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A PROJECT REPORT ON EQUITY PORTFOLIO MANAGEMENT AT

KARVY STOCK BROKING PVT LTD

SUBMITTED BY
K.H.V. PRIYANKA
ROLL NO: 15213354
BATCH XIX, 2015-2017

SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

POST GRADUATE DIPLOMA IN MANAGEMENT

VIGNANA JYOTHI INSTITUTE OF MANAGEMENT


(APPROVED BY AICTE, MINISTRY OF HRD, GOVT OF INDIA)
BACHUPALLY, HYDERABAD

DECLARATION

I hereby declare that this project Report titled PORTFOLIO MANAGEMENT IN MUTUAL
FUNDS submitted by me is a bonafide work undertaken by me and it is not submitted to any
other Institution or university for the award of any degree/diploma certificate or published any
time before.

Name of the student


K. CHANDANA HOLIKA

Signature of the

student

CERTIFICATE

This is to certify that the Project Report titled PORTFOLIO MANAGEMENT IN

MUTUAL FUND being submitted to Vignana Jyothi Institute of Management is a


bonafide work done by K.H.V CHANDANA HOLIKA , bearing Roll no. _151126_, under
my guidance.

Date

DR. SUSHMA KAZA

ACKNOWLEDGEMENTS:
I take this opportunity to express my profound gratitude and deep regards to my guide
Dr. Sushma Kaza for her exemplary guidance, monitoring and constant encouragement
throughout the course of this project.

I also take this opportunity to express a deep sense of gratitude to company mentor G.
Parameshwarao in KARVY STOCK BROCKING LIMITED for his cordial support, valuable
information and guidance which helped me in completing this project.
Lastly, I specially thank my parents and friends for their constant encouragement without which
this project would not be complete.

EXECUTIVE SUMMARY
Investing money where the risk is less has always been risky to decide. The first
factor, which an investor would like to see before investing is risk factor.
Diversification of risk gave birth to the phenomenon called Mutual Fund.

The Mutual Fund Industry is in the growing stage in India, which is evident from
the flood of mutual funds offered by the Banks, Financial Institutes &Private
Financial Companies.

As a part of my study curriculum it is necessary to conduct a grand project. It


provides me an opportunity to understand the particular topic in depth and which
leads to that topic.

My project topic is Portfolio Management services in Mutual Funds which give


special emphasis on creation of portfolios, portfolio revision and comparison of
Mutual Funds with various performance measures.

In portfolio management it is very important to manage investors portfolio


efficiently. By efficient we mean which reduces the risk of investor and increases
return on the other hand.
This project is all about how to manage an investors portfolio in mutual fund.
How to diversify the investments into different schemes of funds.

My First Phases covers mutual fund industry, current economic condition of the
economy, brief introduction to portfolio management services, investors behavior
and types, their objective, risk appetite.
My Second Phase covers creation of portfolios as per different type of investor,
portfolio revision and comparison of Mutual Funds with various Performance
measures.

TABLE OF CONTENTS
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PARTICULARS
Introduction to Karvy Stock Broking LTD
Achievements
Products& Services
Need of the study
Objectives of the study
Research Methodology
Research Design
Data collection method
Sample design
Null hypothesis
Introduction to Mutual Funds
History of Mutual Funds
Organization of Mutual Funds
Types of Mutual Funds
Fund Management
Introduction to Portfolio Management Services
Phases of Portfolio Management
Types of Portfolio Management

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Managing Portfolio
Investor Types
SEBI Guidelines for PMS
Data Analysis
Interpretation
Portfolio Creation
Aggressive Portfolio
Conservative Portfolio
Balanced Portfolio
Portfolio Revision
Constant Rupee Plan
Constant Ratio Plan
Variable Plan
Calculation of Returns
Mutual Fund comparison& Rankings
Limitations& Future Scope
Findings& Suggestions
My Learning
Conclusion
References

COMPANY PROFILE
KARVY GROUP
The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player in
almost all the fields it operates. Karvy Computershare Limited is Indias largest Registrar and
Transfer Agent with a client base of nearly 500 blue chip corporates, managing over 2 crore

accounts. Karvy Stock Brokers Limited, member of National Stock Exchange of India and the
Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6, 00,000
active accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL
and CDSL. Karvy Comtrade, Member of NCDEX and MCX ranks among the top 3 commodity
brokers in the country. Registered with AMFI as a corporate Agent, Karvy is also among the top
Mutual Fund mobilizer with over Rs. 5,000 crores under management. Karvy Realty Services,
which started in 2006, has quickly established itself as a broker who adds value, in the realty
sector. Karvy Global offers niche off shoring services to clients in the US.
Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York.
Over 9,000 highly qualified people staff Karvy.
Karvy was started by a group of five chartered accountants in 1979. The partners decided to
offer, other than the audit services, value added services like corporate advisory services to their
clients. The first firm in the group, Karvy Consultants Limited was incorporated on 23rd July,
1983. In a very short period, it became the largest Registrar and Transfer Agent in India. This
business was spun off to form a separate joint venture with Computershare of Australia, in 2005.
Karvys foray into stock broking began with marketing IPOs, in 1993. Within a few years, Karvy
began topping the IPO procurement league tables and it has consistently maintained its position
among the top 5. Karvy was among the first few members of National Stock Exchange, in 1994
and became a member of The Stock Exchange, Mumbai in 2001. Dematerialization of shares
gathered pace in mid-90s and Karvy was in the forefront educating investors on the advantages
of dematerializing their shares. Today Karvy is among the top 5 Depositary Participant in India.
While the registry business is a 50:50 Joint Venture with Computershare of Australia, we have
equity participation by ICICI Ventures Limited and Barings Asia Limited, in Karvy Stock
Broking Limited.
KARVY, is a premier integrated financial services provider, and ranked among the top five in the
country in all its business segments, services over 20 million individual investors in various
capacities, and provides investor services to over 300 corporates, comprising the who is who of
Corporate India. KARVY covers the entire spectrum of financial services such as Stock broking,
Depository Participants, Distribution of financial products - mutual funds, bonds, fixed deposit,

equities, Insurance Broking, Commodities Broking, Personal Finance Advisory Services,


Merchant Banking & Corporate Finance, Registrars & Transfer agents . Karvy has a professional
management team and ranks among the best in technology, operations and research of various
industrial segments. Karvy Stock Broking Ltd offer trading on a vast platform National Stock
Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. More importantly, we
make trading safe to the maximum possible extent, by accounting for several risk factors and
planning accordingly. We are assisted in this task by our in-depth research, constant feedback and
sound advisory facilities. Our highly skilled research team, comprising of technical analysts as
well as fundamental specialists, secure result-oriented information on market trends, market
analysis and market predictions. . Our Stock Broking services are widely networked across India,
with the number of our trading terminals providing retail stock broking facilities. Pacific Century
Group, the holding company of Mr. Richard Li, Hong Kong has invested in the company during
June 2005 for further expansion of branch network and to increase the product range. The
investment in Karvy Stock Broking Ltd will represent Pacific Century Groups first investment
in the Indian Financial Services arena. Our services have increasingly offered customer oriented
convenience which we provide to a spectrum of investors, high-networth or otherwise, with
equal dedication and competence. Depository Participant Services The onset of the technology
revolution in financial services Industry saw the emergence of Karvy as an electronic custodian
registered with National Securities Depository Ltd (NSDL) and Central Securities Depository
Ltd (CSDL) in 1998. Karvy set standards enabling further comfort to the investor by promoting
paperless trading across the country and emerged as the top 3 Depository Participants in the
country in terms of customer serviced. Offering a wide trading platform with a dual membership
at both NSDL and CDSL, we are a powerful medium for trading and settlement of
dematerialized shares. We have established live DPMs, Internet access to accounts and an easier
transaction process in order to offer more convenience to individual and corporate investors. A
team of professional and the latest technological expertise allocated exclusively to our demat
division including technological enhancements like SPEED-e, make our response time quick and
our delivery impeccable. A wide national network of 546 offices across 363 cities / towns makes
our efficiencies accessible to all.
The Karvy Group is a well-diversified conglomerate. Its businesses straddle the entire financial
services spectrum as well as data processing and managing segments. Since most of its financial

services were retail focused, the need to build scale and skill in the transaction processing
domain became imperative. Also during stressed environment in the financial services segment,
the non-financial businesses bring in a lot of stability to the groups businesses.
Karvys financial services business is ranked among the top-5 in the country across its business
segments. The Group services over 70 million individual INVESTORS in various capacities, and
provides investor services to over 600 corporate houses, comprising the best of Corporate India.
The Group offers stock broking, depository participant, distribution of financial products
(including mutual funds, bonds and fixed deposits), commodities broking, personal FINANCE
advisory services, merchant banking & corporate finance, wealth management, NBFC (loans to
individuals, micro and small businesses), Data management, Forex & currencies, Registrar &
Transfer agents, Data Analytics, Market Research among others.
Karvy prides itself on remaining customer centric as all times through a combination of leading
edge technology, Professional management and a wide network of offices across India.
Karvy is committed to its quest as an Equal Opportunity Employer and believes in the rights for
differently-abled persons. We have over 12% employees who are challenged in some form in one
of our prominent businesses.
Another key feature of Karvy has been its ability to offer leading edge advice based on incisive
ideas that are strongly rooted in high quality research on every conceivable aspect of investments
be it equities, forex, commodities, bonds, fixed returns, debt instruments or any other investment
grade asset class.

Companies of KARVY:
Karvy Stock Broking Limited: Equity Broking, Depository Participant, Distribution of
Financial Products (Mutual Funds, FD and Bonds), Wealth Management Services, Currency
Derivatives, Portfolio Management Services
Karvy Comtrade Ltd: Commodities Broking

Karvy Capital Limited ( Formerly Karvy Capital Private Limited ): NBFC &

Portfolio

Manager
Karvy INVESTMENT Advisory Services Ltd (Formerly known as Karvy Insurance Broking
Limited): INVESTMENTAdvisory Services
Karvy Holdings Limited: Core INVESTMENT Company
Karvy Middle East LLC: Wealth Management Products for NRI's
Karvy Realty (India) Ltd: Realty Services
Karvy Financial Services Ltd: Non Banking Financial Services
Karvy Insurance Repository Limited: Insurance Repository services
Karvy Forex & Currencies Private Limited: Currency and forex services
Karvy Consultants Ltd: Consultancy and Advisory Services, Publications
Karvy Computershare Private Ltd: Registrar and Share Transfer agent
Karvy Computershare W.L.L ( Formerly known as Fakhro Karvy Computershare W.L.L ):
Agent for Custody & Registration of Securities, Registered Administrator
Karvy Data Management Services Ltd: Data Management Services
Karvy INVESTOR Services Ltd: Merchant Banking and Corporate FINANCE
Karvy Insights Ltd: Market Research
Karvy Analytics Ltd: Analytics
Karvy Solar Power Limited: Power Generation
Karvy Global Services Limited: Business Process Outsourcing
Karvy Global Services Inc, USA: Business Process Outsourcing
Karvy Inc, USA: Institutional Broking

AWARDS & ACCOLADES:


Karvy Stock Broking Limited
2014: Won the prestigious "NSDL Star Performer Award 2014 for Highest Asset Value".
Organized by the National Securities Depository, the NSDL Star Performers Awards recognize
the best performers in the securities and depositories space. The award ceremony was organized
on Saturday, December 20, 2014, at Taj Coromadel, Chennai. Karvy has won this award
consecutively for last two years.
Karvy Comtrade Limited
2014: Won the prestigious ZEE Business Award for the "Best Agri. Analyst" 2014 in the fifth
edition of Indias Best Market Analyst Awards on Saturday, 13th Dec. 2014 at The LaLit in
Mumbai.
2010: "Largest E-Broking House in India" at BSE Equity Broking Awards 2010 by Dun &
Bradstreet held in ITC Grand Maratha, Mumbai. This award is based on the study carried out by
the worlds leading provider of business information, knowledge and insight, Dun & Bradstreet
in association with the oldest STOCK EXCHANGE in India, the Bombay STOCK
EXCHANGE.
The BSE-D&B Equity Broking Awards recognizes the brokerage firms based on the number of
online accounts, volume of online trade, and service delivery of their online TRADING
PLATFORM. Karvy Stock Broking Limited has won this prestigious award for its state of the
art, in-house developed KarvyOnline, a comprehensive ONLINE INVESTMENT platform that
enables investors to invest, anytime from anywhere.

Financial Services

Equity Broking
Depository Participant
Wealth Management
Commodities Broking
Currency Derivatives
Non-banking Financial Services
Distribution of Financial Products
Realty
Registry services for Corporate
and Mutual funds
Investment Banking
Insurance Repository
The Finapolis
Forex & Currencies
Non-Financial Services

Data Management Services


International BPO
Alternate Energy
Data Analytics
Market Research

Services Karvy group:


1. EQUITY BROKING SERVICES: Karvy has the largest-owned network among
financial-services companies in India. Given the wide network, there are a number of
trading terminals that provide retail stock-broking facilities. The services have
increasingly offered customer-oriented convenience with dedication and competence.

Karvy offer online trading on both key platformsNational Stock Exchange and
Bombay Stock Exchange. Trading is made safe to the maximum possible extent by
accounting for several risk factors and planning accordingly.
Karvy is assisted by in-depth research, constant feedback and sound advisory capabilities.
Their highly skilled research teamcomprising technical analysts and fundamental
specialistssecure result-oriented information on market trends, market analysis and
market predictions.
2. DEPOSITORY PARTICIPANT SERVICES: KSBL as an electronic custodian
registered with the National Securities Depository Ltd (NSDL) and Central Securities
Depository Ltd (CSDL) in 1998. KSBL is a powerful medium for trading and settlement
of dematerialized shares.

3. DISTRIBUTION OF FINANCIAL PRODUCTS: With wide portfolio offerings, they


occupy all segments in the retail financial services industry. This has propelled Karvy to
become one of the top distribution houses for equity and debt issues, with an estimated
market share of 15% in terms of applications and amount mobilized. The edge that they
have over the competitors is the sheer depth of our portfolio of offerings and our
professional expertise. The investment planning for each customer is done with an
unbiased attitude so that the service is truly customized.

4. CURRENCY DERIVATIVES: Karvy Currency Derivatives Segment, a specialized


group vertical within Karvy stock broking limited, has been established in 2008 to cater
to the growing needs of corporate houses to manage currency exchange rate risk.

5. WEALTH MANAGEMENT SERVICES: Karvy Private Wealth (KPW) was set up to


cater to HNIs, keeping in mind that they require a different kind of financial planning and
management. Services include planning and protection of finances, planning of business
and retirement needs, and a host of other services, which will help augment their existing
as well as future finances and lifestyle. They combine a hard-nosed business approach
with a soft touch of personalized attention and dedicated customer care.

6. PORTFOLIO MANAGEMENT SERVICES: Portfolio management services are


meant for high net worth individuals or institutions who want a personalized management
of their finances. A team of expert professionals conduct extensive research on markets to
provide a customized solution to achieve unique investment objectives.

7. KARVY FORTUNE: Karvy Fortune, helps individuals and small organisations forge a
partnership with Karvy. Karvy Fortune is constantly on the lookout for hard working,
ambitious individuals who would like to build a robust business without the usual hassles
associated with starting an enterprise. As a business partner of Karvy Fortune you get to
be a part of an established broking house, which is hugely successful in providing
financial services to millions of customers. The risk reward ratio for the individual/
enterprise becoming a franchisee is also very low considering this is an already
established business model and a brand name that has great value in the financial markets
in India.

8. INVESTMENT BANKING: Karvy is registered with SEBI as a Category-I merchant


banker. It has built up a reputation as an able merchant banker over the years by
capitalizing on opportunities in corporate consolidation, mergers & acquisitions,
corporate restructuring and capital raising (including raising resources for corporates or
the government). Their success over the past two decades has given us the confidence to
focus in this sector with renewed vigor.

9. COMMODITIES BROKING: An ISO 9001:2008 certified company, Karvy Comtrade


Limited (KCTL) is Indias leading commodities brokerage house. They have membership
of Multi Commodity Exchange of India (MCX), National Commodity and Derivatives
Exchange (NCDEX), National Multi-Commodity Exchange of India (NMCE), National
Spot Exchange (NSEL), NCDEX Spot Exchange (NSPOT), Ace Commodity Exchange
(ACE) and Indian Commodity Exchange (ICEX). They are one of the early players in this
business and have built a very strong research which is widely acknowledged across our
customer base be it the corporates or the traders who comprise our prime customer
segment. Karvy is by far the only commodity trading entity who have a presence in the
wholesale markets where the commodities are auctioned purely to get a very strong sense
on the demand supply for most of the agricultural products.

10. NON - BANKING FINANCIAL SERVICE: Karvy Finance, an NBFC established in


2009, is primarily focused on Micro & Small Enterprise Secured Business Loans with
Loan against Property, Loan against Gold & Loan for Small Commercial Vehicles.

11. REALTY SERVICES: Karvys Realty services is engaged in the business of valueadded real estate and property services. Offer individuals and corporates myriad options
across investments, financing and advisory services in the realty sector. Building on the
Karvy brand as a leading industry benchmark for world-class customer servicing and
quality standards, bring forth a reputation for reliability, dependability and honesty.

12. REGISTRY SERVICES: Karvy Computershare (KCPL) is a 50:50 tie-up with


Computershare Limited, the worlds largest transfer agent and leading Australian
company. The worldwide network of Computershare will hold us in good stead as they
expect to adopt international standards in addition to leveraging the best of technologies
from around the world.

13. FOREX & CURRENCIES: Forex and currencies is another business vertical of the
Karvy group to venture into Trade and Corporate Finance Segment, Forex Corporate
Advisory Services. The company has been registered with FEDAI.

14. INSURANCE REPOSITORY: Karvy Insurance Repository (Kinrep) is a licensed


Insurance Repository in India. Kinrep has been offering various life and general
insurance companies since 2008. Kinrep has completely home grown mature business
applications to cater to the in house team as well as clients.

Karvy Group Organisational structure:

As the flow chart suggests, there is a board of directors which sits at the top of the structure and
under them there are divisions of the various segments of Karvy as a whole. And there are
further following divisions and sub divisions.
Under the Board of Directors, there are divisions:
Karvy Group, Karvy Computershare Karvy Investor services, Karvy Stock Broking Ltd,
Karvy Global services, Karvy Reality services, and Karvy Comtrade Ltd.
Karvy group is the managerial division of the company. Under this division, there are sub
divisions as: Corporate affairs, Group HR, Finance and Accounts, Training and Development,
Technology Services and Quality these take care of the work and processes of the entire
departments and divisions.
Then under Karvy Computershare, there are mutual fund service, Share registery and Issue
Registery.
Karvy Investor services handle the Merchant Bankers.
KSBL has subdivisions as Stock broking, Stock research, Depository, Distribution, Personal
Client and Institutional desk.

HIERARCHAL STRUCTURE OF KARVY STOCK


BROKING LIMITED
CHAIRMAN KSBL
COUNTRY HEAD KSBL

ZONAL HEAD KSBL

AREA MANAGER KSBL

CLUSTER MANAGER KSBL

BRANCH MANAGER

ASST MANAGER, DEPUTY MANAGER

INTRODUCTION

The financial market is the driver of the economic growth and development
of any country. A sound financial market can take the country to the apex.
Financial resource where by allocating the resource through one of the ways such
as portfolios, which are combination of various securities. Portfolio analysis
includes analyzing the range of possible portfolios that can be constituted from a
given set of securities.
A combination of securities with different risk return characteristics will
constitute the portfolio of the investor. A portfolio is a combination of various
assets and instruments of investments. 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 preferences to that of the portfolio that he holds. The portfolio analysis
is an analysis of the risk return characteristics of individual securities in the
portfolio and changes that may take place in combination with other securities due
to interactions among themselves and impact of each one of them on other.
As individuals are becoming more and more responsible for ensuring their
own financial future, portfolio or fund management has taken on an increasingly
important role in banks ranges of offerings to their clients. In addition, as interest
rates have come down and the stock market has gone up and come down again,
clients have a choice of leaving their saving in deposit accounts, or putting those
savings in unit trusts or investments portfolios which invest in equities and/or
bounds. Investing in unit trusts or mutual funds is one way for individuals and
corporations alike to potentially enhance the returns on their savings.

NEED FOR THE STUDY:


The Portfolio Management deals with the process of selection securities from the number of
opportunities available with different expected returns and carrying different levels of risk and
the selection of securities is made with a view to provide the investors the maximum yield for a
given level of risk or ensure minimum risk for a level of return.
Portfolio Management is a process encompassing many activities of investment in assets
and securities. It is a dynamics and flexible concept and involves regular and systematic analysis,
judgment and actions. The objectives of this service are to help the unknown investors with the
expertise of professionals in investment Portfolio Management. It involves construction of a
portfolio based upon the investors objectives, constrains, preferences for risk and return and
liability. The portfolio is reviewed and adjusted from time to time with the market conditions.
The evaluation of portfolio is to be done in terms of targets set for risk and return. The changes
in portfolio are to be effected to meet the changing conditions.

IMPORTANCE OF PORTFOLIO MANAGEMENT:


Most of the organizations operate in a complex environment with any programmers and projects
going on any time .Portfolio management provide the means to:

Establish a structure for selecting the right programmers and projects.


Assess whether requirements can be accommodated within existing organization
capability and capacity.
Allocate the right resources to the right programmers and projects.
Resolve conflicts and scarce between programmers and projects.
Assess the true implications of the aggregate level of programmed and project risk.

OBJECTIVES OF THE STUDY:


To understand portfolio selection process
To study the usefulness of efficient frontier technique in portfolio selection
process.
To see whether the portfolio risk is less than individual risk on whose basis
the portfolios are constructed.
To find out optimal portfolio, which gave optimal return at a minimize risk
to the investor.
A good portfolio should have multiple objectives and achieve a sound
balance among them. Any one objective should not be given undue importance at
the cost of others.
Safety of the Investment:
The first important objective of a portfolio, no matter who owns it, is to
ensure that the investment is absolutely safe. Other considerations like Income,
Growth, etc., only come into the picture after the safety of the investments is
ensured.
Investment safety or minimization of risks is one of the important objectives
of portfolio management. There are many types of risks, which are associated
with investment in equity stocks, including super stocks. We should keep in
mind that there is no such thing as a Zero-Risk investment. Moreover, relatively
Low-Risk investments give correspondingly lower returns.
Stable Current Returns:
Once investments safety is guaranteed, the portfolio should yield a steady
current income. The current returns should at least match the opportunity cost

of the funds of the investor. What we are referring is current income by way of
interest or dividends, not capital gains.
Appreciation in the value of capital
A good portfolio should appreciate in value in order to protect the investor
from any erosion in purchasing power due to inflation. In other words, a
balanced portfolio must consist certain investments, which tend to appreciate in
real value after adjusting for inflation.
Marketability:
A good portfolio consists of investments, which can be marketed without
difficulty. If there are too many unlisted or inactive shares in our portfolio, we
will have to face problems in encasing them, and switching from one investment
to another. It is desirable to invest in companies listed on major stock
exchanges, which are actively traded.
Liquidity:
The portfolio should ensure that there are enough funds available at short
notice to take care of the investor's liquidity requirements. It is desirable to keep
a line of credit from a bank fro use in case it become necessary to participate in
Right Issues, or for any other personal needs.

Tax Planning:
Since taxation is an important variable in total planning. A good portfolio
should enable its owner to enjoy a favourable tax shelter. The portfolio should
be developed considering not only income tax, but capital gains tax, and gift

tax, as well. What a good portfolio aims at is tax planning, not tax evasion or
tax avoidance.
Elements of portfolio management
Portfolio management is on-going process involving the following basic
takes.
a. Identification of investors objectives, constraints and preferences.
b. Strategies are to be developed and implemented in tune with
investment policy formulated.
c. Review and monitoring of the performance of the portfolio
d. Finally the evaluation of portfolio.

STRUCTURE / PROCESS OF TYPICAL PORTFOLIO MANAGEMENT

RESEARCH
(E.g. Security
Analysis)

PORTFOLIO
MANAGERS

OPERATIONS
(E.g. buying and
Selling of Securities)

CLIENTS

SCOPE OF THE STUDY:


Portfolio including other financial assets

Portfolio Managers should try to bring in untapped market of age group of


22 to 35 age as this group is wide and also earn high income with limited
Liability.
RESEARCH METHODOLOGY:

Exploratory Research& Analytical Research

Quantitative Research
4.2 DATA COLLECTION METHOD
Primary data: The study was conducted through a survey and involved, interviewing different
age group of people through the survey, falling under three distinct Age-Brackets, being:
22-35
35-50
Above 50
The information gives us an overall understanding of the respondents investment profile and
helps us to understand what investment mix and which mutual fund will be appropriate, or
inappropriate, in helping to achieve his financial goals.
Secondary data:
For data collection purpose the secondary source was used like mutual fund factsheet, books
and comparison of mutual funds schemes.
This data was used to create portfolios as per investor type. Portfolio revision and
comparison mutual funds schemes.
1.3 SAMPLE DESIGN
Sample Size: 100 samples
Type of Sample: convenience sampling
The sample size consist of clients of Karvy Stock Broking LTD
Customers taken Insurance policy and mutual funds.
Customers having PMS a/c.
4.4 NULL HYPOTHESIS
Passive Management gives more return compared to Active Management.
Passive Management has better approach to Active Management.

LIMITATIONS OF THE STUDY:

Although the report has been made on the relevant facts and figures but certain problems have
been faced which are as follows:

The respondents were sometimes biased while answering the questions.

The study only covers the particular area of Borivali and dahisar

The time constraint was one of the major problems

To get an insight in the process of portfolio allocation and deployment of funds by fund
manager is difficult.

The portfolio of mutual fund investments can change according to the market conditions.
This project is carried out and evaluated on the basis of the market conditions from 1st
May 2016 to 31st June 2016.

PORTFOLIO MANAGEMENT:
MEANING:
A portfolio is a collection of investments held by an institution or private individuals. In
building up an investment portfolio a financial institution will typically conduct its own
investment analysis, while private individuals may make us e of services of a financial advisor or
a financial institute which offers portfolio management services. Holding a portfolio is a part of
investment and risk limiting strategy called diversification. By owning several assets, certain
types of risk can be reduced. The assets in the portfolio could include stocks, bonds, options,
warrants, gold certificate, real estate, futures contracts, production facilities, or any other item
that is expected to retain its value.
Portfolio management involves deciding what assets to include in the portfolio, given the
goals of the portfolio owner and changing economic conditions. Selection involves deciding
what assets to purchase, how many to purchase, when to purchase them and what assets to
divest. These decisions always involve some sort of performance measurement, most typically
expected return on the portfolio and the risk associated with this returns. Typically the expected
returns from portfolio, comprised of different asset bundles are compared.

The unique goals and circumstances of the investors must also be considered. Some
investors are more risk averse than other. Mutual funds have developed particular technique to
optimize their portfolio holdings.
Thus, portfolio management is all about strength, weakness, opportunities and threats
(SWOT) in the choice of debt vs. equity, domestics vs. international, growth vs. safety and
numerous other tradeoffs encounter in the attempt to maximize return at a given appetite for
risk.

Definition:
Portfolio management is the process of building, managing and assessing an
inventory of company products and projects. ...

FUNCTIONS OF PORTFOLIO MANAGEMENT:


1. To frame the investment strategy and select the investment mix and to achieve the
desired investment objectives.
2. To provide a balanced portfolio this cannot only hedge against the inflation but
can also optimize return with the associated degree of risk.
3. To make timely buying and selling of securities.
4. To maximize the after-tax returns by investing in various tax saving investment
instruments.

CHARACTERISTICS OF PORTFOLIO MANAGEMENT:


Individuals will benefit immensely by taking portfolio management services for the following
reasons1. Whatever may be the status of capital market over the long period capital markets have
given the excellent return when compared with the other forms of investment. The return
from bank deposits, units, etc., is much less than from the stock market.
2. The Indian stock markets are very complicated. Though there are thousands of companies
that are listed only a few hundred which have the necessary liquidity. Even among these,
only some have the growth prospects which are conductive for investment. It is
impossible for any individual wishing and sitting down and analyze all these intricacies
of the market unless he does nothing else.
3. Even if an investor is able to understand the intricacies of the market and separate chaff
from the grain the trading practice in India are so complicated that it is really a difficult

task for investor to trade in all the major exchange of India, look after the deliveries and
payments.

TYPES OF PORTFOLIO MANAGEMENT:


1. DISCRETIONARY
(DPMS):

PORTFOLIO

MANGEMENT

SERVICE

In this type of service, the client parts with his money in favor of the manager,
who in turn handle all paper work, make all the decisions and gives good return
on the investment and charges fees. In dpms maximize all the portfolio
managements park in the money market securities such as overnight market, 18
days treasury bills and 90 days commercial bills. Normally, the return of such
investment varies from 14-18% depending upon the call money rates prevailing at
the time of investment.

2. NON-DISCRETIONARY PORTFOLIO MANGEMENT SERVICE


(NDPMS):
The manager function as a counselor, but the investor is free to accept or reject
the managers advice; the paper work is also undertaken by manager for a service
charge. The manager concentrates on stock market instruments with a portfolio
tailor-made to the risk taking ability of the investor.

IMPORTANCE OF PORTFOLIO MANAGEMENT:


1. Emergence of institutional on behalf of individuals. A number of
financial institutions, mutual funds and other agencies are undertaking
the task of investing money of small investors, on their behalf.

2. Growth in the number and size of ingestible funds- a large part of


household savings is being directed towards financial assets.
3. Increased market volatility- risk and return parameters of financial
assets are continuously changing because of frequent changes in
governments industrial and fiscal policies, economic uncertainty and
instability.
4. Greater use of computers for processing mass of data.
5. Professionalization of the field and increasing use of analytical
methods (e.g. quantitative techniques) in the investment decisionmaking.
6. Larger direct and indirect costs of errors or shortfalls in meeting
portfolio objectives- increased competition and greater scrutiny by
investors.

6.4 INVESTOR TYPES


There are many different types of investors in the stock market, investors can be
classified into the following types: Aggressive, Conservative and Balanced.

AGGRESSIVE INVESTOR

Aggressive investors tend to concentrate on equity investments such as


individual stocks and mutual funds. They are open to more risk, willing
to see large short term swings in market performance on an annualized
basis. They aim for large growth in the market.

BALANCED INVESTORS
Balanced investors will have a time horizon of 5 to 10 years and choose to
diversify across both aggressive growth oriented investments and more
conservative interest earning investments. They emphasize income over growth.
Balanced investors are medium risk investors.

CONSERVATIVE INVESTOR
Conservative investors have a 2 to 5 year time horizon, typically because they are
nearing retirement or have a short-term need for their investment. They prefer a
higher level of income than does the stable investor. Conservative investors are low
to medium risk investors.

CONSERVATIVE PORTFOLIO

10%
20%
70%

FIXED INCOME SECURITIES


CASH&CASH EQUIVALENTS

EQUITIES

AGGRESSIVE PORTFOLIO
5% 15%

80%

FIXED INCOME SECURITIES


CASH&CASH EQUIVALENTS

EQUITIES

BALANCED PORTFOLIO

10%

35%

55%

FIXED INCOME SECURITIES

EQUITIES

CASH&CASH EQUIVALENTS

6.6 SEBI GUIDELINES FOR PMS


For investment in listed securities, an investor is required to open a Demat account
in his/her own name.
Minimum investment amount of clients for such schemes to Rs.25 lakh from the
earlier Rs.5 lakh.
Portfolio manager will not be allowed to hold the unlisted securities, besides the
listed securities, belonging to the portfolio account, in its own name on behalf of
its clients.

Portfolio manager cannot offer/promise indicative or guaranteed returns to clients.


The portfolio manager is required to have a minimum net worth of Rs.2 crore.

7 DATA ANALYSIS
The data collected through the profiler provided for an analysis of an
individuals risk taking capacity through the Risk-Analyzer. The Questionnaire
after being administered on the Respondents categorizes each of them on the basis
of their risk-taking, as Investors of the following classes: Conservative, Balanced
and Aggressive.

Demographic Analysis
30%
70%

Males

1.

Females

Demographi
c Analysis: The data of 100 respondents included 70 males and 30 females.

2. Age Group
Age
30%

40%
30%

18-35

36-50

Above 50

3. Income Level Between 3,00,00 to 30,00,000


4. What percentage of monthly income can be invested?

Percentage
20%

10%

10%
60%

0% to 10%

11% to 20%

21% to 30%

More Than 30%

I Currently Have No Income

5. When do you except to liquidate your investment?


80
70
60
50
40
30
20
10
0

less than 1yr

1 to 2 yrs

3 to 5 yrs
series

5 yrs & above

6. What is your expected rate of return from your investments?


Series 1
60%
50%
40%
30%
20%
10%
0%

6% p.a

10% to 15% p.a

more than 15% p.a

Series 1

PORTFOLIO CREATION
AGGRESSIVE INVESTOR PORFOLIO (80% EQUITY 20%DEBT)
SCHEME NAMES

NATURE

RETURNS

BETA

RS

SBI MAGNUM SECTOR

EQUITY

23.09

1.01

400000

FUNDS UMBRELLAPHARMA-GROWTH
SBI MAGNUM SECTOR
FUNDS UMBRELLABUSS FUND-GROWTH

EQUITY

22.73

1.03

200000

BIRLA SUN LIFE MNC FUND


-GROWTH
RELIANCE PHARMA FUNDGROWTH
EQUITY
SUNDARAM BOND SAVERINSTITUTIONAL PLANGROWTH
RELIANCE MONTHLY
INCOME PLAN-LONG TERM
PLANGROWTH
SAHARA SHORT TERM
BOND FUND- GROWTH
HDFC MONTHLY INCOME
PLAN-LONG TERM PLAN
GROWTH
DEBT
TOTAL PORTFOLIO

EQUITY

24.28

0.74

600000

EQUITY

29.65

0.91

800000

DEBT

9.41

1.17

2000000
125000

DEBT

9.40

1.14

125000

DEBT

9.24

1.03

125000

DEBT

9.14

1.28

125000

25,00,000

CONSERVATIVE IVE INVESTOR PORFOLIO (80% EQUITY


20%DEBT)
SCHEME NAMES

NATURE

RETURNS

BETA

RS

ICICI PRUDENTIAL
TECHNOLOGY FUNDGROWTH

EQUITY

26.03

0.88

200000

FRANKLIN INFOTECH
FUND-GROWTH
HDFC MID CAP FUND
OPPORTUNITIES FUNDGROWTH
RELIGARE MID N SMALL

EQUITY

20.18

0.89

500000

EQUITY

21.10

0.80

100000

EQUITY

21.35

0.80

150000

CAP FUND-GROWTH
EQUITY
HDFC MULTIPLE YIELD
FUND-PLAN 2005GROWTH
HDFC MULTIPLE YIELD
FUND-GROWTH
SBI MAGNUM CHILDREN
BENEFIT PLAN
TEMPLETON INDIA STIP-IPGROWTH
UTI CRTS 81- GROWTH
DEBT
TOTAL PORTFOLIO

DEBT

10.33

0.45

4000000

DEBT

10.33

0.69

4000000

DEBT

9.39

0.76

4000000

DEBT

8.40

0.72

4000000

DEBT

11.21

0.86

4000000
20,00,000
25,00,000

BALANCED INVESTOR PORTFOLIO(50% EQUITY 50%DEBT)


SCHEME NAMES

NATURE

RETURNS

BETA

RS

HDFC MID CAP FUND


OPPORTUNITIES FUNDGROWTH

EQUITY

21.10

0.80

200000

RELIANCE EQUITY
OPPORTUNITIES FUNDGROWTH

EQUITY

20.97

0.86

100000

UTI MNC FUND- GROWTH


RELIGARE MID N SMALL
CAP FUND-GROWTH
EQUITY
UTI CRTS 81- GROWTH
HDFC MONTHLY INCOME
PLAN-LONG TERM PLAN
GROWTH
UTI SHORT TERM INCOME
FUND-IP-GROWTH
SBI MAGNUM CHILDREN
BENEFIT PLAN
DEBT
TOTAL PORTFOLIO

EQUITY
EQUITY

22.46
21.35

0.71
0.80

400000
300000

DEBT
DEBT

11.21
9.14

0.86
1.28

1000000
2500000
250000

DEBT

8.62

0.83

250000

DEBT

9.39

0.76

250000
10,00,000
25,00,000

PORTFOLIO REVISION
Portfolio revision is done in this project is done in 3 following ways in order to find out which of
give them higher returns in the span of 2 months from may 2nd 2016 to june 30th june 2016.
Portfolios are revised every 15 days in the span of two months
1. CONSTANT RUPEE PLAN
The objective of this plan is to balance the division between the conservative and aggressive
components of the portfolio in terms of the target value.
The target value could be fixed initially by investor in a desirable proportion
2. CONSTANT RATIO PLAN
In this we maintain a ratio between the aggressive and conservative components of a
portfolio. The initial ratio is fixed by the investor and could be say 1:1 or any other
desirable ratio.
3. VARIABLE PLAN
This plan gives more flexibility to the investors to revise the portfolio components
When share price falls, the investor may shift major component of the conservative and
aggressive components
The desired ratio of investment holding between aggressive and conservative
components of a portfolio, hence may vary according to the flexibility that an investor
wishes to incorporate in the portfolio revision decision
PORTFOLIO MANAGEMENTS AS PER CONSTATNT RUPPE PLAN
In constant rupee plan as it is an aggressive investor its equity is kept rs 20,00,000 and debt is rs
5,00,000. Every 15th day its revised as per constant rupee plan
PORTFOLIO AS ON MAY 1ST 2016
SCHEME NAME

SBI MAGNUM
SECTOR
FUNDS

NAV
AS
ON
2ND
MAY
49.57

RETURN
S

MARKE
T
RETURN

EXCESS
RETUR
N

RANK %

RS

UNITS

23.09

19

4.09

4,00,000

8069

0.2

UMBRELLAPHARMAGROWTH
SBI MAGNUM
SECTOR
FUNDS
UMBRELLAEMERG
BUSS FUNDGROWTH

46.89

22.73

19

3.73

0.1

2,00,000

4265

BIRLA SUN LIFE


MNC FUND
-GROWTH
RELIANCE
PHARMA FUNDGROWTH
EQUITY

230.0
2

24.28

19

5.28

0.3

600000

2608

58.38
6

29.65

19

10.65

0.4

800000

13702

SUNDARAM
BOND SAVERINSTITUTIONAL
PLANGROWTH
RELIANCE
MONTHLY
INCOME PLANLONG TERM
PLANGROWTH
SAHARA SHORT
TERM
BOND FUNDGROWTH
HDFC MONTHLY
INCOME
PLAN-LONG
TERM PLAN
GROWTH
DEBT

34.75
2

9.41

20,00,00
0
125000

3597

23.43

9.40

125000

5336

13.06

9.24

125000

9572

24.35

9.14

125000

5132

10

500000

TOTAL
PORTFOLIO

2500000

REVISED PORTFOILO AS ON MAY 15 th 2016


SCHEME NAME

NAV
AS
ON
2ND
MAY
49.02

RS

INCREASE
DECREASE

REVISED
ON MAY
15TH

NEW
UNITS
ON MAY
15TH

395561.83

-1.11%

395561.83

8069.40

SBI MAGNUM SECTOR


FUNDS UMBRELLAEMERG
BUSS FUND-GROWTH

45.21

192834.29

-3.58%

191274.17

4230.79

BIRLA SUN LIFE MNC


FUND
-GROWTH
RELIANCE PHARMA
FUNDGROWTH
EQUITY
SUNDARAM BOND
SAVERINSTITUTIONAL PLANGROWTH
RELIANCE MONTHLY
INCOME PLAN-LONG
TERM PLANGROWTH
SAHARA SHORT TERM
BOND FUND- GROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

223.7
9

583749.24

-2.71%

583749.24

2608.47

56.39
2

772678.38

-3.42%

772678.38

13701.9

34.98

125820.10

125000

3573.47

23.22

123879.64

125000

5383.29

13.1

125382.85

125000

9541.98

24.03

123357.29

125000

5201.83

498439.88

500000
2500000

SBI MAGNUM SECTOR


FUNDS UMBRELLAPHARMA-GROWTH

DEBT
TOTAL PORTFOLIO

Inn constant rupee plan the equity and debt is to be kept constant through out. Here both equity
and debt has fallen so we have sold some of the equity from scheme giving higher loss of 3.58%
SBI MAGNUM SECTOR FUNDS UMBRELLA EMERGING BUSS FUND- GROWTH and
have maintained the total debt value 5,00,000.

REVISED PORTFOILO AS ON MAY 31 ST 2016


SCHEME NAME

NAV
AS
ON
2ND
MAY
48.38

RS

INCREASE
DECREASE

REVISED
ON MAY
15TH

NEW UNITS
ON MAY
15TH

390397.42

-1.31

390397.42

8069.40

SBI MAGNUM SECTOR


FUNDS UMBRELLAEMERG
BUSS FUND-GROWTH

44.81

189581.85

-0.88

189581.85

4230.79

BIRLA SUN LIFE MNC


FUND
-GROWTH
RELIANCE PHARMA
FUNDGROWTH
EQUITY
SUNDARAM BOND
SAVERINSTITUTIONAL PLANGROWTH
RELIANCE MONTHLY
INCOME PLAN-LONG
TERM PLANGROWTH
SAHARA SHORT TERM
BOND FUND- GROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

221.8

578558.39

-0.89

578558.39

2608.47

56.33

771828.86

-0.11

774167.84

13743.44

1930366.5
3558.21

1932705.5
125533.732

3558.21

12500
0

5351.03

125588.613

5351.03

12500
0
12500
0

9505.70

125570.342

9505.70

5178.13

126190.969

5178.13

DEBT

50000
0

SBI MAGNUM SECTOR


FUNDS UMBRELLAPHARMA-GROWTH

12500
0

502883.656

2432705.5

TOTAL PORTFOLIO

2432705.5

On may 31st 2012 even though the portfolio has fallen both equity and debt have increased as
compared to revised portfolio as May 15th. Some of the Debt same have been sold and is invested
in equity giving least loss RELIANCE PHARMA FUND GROWTH.

REVISED PORTFOILO AS ON JUNE 15 TH 2016


SCHEME NAME

NAV
AS
ON
2ND
MAY
47.65

RS

INCREASE
DECREASE

REVISED
ON MAY
15TH

NEW UNITS
ON MAY
15TH

384506.75

-1.51

384506.75

8069.40

SBI MAGNUM SECTOR


FUNDS UMBRELLAEMERG
BUSS FUND-GROWTH

45.49

192458.791

1.52

195342.44

4294.18

BIRLA SUN LIFE MNC


FUND
-GROWTH
RELIANCE PHARMA
FUNDGROWTH
EQUITY
SUNDARAM BOND
SAVERINSTITUTIONAL PLANGROWTH
RELIANCE MONTHLY
INCOME PLAN-LONG
TERM PLANGROWTH
SAHARA SHORT TERM
BOND FUND- GROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM

223.8

583775.324

0.90

583775.324

2608.47

56.69
8

779225.43

0.65

779225.43

13743.45

SBI MAGNUM SECTOR


FUNDS UMBRELLAPHARMA-GROWTH

35.28

1939966.3
125533.732

1942849.96
125000

3543.08

23.47

125588.61

125000

5325.95

13.21

125570.34

125000

9462.52

24.37

126190.96

125000

5129.25

PLAN GROWTH
500000

DEBT
2432705.50

TOTAL PORTFOLIO

2442849.96

On june 15th 2012 even though the portfolio has fallen both equity and debt have
increased as compared to revised portfolio as May 31th.
Some of the debt scheme have been sold and is invested in Equity giving least loss
SBI MAGNUM SECTOR FUNDS UMBRELLA EMERGING BUSS FUND GROWTH
PORTFOLIO AS ON JUNE 29TH 2016
SCHEME NAME

NAV AS ON
15TH JUNE
50.13

RS

SBI MAGNUM SECTOR


FUNDS UMBRELLA-EMERG
BUSS FUND-GROWTH

46.86

201225.48

BIRLA SUN LIFE MNC FUND


-GROWTH

232.85

607381.967

RELIANCE PHARMA FUNDGROWTH


EQUITY
SUNDARAM BOND SAVERINSTITUTIONAL PLANGROWTH
RELIANCE MONTHLY
INCOME PLAN-LONG TERM PLANGROWTH
SAHARA SHORT TERM
BOND FUND- GROWTH
HDFC MONTHLY INCOME
PLAN-LONG TERM PLAN GROWTH

58.478

803688.749

35.38

2016815.06
125354.308

23.58

125585.854

13.26

125473.126

24.55

125923.26

SBI MAGNUM SECTOR


FUNDS UMBRELLAPHARMA-GROWTH

DEBT
TOTAL PORTFOLIO

404518.862

502336.55
2519152

CALCULATION OF RETURNS AS PER CONSTANT RUPEE PLAN

PORTFOLIO AS
ON MAY 2nd 2016
25,00,000

PORTFOLIO AS
ON JUNE 29TH
2012
2519152

EXCESS
RETURNS

RETURNS %

19152

0.73%

Opting for constant rupee plan would give return of 0.73% in the span of 2months
PORTFOLIO REVISION AS PER CONSTANT RATION PLAN
In constant ratio plan a fixed ratio is kept between debt and equity 60% and 40%

PORTFOILO AS ON MAY 2 nd 2016


SCHEME NAME

NAV
AS ON
2ND
MAY
49.57

RETUR
N

MARKE
T
RETURN

EXCESS
RETUR
N

RANK

RS

UNITS

23.09

19

4.009

0.2

300000

6052.05

SBI MAGNUM
SECTOR
FUNDS UMBRELLAEMERG
BUSS FUNDGROWTH

46.89

22.73

19

3.73

0.1

150000

3198.98

BIRLA SUN LIFE


MNC FUND
-GROWTH
RELIANCE PHARMA
FUNDGROWTH
EQUITY

230.02

24.28

19

5.28

0.3

450000

1956.35

58.386

29.65

19

10.65

0.4

600000

10276.4

SUNDARAM BOND
SAVERINSTITUTIONAL
PLANGROWTH
RELIANCE

34.752

150000
0
250000

7193.83

23.43

250000

10670.0

SBI MAGNUM
SECTOR
FUNDS UMBRELLAPHARMA-GROWTH

10

MONTHLY
INCOME PLANLONG TERM PLANGROWTH
SAHARA SHORT
TERM
BOND FUNDGROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

DEBT

13.06

250000

19142.4

24.35

250000

10266.9

100000
0

100000
0
250000
0

TOTAL
PORTFOLIO

REVISED PORTFOILO AS ON MAY 15 TH 2016


SCHEME NAME

NAV
AS
ON
2ND
MAY
49.02

RS

INCREASE
DECREASE

REVISED
ON MAY
15TH

NEW UNITS
ON MAY
15TH

296671.37

-1.11

589319.41

12022.02

SBI MAGNUM SECTOR


FUNDS UMBRELLAEMERG
BUSS FUND-GROWTH

45.21

144625.72

-3.58

147329.85

3258.79

BIRLA SUN LIFE MNC


FUND
-GROWTH
RELIANCE PHARMA
FUND-

223.7
9

437811.93

-2.71

441989.56

1975.02

56.39
2

579508.79

-3.42

294659.71

5225.20

SBI MAGNUM SECTOR


FUNDS UMBRELLAPHARMA-GROWTH

GROWTH
EQUITY
SUNDARAM BOND
SAVERINSTITUTIONAL PLANGROWTH
RELIANCE MONTHLY
INCOME PLAN-LONG
TERM PLANGROWTH
SAHARA SHORT TERM
BOND FUND- GROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

34.98

1458617.8
251640.19

1473298.5
245549.76

2248.03
7019.172

23.22

247759.22

245549.76

10574.92

13.1

250765.70

245549.76

18744.26

24.03

246714.58

245549.76

10218.47

DEBT

996879.75

982199.02

TOTAL PORTFOLIO

2455497.5

2455497.5

As on May 15TH 2016 Portfolio has fallen , debt equity has fallen. Overall portfolio
has been revised as constant ratio plan, fixed ratio of 60% equity and 40% debt .
There Total Portfolio as on May 15th 2016 ie Rs 24,55,497.56 is allocated to equity
60% and Debt 40%

REVISED PORTFOILO AS ON MAY 31 ST 2016


SCHEME NAME

NAV
AS
ON
2ND
MAY
48.38

RS

INCREASE
DECREASE

REVISED
ON MAY
15TH

NEW UNITS
ON MAY
15TH

581625.32

-1.31

146810.42

3034.53

SBI MAGNUM SECTOR


FUNDS UMBRELLAEMERG
BUSS FUND-GROWTH

44.81

146026.34

-0.88

440431.27

9828.86

BIRLA SUN LIFE MNC


FUND

221.8

438059.27

-0.89

293620.85

1323.81

SBI MAGNUM SECTOR


FUNDS UMBRELLAPHARMA-GROWTH

-GROWTH
RELIANCE PHARMA
FUNDGROWTH
EQUITY
SUNDARAM BOND
SAVERINSTITUTIONAL PLANGROWTH
RELIANCE MONTHLY
INCOME PLAN-LONG
TERM PLANGROWTH
SAHARA SHORT TERM
BOND FUND- GROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

56.33

294335.74

35.13

-0.11

587241.69

10425.03

1460046
246602.71

1468104.2
244684.04

6965.10

23.36

247030.25

244684.04

13.15

246486.97

244684.04

24.14

246673.79

244684.04

DEBT

986793.72

978736.16

TOTAL PORTFOLIO

2446840.3

2446840.3

As on May 31st 2016 portfolio has fallen debt has increased and equity has fallen.
Overall portfolio has been revised as constant ratio plan of 60% Equity and 40%
debt. There total portfolio as on May 31st 2016 ie Rs 2446840.39 is allocated to 60%
equity and debt 40%.

REVISED PORTFOILO AS ON JUNE 15th 2016


SCHEME NAME

SBI MAGNUM
SECTOR
FUNDS UMBRELLAPHARMA-GROWTH
SBI MAGNUM
SECTOR
FUNDS UMBRELLA-

NAV
AS
ON
2ND
MAY
47.65

RS

INCREASE
DECREASE

96529.08

-1.51

45.49

198990.4

1.52

REVISED
ON MAY
15TH

NEW
UNITS ON
MAY
15TH

0.1

147923.1

3104.37

0.4

591692.3

13007.1

EMERG
BUSS FUNDGROWTH
BIRLA SUN LIFE
MNC FUND
-GROWTH
RELIANCE PHARMA
FUNDGROWTH
EQUITY
SUNDARAM BOND
SAVERINSTITUTIONAL
PLANGROWTH
RELIANCE
MONTHLY
INCOME PLANLONG TERM PLANGROWTH
SAHARA SHORT
TERM
BOND FUNDGROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

223.8

296675

0.90

0.3

443769.2

1982.88

56.69
8

394592.7

0.65

0.2

295846.1

5217.93

35.28

986787.2
369099

1479231
246538.4

6988.05

23.47

369099

246538.4

6988.05

13.21

369260.3

246538.4

10504.4

24.37

371031.4

246538.4

10116.5

DEBT

1478597

986153.8

TOTAL PORTFOLIO

2465384

2465384

As on june 15th 2016 portfolio has increased , debt equity has increased. . Overall
portfolio has been revised as constant ratio plan of 60% Equity and 40% debt. There
total portfolio as on 15Th june 2016 ie Rs 2465384 is allocated to 60% equity and debt
40%.

PORTFOLIO AS ON JUNE 29 th 2016


SCHEME NAME
SBI MAGNUM SECTOR
FUNDS UMBRELLA-

NAV AS ON 2ND MAY

RS

50.13

155499.00

PHARMA-GROWTH
SBI MAGNUM SECTOR
FUNDS UMBRELLA-EMERG
BUSS FUND-GROWTH

46.86

609030.64

BIRLA SUN LIFE MNC FUND


-GROWTH
RELIANCE PHARMA FUNDGROWTH
EQUITY
SUNDARAM BOND SAVERINSTITUTIONAL PLANGROWTH
RELIANCE MONTHLY
INCOME PLAN-LONG TERM PLANGROWTH
SAHARA SHORT TERM
BOND FUND- GROWTH
HDFC MONTHLY INCOME
PLAN-LONG TERM PLAN GROWTH

232.85

461349.67

58.478

304893.08

35.38

247042.01

23.58

247498.32

13.26

247276.17

24.55

248163.28
989979.77
2520752.17

DEBT
TOTAL PORTFOLIO AS MAY 29TH
2016

CALCULATION OF RETURNS AS PER CONSTANT RATIO


PLAN
PORTFOLIO AS
MAY 29TH 2016

PORTFOLIO AS
JUNE 29TH 2016

EXCESS
RETURNS

RETURNS%

25,00,000

2520752.17

20752.17

0.83%

Opting for constant ratio plan would give return of 0.83% in the span of
2months.

PORTFOLIO REVISION AS PER VARIABLE


PLAN
As per variable plan ratios are varied whenever there is a change in the economic
or market index. As on May 2nd. Portfoilio is divided into 60% equity and 40%
debt. In equity schemes are allocated on the basis of comparing its returns with
market returns. Scheme giving higher returns are given more weightage

PORTFOILO AS ON MAY 2 nd 2016


SCHEME NAME

NAV
AS ON
2ND
MAY
49.57

RETUR
N

MARKE
T
RETURN

EXCESS
RETUR
N

RANK

RS

UNITS

23.09

19

4.009

0.2

300000

6052.05

SBI MAGNUM
SECTOR
FUNDS UMBRELLAEMERG
BUSS FUNDGROWTH

46.89

22.73

19

3.73

0.1

150000

3198.98

BIRLA SUN LIFE


MNC FUND
-GROWTH
RELIANCE PHARMA
FUNDGROWTH
EQUITY

230.02

24.28

19

5.28

0.3

450000

1956.35

58.386

29.65

19

10.65

0.4

600000

10276.4

SUNDARAM BOND
SAVERINSTITUTIONAL
PLANGROWTH
RELIANCE
MONTHLY
INCOME PLAN-

34.752

150000
0
250000

7193.83

23.43

250000

10670.0

SBI MAGNUM
SECTOR
FUNDS UMBRELLAPHARMA-GROWTH

10

LONG TERM PLANGROWTH


SAHARA SHORT
TERM
BOND FUNDGROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

DEBT

13.06

250000

19142.4

24.35

250000

10266.9

100000
0

100000
0
250000
0

TOTAL
PORTFOLIO

REVISED PORTFOILO AS ON MAY 15th 2016


SCHEME NAME

NAV
AS
ON
2ND
MAY
49.02

RS

INCREASE
DECREASE

296671.4

-1.11

SBI MAGNUM
SECTOR
FUNDS UMBRELLAEMERG
BUSS FUNDGROWTH

45.21

144625.7

BIRLA SUN LIFE


MNC FUND
-GROWTH
RELIANCE PHARMA
FUND-

223.7
9
56.39
2

SBI MAGNUM
SECTOR
FUNDS UMBRELLAPHARMA-GROWTH

REVISED
ON MAY
15TH

NEW
UNITS ON
MAY
15TH

40%

491099.51

10018.35

-3.58

10%

122774.88

2715.658

437811.9

-2.71

30%

368324.63

1645.849

579508.8

-3.42

20%

245549.76

4354.337

GROWTH
EQUITY
SUNDARAM BOND
SAVERINSTITUTIONAL
PLANGROWTH
RELIANCE
MONTHLY
INCOME PLANLONG TERM PLANGROWTH
SAHARA SHORT
TERM
BOND FUNDGROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

34.98

1458618
251640.2

1227749
306937.2

8774.648

23.22

247759.3

306937.2

13218.66

13.1

250765.7

306937.2

23430.32

24.03

246714.6

306937.2

12773.08

DEBT

996879.8

1227749

TOTAL PORTFOLIO

2455498

2455498

As on MAY 15th 2016 portfolio has fallen. Debt has fallen by 0.31% and equity has
fallen by 2.75%. Therefore overall portfolio has been revised given equal allocation
of portfolio to debt and equity. There Total Portfolio as on May 15 th 2016 ie 50% Debt
Rs 1227749 and 40% equity rs 12,27,749

REVISED PORTFOILO AS ON MAY 15th 2016


SCHEME NAME

SBI MAGNUM
SECTOR
FUNDS UMBRELLAPHARMA-GROWTH

NAV
AS
ON
2ND
MAY
48.38

RS

INCREASE
DECREASE

484687.8

-0.01

0.1

REVISED
ON MAY
15TH

NEW
UNITS ON
MAY 15TH

98007.91

2025.79

SBI MAGNUM
SECTOR
FUNDS UMBRELLAEMERG
BUSS FUNDGROWTH

44.81

121688.6

-0.01

0.2

196015.82

4374.38

BIRLA SUN LIFE


MNC FUND
-GROWTH
RELIANCE PHARMA
FUNDGROWTH
EQUITY
SUNDARAM BOND
SAVERINSTITUTIONAL
PLANGROWTH
RELIANCE
MONTHLY
INCOME PLANLONG TERM PLANGROWTH
SAHARA SHORT
TERM
BOND FUNDGROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

221.8

365049.4

-0.01

0.3

294023.73

1325.63

56.33

245279.8

0.00

0.4

392031.63

6959.55

35.13

1216706
308253.4

980079.08
367529.66

10462

23.36

308787.8

367529.66

15733.3

13.15

308108.7

367529.66

27949

24.14

308342.2

367529.66

15224.9

DEBT

1233492

1470118

TOTAL PORTFOLIO

2450198

2450198

As on May 31st 2016 overall portfolio has fallen, Debt has increased by 0.004% and
equity has fallen by 0.89%. therefore overall portfolio has been revised given more
allocation of portfolio to debt 70% and equity 30%. There totalportfolio as on may
31st 2016 ie 70% debt Rs 1470118.63 and 40% equity Rs 980079.08

REVISED PORTFOILO AS ON June 15 th 2016


SCHEME NAME

NAV
AS
ON
2ND
MAY
47.65

RS

INCREASE
DECREASE

96529.08

-1.51

SBI MAGNUM
SECTOR
FUNDS UMBRELLAEMERG
BUSS FUNDGROWTH

45.49

198990.4

BIRLA SUN LIFE


MNC FUND
-GROWTH
RELIANCE PHARMA
FUNDGROWTH
EQUITY
SUNDARAM BOND
SAVERINSTITUTIONAL
PLANGROWTH
RELIANCE
MONTHLY
INCOME PLANLONG TERM PLANGROWTH
SAHARA SHORT
TERM
BOND FUNDGROWTH
HDFC MONTHLY
INCOME
PLAN-LONG TERM
PLAN GROWTH

223.8

56.69
8

SBI MAGNUM
SECTOR
FUNDS UMBRELLAPHARMA-GROWTH

REVISED
ON MAY
15TH

NEW
UNITS ON
MAY
15TH

0.1

147923.1

3104.37

1.52

0.4

591692.3

13007.1

296675

0.90

0.3

443769.2

1982.88

394592.7

0.65

0.2

295846.1

5217.93

986787.2
369099

1479231

35.28

246538.4

6988.05

23.47

369099

246538.4

10504.4

35.28

369260.3

246538.4

18663

23.47

369260.3

246538.4

10116.5

DEBT

13.21

369206.6

246538.4

TOTAL PORTFOLIO

24.37

371031.4

246538.4

As on june 15th 2016 overall portfolio has increased, debt has increased by 0.68%
and equity has increased by 0.57%. Therefore overall portfolio has been revised
given more allocation of portfolio to equity 60% and debt 40% because equity is
giving more returns than debt. Theere total portfolio as on May 31 st 2016 ie rs
24,65,384, 40% Debt Rs 986153.8 and 60% equity Rs 1479230.67

REVISED PORTFOILO AS ON JUNE 29 TH 2016


NAV AS ON 15TH
JUNE
50.13

RS

SBI MAGNUM SECTOR


FUNDS UMBRELLA-EMERG
BUSS FUND-GROWTH

46.86

609511.98

BIRLA SUN LIFE MNC FUND


-GROWTH
RELIANCE PHARMA FUNDGROWTH
EQUITY
SUNDARAM BOND SAVERINSTITUTIONAL PLANGROWTH
RELIANCE MONTHLY
INCOME PLAN-LONG TERM PLANGROWTH
SAHARA SHORT TERM
BOND FUND- GROWTH
HDFC MONTHLY INCOME
PLAN-LONG TERM PLAN GROWTH

232.85

461714.29

58.478

305134.05

35.38

1531982.21
247237.25

23.58

247693.93

13.26

247471.60

24.55

248359.41

SCHEME NAME
SBI MAGNUM SECTOR
FUNDS UMBRELLAPHARMA-GROWTH

DEBT
TOTAL PORTFOLIO as May 29th
2016

155621.90

990762.19
2522744.40

CALCULATION OF RETURNS AS PER VARIABLE PLAN

PORTFOLIO AS ON
MAY 2ND 2016
25,00,000

PORTFOLIO AS ON
JUNE 29TH 2016
2522744.40

EXCESS RETURNS

RETURNS%

22744.40

0.90%

Opting for variable would give return of 0.90% in the span of 2months

CALCULATION OF PORTFOLIO RETURNS


PLAN NAME
CONSTANT RUPEE
CONSTANT RATIO
VARIABLE PLAN

RETURNS
0.73%
0.83%
0.90%

RANKINGS
3
2
1

Variable plan gives highest returns of 0.90% compared to other two plans in span of 2months 2 nd May
2016 to 29th June 2016 because in variable plan contious revision is done according to market fluctuation.
Therfore null hypothesis of the project has been proved wrong through analysis done above . Here in
variable plan active management style is adopted where continuous revision is required to get higher
returns of 0.90%
MUTUAL FUND COMPARISION
The five mutual funds taken for comparison are open ended funds and equity in nature.
HDFC TOP 200 GROWTH
OBJECTIVE: To generate long term capital appreciation and income distribution to unit holders from a
portfolio that is invested in equity related securities of about 20 companies belonging to the large cap
Type of scheme
Nature
Option
Inception Date
Face Value
Minimum Investment
Exit load

Open ended
Equity
Growth
May 23, 2008
10
10000000
If redeemed bet. 0 yr to 1yr ,Exit load is 1%

DSP BALACKROCK SMALL AND MIDCAP FUND-GROWTH


Objective: the primary investment objective is to seek to generate long term capital appreciation

from a portfolio that is substantially constituted of equity related securities

Type of scheme
Nature
Option
Inception date
Face value (Rs/Unit)
Minimum investment (Rs)
Exit load

Open ended
Equity
Growth
Nov 14,2011
10
5000
If redeemed bet.0 months to 12 months; Exit
load is 1%
Anup maheshwari,Apoorva Shah

Fund manager
Mean
0.49

Standard
deviation
3.74

Sharpe

Trey nor

Beta

0.10

0.44

0.87

FRANKLIN INDIA BLUECHIP- GROWTH


Objective: Aims to achieve a high degree of capital appreciation through investments is well-established,
large size blue chip companies.

Type of scheme
Nature
Option
Inception date
Face value (Rs/Unit)
Minimum investment (Rs)
Exit load

Open ended
Equity
Growth
May 26,2008
10
5000
If redeemed bet.0 months to 12 months; Exit
load is 1%
Sanjay Parekh,Shrey Loonkar,Sunil Singhania

Fund manager
Mean
0.36

Standard
deviation
3.40

Sharpe

Trey nor

Beta

0.07

0.31

0.81

RELIANCE BANKING FUND- GROWTH

Objective: the primary investment objective of the scheme is to seek to generate


continuous returns by actively investing in equity and equity related or fixed
income securities of companies in the banking sector.

Type of scheme

Open ended

Nature
Option
Inception date
Face value (Rs/Unit)
Minimum investment (Rs)
Exit load
Fund manager
Mean
0.52

Standard
deviation
4.63

Equity
Growth
May 26,2008
10
5000
If redeemed bet.0 months to 12 months; Exit
load is 1%
Sanjay Parekh,Shrey Loonkar,Sunil Singhania
Sharpe

Trey nor

Beta

0.09

0.49

0.84

MY LEARNINGS

I have learnt many things like analyzing the stocks and their by deducing the performance
and thus designing the portfolio on the basis of their performances.

Revising portfolio as per different types of plans

Comparison of mutual funds with performance measures

I learnt about mutual funds as well as other products like Life Insurance, Health
Insurance, IPO and transactions and some financial services offered.
CONCLUSIONS

After studying and analyzing different portfolios the following conclusions can be made:

Portfolio Management services in mutual funds reduces risk without sacrificing returns

PMS involves a paper investment decision with regards to what to buy and sell. It
involves proper money management. It is also known as investment management

Diversified stock portfolios have offerd superior long term inflation protection

To understand stock funds one needs to be familiar with the characteristics of types of the
companies they hold

PMS could end up being a well paying affair if you get this one right. So if you are ready
to put your nest egg & step into tis world, put each step with a fine toothed comb.

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