a portfolio might be composed of 10 percent blue chip stocks, 10 percent mid-cap stocks, 10 percent small-cap stocks, 10 percent international stocks, 10 percent in real estate, 10 percent in gold, 10 percent in corporate bonds, 10 percent in government bonds, 10 percent in oil and 10 percent in cash. By allocating funds among different asset classes, the investor is going to experience less volatility caused by the varying performance of the investments in each class.


Individual Variance After asset allocation and diversification are determined, the variance of each security is examined. Variance is the rate at which the value of an investment fluctuates around an average. The greater the variance, the greater the risk associated with the investment. Beta Using an investment's variance, its beta can be calculated. Beta is a useful measure of how much variance exists for an individual security compared to an existing portfolio or benchmark. An investment's beta is an easy way to see if adding the security to an existing portfolio will reduce the risk associated with the portfolio or will increase the risk. A beta of less than one will lower the risk, while a beta of greater than one will increase the risk. Using Portfolio Analysis to Fix a Portfolio The different tools used in portfolio analysis are useful only to the extent that they can help an investor achieve her goals. If an analysis finds that there is too high a concentration in a given asset class or not enough diversification within an asset class, an investor can take steps to correct the situation with the ultimate goal of building a portfolio that optimizes returns while minimizing risk.

STOCK PORTFOLIO ANALYSIS Stock portfolio analysis brings together the inherently conflicting goals of maximizing portfolio return while minimizing risk through risk management and diversification. The measurement of each goal is crucial to finding the optimal balance between risk and reward for the long-term success of the portfolio Tools of Portfolio Analysis Portfolio management analyzes the portfolio with descriptive statistics that measure the risk-toreward ratio--that is, the measurement of risk relative to the risk of ruin--and the optimal risk that can be assumed relative to the return desired of each asset class within the portfolio. Measurements are determined by using statistical tests that determine if prices are statistically cheap, expensive or fairly priced based on the historical record of stocks in the past. 14

Portfolios are a Collection of Asset Classes, Sectors and Stocks A portfolio is a collection of securities. The securities may be of one type or asset class such as stocks, bonds, futures or commodities. The collection of securities may also be blended and include two or more asset classes. Within the asset class of stocks, for example, there will be sectors of stocks in a similar industry such as utilities, electronics and consumer durables. Different tools are used when measuring the relative value of stock prices in each sector. What Does Portfolio Analysis Measure? Portfolio analysts use different measures of performance for each sector. For example, a fast growing electronics company may have a high price-to-earnings (P/E) ratio. A large utility company serving a mature region will only produce a P/E ratio that reflects the current level of interest rates. A more appropriate measure might be cash flow per share rather than a P/E ratio. Popular statistical measures might include variance from mean measurements, total return divided by average draw down or volatility per unit of profit. Measuring the Risk and Reward of a Portfolio Portfolios are usually measured according to indexes that represent similar goals as the portfolio or portfolios held by large institutional investors and individuals. For example, a large capitalization portfolio would usually be compared to the Standard & Poor's 500 Index. However, it could also be compared to the Russell 1000 or to the NASDAQ. Analysts would first measure the total performance of the fund compared to the index. Then they would measure the average volatility of the fund. Next they would measure variance from mean measurements, total return divided by average draw down or volatility per unit of profit of the fund and its riskiness. All these measurements would be done with standard statistical analysis. Difficulties with Stock Portfolio Analysis Most insurance companies, hedge funds, and mutual funds will attempt to outperform the index to which they are going to be compared. However, the composition of their investors may require more or less dividend income, emphasis on trading rather than investing and greater emphasis on currency issues. Accordingly, no one investment style is going to match any comparative index precisely. In addition, for large accounts with $1 billion or more in assets,


swapping large amounts of stocks is a real cost. The fixed costs for commissions and the spread between the bid and asked quote are costs that are not part of the index calculation. 6 Simplest Steps To Successful Portfolio Management Portfolio management is challenging, but it's also exciting. Some people prefer to have their portfolios managed by a professional. However, it's not impossible to manage your own portfolio. It just takes time and a basic understanding of the process.

Portfolio management involves 6 steps in an ongoing process. 1. Determine Objectives/Constraints 2. Formulate a Strategy 3. Design an Investment Policy 4. Implement Asset Allocation 5. Monitor Performance 6. Evaluate Performance

As an ongoing process, it is the responsibility of the portfolio manager (whether that's you or a professional) to go through the process (beginning at "Determine Objectives and Constraints") and upon reaching the "Evaluate Performance" stage, start again.

Why is it an ongoing process? Because life is not static. People move, they change jobs, they get married, they get divorced, they get remarried, they have children, they make large purchases, they make wise decisions, they make unwise decisions, they are faced with windfalls and tragedies. Each of those (and many, many other) events will affect how they manage their portfolio.

Every individual has different needs and wants. The first step to successfully manage your investment needs is to identify them by drafting an investment plan. This plan should state your goals. It is simply a mission statement of what you endeavor to achieve. Be as specific as you can, so that you can determine what to invest in, and how your portfolio will be structured to realise your dream. 16

Knowing yourself is critical to creating and managing a portfolio that will do what you want it to do. This knowledge will help you set realistic future financial goals and will help you to decide how much risk to include in your investment strategy

There are several constraints that may work against your desire to build up a healthy nest egg. These are all challenges of having money. Unfortunately, many of them are unavoidable but that doesn't mean that they're not manageable. The best thing to do is know that they exist and develop strategies to help you over come them. Some of the considerations include evaluating your Risk & Return Profile, Investment Time Horizon, Liquidity Requirement, Legal and Taxation Structure, etc.

And also, do you remember the popular saying, "Don't put all your eggs in one basket" ? The reason why you should achieve diversification in your portfolio is that the value of different asset classes tends to behave and perform very differently. Some assets move in tandem or in a similar direction with each other, while others move in opposite directions. What may surprise you is that for the same rate of return, you can actually combine different asset classes to achieve this expected return. Thus the secret to successful portfolio management is to create a portfolio by investing in different types of asset classes, that generate the lowest risk factor to achieve your investment objectives.

As you manage your portfolio, different factors will have an effect on its performance. The economy, for example, may go up or down and cause the value of your holdings to rise or fall. Perhaps you followed some advice from a friend on a "can't lose" stock and ended up losing. Whatever the case may be, it is crucial to monitor the performance of your portfolio at all times so that you can react if something happens.

TYPES OF PORTFOLIO STRATEGIES Portfolio theory is an investment approach developed by University of Chicago economist Harry M. Markowitz (1927 - ), who won a Nobel Prize in economics in 1990.


Portfolio theory allows investors to estimate both the expected risks and returns, as measured statistically, for their investment portfolios. Markowitz described how to combine assets into efficiently diversified portfolios. It was his position that a portfolio's risk could be reduced and the expected rate of return could be improved if investments having dissimilar price movements were combined. In other words, Markowitz explained how to best assemble a diversified portfolio and proved that such a portfolio would likely do well. THERE ARE TWO TYPES OF PORTFOLIO STRATEGIES: A. Passive Portfolio Strategy: A strategy that involves minimal expectational input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities. B. Active Portfolio Strategy: A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly. Moreover, there are three more types of Portfolios: 1. The Patient Portfolio: This type invests in well-known stocks. Most pay dividends and are candidates to buy and hold for long periods ... Perhaps forever!


The vast majority of the stocks in this portfolio represent classic growth companies, those that can be expected to deliver higher earnings on a regular basis regardless of economic conditions. 2. The Aggressive Portfolio: This portfolio invests in "expensive stocks" (in terms of such measurements as price-earnings ratios) that offer big rewards but also carry big risks. This portfolio "collects" stocks of rapidly growing companies of all sizes, that over the next few years are expected to deliver rapid annual earnings growth. Because many of these stocks are on the less-established side, this portfolio is the likeliest to experience big turnovers over time, as winners and losers become apparent. 3. The Conservative Portfolio: They choose stocks with an eye on yield, as well as earnings growth and a steady dividend history. Portfolio Management Strategies, Styles and Techniques - Portfolio Styles: Active vs. Passive

There are two basic approaches to investment management:

Active asset management is based on a belief that a specific style of management or analysis can produce returns that beat the market. It seeks to take advantage of inefficiencies in the market and is typically accompanied by higher than average costs (for analysts and managers who must spend time to seek out these inefficiencies).

Passive asset management is based on the concept that markets are efficient, that market returns cannot be surpassed regularly over time, and that low cost investments held for the long term will provide the best returns. For those who favor an active management approach, stock selection is typically based on one of two styles: 19

Top-down - Managers who use this approach start by looking at the market as a whole, then determine which industries and sectors are likely to do well given the current economic cycle. Once these choices are made, they then select specific stocks based on which companies are likely to do best within a particular industry.

Bottom-up - This approach ignores market conditions and expected trends. Instead, companies are evaluated based on the strength of their financial statements, product pipeline, or some other criteria. The idea is that strong companies are likely to do well no matter what market or economic conditions prevail.

Passive management concepts to know include the following:

Efficient market theory - This theory is based on the idea that information that affects the markets (such as changes to company management, Fed interest rate announcements, etc.) is instantly available and processed by all investors. As a result, this information is always taken into account in market prices. Those who believe in this theory believe there is no way to consistently beat market averages.

Indexing - One way to take advantage of the efficient market theory is to use index funds (or to create a portfolio that mimics a particular index). Since index funds tend to have lower than average transaction costs and expense ratios, they can provide an edge over actively managed funds which tend to have higher costs. 1.

The efficient market theory states that: a. future market prices are determined by the discounted value of future dividends. b. technical analysis tools cannot be used to beat the market, since current prices already reflect all available information about previous price patterns. c. current market prices already reflect all available information. d. market prices are determined by supply and demand. 20

The correct answer is "c" - "b" is incorrect because the efficient market theory is not concerned with technical analysis. 2. Passive asset management involves: a. using index funds as the investments for each asset class. b. choosing the stocks or mutual funds to be purchased for each asset class. c. buying securities for each asset class and holding them until the funds are needed. d. buying securities for each asset class and selling them when they reach their price targets. The correct answer is "a" - while index funds are not a requirement of passive management, they are a frequently used tool. "C" is incorrect because passive management does not preclude making portfolio changes. For example, periodic rebalancing is performed, and changes can be made in response to changes in the client's risk tolerance, financial situation, goals, and so forth.

Read more: ADVANTAGES OF PORTFOLIO MANAGEMENT SERVICES OVER MUTUAL FUNDS Portfolio management is not a new word for investors who constantly deal in the investment sector. In a layman's language portfolio management is all about planning and management of investments of an individual by experts. A portfolio deals in multiple investment options like bonds, shares, mutual funds etc. On the other hand when a person looks at mutual funds alone, he is only concentrating on one form of investment. These however give the investor the opportunity to spread his money in a range of companies. At present there are numerous companies offering professional portfolio management services to their clients. How these score over the one way mutual fund investment option is mentioned below. Splitting risk: When a person opts for portfolio management services, he can decide to go for a wide range of options. Suppose he is not willing to take much risk, his portfolio manager will


design a financial plan suiting his needs. Or if someone wants to move from the fixed gains domain to the high risk high returns arena, he can take calculated risks with the help of an expert. Such expert services give a clear picture to investor on whether it is worth taking the risk or it is better to take a slow approach. In case of mutual funds the risk is split amongst companies. For instance if a person decides to purchase mutual funds of oil and gas sector, he will get the choice to choose amongst the companies who are offering the opportunity. In case of mutual funds the performance of the sector decides how much gains will be earned. So even if the risk is split in companies, any influence in the sector will affect the returns. Fixed fee involved: When investors seek advice from portfolio managers there is a fixed fee set. At times the fee structure is also a fixed percentage of profits earned. This amount is most of the time considered as an investment rather than a fee. It is better to pay experts for their valuable inputs rather than self managing funds in the risky capital markets after all. Portfolio management services work towards making investments convenient for their clients and have a fair fee policy. In case of mutual funds there are many stages involved like creating opportunities, involving investors through adverts, undertaking the distribution process etc. All this involves a lot of costs, only after the deductions of these expenses the returns reach investors. This is a continuous process and investors have to bear it. The above mentioned points indicate how portfolio management services can be a better companion in your investment journey. Their main aim is to grow your money by systematic analysis in case of mutual fund investments there isn't so much flexibility. Every individual wants to explore the lucrative options markets are offering and one would not prefer to put his money in a single form of investment practice.


Those who are into personal investing may already have heard of the importance of having a 22

smart portfolio management. When an investor is interested in being successful in the trade of investment, a portfolio is necessary to be able to know your status and capabilities in the world of investments. People who are just starting out in investing study their portfolio almost regularly to be able to know their way around the investment arena. This could give the investor the better chances in being successful in his ways in investments. As the investor is getting more familiar with the ropes of investing, he tends to just dismiss the importance of managing his portfolio. There are few key points to remind yourself when it comes to personal investing, particularly if you want to be successful in the trade.

The market is unpredictable and changes can happen anytime, sometimes at the least time you expected. It is important to review your asset allocation regularly.

Always have for yourself a safety margin when you invest in stocks. Invest only with the right amount of risk.

One of the things that won't fluctuate or lose value in the long run is commodities in your portfolio. Asset allocation in commodities can give stability to your portfolio. Allocation of assets in commodities will give you a safety cushion against inflation. Personal investing could mean having at least 10 percent of investments in commodities.

A sound personal portfolio is never complete without a good asset allocation in bonds. This also provides some safety measures in your investments. Those who are relatively new to investing may want to have at least around 30 percent of investment in bonds.

Management of a smart and sound personal portfolio also means having knack in taking advantage of the benefits in taxes while you make your calls in investments. Re-allocating in those accounts that are giving you tax advantages would be a great idea to manage your portfolio. Taking advantage of the tax benefits when investing will allow you to enjoy your profits without having to worry about hefty taxes to pay up. 23

These are just some of the essential factors that an investor must consider when he is serious in doing great in personal investing. Having a sound and smart portfolio to manage is very important as it allows the investor to have a clear idea on where his investments should be.


HOW TO CREATE AN INVESTMENT PORTFOLIO A high-performing portfolio is every investor's goal. First, you'll need to develop your own objectives and strategies INSTRUCTIONS

1. Determine what items or events you're saving for. These can be retirement, a new home, your children's education or anything else you choose. 2. Determine when you want to retire, purchase a home or send your children to college, to help you decide what percentage return you need to earn on your initial investment. 3. Decide how much money to invest. Invest what you can comfortably afford now, keeping in mind that you can change that amount later. 4. Determine how much risk you are willing to take. Many investments generate high returns and are riskier than others. 5. Once you decide the amount you are willing to invest, the returns you want to achieve, when you need the money and how much risk you are willing to accept, put together your investment portfolio. 6. An investment counselor or stockbroker is a good source of advice. Tell these advisers your objectives and ask them to suggest how to allocate your money. 7. Reevaluate your portfolio at least annually. Analyze each investment.


Portfolio analysis is vital in order to meet your investing goals. A periodic analysis of your portfolio will help you understand exactly how your portfolio is performing and whether your investments are properly allocated


Ensure Proper Allocation Among Asset Classes Performing a portfolio analysis allows you to ensure that you have the correct balance of stocks, bonds and cash in your portfolio. There are many factors that determine what your asset class allocation should be. Some of the factors are your age, your risk tolerance, your income and the amount of time until you retire. Ensure Proper Sector Allocation A portfolio analysis also ensures that you are properly diversified among the sectors of the economy. Your portfolio should not be concentrated in one or two sectors. Instead, investments should be allocated to many sectors of the economy such as technology, health care, transportation, financial services and energy. Ensure Each Investment is Still Sound You should periodically analyze each investment in your portfolio to ensure that is still a sound investment. Inspect the financial statements of each company, and read Wall Street research reports about your investments. Consider selling investments that do not meet your criteria. Brokerage Tools Many brokers have online tools that can help you analyze your portfolio. These tools will provide a breakdown of the asset classes and diversification of your portfolio. These tools provide a quick and convenient way to keep on top of your investment portfolio. Warning It is especially important to analyze your investment portfolio during times of turbulence in the stock market. Overall market conditions can change quickly and the health of individual companies can deteriorate fast. Even though it may be painful to analyze your portfolio during a falling market period, it is vital to do so.


PORTFOLIO ANALYSIS LIMITATIONS Portfolio analysis is designed to examine an entire group of holdings, such as investments, products or properties. In portfolio analysis, you look at the forecasted returns on each item in the portfolio and make decisions about how resources should be allocated to receive optimum gain, or return. You may also use portfolio analysis to determine what assets should be sold

Simplicity In many ways, portfolio analysis simplifies the complex questions of how resources should be distributed and what investments should be held or sold. However, this simplicity can also be a limitation. Another limitation of portfolio analysis is its tendency to not give much credit to companies that have only modest returns. For example, there were periods when Apple performed moderately at best; it's numbers were not terrible but they were not great either. Then Apple released the iPod, followed by the iPhone and iPad. These were each huge successes that could not have been anticipated in a simple portfolio analysis. Assumptions Portfolio analysis is limited by its assumptions. To perform a portfolio analysis, an analyst has to make assumptions about the growth of the economy, the forecasted performance of a company, and the future value of the currency in which he is dealing. Even a small variance between his forecasts and reality can result in a large difference to the bottom line. Similarly, portfolio analysis is only as good as the data you use; if the data is incorrect, your analysis will be too. Costs When you change your portfolio, it incurs costs. Every time you buy or sell stock you have to pay transaction fees. You may also have to pay taxes on any profits from selling your stock. Further, if you try to change your portfolio quickly, you could end up not getting the best price for your stocks or property.


Hedging Portfolio analysis also tends to work against the concept of hedging. Hedging is when you hold investments that have an inverse relationship, meaning when one goes up in value, the other goes down. The benefit of this is to make sure that at least one of your investments is always earning you money. In portfolio analysis, the focus is on what combination of investments will secure the greatest return based on future projections. It does not allow for the holding of a moderate performer to act as a hedge against a competitor. For instance, Apple is the primary competitor against PC products such as Windows. Investing in Apple is effectively hedging against a downturn in Windows; however, for several years Apple was a moderate performer at best. If an investor looked only at the returns of a portfolio analysis, he would have missed the opportunity for hedging the investment.


INDUSTRY PROFILE Mahindra Satyam formerly Satyam Computer Services, is an Indian IT services company based in Hyderabad, India. It was founded in 1987 by B Ramalinga Raju. Mahindra Satyam is a part of the Mahindra Group which is one of the top 10 industrial firms based in India. The company offers consulting andinformation technology (IT) services spanning various sectors, and is listed on the Pink Sheets, the National Stock Exchange (India) and Bombay Stock Exchange (India). In June 2009, the company unveiled its new brand identity Mahindra Satyam subsequent to its takeover by the Mahindra Groups IT arm, Tech Mahindraon April 13,2009. It is ranked #5 in Indian IT companies and overall ranked #153 by Fortune India 500 in 2011. For over two decades, Mahindra Satyam has been committed to creating value for its customers, investors, associates and the society at large. This commitment has constantly fuelled the journey, encouraging us to think differently, work with passion and make things happen. Today, after 20 years, our commitment, passion and entrepreneurial spirit have only grown bigger, spurring us to look ahead and continue this journey towards achieving greater heights of Value Creation. As a leading global information, communications and technology (ICT) company, we are part of the US $14.4 billion Mahindra Group, a global industrial federation of companies and one of the top 10 business houses based in India. We are powered by a pool of talented IT and consulting professionals across enterprise solutions, client relationship management, business intelligence, business process quality, operations management, engineering solutions, digital convergence, product lifecycle management, and infrastructure management services, among other capabilities. Our development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore and Australia serve numerous clients, including several Fortune 500 companies. Our Values

Customer First: We respond to customers speedily, courteously and effectively 29

Good Corporate Citizenship: We seek long-term success for all stakeholders without compromising on ethics or transparency

Individual Dignity: We value the individual, uphold the right to express disagreement, and respect the time and efforts of others. Nurture fairness, trust and respect

Professionalism: We impart freedom and the opportunity to excel and to grow; support innovation and well-reasoned risk taking, demanding performance

Quality focus: We make quality a value driver in our work, our products and our interactions. We believe in the 'First Time Right' approach in delivery

INDUSTRY PRESENCE Mahindra Satyam provides services in the following areas:

Aerospace and Defence Banking, Financial Services & Insurance Energy and Utilities Life Sciences & Healthcare Manufacturing, Chemicals & Automotive Public Services & Education Retail Consumer Packaged Goods Travel, Transport, Logistics Telecom, Infrastructure, Media and Entertainment & Semiconductors

OFFICES OF MAHINDRA SATYAM ACROSS THE GLOBE Mahindra Satyam headquartered in Hyderabad, India has development centres and/or regional offices in USA, Canada, Brazil, the United Kingdom, Hungary,Egypt, UAE, India, China, Malaysia, Singapore, and Australia.


Mahindra Satyam Campuses Mahindra Satyam is the largest IT employer of Hyderabad with its 4 campuses:

Mahindra Satyam Technology Center [Bahadurpally][5] Mahindra Satyam InfoCity [Hitec City] Gachibowli Campus [In DLF SEZ] Mahindra Satyam GateWay [Bldg 1 & 2 in My Home Hub]

The company currently has eight campuses in Hyderabad Global units Asia Pacific: IndiaBangalore, Bhubaneshwar, Chennai, Coimbatore, Hyderabad (Headquarter), Pune,Vishakapatna m, Delhi, Gurgaon, Mumbai, Nagpur. Australia, China, Hong Kong, Japan, Malaysia, New Zealand, Singapore, Taiwan, Thailand, Korea Europe: Belgium, Czech Republic, Denmark, France, Finland, Germany, Hungary, Ireland, Italy, Netherlands, Spain, Swe den, Switzerland, United Kingdom. Middle East and Africa: Bahrain, Egypt, Jordan, Kenya, Kuwait, Qatar, Saudi Arabia, South Africa, United Arab Emirates. Americas: USA, Canada, Brazil. COMPETENCIES Mahindra Satyam offers the following horizontal services.

Extended Enterprise Solutions Web Commerce Solutions Business Intelligence Services Quality Consulting


Strategic Outsourcing Services Industry Native Solutions Business Services Group - BSG (BPO) Engineering Services Product management

PARTNERSHIPS February 11, 2010, Mahindra Satyam, announced that it has entered into a partnership with the Integr8 Group, Africas largest privately owned ICT service and solutions provider. MERGER Mahindra Satyam's proposed merger with Tech Mahindra may be delayed all because of legal issues, and ambiguity over jurisdiction between investigating agencies and the government. The merger has been delayed due to two tax cases pending with the Income Tax claiming over 2700 crore for both. Tech Mahindra announced its merger with Mahindra Satyam on

March 21,2012,after the board of two companies gave the approval. The two firms have received the go-ahead for merger from the Bombay Stock Exchange and the National Stock Exchange. ROW WITH I-T DEPARTMENT The I-T Department had issued notices to the company seeking 617 crore tax for the

assessment years from 2003-04 to 2008-09, when the company was run by the founder B Ramalinga Raju and his team. The Central Board of Direct Taxes has attached the properties of Mahindra Satyam on February 3, 2012,stating the attachment of properties was according to Section 281 B of the Income Tax Act. Section 281 B refers to recovery of tax and allows the tax department to issue provisional orders to the assessee to safeguard revenues accrued to it.The Income Tax department had slapped notice on the company after disallowing exemptions claimed by the software firm. The company has received notices of demand for 1,037 crore and 1,075 crore for assessment years 2002-03 and 200708, respectively. However, the Andhra Pradesh High Court granted a breather to Mahindra Satyam, by staying the Income Tax Department's provisional order to attach properties of the IT firm..


TURNAROUND The company had reported a consolidated net loss of Rs 233.3 crore for the JulySeptember quarter of 2010. Speaking at a press conference, Vineet Nayyar, chairman of the company said the consolidate cash and cash equivalents at Rs 30 crore compared to Rs 26 crore. We will take three [years] for a turnaround, he informed. Even though the company got 245 crores profit in Q4 for 20102011, but due to outside payments nearly 570 crores for SEK,UPAID and Class Action Suit in Q4 (Total 641 crores for the year 2010-2011 ),the company had reported a consolidated net loss of Rs 327 crore for the January-March quarter of 2010-2011.IT firm Mahindra Satyam posted a consolidated net profit of Rs 225.2 crore for the quarter ended June 30, 2011. During the quarter, the company added 2,172 people (net), taking total headcount to 31,438 as of June 30, 2011. The company added 36 new customers during the quarter. The total headcount of the company stood at 32,092 as of the quarter ended September 30, 2011 during which net addition of 654 personnel took place. The company added 188 employees in quarter three ending December 31, 2011 and recorded 29.4% quarter-on-quarter in its consolidated net profit of 308 crore . RECENT NEWS AND DEVELOPMENTS Mahindra Satyam will acquire a minority stake of 15% for 35 crore in Dion Global Solutions

Limited , the Delhi-based firm owned by billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh ,that provides solutions for capital markets globally. Mahindra Satyam acquired Delhi based BPO firm vCustomer's International operations for US $27 million. This is the first 100% acquisition by Mahindra Satyam since it became part of Mahindra Group. CONTROVERSIES Maytas acquisition In 2008, Satyam attempted to acquire Maytas Infrastructure and Maytas Properties, founded by family relations of company founder Ramalinga Raju (Maytas is "Satyam" reversed) for $1.6 billion, despite concerns raised by independent board directors. Both companies are owned by Raju's sons. This eventually led to a review of the deal by the government, a veiled criticism by the vice president of India and Satyam's clients re-evaluating their relationship with the 33

company. Satyam's investors lost about

3,400 crore in the related panic selling. The USD $1.6

billion ( 8,000 crore) acquisition was met with skepticism as Satyam's shares fell 55% on the New York Stock Exchange. Three members of the board of directors resigned on 29 December 2008. Accounting scandal of 2009 In addition to other controversies involving Satyam, on January 7, 2009, Chairman Raju resigned after publicly announcing his involvement in a massive accounting fraud. Ramalinga Raju is currently in a Hyderabad prison along with his brother and former board member Rama Raju, and the former C.F.O Vadlamani Srinivas.

TATA CONSULTANCY SERVICES (TCS) Organizations must continuously innovate and transform themselves to stay ahead of competition. TCS helps enterprises stay agile and respond better to changing market conditions by optimizing business processes, making their IT infrastructure resilient and ensuring faster business results. TCS partners with enterprises worldwide to help them achieve business transformation. Leveraging its industry insight and technology expertise, TCS enables success in essential strategic initiatives by aligning IT strategies with business objectives. By aligning IT with their business needs, TCS helps enterprises experience real business results. TCS provides solutions globally to help enterprises realize their product development, production management and asset management strategies, using best-in-class technologies, processes and competencies. TCS leverages its years of domain and IT experience to bring in process improvements, process automation and platform based solutions to enterprises across industries.

The company has seen strong and profitable growth across all markets driven by good performance in existing and new areas of business. For the year ended march 31, 2012, the company earned a total income of Rs.15156.52 crores an increase of 34.20% over previous years Rs.11,293.76 crores. TCS total income is 18914.26 crores. The net profit increased by 24.79% of the total income. The company is amongst the leading IT companies in the world and continues to retain its leadership position in 34

the Indian IT industry. The company has provided effective business solutions to Global and Indian companies by leveraging its domain knowledge across industry verticals, excellence in technology and robust processes. The companys continued investments in innovation and technology have enabled it to undertake a number of large, end-to-end, mission critical projects in diverse business areas and technology domains. The company has 148 offices globally. TCS also has delivery centers in a number of countries. INDUSTRIES

Complex problems. Risk mitigation. Operational excellence. These and many other challenges face nearly every industry in todays global marketplace. TCS has the depth and breadth of experience and expertise that you need to achieve your business goals and succeed amidst the fiercest competition. Find out more about the industries we serve, and how we serve them.

Banking & Financial Services Energy, Resources & Utilities Government Healthcare High Tech Insurance Life Sciences Manufacturing Media & Information Services Retail & Consumer Products Telecom Travel, Transportation & Hospitality


IT Services

In today's demanding business environment which prioritizes flexibility, speed, and efficiency, a robust IT strategy is critical. We help you achieve these qualities in your IT strategy by providing you system integration, testing, application development and management services and solutions. Client Challenges

Align IT with strategic business initiatives Built-in flexibility to adapt to a constantly changing global market The ability to strategize, develop and execute new initiatives with optimal speed to remain competitive

What TCS Provides TCS delivers excellence and certainty across all of your enterprises IT needs. Learn more about the following areas:

Custom Application Development Application Management Application Modernization System Integration Testing Performance Engineering

Business Value

IT enabled achievement of strategic objectives Speedier time to market Improvements in cost and energy efficiency Increased productivity


CONCLUSION With the help of given project I got an in-depth knowledge about the working of portfolio management. Also I got an insight as too how to invest in portfolio management, which scheme provide better return as compared to other and who are the portfolio management players in the Indian market. It can be concluded from the project that future of portfolio management is bright provided proper regulations prevail and investors needs are satisfied by providing variety of schemes. The interest of investors is protected by SEBI. Portfolio management is governed by SEBI Act. The mix of assets to hold in a portfolio is referred to as portfolio management. A fundamental aspect of portfolio management is choosing assets which are consistent with the portfolio holder's investment objectives and risk tolerance. The ultimate goal of portfolio management is to achieve the optimum return for a given level of risk. Investors must balance risk and performance in making portfolio management decisions. Portfolio management strategies may be either active or passive. An investor who prefers passive portfolio management will likely choose to invest in low cost index funds with the goal of mirroring the market's performance. An investor who prefers active portfolio management will choose managed funds which have the potential to outperform the market. Investors are generally charged higher initial fees and annual management fees for active portfolio management. It can be said that the future of portfolio management is bright in years to come.



BIBLIOGRAPHY BOOKS: 1. Alexander. G.J, Sharpe. W.F and Bailey. J.V, Fundamentals of Investments, PHI, 3rd Ed. 2. Charles.P.Jones, Investments: Analysis and Management, John Wiley &Sons, Inc. 9th Ed. 3. Dhanesh Khatri, Security Analysis and Portfolio Management, 2010, Macmillan Publishers. 4. Francis. J.C. & Taylor, R.W., Theory and Problems of Investments. Schaums Outline Series, McGraw Hill 5. Herbert. B. Mayo, Investments: an Introduction, Thomson South Western. 9th Ed. 6. Peter L. Bernstein and Aswath Damodaran, Investment Management,Wiley Frontiers in Finance. 7. Prasanna Chandra, Investment Analysis and Portfolio Management, TMH, 3rd Ed. 8. Sudhindra Bhat, Security Analysis and Portfolio Management, 2009, Excel Books. 9. Zvi Bodie, Alex Kane, Marcus.A.J, Pitabas Mohanty, Investments, TMH, 8th Ed.

WEBSITES: 1. 2. 3. 4. 5. 6. 7. 8.