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1 INTRODUCTION
PORTFOLIO MANAGEMENT
Investing in securities such as shares, debentures and bonds is profitable
as well as existing. It is indeed rewarding, but involves a great deal of risk and
calls for scientific as well as artistic skill. In such investment both rational as well
as emotional responses are involved. Investing in financial securities is now
considered to be one of the most risky avenues of investments.
It is rare to investors investing their savings in a single security. Instead
they tend to invest in a group of securities. Such as group of securities is called
as Portfolio. Creation of a portfolio helps to reduce risk without sacrificing
returns.
Portfolio management deals with the analysis of individual securities as
well as with the theory and practice of optimally combining securities into
portfolios. An investor who understands the fundamental principles and analytical
aspects of portfolio management has a better chance of success.
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 returns characteristics of individual securities. He would
attempt to choose the most desirable securities and like to allocate his 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 differ from those of individual securities
combining to form a portfolio. The investor tries to choose the optimal portfolio
taking into consideration the risk return characteristics of all possible portfolios.
TECHNICAL ANALYSIS
Technical analysis is a method of evaluating securities by analyzing the
statistics generated by market activity, such as past prices and volume.
Technical analysis do not attempt to measure a security’s intrinsic value, but
instead use charts and other tools to identify patterns that can suggest future
activity.
Just as there are many investment styles on the fundamental side, there
are also many different types of technical traders. Some rely on chart patterns,
others use technical indicators and oscillators and most use some combination
of the two. In any case, technical analyst’s exclusive use of historical price and
volume data is what separates them from their fundamental counterparts. Unlike
fundamental analysts, Technical analysts don’t care whether a stock is
undervalued- the only thing that matters is a security’s past trading data and
what information this data can provide about where the security might move in
the future.
RISK
Every investment is characterized by return and risk. Risk can be defined
in terms of variability I returns. “Risk is the potential for variability in returns”. An
investment whose returns are fairly stable is considered to be low risk
investment, where as an investment whose returns fluctuate significantly is
considered to be a high-risk investment. Equity shares whose returns fluctuate
significantly are considered to be a high-risk investment and those are
considered as risky investment.
ELEMENTS OF RISK
The total variability in return of a security represents the total risk of that
security. Systematic risk and unsystematic risk are the two components of total
risk. Thus
Systematic risk /
Total risk
Unsystematic risk
SYSTEMATIC RISK
The impact of economic, political and social changes is system wide and
that portion of total variability in security returns caused by such system wide
factors is referred to as systematic risk. Systematic risk is further sub divided into
interest rate risk, market risk and purchasing power risk.
UNSYSTEMATIC RISK
The risk of price changes due to the unique circumstances of a specific
security, as opposed to the overall market. The risk can be virtually eliminated
from a portfolio through diversification. This risk is unique of peculiar to a
company or industry and affects it in addition to the systematic risk affecting all
securities. The unsystematic or unique risk affecting specific securities arises
from two sources:
(1). The operating environment of the company, and
(2). The financing pattern adopted by the company. These two types of
unsystematic are referred to as business risk and financial risk respectively.
1.2 INDUSTRY PROFILE
The capital market is the market for securities, where companies and
government can raise long term funds. The capital market includes the stock
market and the bond market. The capital market is basically divided into:
Primary market
• Secondary market
The primary market is the part of capital market that deals with the issuing of new
securities.
The secondary market is the financial market for trading of securities that have
already been issued in an initial private or public offering.
EVOLUTION
Indian Stock Markets are one of the oldest in Asia. Its history dates back to
nearly 200 years ago. The earliest of security dealing in India are meager and
obscure. The East India Company was the dominant institution. In those days
the business in its loan securities used to be transacted towards the close of
the Eighteenth century.
NSE 50-INDEX
The NSE 50 Index, commonly known as Nifty. It is a market capitalization
weighted index. It was introduced in April 1996, replacing the earlier NSE-100.
The objective of the NSE 50- Index is
• To reflect the market movement more accurate.
• To provide fund manager with a bench mark for measuring portfolio
performance.
• To establish a basis for introducing index based derivative product.
MISSION :
“To create long term value by empowering individual investors through superior
financial services supported by culture based on highest level of teamwork,
efficiency and integrity”.
VISION :
“To provide the most useful and ethical Investment Solutions - guided by values
driven approach to growth, client service and employee development”.
GROUP COMPANIES
COMMODITIES
TRADING IN TRADING
EQUITIES &
DERIVATIVES
UNICON
UNICON COMMODITIE
SECURITIES S Pvt. Ltd.
Pvt. Ltd. REAL ESTATES
UNICON
REAL
ESTATES Pvt.
Ltd.
MANAGEMENT TEAM
Mr. GAJENDRA NAGPAL – Founder & CEO
Equity
Commodity
Depository
Distribution
NRI Services
Back Office
Fixed Income
Investment Banking
Currency Derivatives
Portfolio Management
1. EQUITY:
UniconEasy
Browser based trading terminal that can be accessed by a unique ID and
password. This facility is available to all our online customers the moment they
get registered with us
UniconSwift
Application based terminal for active traders. It provides better speed, greater
analytical features & priority access to Relationship Managers. Greater exposure
for trading on the margin available.
2. COMMODITY:
Unicon offers a unique feature of a single screen trading platform in MCX and
NCDEX.Unicon offers both Offline & Online trading platforms.
Live Market Watch for commodity market (NCDEX, MCX) in one screen.
Add any number of scrips in the Market Watch.
Tick by tick live updation of Intraday chart.
Greater exposure for trading on the margin available
Common window for market watch and order execution.
Key board driven short cuts for punching orders quickly.
Real time updation of exposure and portfolio.
Facility to customize any number of portfolios & watchlists.
Market depth, i.e. Best 5 bids and offers, updated live for all scripts.
Facility to cancel all pending orders with a single click.
Instant trade confirmations.
Stop-loss feature.
3. DEPOSITORY:
4. DISTRIBUTION:
5. NRI SERVICES:
With India becoming the epicentre of growth the Global Indian feels the need
to be connected to the domestic growth story.
Unicon now offers a convenient and hassle-free way of Investing in the Indian
Securities Market to the people who are living outside India and wish to
participate in the Indian Growth story.
Procedure for NRI operations in Indian Capital Markets:-
The NRI can deal with only one bank at any point of time.
He is allowed to invest only 5% of the paid up capital of a company. The
aggregate paid up value of equity of any company purchased by all NRI's and
OCBs cannot exceed 10 percent of the paid up capital of the company and in
the case of convertible debentures, the aggregate paid up value of each series
of debentures purchased by all NRI's and OCBs cannot exceed 10 % of the
paid up value of each series of convertible debentures.
He can enter only into delivery based trades, all deliveries must only be
routed through beneficiary accounts and not directly through the broker.
Shares bought by him cannot be sold unless the payout of the same is
received from exchange.
All purchase and sale transactions have to be reported to the RBI by the
designated bank.
Original brokers contract notes have to be submitted to the designated Bank
branch, within 24 hours of the transaction.
He will be required to make bill to bill payments/ settlements. No
adjustments of purchase against sale consideration should be done.
Shares cannot be bought against the shares sold in the same settlement.
All Purchase and Sales will be dealt separately for payments / receipts.
Sale proceeds of any transaction not reported/approved by the RBI is
allowed to be credited to the NRE/NRO savings/demat account. The
transaction will have to be reversed in the account and losses if any will be
borne by the client.
All tax liabilities arising out of buying and selling of securities will be handled
by the designated bank.
6. BACK OFFICE:
Unicon through its online back-office aims to increase the transparency and
provides you the link to view the details of your account online anytime and
anywhere.
Here you have the advantage of viewing the following reports online:
Sauda Details
Financial Ledger
Net position for the day
Net position Detail (for the complete financial year)
E-Contract Note
7. FIXED INCOME:
8. INVESTMENT BANKING:
The Investment Banking arm of Unicon Capital Services (P) Ltd. caters to the
funding requirements of corporates. Our wide experience and market knowledge
as a leading securities firm ensures that clients’ requirements are met at
optimum cost. By constantly improving our knowledge capital and remaining
focused on client needs, we aim to create significant value for our clients by
helping them execute the right capitalization strategy. We also intend to initiate
merchant banking services (Capital Markets Fundraising) in the short term
(Merchant Banking License pending)
Offerings
Private Equity (PE) Syndication
We specialize in the syndication of the private equity for the Indian companies in
high-growth markets on their capitalization/re-capitalization strategies, which
helps them to achieve their growth targets. Our team of professionals ensures
complete confidentiality, strong focus on implementation and quick turnaround
time. Access to key decision makers at PE funds gives us an edge in optimal
structuring and efficient closure of transactions. We service our clients through
various stages of the PE deal namely collateral preparation, investor shortlisting,
commercial term sheet, due diligence and final closure.
Mergers & Acquisitions(M&A) Advisory
We provide both buy-side and sell-side advisory services as part of our M&A
advisory offering. We advise clients during the entire transaction process right
from target identification to deal closure. We have an experienced and highly
qualified team with more than 40+ man-years of experience which specializes in
identification and short listing of potential targets, strategic planning of an
acquisition and arranging capital for the transaction, if needed.
Debt Syndication
Our offerings include:
• Project Finance / Term Loans for Expansion - Arranging Long-term loans
9. CURRENCY DERIVATIVES:
Currency Futures
Currently in India, US Dollar Indian Rupee (USD INR) currency futures are
traded on the NSE and MCX. Since its introduction in Aug 2008, USD INR
futures have seen a 1500% burst in volume growth. Unicon offers clients the
opportunity to trade this product, either in online or offline mode as per their
needs. The product provides ample liquidity to function both as a speculative
tool and as a hedging instrument for exporters and importers. The attractive
features of the product are as follows
Unlike currency forwards offered by banks, currency futures trading does
not have to be backed by an underlying merchant transaction exposure
Tight bid ask spreads; usually 0.25 paisa wide
Margin requirements less than 5% to take exposure on a lot size of
$1000
New asset class for diversification for all resident individuals
Commodity traders can hedge against unfavourable movements since
gold, crude etc. are quoted in dollars
For exporters and importers, no credit line required from their Banker as
is the case with forwards
Ideal tool for those with smaller exposures, as in the case of travel needs,
educational payments etc.
Unicon Advantage
Online & Offline trading facility on all the bourses
Exclusive daily commentary and research reports by our Currency
analyst team
Regular updates on Dollar INR movement with calls to buy and sell
Special consultancy to Exporters, Importers & Corporate for their Forex
transactions
Receive education on the product through seminars/con-calls organized
by Unicon
Your Cash Margin with Unicon Securities can be used for either segment
– Equity, Commodity or Currency.