A

SUMMER INTERNSHIP PROJECT REPORT

ON

PORTFOLIO MANAGEMENT SERVICES AN INVESTMENT OPTION

SUBMITTED TO:
L.J. INSTITUTE OF MANAGEMENT STUDIES

SUBMITTED ON:

In requirement of partial fulfilment of

Masters of Business Administration (MBA)
2 year full time Program of Gujarat Technological
University

SUBMITTED BY: NEETA JANDHLANI

ENROLLMENT NO: 117960592054
BATCH: 2011-13

PREFACE

In todays world of globalization, opportunities are plenty and they keep knocking at your
doors all times. World is becoming very small. The work of success is always open to the
dynamic, confident, and courageous youth. All we need is the positive attitude and forceful
personality to break the myth of bad luck. All over the world the demand for managerial and
administrative person has increased. To survive in this highly competitive market practical
knowledge and experience is as important as theoretical. As a student of M.B.A., we are
supposed to have practical knowledge and experience of business and management.

Due to globalization there has been a rush of multinational companies in India. Keeping these
entire things in mind the M.B.A. courses have introduced practical studies as one of its
subjects. In this, the students are given the opportunity to work in industry and are required to
know, how practically the work is performed. This also teaches the students, how to present
themselves in front of different people, their attitude, and their way of communicating and
working in a team.

Summer placement (summer internship program, i.e., now popularly known as SIP), is an
integral part of the academic curriculum of MBA. For the successful completion of the MBA
program, the students are required to complete the SIP. After completion of the 1st year of
the program, i.e., after the 2nd semester and before the commencement of the second year of
the program, the students are required to work with an organization for hands on experience.
The duration of the SIP is six to eight weeks.

ACKNOWLEDGEMENT

The feeling of gratefulness to anyones help directly arises from the bottom of the heart. A
small but an important & timely help proved to be a milestone in ones life. Every human
being has such kind of experience. I also have the same feeling of gratefulness as today I
have achieved an important milestone in my own life the completion of this project.

I am thankful to my parents for giving me a chance to study in the field of management,

M.B.A. I am also thankful to god for giving me the strength and inspiration to undertake this
project with full sincerity and delegation.

I express my sincere gratitude to my faculty guide Prof. MEETALI SAXENA who took a lot
of personal interest in supervising this project and guiding me. She has been a great source of
inspiration in the task of completion of this project work. Her profound advice, timely
guidance has been of immense value to me.

I am sincerely thankful to Mr. PANKAJ RAJOLE (Business Development Manager-Arihant

Capital Market.) for giving opportunity to associate myself to leading stock broker
organization of Gujarat. - Neeta

EXECUTIVE SUMMARY

As a partial fulfilment of my MBA curriculum I have undergone summer training at

Arihant capital market ltd. for duration of six weeks.

Arihant capital market ltd (ACML) is a leading stock broker organization. ACML has a
membership in India's largest stock exchange National Stock Exchange of India ltd (NSE),
Bombay

Stock

Exchange

(BSE),

Multi-Commodity

Exchange

(MCX),

National

Commodities And Derivatives Exchange (NCDX), is also an active depository participant

with India's largest depository National Securities Depository Ltd (NSDL) & Central
Depositary Services (CDSL) and having the license or Portfolio Management Service.

I have also carried out a project during summer training. The title of my project is
Portfolio Management Services An investment option.Objective behind this project is
to know how investor thinks before investing in the capital market by using the portfolio
management service.

I have surveyed people who are actual and potential investors as my study objective is to
know investor behaviour in by using PMS.

First part of the project contains company information, industry overview. Industry overview
includes information about capital markets, stock exchanges, derivatives, stock broking
industry etc. Next part of the project contains details about research methodology used in the
study. Further it contains data analysis & interpretation and also findings, recommendations
& conclusions. Last part of the report includes limitations of the study, bibliography.

INTRODUCTION

INDUSTRY PROFILE
Journey of Indian stock market
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years
ago. The earliest records of security dealings in India are meager and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used
to be transacted towards the close of the eighteenth century.
By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850.
The 1850's witnessed a rapid development of commercial enterprise and brokerage business
attracted many men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased
to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous
slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be
sold at Rs. 87).
At the end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in Bombay,
the "Native Share and Stock Brokers' Association" (which is alternatively known as "The
Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it
was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

PORTFOLIO

Meaning of portfolio:Portfolio
A combination of securities with different risk & return characteristics will constitute the
portfolio of the investor. Thus, a portfolio is the combination of various assets and/or
instruments of investments. The combination may have different features of risk & return,
separate from those of the components. The portfolio is also built up out of the wealth or
income of the investor over a period of time, with a view to suit his risk and return preference
to that of the portfolio that he holds. The portfolio analysis of the risk and return
characteristics of individual securities in the portfolio and changes that may take place in
combination with other securities due to interaction among themselves and impact of each
one of them on others.

An investor considering investments in securities is faced with the problem of choosing from
among a large number of securities. His choice depends upon the risk and return
characteristics of individual securities. He would attempt to choose the most desirable
securities and like to allocate is funds over this group of securities. Again he is faced with the
problem of deciding which securities to hold and how much to invest in each. The investor
faces an infinite number of possible portfolios or groups of securities. The risk and return
characteristics of portfolio differ from those of individual securities combining to form a
portfolio. The investor tries to choose the optimal portfolio taking in to consideration the risk
return characteristics of all possible portfolios.

As the economy and the financial environment keep changing the risk return characteristics
of individual securities as well as portfolios also change. This calls for periodical review and
revision of investment portfolios of investors. An investor invests his funds in a portfolio
expecting to get a good return consistent with the risk that he has to bear. The return realized
from the portfolio has to be measured and the performance of the portfolio has to be
evaluated.

It is evident that rational investment activity involves creation of an investment portfolio.

Portfolio management comprises all the processes involved in the creation and maintenance
of an investment portfolio. It deals specifically with the security analysis, portfolio analysis,
portfolio selection, portfolio revision and portfolio evaluation. Portfolio management makes
use of analytical techniques of analysis and conceptual theories regarding rational allocation
of funds. Portfolio management is a complex process which tries to make investment activity
more rewarding and less risky

These aren't hard and fast allocations, just guidelines to get you thinking about how your
portfolio should look. Your risk profile will give you more equities or more fixed income
depending on your aggressive or conservative bias. However, it's important to always have
some equities in your portfolio (or equity funds) no matter what your age. If inflation roars
back, this will be the portion of your investments that protects you from the damage, not your
fixed income.

Also, the fixed income of your portfolio should be diversified. If you buy bonds and
debentures directly or if you invest in FDs, then make sure you have at least five different
maturities to spread out the interest rate risk.

Diversifying in equities and bonds means more than buying a number of positions. Each
position needs to be scrutinized as to how it fits into the stocks or bonds that already are in
your portfolio, and how they might be affected by the same event such as higher interest
rates, lower fuel prices, etc. Put your portfolio together like a puzzle, adding a piece at a time,
each one a little different from the other but achieving a uniform whole once the portfolio is
complete.

Types of portfolio for study:

In portfolio Design, we are considering only two types of portfolio. They are as follow:
1. Random Portfolio
2. Sector Portfolio

1. Random portfolio
Random portfolio consists of the scripts that are randomly selected by the investor by its own
knowledge and preference of the stocks. Here there is no analysis is done of the script, they
are selected on the tips and buts received by the investors from the external sources.

Features of random portfolio

There is no method used for selection of the script in the portfolio.
Selection is based on the individual criteria for the scripts.
The investment is made for higher return in short term.
Generally in India most of the portfolio are selected according to this random methods
as no investor himself in that much analysis of the script.

Advantages of random portfolio

Easier to keep a track on the market as not much time wasted in the analysis.
This portfolio seems to have perform better in short term as script are generally which
are performing better at that time.
Tips are available every where for the investor to pouch.
It is the experience of the individual that can fetch him good return.

Disadvantages of random portfolio

There is every chance that you may select a script that has a very bad background in
the market.
Not every time the tips pay off for you. You need to have strong reason to select that
script.

 Such portfolios are not able to sustain when there is a crisis in the market.
There is a very high risk and return involve in such portfolio.

2. Sector specific portfolio

Sector specific portfolio includes securities of those companies which are in the same
business. Sector portfolios are very useful when there is a particular sector which is doing
very good and has a bright future a head. Sector portfolio has the securities of those
companies that engage in same kind of business.
e.g. In late 1990s sector that was providing the highest return was information technology.
Investors who have invested their money in these securities had earned very high return.

Features of sector portfolio

Script form the same group of companies that are in to the similar type of business.
Maximum exposure to the industry/sector. So any news or event has the direct effect
on the portfolio.
Risk regarding the portfolio increases as it is expose to sector specific ups and downs.
Useful investment tools for speculator and short-sellers.
It is better suited for the sectors which have been providing good revenue in the near
past.

Advantages of sector portfolio

It is better suited to investors who are willing to take risk.
It provides better short term return then other portfolios.
It is easy to keep a watch on one sector rather than many. You can have a good
command over the things happening.
Limited exposure to other sectors keeps the portfolio safe from the performance of
other sectors in the economy.

Disadvantages of sector portfolio

It is a highly risky portfolio as risk associated with the sector directly affects the
performance of the portfolio.
These types of portfolios are not suited for long-term investor as risk taken for the
return can be too high.
There is always the possibly many scripts in the sector may not be giving that much good
attractive return as others. They may eat the profits from other scripts.

COMPANY INFORMATION

HISTORY & DEVELOPMENT

Overview:
Arihant Capital Markets Limited, an ISO 9001:2008 Certified Company, is one
of the leading financial services companies in India. We provide a gamut of products and
services including securities and commodities broking, financial planning, depository
services, and priority client group services (PCG) and merchant banking services to a
substantial and diversified clientele that includes individuals, corporations and financial
institutions.
We are committed to giving our customers the best services and holding to our
core values which always place our client's interests first. These values are reflected in our
Business Principles, which emphasize integrity, commitment to excellence, innovation and
teamwork.
We have presence in 110 cities with over 620 offices across the nation. Clients
turn to Arihant for its complete platform of financial services combined with excellent
execution.
We have a dedicated institutional team, which caters to mutual fund houses,
insurance companies and almost all the banks active in the capital market segment.
Our goal is to create wealth for our retail and corporate customers through sound
financial advice and appropriate investment strategies.

History:
Arihant Capital Markets Limited was established in 1994 by Mr. Ashok Kumar
Jain, a Chartered Accountant. Arihant has followed a consistent growth path and has
established itself as one of the leading broking houses of the country with the support and
confidence of its clients, investors, employees and associates. We pride ourselves on our
independence and continuous service since inception.

Since inception, Arihant is dedicated to creating wealth for clients and over a
period of time we have built a reputation for quality service. We have also refined ourselves
as an investment advisor and are poised to provide complete investment management
solutions to our valued clientele.

Association:

Arihant Capital Markets Limited is listed on the Bombay Stock Exchange since
1993 and since then the company has grown in leaps and bounds.
We are members of the leading stock exchanges of India:

National Stock Exchange (NSE)

Bombay Stock Exchange Limited (BSE)

We are a depository participant with:

National Securities Depositories Limited (NSDL)

Central Depository Services Ltd. (CDSL)

We are members of leading commodities and currency exchanges in India:

National Commodities Exchange (NCDEX)

Multi Commodities Exchange (MCX)
MCX Stock Exchange Ltd (MCX-SX)
NSE FX (Currency Derivatives segment of NSE)

We are AMFI Certified Mutual Fund Distributor, are registered with the SEBI for
Portfolio Management Services (PMS) and are a Category - I Merchant Banker.

Overview:

Our success is defined by the success of our clients

Arihant has developed a diverse and robust portfolio of financial services to help
our customers manage their money in the way that benefits those most.

With more than 500 professionals and staff working in 90 plus cities, Arihant has
the resources and nationwide reach to ensure the highest level of personalized service.
Our fundamental mission is to provide our clients everything they need to do
better as realizing their strategic visions is our shared objective. Our service achieves these
goals by putting clients at the center of everything we do. Our client-centric approach, ethical
and transparent business practices, research-based advice, implementation of cutting-edge
technology and keeping up-to-date to the ever changing world of finance has helped our
clients grow with the surging Indian economy over the years.

COMPANY PROFILE
Registered Office
Name of Company: Arihant Capital Market Ltd.
Address: E-5, Ratlam Kothi,
Indore-452001
Contact: 0731-2519610
Fax: 0731-3016199
Email:contactus@arihantcapital.com
Website: www.arihantcapital.com
Corporate Office
Name of Company: Arihant Capital Market Ltd.
Address: 67, Nehru Road,
3rd Floor Krishna Bhavan,
Vile Parle(E)
Mumbai-57
Contact: 022-67664800
Fax: 022-67664800
Email:contactus@arihantcapital.com
Website: www.arihantcapital.com
Regional Office
Ahmadabad
Name of Company: Arihant Capital Market Ltd.
Address: 401, 4th Floor, High Street-1.
Opp. Thakorbhai Desai Hall
Law Garden, Ellisbridge,
Ahmedabad-380006(Gujarat)
Contact: 079-40701700, 9327552453
Fax: 079-40088640
Website: www.arihantcapital.com

RESEARCH METHODOLOGY

The field of investment is traditionally divided into security analysis and portfolio
management. The heart of security analysis is a valuation of financial assets. Value in turn is
the function of risk and return. These two concepts are in the study of investment. Investment
can be defined as the commitment of funds to one or more assets that will be held over for
some future time period.
In todays fast growing world, many opportunities are available. So in order to move with
changes and grab the best opportunities in the field of investments, a professional fund
manager is necessary. Therefore, in the present scenario, the Portfolio Management Services
(PMS) is fast gaining importance as an investment alternative for the high net worth
investors.

Portfolio Management Services (PMS) is an investment portfolio in stocks,

fixed income, debt, cash, structured products and other individual securities, managed by a
professional money manager that can potentially be tailored to meet specific investment
objectives.

Title of the study

Portfolio Management Services An investment option

Objective of the study

To know the concept of portfolio management.
To know in depth about Insurance, Mutual funds, Stock, Bonds, etc.
To know about the awareness of stock brokers and share market.
To study about the competitive position of Arihant Capital Market Ltd in a
competitive market.
To study about the effectiveness and efficiency of Arihant Capital Market Ltd. In
relation to its competitors.
To study about whether people are satisfied with Nirmal Bangs services and
management system or not.
To study about the difficulties faced by the individuals while trading in Arihant
Capital.
To study about the need of improvement in existing trading system.

Scope of the study

Scope means the area of study, from which the information has been gathered. The
information and data related to project has been collected from various investors and from the
site of the SEBI. Primary data has been collected from Ahmedabad city of Gujarat.

Benefits of the study

The study of the Portfolio Management Services is helpful in following areas:
In today's complex financial environment, investors have unique needs which are
derived from their risk appetite and financial goals. But regardless of this, every
investor seeks to maximize his returns on investments without capital
erosion. Portfolio Management Services (PMS) recognize this, and
manage the investments professionally to achieve specific investment
objectives, and not to forget, relieving the investors from the day to day
hassles which investment require.

 It offers profession al management of equity investment of the investor

with an aim to deliver consistent return with an eye on risk.
It identifies the key Stock in each portfolio.
To look out for new prospective customers who are willing to invest in PMS.
To find out the Arihant Capitals PMS services effectiveness in the current situation.
It also covers the scenario of the Investment Philosophy of a Fund Manager.

Research design
This report is based on primary as well secondary data, however primary data collection has
given more importance since it is overhearing factor in attitude
s t u d i e s . O n e o f t h e m o s t important users of research methodology is that it
helps in identifying the problem, collecting, analyzing the required information data
and providing an alternative solution to the problem .It also helps in collecting the vital
information that is required by the top management to assist them for the better
decision making both day to day decision and critical one.

Sources of data
Primary data: Questionnaire
Secondary data: Published materials of Arihant Capital Market Ltd. such as
periodicals, journals,newspapers and website.

Duration of study
The study will be carried out for the period of one and a half months.

Sampling plan
Sampling:
Since Arihant Capital has many segments, I have selected Portfolio Management
Services as per my profile to do market research. 100% coverage is difficult within
the limited period of time. Hence sampling survey method is adopted for the purpose
of the study.

 Population:
Customers and non customers of Arihant Capital Market Ltd. from Gujarat state.
Sampling size:
A sample of 100 has been chosen for the purpose of study. A sample consisted of
investors based on their income and profession as well as educational background.
Sampling method:
Non-probability sampling will be conducted for the study.
Sampling procedure:
From large number of customers and non customers, sample lot will be randomly
picked up.
Field study
Some respondents will be directly approached by the following strategies:
Tele-calling
Personal visits
Clients references
Database provided by Arihant Capital Market Ltd.

Q.1 Do you know about the investment option available in the capital market?

Particular

Respondents

Percentage (%)

Yes

88

88%

No

12

12%

Total

total

100%

No. of respondents
88%
100%
80%
60%
40%

12%

20%
0%
Yes

No

Interpretation:- As the above graph shows that 88% of people out of 100 in the city of
Ahmadabad are knowing about investment option available in the capital market. As we
know that the people are not so much familiar with this investment and they are also consider
capital market as a riskier option as compare to other option.

Q.2 What is the basic purpose of your investment?

Particular

Respondents

Percentage (%)

High returns

49

56%

Savings

39

44%

Total

88

100%

No. of respodents
56%
44%
60%
50%
40%
30%
20%
10%
0%
High returns

Savings

Interpretation: - Most of the people take risk for having higher returns of their investment.
As per the response of the people 56% invest because of having the good amount of return
and 44% are investing for the saving purpose to meet the future uncertainties.

Q3. How much rise in your income do you expect from this investment?
Particulars

Respondents

Percentage%

Below 10,000

39

44%

10,000 30,000

20

23%

30,000 - 50,000

17

19%

50,000 above

12

14%

Total

88

100%

No. of respondents
14%
Below 10,000
44%

19%

10,000 30,000

30,000 - 50,000
50,000 above
23%

Interpretation: - Most of the respondents say that to invest in the share market is more
profitable than any other investment option but on another side it is riskier also. As per the
graph we can see that 44% of the respondents expect rise of their income below 10,000.
Because of the recession now a days the return in the share market is lower as compare to
before. 23% of respondents are expecting rise between 10,000 30,000, 19% of respondents
are expecting rise between 30,000 50,000 and only 14% of the respondents are expecting to
rise above 50,000.

Q.4 If you have invested in the capital market, what has been your experience?
Particulars

Respondents

Percentage %

Very Satisfied

5%

Satisfied

11

13%

Neutral

12

14%

Dissatisfied

41

47%

Very dissatisfied

20

21%

Total

88

100%

NO. of respondents
21%

5%

13%

Very Satisfied
14%

Satisfied
Neutral

47%

Dissatisfied
Very dissatisfied

Interpretation: - Only 5% of respondents are very satisfied with the investment in the share
market. 13% of the respondents are satisfied with the investment in the share market. The
satisfaction level of the respondents is low as compare to the dissatisfaction level. The reason
for dissatisfaction of the respondents may be the poor market condition or the lack of
knowledge of the share market among the investors.

Q.5 Do you have trading A/C?

Particular

Respondents

Percentage (%)

Yes

73

83%

No

15

17%

Total

88

100%

No. of respondents
83%

100%
80%
60%

17%

40%
20%
0%
Yes

No

Interpretation: - As above we can see that out of 100% respondents who knows the
investment option in the capital market 83% respondents are having the trading a/c and the
remaining 17% are not having the trading a/c that means all the respondents are not investing
in the capital market.

Q.6 If yes, in which company?

Particulars

Respondents

Percentage %

Arihant capital market ltd

19

26%

Sharekhan

12

16%

India Infoline

17

24%

Motilal Oswal

11%

Angel Broking

12

16%

Other

7%

Total

73

100%

No. of respondents

16%

7%

Arihant capital market ltd

26%

Sharekhan

11%

India Infoline
16%

24%

Motilal Oswal
Angel Broking
Other

Interpretation: - As we all know that there are so many brokers available for the
respondents to invest in the capital market. On the basis of the survey 26% of the respondents
are trading through the Arihant Capital Market Ltd, 24% respondents through India Infoline,
16% of the respondents are trading through Sharekhan and Angel broking, 11% and 7%
through Motilala oswal and other broker respectively.

Q.7 Are you aware about the service called Portfolio Management Services?
Particulars

Respondents

Percentage %

Yes

31

43%

No

42

57%

Total

73

100%

No. of respondents
57%
43%

60%
50%
40%
30%
20%
10%
0%
Yes

No

Interpretation:- To invest in the Portfolio Management services needs high amount of

investment and is not necessary that respondents who are having the knowledge about the
capital market are also having the awareness about the PMS. As per the survey out of 100%
respondents only 43% know about the PMS and remaining 57% do not know about the PMS.

Q.8 Which factors do you considered while choosing the forms of PMS?
Particulars

Respondents

Percentage %

Risk

29%

High Returns

19%

Market Condition

16

52%

Total

31

100%

No. of respondents
52%
60%
50%

29%

40%

19%

30%
20%
10%
0%
Risk

High returns

Market Condition

Interpretation: - As above shows that 52% of respondents considers Market condition

before investment in the PMS. Because capital market is the most volatile market it gets
changes day by day so most of the investors research about the market condition before
investment. 29% considers Risk factors before investing And 19% considers high returns
before investing in the PMS.

Q.9 How do you manage your portfolio?

Particulars

Respondents

Percentage%

Self

17

55%

Depends on the broking co. for portfolio

14

45%

Total

31

100%

No. of respondents
55%
45%
60%
50%
40%
30%
20%
10%
0%
Self

Depends on the broking

co. for portfolio

Interpretation: - About 55% of respondents say that they themselves mange their Portfolio
and the remaining 45% depends on the broking company for managing the portfolio. 45%
Respondents prefer PMS of the Broking company because they dont keep the watch on their
investment regularly. The fund manager gives timely updates about their investment and also
gives suggestions whether to invest in the particular script or not.

Q.10 What is your time horizon for investments?

Particulars

Respondents

Percentage %

Less than 3 years

10%

3 6 months

19%

6months 1 year

18

58%

More than 1 year

13%

Total

31

100%

No. of respondents
13%

10%
19%

Less than 3 months

3 6 months

58%

6months 1 year
More than 1 year

Interpretation: - About 58% of the respondents invest for the time horizon of 6months
1year because they think that they should get the enough return for the investment of their
money. 19% & 10% of the respondents invest for the 3 6 months and less than 3 months
respectively. Only 10% keeps their investment for more than 1year.

Q.11 What outcome is most important to you from your portfolio?

Particulars

Respondents

Percentage %

Long term investment

11

35%

Regular income to meet current requirements

29%

Short term investment

19%

Balanced investment

17%

Total

31

100%

No. of respondents
Long term investment

17%

35%
Regular income to meet
current requirements

19%

Short term investment

29%
Balanced investment

Interpretation: - As above we can see that about 35% of the respondents important
outcome is Long term investment because everyone knows that future is uncertain so to meet
the future requirements they invest on the long term basis. 29% of respondents invest to have
a regular income to meet the current requirements, 19% of the respondents gives importance
to the short term investment and the remaining 17% to the balanced investment.

Q.12 Are you using PMS of Arihant Capital Market? If no, then of which company please
specify
Particulars

Respondents

Percentage %

Yes

12

39%

No

19

61%

Total

31

100%

No. of respondents
61%
70%
60%

39%

50%
40%
30%
20%
10%
0%
Yes

No

Interpretation: - As talking about the Investment option, in most of clients it was common
that they know about the Option but as the PMS of Arihant have different Product offering,
Product Characteristics and the Investment amount is also different this makes the clients to
think differently. It is found that 39% of the respondents were using the PMS of Arihant &
the remaining 61% were using of the other broking company.

Q.13 Which Portfolio type you preferred?

Particulars

Respondents

Percentage %

Equity Fund

19%

Debt Fund

10

32%

Balanced Fund

15

49%

Total

31

100%

No. of respondents
49%
50%

32%

40%
30%

19%

20%
10%
0%
Equity Fund

Debt Fund

Balanced Fund

Interpretation: - The above analysis shows, in which portfolio the investor like to deal more
in PMS. As 19% investor likes to go for Equity Portfolio and 49% with Balanced Portfolio,
whereas around 32% investor like to go for Debt Portfolio.

Q.14 What is the range of your Portfolio?

Particulars

Respondents

Percentage %

5,00,000- 25,00,000

22

71%

25,00,000 50,00,000

29%

50,00,000 75,00,000

0%

75,00,000 1,000,0000

0%

Total

31

100%

No. of respondents
0%
29%

5,00,000- 25,00,000
25,00,000 50,00,000
50,00,000 75,00,000
71%

75,00,000 1,000,0000

Interpretation:- About 71% of respondents range of their portfolio is between 5,00,000

25,00,000 and the remaining 29% of respondents range is 25,00,000 75,00,000. In the
range of 50,00,000 75,00,000 & 75,00,000 1,000,0000 no respondent is ready to invest.

Q.15 What is the rate of return annually you expect from you portfolio?
Particulars

Respondents

Percentage %

5% - 9%

29%

10% - 13%

17

55%

14%- 17%

16%

18% - 23%

0%

Total

31

100%

No. of respondents
0%
16%

29%
5% - 9%
10% - 13%
14%- 17%

55%

18% - 23%

Interpretation:- Every investors invest by expecting some specific percentage of return they
will get on their investment. Here 55% of the respondents expects 10% - 13% return on their
investment annually, 29% of the respondents expect 5% - 9% of return and the remaining
16% of respondents expects 14% - 17% of return.

Q.16 How much brokerage does Arihant charge for managing your Portfolio?
Particulars

Respondents

Percentage %

10paisa 15paisa

0%

15paisa 20paisa

10%

20paisa 25paisa

26

84%

More than 25paisa

6%

Total

31

100%

No. of respondents
0%

6%

10%
10paisa 15paisa
15paisa 20paisa
20paisa 25paisa

84%

More than 25paisa

Interpretation:- All broking company charges the different brokerage for their PMS. 84% of
respondents says that Arihant charges brokerage between 20paisa 25paisa, 10% says that it
charge between 15paisa 20paisa and the remaining 6% of respondents says that they
charges more than 25paisa. As per the detail given by the Arihant they charges 25paisa
brokerage

for

PMS.

Q.17 As an investor hoe frequently do you track your investment portfolio?

Particulars

Respondents

Percentage %

Daily

13%

Weekly

16%

Fortnightly

26%

Monthly

14

45%

Total

31

100%

No. of respondents
13%
45%

16%

Daily
Weekly
Fortnightly

26%

Monthly

Interpretation:-About 45% of the respondents tack their portfolio monthly, because some
broking company provides the monthly detail of their portfolio by sending the detailed
statement. 26% of respondents say that they track their portfolio fortnightly, 16% says that
they track it weekly and the remaining 13% track it daily. Arihant provides the detail as per
the requirements of the investors.

Q.18 How was your experience about PMS of Arihant Capital Market?
Particulars

Respondents

Percentage %

Earned

33%

Faced loss

42%

No profit No loss

25%

Total

12

100%

No. of respondents
42%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

33%
25%

Earned

Faced loss

No profit No loss

Interpretation: - In the above analysis it is clear that the Investor have the good and the bad
experience both with the Arihant PMS services. In this current scenario 33% of the Investor
earned, whereas around 42% have suffer losses in the market. Similarly 25% of the
Respondents are there in Breakeven Point (BEP), where no loss and no profit.

Q.19 Does Arihant keeps its PMS process transparent?

Particulars

Respondents

Percentage %

Yes

67%

No

33%

Total

12

100%

N0. of respondents
67%
70%
60%

33%

50%
40%
30%
20%
10%
0%
Yes

No

Interpretation:- The above analysis is talking about the Transparency of their PMS services.
In hundred respondents 67% said that they get all the information about their script buying
and selling information day by day, where as 33% of respondents are not satisfied with the
PMS information and Transparency because they dont get any type of extra services in PMS
as they were saying.

Q.20 Do you recommend Arihant PMS to others?

Particulars

Respondents

Percentage %

Yes

58%

No

42%

Total

12

100%

No. of respondents
58%
60%

42%

50%
40%
30%
20%
10%
0%
Yes

No

Interpretation:- The above analysis shows the Investor perception toward the Arihant PMS
as on the basis of their good and bad experience with Arihant Capital Market limited. Among
hundred respondents 58% respondents were agree to recommend the PMS of Arihant to their
peers, relatives etc.

Findings
About 88% of respondents are aware about the investment option specifically in the
Capital Market.
More than 50% of the respondents are investing for having the high returns, to
increase their principal amount.
As expected from the market 44% of the respondents expects rise below 10,000
because of poor market condition.
The experience of the investors in the capital market was not good, about 47% of the
investors are not satisfied with their returns.
Arihant is having 26% of respondents in their side out of 100%, after Arihant the
respondents prefer India infoline as their broker.
As per the survey 31 respondents out of 73 respondents are aware about the portfolio
Management Services.
Most of the investors first analyze the market condition before investment. They also
gives importance to the risk and high returns also.
About

55% of the respondents manage their portfolio by themselves and the

remaining 45% depends on the broking company.

Most of the respondents track their portfolio between 6months 1year.
About 39% of the respondents using the Arihant PMS and the remaining 61% uses
other broking companys PMS.
49% of the respondents preferred balanced portfolio, 32% preferred debt portfolio and
the remaining 19% preferred equity portfoilio.
More than 70% of the respondents having the range of their portfolio between
5,00,000 25,00,000.
About 55% of the respondents expects 10% - 13% of return annually for their
investment.
More than 80% of the respondents are saying that they gives 25paisa brokerage to the
Arihant for managing their portfolio.
45% of the investors track their portfolio monthly, 26% track their portfolio
fortnightly, 16% track it weekly and the remaining 13% track it daily.
42% of the respondents says that they have faced loss by investing in the PMS with
the Arihant, 33% says that they have earned and the remaining 25% have the BEP
situation.

 More than 67% Investor are happy with the Transparency system of Arihant Capital
Market Ltd.
As based on the good and bad experience with Arihant around 58% are ready to
recommended the PMS of Arihant to their peers, relatives etc.

LIMITATION OF THE PROJECT

As only Ahemdabad was dealt in the survey so it does not represent the view of the total
Indian market.
The sample size was restricted with hundred respondents.
There was lack of time on the part of respondents.
The survey was carried through questionnaire and the questions were based on perception.
There may be biasness in information by market participant.
Complete data was not available due to company privacy and secrecy.
Some people were not willing to disclose the investment profile.

Conclusion

Arihant Capital Market Ltd has good Portfolio Management services.

It keeps its process more transparent.
It gives more returns to its investors.
It charges are less than other portfolio Management Services
It provides daily updates about the stocks information.
Investors are looking for those investment options where they get maximum returns with
less returns.
Market is becoming complex & it means that the individual investor will not have the time
to play stock game on his own.
People are not so much ware aware about the Investment option available in the Market.

Suggestions

The company should perform the study of profiling customers, try to understand their
specific needs and work towards providing right solutions to specific requirements
like safety, liquidity, return and risk.
The company should make the best use of the technology for doing research.
The company needs to promote the financial products through advertisements and
other activities.
The company should solve the query of the client in time so they dont get disappoint
with their performance.

Bibliography
Book referred: - Research Methodology by C R Kothari
Websites:www.arihantcapital.com
www.sebi.gov.in
www.nseindia.com
www.bse.com

ANNEXURE

Dear sir / madam

I am a student of L.J. INSTITUTE OF MANAGEMENT STUDIES. For academic
purpose a Research project is to be made on topic of Portfolio Management Sevices- An
Investment option of ARIHANT CAPITAL MARKET LTD. For this purpose I would
like to ask you few questions I would be grateful if you spare few moments and co-operate
with me.
JANDHLANI NEETA

1) Do you know about the investment option available in the Capital Market?
(A) Yes
(B) No
2) What is the basic purpose of your investments?
(A) High returns
(B) Savings
3) How much rise in your income do you expect from this investment?
(A) Below 10,000
(B) 10,000 30,000
(C) 30,000 50,000
(D) 50,000 Above
4) If you invest in the capital market, What has been your experience?
(A) Very satisfied
(B) Satisfied
(C) Neutral
(D) Dissatisfied

(E) Very dissatisfied

5) Do you have trading A/C ?
(A) Yes
(B) No
6) If yes, in which company?
(A) Arihant capital market ltd
(B) Sharekhan
(C) Indiainfoline
(D) Motilal Oswal
(E) Angel broking
(F) Other _________________________
7) Are you aware about the service called Portfolio Management Services?
(A) Yes
(B) No
8) Which factors do you considered while choosing the forms of PMS?
(A) Risk
(B) High Returns
(C) Market Condition
9) How do you manage your Portfolio?
(A) Self
(B) Depends on the Broking Company for portfolio
10)What is your time horizon for investments?
(A)Less than 3 months
(B)3-6 months
(C)6 months- 1 year
(D)More than 1 year
11) What outcome is most important to you from your portfolio?
(A) Long term investment
(B)Regular income to meet current requirements

(C)Short term investment

(D)Balanced investment

12) Are you using PMS of Arihant Capital Market? If no, then of which company Please
specify
(A) Yes
(B) No
13) Which Portfolio type you preferred?
(A) Equity fund
(B) Debt fund
(C) Balanced fund
14) What is the range of your portfolio?
(A) 5,00,000 25,00,000
(B) 25,00,0000 50,00,000
(C) 50,00,000 75,00,000
(D) 75,00,000 1,000,0000
15) What is the rate of return annually you expect from your portfolio?
(A) 5% - 9%
(B) 10% - 13%
(C) 14% - 17%
(D) 18% - 23%
16) How much brokerage does Arihant charge for Managing Your portfolio?
(A) 10paisa 15 paisa
(B) 15paisa 20 paisa
(C) 20paisa 25 paisa
(D) More than 25 paisa
17)As an investor how frequently do you track your investment portfolio?
(A)Daily
(B)Weekly
(C)Fortnightly

(D)Monthly

18) How was your experience about PMS of Arihant Capital Market?
(A) Earned
(B) Faced loss
(C) No profit no loss
19) Does Arihant keep its PMS process transparent?
(A) Yes
(B) No
20) Do you recommend Arihant PMS to others?
(A) Yes
(B) No

PERSONAL BIO-DATA:Name: _______________________________

Contact No: _______________________
Address: ________________________
________________________
Age: ___
Thank you.