V In the finance field, it is common knowledge that money or

finance is scare and that Investors try to maximize their return.

But, the return higher, if the risk is also higher.
V Return and risk go together and they have a tradeoff. The art of
investment is to see that the return is maximized with the
minimum of risk, which is inherent in invest.
V In the above discussion, we concentrated on the word
´investmentµ and for making Invest we need analysis on
securities.
V Combination of securities with different risk Return
characteristics will constitute the portfolio of the investor.
V The portfolio is also built Up out of the wealth or income of the
investor over a period of times, with a view to suit his Risk or return
preferences to that of the portfolio analysis of the risk
characteristics of Individual securities in the portfolio and
changes that may take Place in the combination with other due
to interaction among themselves and of each of them on others.
V To analyze the risk and return
characteristics of individual securities.
V To calculate the portfolio risk and return
for the best portfolio.
V To suggest the best portfolio mix.
V The scope of the study is confined to
only six companies namely WIPRO, TCS,
INFOSYS, ICICI, HDFC, and SBI.
V This study has been conducted purely to
understand portfolio management for
individual investor.
V Construction of portfolio is restricted to six
companies based on effective statistical
tools like returns, variance & risk factors.
The following tools are used for analyzing
the data:
V Returns
V Standard Deviation
V Beta
V Sharpe Ratio
V Alpha
V Treynor·s Ratio
V Investing in securities such as shares,
debentures and bonds is profitable as
well as exciting. It in deeds it involves a
great deal of risk. It is rare to find investors
investing their entire saving in a single
security. Instead, they tend to invest in a
group of securities. Such, group of
securities is called a portfolio. Creation of
a Portfolio helps to reduce risk without
sacrificing returns
Portfolio management is ongoing process
involving the following basic tasks
V Identification of investor·s objectives,
constraints and preferences.
V Strategies are to be developed and
implemented in tune with investment Policy
formulated.
V Review and monitoring of the performance
of the portfolio.
V Finally the evolution of portfolio.
V Portfolio helps in spreading the risk over
many securities. This risk is reduced
based on the principle that a Portfolio
holds several assets or securities, which
may include cash also if even one goes
back the other, will provide protection
from the loss The diversification can be
either vertical of Horizontal In vertical
diversification a Portfolio can have scrip's
of different company's within the same
industry In Horizontal diversification one
and have different scrip's chosen from
different industries.
 `
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INTERPRETATION:
V The above graph shows the returns of six companies
from April, 2009-March, 2010. Returns have been
calculated using the monthly averages of the stock
prices of the companies from NSE. From the above
graph, it can be observed that the return of Wipro is
high followed by ICICI, SBI, Infosys, TCS and HDFC.
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INTERPRETATION:
V The above graph shows the Standard Deviation of Six
Companies from April,2009-March,2010. From the
above graph, it can be observed that the Standard
Deviation of ICICI Bank is higher when compared to
others. It implies that the risk-taking capacity of ICICI
Bank is higher than others.
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INTERPRETATION:
V The above graph shows the Beta of Six companies
from April,2009-March,2010. NIFTY Index has been
taken as market price for calculation of Beta. From
the above graph, it can be observed that the beta
of Wipro is higher when compared to other
companies. It implies that it is moving with the
market.
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INTERPRETATION
V The above graph shows the Alpha of six companies from
April,2009-March,2010. NIFTY index has been used as
market price for calculation of Alpha. From the above
graph it can be observed that the Alpha of Infosys is
higher when compared to other companies. It implies that
its risk-taking capacity is high.
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INTERPRETATION:
V The above graph shows the Sharpe Ratio of Six Companies from
April, 2009-March, 2010. Interest rate of Post office savings has
been taken as risk-free rate for calculation of Sharpe ratio. From
the above graph it can be observed that the Sharpe ratio of TCS
is higher when compared to others companies. It means that the
return per unit of standard deviation of TCS is high.
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INTERPRETATION:
V The above graph shows the Treynor ratio of Six Companies
from April,2009-March,2010. Interest rates of Post office
savings has been taken as the risk-free rate for calculation
of Treynor ratio. From the above graph, it can be observed
that the Treynor ratio of TCS is higher when compared to
others. It implies that the return per unit of beta (systematic
risk) is high.
—
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V jipro VS TCS: From the above table it can be observed that jipro·s returns are higher than TCS. The risk of jipro is low when
compared to TCS.
V
V TCS VS Infosys: From the above table it can be observed that Infosys returns are higher than TCS. The risk of TCS is low
compared to Infosys.
V
V Infosys VS jipro: From the above table it can be observed that jipro·s returns are higher than Infosys. The risk of Infosys is
low when compared to jipro.
V
V ICICI VS SBI: From the above table it can be observed that ICICI returns are higher than SBI. The risk of SBI is low when
compared to ICICI.
V
V SBI VS HDFC: From the above table it can be observed that SBI returns are higher than HDFC. The risk of SBI is low when
compared to HDFC.
V
V HDFC VS ICICI: From the above table it can be observed that ICICI returns are higher than HDFC. The risk of HDFC is low
when compared to ICICI.
CONCLUSION
V Portfolio helps in spreading the risk over many securities.
This risk is reduced based on the principle that a Portfolio
holds several assets or securities, which may include cash
also if even one goes back the other, will provide
protection from the loss The diversification can be either
vertical of Horizontal In vertical diversification a Portfolio
can have scrip's of different company's within the same
industry In Horizontal diversification one and have different
scrip's chosen from different industries.

V From the overall analysis, it can be concluded that each

stock has its unique benefits. Returns of Wipro are higher
than others. Standard Deviation of ICICI bank is high.
Wipro has a highest Systematic risk compared to others.
Alpha of Infosys is high. Sharpe ratio and Treynor ratio of
TCS is higher than others.
V Investment management
by A.V Avadhani
V INVESTOPEDIA.COM
V WIKIPEDIA.COM
V NSEINDIA.COM
THANK YOU