A

STUDY ON
SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
IN
KARVY STOCK BROKING LIMITED
Submitted in partial Fulfillment
of the requirement for the Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
Mr. K. MALLIKARJUN
(11K81E001!
Under the Guidance of
Mr. C". B. V. L. S#$"%%r
MBA& (P".D!
A''()*+,% Pr(-%''(r
D%.+r,/%0, (- B#'*0%'' M+0+1%/%0,
S,. MARTINS ENGINEERING COLLEGE
(A--*2*+,%$ ,( JNTU& 34$%r+5+$!
D3ULAPALLY (V!& SECUNDERABAD 600 017
011 8 019
A
STUDY ON
SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
IN
KARVY STOCK BROKING LIMITED
Submitted in partial Fulfillment
of the requirement for the Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
Mr. K. MALLIKARJUN
(11K81E001!
Under the Guidance of
Mr. C". B. V. L. S#$"%%r
MBA& (P".D!
A''()*+,% Pr(-%''(r
D%.+r,/%0, (- B#'*0%'' M+0+1%/%0,
S,. MARTINS ENGINEERING COLLEGE
(A--*2*+,%$ ,( JNTU& 34$%r+5+$!
D3ULAPALLY (V!& SECUNDERABAD 600 017
011 8 019
DECLARATION
I hereby declare that the project titled :S%)#r*,4 A0+24'*' & P(r,-(2*(
M+0+1%/%0,; has been prepared by me as a part of requirement of :M+',%r (- B#'*0%''
A$/*0*',r+,*(0; degree of JNT University Hyderabad and this study is my original project
report.
I K. MALLIKARJUN (11K81E001! student of St. artin!s "ngineering #ollege
pursing the aster of $usiness %dministration in F*0+0)% declared that results embodied in
this project have not been submitted to any other university or institution for a&ard of aster
of $usiness %dministration. The findings and suggestions in this &or' are based on the
information collected by me.
P2+)%< S%)#0$%r+5+$ K. MALLIKARJUN
Date: (11K81E001!
CERTIFICATE

This is to certify that the project entitled (SECURITY ANALYSIS & PORTFOLIO
MANAGEMENT; is a bonafide record done by K. MALLIKARJUN in partial fulfillment
for the a&ard of :MASTER OF BUSINESS ADMINISTRATION; degree ) from
JNTU& 34$%r+5+$& for the academic year 011 8 019.

Pr(=%), G#*$% 3%+$ (- ,"% D%.+r,/%0,
Mr. C". B. V. L. S#$"%%r
MBA& (P".D!
r. T. #handra Se'hara *eddy
%ssociate +rofessor %ssociate +rofessor
E>,%r0+2 E?+2#+,(r
ACKNO@LEDGEMENTS
I &ould li'e to e,press my sincere gratitude to Mr. MUKARJI&
ASST MANAGER) my project supervisor) for his guidance and continuous
support on this project) &ithout his endeavor the project &ould not have
been completed successfully.
I &ish to e,press my sincere than's to Mr. T. C"+0$r+ S"%A+r
R%$$4& 3OD S,.M+r,*0' E01*0%%r*01 C(22%1% for valuable suggestions)
constant help and encouragement in every stage during the preparation of
project report.
I e,tend my humble than' to Mr. C". B. V. L. SUD3EER
M.B.A.& (P".D!
A''()*+,% Pr(-%''(r& +roject -uide for his inspiring guidance) valuable
suggestions and for rendering helpful hand in completion of the project.
I retract my deepest sense of gratitude to Dr. B. P. SING3& Pr*0)*.+2
+0$ M+0+1%/%0, for the facilities provided and indebtedness to my family)
friends and others &ho provided me &ith their full co.operation and support
in successful completion of the project.
P2+)%< S%)#0$%r+5+$ K. MALLIKARJUN

D+,%< (11K81E009!
INDEB
C3APTER CONTENTS PAGE
NO.
C3APTER C 1
INTRODUCTION
OBJECTIVE OF T3E STUDY
SCOPE OF T3E STUDY
MET3ODOLOGY OF T3E STUDY
LIMITATIONS OF T3E STUDY
1 C 8
C3APTER C
INDUSTRY PROFILE
&
COMPANY PROFILE
D C 8
C3APTER C 9
T3EORETICAL FRAME@ORK
D C 61
C3APTER C 7
DATA ANALYSIS
&
INTERPRETATION
6 C E0
C3APTER C 6
FINDINGS
SUGGESTIONS
E1
E9
BIBLIOGRAP3Y
E7
ABSTRACT
+ortfolio anagement is used to select a portfolio of ne& product development
projects to achieve the follo&ing goals/
a,imi0e the profitability or value of the portfolio
+rovide balance
Support the strategy of the enterprise
+ortfolio anagement is the responsibility of the senior management team of an
organi0ation or business unit. This team) &hich might be called the +roduct #ommittee)
meets regularly to manage the product pipeline and ma'e decisions about the product
portfolio. 1ften) this is the same group that conducts the stage.gate revie&s in the
organi0ation. % logical starting point is to create a product strategy . mar'ets) customers)
products) strategy approach) competitive emphasis) etc. The second step is to understand
the budget or resources available to balance the portfolio against. Third) each project
must be assessed for profitability 2re&ards3) investment requirements 2resources3) ris's)
and other appropriate factors. The &eighting of the goals in ma'ing decisions about
products varies from company. $ut organi0ations must balance these goals/ ris' vs.
profitability) ne& products vs. improvements) strategy fit vs. re&ard) mar'et vs. product
line) long.term vs. short.term. Several types of techniques have been used to support the
portfolio management process/
Heuristic models
Scoring techniques
4isual or mapping techniques
The earliest +ortfolio anagement techniques optimi0ed projects5 profitability or
financial returns using heuristic or mathematical models. Ho&ever) this approach paid
little attention to balance or aligning the portfolio to the organi0ation5s strategy. Scoring
techniques &eight and score criteria to ta'e into account investment requirements)
profitability) ris' and strategic alignment. The shortcoming &ith this approach can be an
over emphasis on financial measures and an inability to optimi0e the mi, of projects.
INTRODUCTION
Need of the study
Objective of the Study
Scope of the Study
Research Methodology
Limitations of the Study
INTRODUCTION
S%)#r*,4 A0+24'*' is the analysis of tradable financial instruments called
securities. These can be classified into debt securities) equities) or some hybrid of the
t&o. ore broadly) futures contracts and tradable credit derivatives are sometimes
included. Security analysis is typically divided into fundamental analysis) &hich relies
upon the e,amination of fundamental business factors such as financial statements) and
technical analysis) &hich focuses upon price trends and momentum. 6uantitative
analysis may use indicators from both areas.
Security analysis is about valuing the assets) debt) &arrants) and equity of
companies from the perspective of outside investors using publicly available
information. The security analyst must have a thorough understanding of financial
statements) &hich are an important source of this information. %s such) the ability to
value equity securities requires cross.disciplinary 'no&ledge in both finance and
financial accounting.
7hile there is much overlap bet&een the analytical tools used in security analysis
and those used in corporate finance) security analysis tends to ta'e the perspective of
potential investors) &hereas corporate finance tends to ta'e an inside perspective such as
that of a corporate financial manager.
+ortfolio management and investment decision as a concept came to be familiar
&ith the conclusion of second &orld &ar &hen thing can be in the stoc' mar'et can be
liberally ruined the fortune of individual) companies )even government 8s it &as then
discovered that the investing in various scripts instead of putting all the money in a
single securities yielded &eather return &ith lo& ris' percentage) it goes to the credit of
3ARYMERKO@ITF) 9::9 noble laurelled to have pioneered the concept of
combining high yielded securities &ith these lo& but steady yielding securities to
achieve optimum correlation coefficient of shares.
+ortfolio management refers to the management of portfolio!s for others by
professional investment managers it refers to the management of an individual investor!s
portfolio by professionally qualified person ranging from merchant ban'er to specified
portfolio company.
D%-*0*,*(0 54 SEBI<
% portfolio management is the total holdings of securities belonging to any
person. +ortfolio is a combination of securities that have returns and ris' characteristics
of their o&n; port folio may not ta'e on the aggregate characteristics of their individual
parts. Thus a portfolio is a combination of various assets and <or instruments of
investments.
#ombination may have different features of ris' and return separate from those of
the components. The portfolio is also built up of the &ealth or income of the investor
over a period of time &ith a vie& to suit is return or ris' preference to that of the port
folio that he holds. The portfolio analysis is thus an analysis is thus an analysis of ris' =
return characteristics of individual securities in the portfolio and changes that may ta'e
place in combination &ith other securities due interaction among them and impact of
each on others.
Security analysis is only a tool for efficient portfolio management; both of them
together and cannot be dissociated. +ortfolios are combination of assets held by the
investors. These combination may be various assets classed li'e equity and debt or of
different issues li'e -ovt. bonds and corporate debts are of various instruments li'e
discount bonds) debentures and blue chip equity nor scripts of emerging $lue chip
companies.
+ortfolio analysis includes portfolio construction) selection of securities revision
of portfolio evaluation and monitoring of the performance of the portfolio. %ll these are
part of the portfolio management
The traditional portfolio theory aims at the selection of such securities that &ould
fit in &ell &ith the asset preferences) needs and choices of the investors. Thus) retired
e,ecutive invests in fi,ed income securities for a regular and fi,ed return. % business
e,ecutive or a young aggressive investor on the other hand invests in and ro&ing
companies and in ris'y ventures.
>?@
The modern portfolio theory postulates that ma,imi0ation of returns and minimi0ation of
ris' &ill yield optional returns and the choice and attitudes of investors are only a
starting point for investment decisions and that vigorous ris' returns analysis is
necessary for optimi0ation of returns. +ortfolio analysis includes portfolio construction)
selection of securities) and revision of portfolio evaluation and monitoring of the
performance of the portfolio. %ll these are part of the portfolio management.
>A@
NEED OF T3E STUDY
+ortfolio management or investment helps investors in effective and efficient
management of their investment to achieve this goal. The rapid gro&th of capital mar'ets
in India has opened up ne& investment avenues for investors.
The stoc' mar'ets have become attractive investment options for the common man. $ut
the need is to be able to effectively and efficiently manage investments in order to 'eep
ma,imum returns &ith minimum ris'.
Hence this study on PORTFOLIO MANAGEMENTB to e,amine the role process and
merits of effective investment management and decision.
>C@
OBJECTIVES OF T3E STUDY
To study the investment decision process.
To analysis the ris' return characteristics of sample scripts.
%scertain portfolio &eights.
To construct an effective portfolio this offers the ma,imum return for minimum
ris'.
>D@
SCOPE OF STUDY
This study covers the ar'o&it0 model. The study covers the calculation of correlations
bet&een the different securities in order to find out at &hat percentage funds should be invested
among the companies in the portfolio. %lso the study includes the calculation of individual
Standard Eeviation of securities and ends at the calculation of &eights of individual securities
involved in the portfolio. These percentages help in allocating the funds available for
investment based on ris'y portfolios.
>F@
RESEARC3 MET3ODOLOGY
% system of collecting data for research projects is 'no&n as research
methodology. The data may be collected for either theoretical or practical
research. *esearch methodology is a &ay to systematically solve the research problem. It
may be understood as a science of studying ho& research is done scientifically. In it &e
study the various steps that are generally adopted by a researcher in studying his research
problem along &ith the logic behind them.
RESEARC3 DESIGN
Tas' of defining the research problem is the preparation of the research project)
popularly 'no&n as the (research designB. Eecisions regarding &hat) &here) &hen) ho&
much) by &hat means concerning an inquiry or a research study constitute a research
design.
% research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose &ith economy in
procedure. It is a frame&or' or blueprint for conducting the mar'eting research project.
DATA COLLECTION
-enerally the available primary data is used &herever is not available &ithin the
time permitted and so secondary data has been generated from secondary sources
collected.
PRIMARY DATA
It includes the data collected from the personal interaction &ith authori0ed
manner of 'arvy.
SECONDARY DATA
The secondary method includes the lectures delivered by the superintend of
respective dept. The $oucher and materials provided by Garvy Stoc' $ro'ing ltd H also
collected from &&&.moneycontrol.com H Eallal Street aga0ine.
>I@
LIMITATION OF T3E STUDY
#onstruction of +ortfolio is restricted to t&o companies based on ar'o&it0 model.
4ery fe& and randomly selected scripts < companies are analy0ed from $S" listings.
Eata collection &as strictly confined to secondary source. No primary data is associated
&ith the project.
Eetailed study of the topic &as not possible due to limited si0e of the project.
There &as a constraint &ith regard to time allocation for the research study i.e. for a period
of t&o months.
1nly t&o samples have been selected for constructing a portfolio.
Share prices of scripts of D years period &as ta'en.
Euration +eriod ? months.
Sample si0e/ D years.
To ascertain ris') return and &eights.
>J@
Chapter 2
INDUSTRIAL PROFILE

INDUSTRIAL PROFILE
Indian Stoc' ar'ets are one of the oldest in %sia. Its history dates bac' to
nearly ?KK years ago. The earliest records of security dealings in India are meager and
obscure. The "ast India #ompany &as the dominant institution in those days and
business in its loan securities used to be transacted to&ards the close of the eighteenth
century.
$y 9JAK5s business on corporate stoc's and shares in $an' and #otton presses
too' place in $ombay. Though the trading list &as broader in 9JA:) there &ere only half
a do0en bro'ers recogni0ed by ban's and merchants during 9JCK and 9JDK.
The 9JDK5s &itnessed a rapid development of commercial enterprise and
bro'erage business attracted many men into the field and by 9JFK the number of bro'ers
increased into FK.
In 9JFK.F9 the %merican #ivil 7ar bro'e out and cotton supply from United
States of "urope &as stopped; thus) the 5Share ania5 in India begun. The number of
bro'ers increased to about ?KK to ?DK. Ho&ever) at the end of the %merican #ivil 7ar)
in 9JFD) a disastrous slump began 2for e,ample) $an' of $ombay Share &hich had
touched *s ?JDK could only be sold at *s. JI3.
%t the end of the %merican #ivil 7ar) the bro'ers &ho thrived out of #ivil 7ar
in 9JIC) found a place in a street 2no& appropriately called as Ealal Street3 &here they
&ould conveniently assemble and transact business. In 9JJI) they formally established in
$ombay) the LNative Share and Stoc' $ro'ers5 %ssociationL 2&hich is alternatively
'no&n as LThe Stoc' ",change L3. In 9J:D) the Stoc' ",change acquired a premise in
the same street and it &as inaugurated in 9J::. Thus) the Stoc' ",change at $ombay
&as consolidated.
>:@
O,"%r L%+$*01 C*,*%' *0 S,()A M+rA%, O.%r+,*(0'<
%hmadabad gained importance ne,t to $ombay &ith respect to cotton te,tile
industry. %fter 9JJK) many mills originated from %hmadabad and rapidly forged ahead.
%s ne& mills &ere floated) the need for a Stoc' ",change at %hmadabad &as reali0ed
and in 9J:C the bro'ers formed LThe %hmadabad Share and Stoc' $ro'ers5
%ssociationL.
7hat the cotton te,tile industry &as to $ombay and %hmadabad) the jute industry &as to
#alcutta. %lso tea and coal industries &ere the other major industrial groups in #alcutta.
%fter the Share ania in 9JF9.FD) in the 9JIK5s there &as a sharp boom in jute shares)
&hich &as follo&ed by a boom in tea shares in the 9JJK5s and 9J:K5s; and a coal boom
bet&een 9:KC and 9:KJ. 1n June 9:KJ) some leading bro'ers formed LThe #alcutta
Stoc' ",change %ssociationL.
In the beginning of the t&entieth century) the industrial revolution &as on the
&ay in India &ith the S&adeshi ovement; and &ith the inauguration of the Tata Iron
and Steel #ompany Mimited in 9:KI) an important stage in industrial advancement under
Indian enterprise &as reached.
Indian cotton and jute te,tiles) steel) sugar) paper and flour mills and all
companies generally enjoyed phenomenal prosperity) due to the Nirst 7orld 7ar.
In 9:?K) the then demure city of adras had the maiden thrill of a stoc'
e,change functioning in its midst) under the name and style of LThe adras Stoc'
",changeL &ith 9KK members. Ho&ever) &hen boom faded) the number of members
stood reduced from 9KK to A) by 9:?A) and so it &ent out of e,istence.
In 9:AD) the stoc' mar'et activity improved) especially in South India &here
there &as a rapid increase in the number of te,tile mills and many plantation companies
&ere floated. In 9:AI) a stoc' e,change &as once again organi0ed in adras . adras
Stoc' ",change %ssociation 2+4T.3 Mimited. 2In 9:DI the name &as changed to adras
Stoc' ",change Mimited3.
Mahore Stoc' ",change &as formed in 9:AC and it had a brief life. It &as merged
&ith the +unjab Stoc' ",change Mimited) &hich &as incorporated in 9:AF.
>9K@
I0$*+0 S,()A E>)"+01%' 8 A0 U/5r%22+ Gr(G,"<
The Second 7orld 7ar bro'e out in 9:A:. It gave a sharp boom &hich &as
follo&ed by a slump. $ut) in 9:CA) the situation changed radically) &hen India &as fully
mobili0ed as a supply base.
1n account of the restrictive controls on cotton) bullion) seeds and other
commodities) those dealing in them found in the stoc' mar'et as the only outlet for their
activities. They &ere an,ious to join the trade and their number &as s&elled by
numerous others. any ne& associations &ere constituted for the purpose and Stoc'
",changes in all parts of the country &ere floated.
The Uttar +radesh Stoc' ",change Mimited 29:CK3) Nagpur Stoc' ",change
Mimited 29:CK3 and Hyderabad Stoc' ",change Mimited 29:CC3 &ere incorporated.
In Eelhi t&o stoc' e,changes . Eelhi Stoc' and Share $ro'ers5 %ssociation
Mimited and the Eelhi Stoc's and Shares ",change Mimited . &ere floated and later in
June 9:CI) amalgamated into the Eelhi Stoc' ",chnage %ssociation Mimited.
P(',8I0$%.%0$%0)% S)%0+r*(<
ost of the e,changes suffered almost a total eclipse during depression. Mahore
",change &as closed during partition of the country and later migrated to Eelhi and
merged &ith Eelhi Stoc' ",change.
$angalore Stoc' ",change Mimited &as registered in 9:DI and recogni0ed in
9:FA.
>99@
ost of the other e,changes languished till 9:DI &hen they applied to the #entral
-overnment for recognition under the Securities #ontracts 2*egulation3 %ct) 9:DF. 1nly
$ombay) #alcutta) adras) %hmadabad) Eelhi) Hyderabad and Indore) the &ell
established e,changes) &ere recogni0ed under the %ct. Some of the members of the other
%ssociations &ere required to be admitted by the recogni0ed stoc' e,changes on a
concessional basis) but acting on the principle of unitary control) all these pseudo stoc'
e,changes &ere refused recognition by the -overnment of India and they thereupon
ceased to function.
Thus) during early si,ties there &ere eight recogni0ed stoc' e,changes in India
2mentioned above3. The number virtually remained unchanged) for nearly t&o decades.
Euring eighties) ho&ever) many stoc' e,changes &ere established/ #ochin Stoc'
",change 29:JK3) Uttar +radesh Stoc' ",change %ssociation Mimited 2at Ganpur) 9:J?3)
and +une Stoc' ",change Mimited 29:J?3) Mudhiana Stoc' ",change %ssociation
Mimited 29:JA3) -auhati Stoc' ",change Mimited 29:JC3) Ganara Stoc' ",change
Mimited 2at angalore) 9:JD3) agadh Stoc' ",change %ssociation 2at +atna) 9:JF3)
Jaipur Stoc' ",change Mimited 29:J:3) $hubanes&ar Stoc' ",change %ssociation
Mimited 29:J:3) Saurashtra Gutch Stoc' ",change Mimited 2at *aj'ot) 9:J:3) 4adodara
Stoc' ",change Mimited 2at $aroda) 9::K3 and recently established e,changes .
#oimbatore and eerut. Thus) at present) there are totally t&enty one recogni0ed stoc'
e,changes in India e,cluding the 1ver The #ounter ",change of India Mimited 21T#"I3
and the National Stoc' ",change of India Mimited 2NS"IM3.
The Table given belo& portrays the overall gro&th pattern of Indian stoc'
mar'ets since independence. It is quite evident from the Table that Indian stoc' mar'ets
have not only gro&n just in number of e,changes) but also in number of listed companies
and in capital of listed companies. The remar'able gro&th after 9:JD can be clearly seen
from the Table) and this &as due to the favouring government policies to&ards security
mar'et industry.
>9?@
Tr+$*01 P+,,%r0 (- ,"% I0$*+0 S,()A M+rA%,<
Trading in Indian stoc' e,changes are limited to listed securities of public limited
companies. They are broadly divided into t&o categories) namely) specified securities
2for&ard list3 and non.specified securities 2cash list3. "quity shares of dividend paying)
gro&th.oriented companies &ith a paid.up capital of atleast *s.DK million and a mar'et
capitali0ation of atleast *s.9KK million and having more than ?K)KKK shareholders are)
normally) put in the specified group and the balance in non.specified group.
T&o types of transactions can be carried out on the Indian stoc' e,changes/ 2a3
spot delivery transactions Lfor delivery and payment &ithin the time or on the date
stipulated &hen entering into the contract &hich shall not be more than 9C days
follo&ing the date of the contractL/ and 2b3 for&ard transactions Ldelivery and payment
can be e,tended by further period of 9C days each so that the overall period does not
e,ceed :K days from the date of the contractL. The latter is permitted only in the case of
specified shares. The bro'ers &ho carry over the outstanding pay carry over charges
2cantango or bac'&ardation3 &hich are usually determined by the rates of interest
prevailing.
% member bro'er in an Indian stoc' e,change can act as an agent) buy and sell
securities for his clients on a commission basis and also can act as a trader or dealer as a
principal) buy and sell securities on his o&n account and ris') in contrast &ith the
practice prevailing on Ne& Oor' and Mondon Stoc' ",changes) &here a member can act
as a jobber or a bro'er only.
The nature of trading on Indian Stoc' ",changes are that of age old conventional
style of face.to.face trading &ith bids and offers being made by open outcry. Ho&ever)
there is a great amount of effort to moderni0e the Indian stoc' e,changes in the very
recent times.
>9A@
O?%r T"% C(#0,%r E>)"+01% (- I0$*+ (OTCEI!<
The traditional trading mechanism prevailed in the Indian stoc' mar'ets gave
&ay to many functional inefficiencies) such as) absence of liquidity) lac' of transparency)
unduly long settlement periods and benami transactions) &hich affected the small
investors to a great e,tent. To provide improved services to investors) the country5s first
ringless) scripless) electronic stoc' e,change . 1T#"I . &as created in 9::? by country5s
premier financial institutions . Unit Trust of India) Industrial #redit and Investment
#orporation of India) Industrial Eevelopment $an' of India) S$I #apital ar'ets)
Industrial Ninance #orporation of India) -eneral Insurance #orporation and its
subsidiaries and #an$an' Ninancial Services.
Trading at 1T#"I is done over the centres spread across the country. Securities
traded on the 1T#"I are classified into/
Misted Securities . The shares and debentures of the companies listed on the 1T#
can be bought or sold at any 1T# counter all over the country and they should
not be listed any&here else
+ermitted Securities . #ertain shares and debentures listed on other e,changes
and units of mutual funds are allo&ed to be traded
Initiated debentures . %ny equity holding atleast one la'h debentures of particular
scrip can offer them for trading on the 1T#.
1T# has a unique feature of trading compared to other traditional e,changes.
That is) certificates of listed securities and initiated debentures are not traded at 1T#.
The original certificate &ill be safely &ith the custodian. $ut) a counter receipt is
generated out at the counter &hich substitutes the share certificate and is used for all
transactions.
In the case of permitted securities) the system is similar to a traditional stoc' e,change.
The difference is that the delivery and payment procedure &ill be completed &ithin 9C
days.
>9C@
#ompared to the traditional ",changes) 1T# ",change net&or' has the
follo&ing advantages/
1T#"I has &idely dispersed trading mechanism across the country &hich
provides greater liquidity and lesser ris' of intermediary charges.
-reater transparency and accuracy of prices is obtained due to the screen.based
scripless trading.
Since the e,act price of the transaction is sho&n on the computer screen) the
investor gets to 'no& the e,act price at &hich s<he is trading.
Naster settlement and transfer process compared to other e,changes.
In the case of an 1T# issue 2ne& issue3) the allotment procedure is completed in
a month and trading commences after a month of the issue closure) &hereas it
ta'es a longer period for the same &ith respect to other e,changes.
Thus) &ith the superior trading mechanism coupled &ith information
transparency investors are gradually becoming a&are of the manifold advantages of the
1T#"I.
N+,*(0+2 S,()A E>)"+01% (NSE!<
7ith the liberali0ation of the Indian economy) it &as found inevitable to lift the
Indian stoc' mar'et trading system on par &ith the international standards. 1n the basis
of the recommendations of high po&ered +her&ani #ommittee) the National Stoc'
",change &as incorporated in 9::? by Industrial Eevelopment $an' of India) Industrial
#redit and Investment #orporation of India) Industrial Ninance #orporation of India) all
Insurance #orporations) selected commercial ban's and others.
Trading at NS" can be classified under t&o broad categories/
2a3 7holesale debt mar'et and
2b3 #apital mar'et.
7holesale debt mar'et operations are similar to money mar'et operations .
institutions and corporate bodies enter into high value transactions in financial
instruments such as government securities) treasury bills) public sector unit bonds)
commercial paper) certificate of deposit) etc.
There are t&o 'inds of players in NS"/
>9D@
2a3 Trading members and
2b3 +articipants.
*ecogni0ed members of NS" are called trading members &ho trade on behalf of
themselves and their clients. +articipants include trading members and large players li'e
ban's &ho ta'e direct settlement responsibility.
Trading at NS" ta'es place through a fully automated screen.based trading
mechanism &hich adopts the principle of an order.driven mar'et. Trading members can
stay at their offices and e,ecute the trading) since they are lin'ed through a
communication net&or'. The prices at &hich the buyer and seller are &illing to transact
&ill appear on the screen. 7hen the prices match the transaction &ill be completed and a
confirmation slip &ill be printed at the office of the trading member.
NS" has several advantages over the traditional trading e,changes. They are as follo&s/
NS" brings an integrated stoc' mar'et trading net&or' across the nation.
Investors can trade at the same price from any&here in the country since inter.
mar'et operations are streamlined coupled &ith the country&ide access to the
securities.
Eelays in communication) late payments and the malpractice!s prevailing in the
traditional trading mechanism can be done a&ay &ith greater operational
efficiency and informational transparency in the stoc' mar'et operations) &ith the
support of total computeri0ed net&or'.
Unless stoc' mar'ets provide professionali0ed service) small investors and
foreign investors &ill not be interested in capital mar'et operations. %nd capital mar'et
being one of the major source of long.term finance for industrial projects) India cannot
afford to damage the capital mar'et path. In this regard NS" gains vital importance in
the Indian capital mar'et system.
Pr%+/52%<
1ften) in the economic literature &e find the terms 8development! and 8gro&th!
are used interchangeably. Ho&ever) there is a difference. "conomic gro&th refers to the
>9F@
sustained increase in per capita or total income) &hile the term economic development
implies sustained structural change) including all the comple, effects of economic
gro&th.
In other &ords) gro&th is associated &ith free enterprise) &here as development
requires some sort of control and regulation of the forces affecting development. Thus)
economic development is a process and gro&th is a phenomenon.
"conomic planning is very critical for a nation) especially a developing country
li'e India to ta'e the country in the path of economic development to attain economic
gro&th.
@"4 E)(0(/*) P2+00*01 -(r I0$*+H
1ne of the major objective of planning in India is to increase the rate of economic
development) implying that increasing the rate of capital formation by raising the levels
of income) saving and investment. Ho&ever) increasing the rate of capital formation in
India is beset &ith a number of difficulties. +eople are poverty ridden. Their capacity to
save is e,tremely lo& due to lo& levels of income and high propensity to consume.
Therefore) the rate of investment is lo& &hich leads to capital deficiency and lo&
productivity. Mo& productivity means lo& income and the vicious circle continues. Thus)
to brea' this vicious economic circle) planning is inevitable for India.
The mar'et mechanism &or's imperfectly in developing nations due to the
ignorance and unfamiliarity &ith it. Therefore) to improve and strengthen mar'et
mechanism planning is very vital. In India) a large portion of the economy is non.
monitised; the product) factors of production) money and capital mar'ets is not organi0ed
properly. Thus the prevailing price mechanism fails to bring about adjustments bet&een
aggregate demand and supply of goods and services. Thus) to improve the economy)
mar'et imperfections has to be removed; available resources has to be mobili0ed and
utili0ed efficiently; and structural rigidities has to be overcome. These can be attained
only through planning.
>9I@
In India) capital is scarce; and unemployment and disguised unemployment is
prevalent. Thus) &here capital &as being scarce and labour being abundant) providing
useful employment opportunities to an increasing labour force is a difficult e,ercise.
1nly a centrali0ed planning model can solve this macro problem of India.
Nurther) in a country li'e India &here agricultural dependence is very high) one cannot
ignore this segment in the process of economic development. Therefore) an economic
development model has to consider a balanced approach to lin' both agriculture and
industry and lead for a paralleled gro&th. Not to mention) both agriculture and industry
cannot develop &ithout adequate infrastructural facilities &hich only the state can
provide and this is possible only through a &ell carved out planning strategy. The
government!s role in providing infrastructure is unavoidable due to the fact that the role
of private sector in infrastructural development of India is very minimal since these
infrastructure projects are considered as unprofitable by the private sector.
Nurther) India is a clear case of income disparity. Thus) it is the duty of the state to
reduce the prevailing income inequalities. This is possible only through planning.
P2+00*01 3*',(r4 (- I0$*+<
The development of planning in India began prior to the first Nive Oear +lan of
independent India) long before independence even. The idea of central directions of
resources to overcome persistent poverty gradually) because one of the main policies
advocated by nationalists early in the century. The #ongress +arty &or'ed out a program
for economic advancement during the 9:?K!s) and 9:AK!s and by the 9:AJ they formed a
National +lanning #ommittee under the chairmanship of future +rime inister Nehru.
The #ommittee had little time to do anything but prepare programs and reports before
the Second 7orld 7ar &hich put an end to it. $ut it &as already more than an academic
e,ercise remote from administration. +rovisional government had been elected in 9:AJ)
and the #ongress +arty leaders held positions of responsibility. %fter the &ar) the Interim
government of the pre.independence years appointed an %dvisory +lanning $oard. The
$oard produced a number of some&hat disconnected +lans itself. $ut) more important in
the long run) it recommended the appointment of a +lanning #ommission.
The +lanning #ommission did not start &or' properly until 9:DK. Euring the first three
years of independent India) the state and economy scarcely had a stable structure at all)
&hile millions of refugees crossed the ne&ly established borders of India and +a'istan)
>9J@
and &hile e,.princely states 2over DKK of them3 &ere being merged into India or
+a'istan. The +lanning #ommission as it no& e,ists) &as not set up until the ne& India
had adopted its #onstitution in January 9:DK.
O5=%),*?%' (- I0$*+0 P2+00*01<
The +lanning #ommission &as set up the follo&ing Eirective principles/
To ma'e an assessment of the material) capital and human resources of the
country) including technical personnel) and investigate the possibilities of
augmenting such of these resources as are found to be deficient in relation to the
nation!s requirement.
To formulate a plan for the most effective and balanced use of the country!s
resources.
Having determined the priorities) to define the stages in &hich the plan should be
carried out) and propose the allocation of resources for the completion of each
stage.
To indicate the factors &hich are tending to retard economic development) and
determine the conditions &hich) in vie& of the current social and political
situation) should be established for the successful e,ecution of the +lan.
To determine the nature of the machinery this &ill be necessary for securing the
successful implementation of each stage of +lan in all its aspects.
To appraise from time to time the progress achieved in the e,ecution of each
stage of the +lan and recommend the adjustments of policy and measures that
such appraisals may sho& to be necessary.
To ma'e such interim or au,iliary recommendations as appear to it to be
appropriate either for facilitating the discharge of the duties assigned to it or on a
consideration of the prevailing economic conditions) current policies) measures
and development programs; or on an e,amination of such specific problems as
may be referred to it for advice by #entral or State -overnments.
The long.term general objectives of Indian +lanning are as follo&s/
Increasing National Income
*educing inequalities in the distribution of income and &ealth
"limination of poverty
>9:@
+roviding additional employment; and
%lleviating bottlenec's in the areas of / agricultural production) manufacturing
capacity for producer!s goods and balance of payments.
"conomic gro&th) as the primary objective has remained in focus in all Nive Oear
+lans. %ppro,imately) economic gro&th has been targeted at a rate of five per cent per
annum. High priority to economic gro&th in Indian +lans loo's very much justified in
vie& of long period of stagnation during the $ritish rule.
>?K@
Chapter 2
COMPANY PROFILE

COMPANY PROFILE
Garvy Stoc' $ro'ing Mimited) one of the cornerstones of the Garvy edifice) flo&s
freely to&ards attaining diverse goals of the customer through varied services. #reating a
plethora of opportunities for the customer by opening up investment vistas bac'ed by
research.based advisory services. Here) gro&th 'no&s no limits and success recogni0es
no boundaries. Helping the customer create &aves in his portfolio and empo&ering the
investor completely is the ultimate goal.
S,()A Br(A*01 S%r?*)%'<
It is an undisputed fact that the stoc' mar'et is unpredictable and yet enjoys a
high success rate as a &ealth management and &ealth accumulation option. The
difference bet&een unpredictability and a safety anchor in the mar'et is provided by in.
depth 'no&ledge of mar'et functioning and changing trends) planning &ith foresight and
choosing one5s options &ith care. This is &hat &e provide in our Stoc' $ro'ing services.
7e offer services that are beyond just a medium for buying and selling stoc's and
shares. Instead &e provide services &hich are multi dimensional and multi.focused in
their scope. There are several advantages in utili0ing our Stoc' $ro'ing services) &hich
are the reasons &hy it is one of the best in the country.
7e offer trading on a vast platform National Stoc' ",change and $ombay Stoc'
",change. ore importantly) &e ma'e trading safe to the ma,imum possible e,tent) by
accounting for several ris' factors and planning accordingly. 7e are assisted in this tas'
by our in.depth research) constant feedbac' and sound advisory facilities. 1ur highly
s'illed research team) comprising of technical analysts as &ell as fundamental
specialists) secure result.oriented information on mar'et trends) mar'et analysis and
mar'et predictions. This crucial information is given as a constant feedbac' to our
customers) through daily reports delivered thrice daily ; The +re.session *eport) &here
mar'et scenario for the day is predicted) The id.session *eport) timed to arrive during
lunch brea' ) &here the mar'et forecast for the rest of the day is given and The +ost.
session *eport) the final report for the day) &here the mar'et and the report itself is
revie&ed. To add to this repository of information) &e publish a monthly maga0ine
LGarvy The NinapolisL) &hich analy0es the latest stoc' mar'et trends and ta'es a close
loo' at the various investment options) and products available in the mar'et) &hile a
>?9@
&ee'ly report) called LGarvy $a0aar $aateinL) 'eeps you more informed on the
immediate trends in the stoc' mar'et. In addition) our specific industry reports give
comprehensive information on various industries. $esides this) &e also offer special
portfolio analysis pac'ages that provide daily technical advice on scrips for successful
portfolio management and provide customi0ed advisory services to help you ma'e the
right financial moves that are specifically suited to your portfolio.
1ur Stoc' $ro'ing services are &idely net&or'ed across India) &ith the number of our
trading terminals providing retail stoc' bro'ing facilities. 1ur services have increasingly
offered customer oriented convenience) &hich &e provide to a spectrum of investors)
high.net&orth or other&ise) &ith equal dedication and competence.
$ut true to our spirit) this success is not our final destination) but just a platform to
launch further enhanced quality services to provide you the latest in convenient)
customer.friendly stoc' management.
1ver the years &e have ensured that the trust of our customers is our biggest returns.
Nactors such as our success in the "lectronic custody business has helped build on our
tradition of trust even more. #onsequentially our retail client base e,panded very fast.
To empo&er the investor further &e have made serious efforts to ensure that our research
calls are disseminated systematically to all our stoc' bro'ing clients through various
delivery channels li'e email) chat) SS) phone calls etc.
1ur foray into commodities bro'ing has been path brea'ing and &e are in the process of
converting e,isting traders in commodities into the more organi0ed mainstream of
trading in commodity futures) both as a trading and ris' hedging mechanism.
In the future) our focus &ill be on the emerging businesses and to meet this objective) &e
have enhanced our manpo&er and revitali0ed our 'no&ledge base &ith enhances focus
on Nutures and 1ptions as &ell as the commodities business.
>??@
D%.('*,(r4 P+r,*)*.+0,'<
The onset of the technology revolution in financial services Industry sa& the
emergence of Garvy as an electronic custodian registered &ith N+,*(0+2 S%)#r*,*%'
D%.('*,(r4 L,$ (NSDL! +0$ C%0,r+2 S%)#r*,*%' D%.('*,(r4 L,$ (CSDL! in 9::J.
Garvy set standards enabling further comfort to the investor by promoting paperless
trading across the country and emerged as the ,(. 9 D%.('*,(r4 P+r,*)*.+0,' in the
country in terms of customer serviced.
1ffering a &ide trading platform &ith a dual membership at both NSEM and
#ESM) &e are a po&erful medium for trading and settlement of demateriali0ed shares.
7e have established live E+s) Internet access to accounts and an easier transaction
process in order to offer more convenience to individual and corporate investors. % team
of professional and the latest technological e,pertise allocated e,clusively to our demat
division including technological enhancements li'e S+""E.e) ma'e our response time
quic' and our delivery impeccable. % &ide national net&or' ma'es our efficiencies
accessible to all.
Garvy #onsultants Mimited &as started in the year 9:J9) &ith the vision and
enterprise of a small group of practicing #hartered %ccountants. Initially it &as started
&ith consulting and financial accounting automation) and carved inroads into the field of
registry and share accounting by 9:JD. Since then) it has utili0ed its e,perience and
superlative e,pertise to go from strength to strengthPto better its services) to provide
ne& ones) to innovate) diversify and in the process) evolved as one of India!s premier
integrated financial service enterprise.
Today) Garvy has access to millions of Indian shareholders) besides companies)
ban's) financial institutions and regulatory agencies. 1ver the past one and half decades)
Garvy has evolved as a veritable lin' bet&een industry) finance and people.
In January 9::J) Garvy became the first Eepository +articipant in %ndhra +radesh. %n
IS1 :KK? company) Garvy5s commitment to quality and retail reach has made it
an integrated financial services company.
A0 O?%r?*%G<
>?A@
G%*4O) is a premier integrated financial services provider) and ran'ed among
the top five in the country in all its business segments) services over 9F million
individual investors in various capacities) and provides investor services to over AKK
corporates) comprising the &ho is &ho of #orporate India. G%*4O covers the entire
spectrum of financial services such as Stoc' bro'ing) Eepository +articipants)
Eistribution of financial products . mutual funds) bonds) fi,ed deposit) equities)
Insurance $ro'ing) #ommodities $ro'ing) +ersonal Ninance %dvisory Services)
erchant $an'ing H #orporate Ninance) placement of equity) I+1s) among others.
Garvy has a professional management team and ran's among the best in technology)
operations and research of various industrial segments.
Today) Garvy service over F la'hs customer accounts spread across over ?DK
cities<to&ns in India and serves more than ID million shareholders across IKKK corporate
clients and ma'es its presence felt in over 9? countries across D continents. %ll of Garvy
services are also bac'ed by strong quality aspects) &hich have helped Garvy to be
certified as an IS1 :KK? company by EN4.
AC3IEVEMENTS<
%mong the top D stoc' bro'ers in India 2CQ of NS" volumes3.
India5s No. 9 *egistrar H Securities Transfer %gents.
%mong the top A Eepository +articipants.
Margest Net&or' of $ranches H $usiness %ssociates.
IS1 :KK9/?KKK certified operations by EN4.
%mong top 9K Investment ban'ers.
Margest Eistributor of Ninancial +roducts.
%djudged as one of the top DK IT uses in India by IS %sia.
Null Nledged IT driven operations .
Nirst IS1.:KK? #ertified *egistrars in India.
*an'ed as (The ost %dmired *egistrarB by %*-.
Margest mobili0e of funds as per +*I" E%T%$%S".
Nirst depository participant from %ndhra +radesh.
Handled over DKK public issues as *egistrars.
>?C@
Handling the *eliance account) &hich accounts for nearly 9K million account
holdersR
R+01% (- '%r?*)%'<
Stoc' bro'ing services
Eistribution of Ninancial +roducts 2investments H loan products3
Eepository +articipant services
IT enabled services
+ersonal finance %dvisory Services
+rivate #lient -roup
Eebt mar'et services
Insurance H merchant ban'ing
utual Nund Services
#orporate Shareholder Services
1ther global services
$esides these) they also offer special portfolio analysis pac'ages that provide
daily technical advice on scrips for successful portfolio management and provide
customi0ed advisory services to help customers ma'e the right financial moves that are
specifically suited to their portfolio. They are continually engaged in designing the right
investment portfolio for each customer according to individual needs and budget
considerations.
>?D@

Garvy #onsultants limited deals in *egistrar and Investment Services. Garvy is
one of the early entrants registered as Eepository +articipant &ith NSEM 2National
Securities Eepository Mimited3) the first Eepository in the country and then &ith #ESM
2#entral Eepository Services Mimited3.
Garvy stoc' bro'ing is a member of National Stoc' ",change 2NS"3) The
$ombay Stoc' ",change 2$S"3) and The Hyderabad Stoc' ",change 2HS"3. The
services provided are multi dimensional and multi.focused in their scope/ to analy0e the
latest stoc' mar'et trends and to ta'e a close loo's at the various investment options and
products available in the mar'et. $esides this) they also offer special portfolio analysis
pac'ages.
The paradigm shift from pure selling to 'no&ledge based selling drives the
business today. The monthly maga0ine) Ninapolis) provides up.dated mar'et information
on mar'et trends) investment options) opinions etc. Thus empo&ering the investor to
base every financial move on rational thought and prudent analysis and embar' on the
path to &ealth creation.
Garvy is recogni0ed as a leading merchant ban'er in the country) Garvy is
registered &ith S"$I as a #ategory I merchant ban'er. This reputation &as built by
capitali0ing on opportunities in corporate consolidations) mergers and acquisitions and
corporate restructuring.
>?F@
Garvy has a tie up &ith the &orld!s largest transfer agent) the leading %ustralian
company) #omputer share Mimited. It has attained a position of immense strength as a
provider of across.the.board transfer agency services to %#s) Eistributors and
Investors. $esides providing the entire bac' office processing) it also provides the lin'
bet&een various utual Nunds and the investor.
Garvy global services limited covers $an'ing) Ninancial and Insurance Services
2$NIS3) *etail and erchandising) Meisure and "ntertainment) "nergy and Utility and
Healthcare sectors.
Garvy comtrade limited trades in all goods and products of agricultural and
mineral origin that include lucrative commodities li'e gold and silver and popular items
li'e oil) pulses and cotton through a &ell.systemati0ed trading platform.
Garvy Insurance $ro'ing +vt. Mtd. provides both life and non.life insurance
products to retail individuals) high net.&orth clients and corporates. 7ith Indian mar'ets
seeing a sea change) both in terms of investment pattern and attitude of investors)
insurance is no more seen as only a ta, saving product but also as an investment product.
Garvy Inc. is located in Ne& Oor' to provide various financial products and
information on Indian equities to potential foreign institutional investors 2NIIs3 in the
region. This entity &ould e,tensively facilitate various businesses of Garvy vi0.) stoc'
bro'ing 2Indian equities3) research and investment by 6I$s in Indian mar'ets for both
secondary and primary offerings.
>?I@
I#+2*,4 P(2*)4<
To achieve and retain leadership) Garvy shall aim for complete customer
satisfaction) by combining its human and technological resources) to provide superior
quality financial services. In the process) Garvy &ill strive to e,ceed #ustomer5s
e,pectations.
I#+2*,4 O5=%),*?%'/
A' .%r ,"% I#+2*,4 P(2*)4& K+r?4 G*22<
$uild in.house processes that &ill ensure transparent and harmonious
relationships &ith its clients and investors to provide high quality of services.
"stablish a partner relationship &ith its investor service agents and vendors that
&ill help in 'eeping up its commitments to the customers.
+rovide high quality of &or' life for all its employees and equip them &ith
adequate 'no&ledge H s'ills so as to respond to customer5s needs.
#ontinue to uphold the values of honesty H integrity and strive to establish
unparalleled standards in business ethics.
Use state.of.the art information technology in developing ne& and innovative
financial products and services to meet the changing needs of investors and
clients.
Strive to be a reliable source of value.added financial products and services and
constantly guide the individuals and institutions in ma'ing a judicious choice of
same.
Strive to 'eep all sta'e.holders 2shareholders) clients) investors) employees)
suppliers and regulatory authorities3 proud and satisfied.
>?J@
Chapter
REVIEW OF LITERATURE
REVIE@ OF LITERATURE
% '%)#r*,4 is a fungible) negotiable instrument representing financial value.
Securities are broadly categori0ed into debt securities 2such as ban'notes) bonds and
debentures3 and equity securities) e.g.) common stoc's; and derivative contracts) such as
for&ards) futures) options and s&aps. The company or other entity issuing the security is
called the issuer. % country5s regulatory structure determines &hat qualifies as a security.
Nor e,ample) private investment pools may have some features of securities) but they
may not be registered or regulated as such if they meet various restrictions.
Securities may be represented by a certificate or) more typically) Lnon.
certificatedL) that is in electronic or Lboo' entryL only form. #ertificates may be bearer)
meaning they entitle the holder to rights under the security merely by holding the
security) or registered) meaning they entitle the holder to rights only if he or she appears
on a security register maintained by the issuer or an intermediary. They include shares of
corporate stoc' or mutual funds) bonds issued by corporations or governmental agencies)
stoc' options or other options) limited partnership units) and various other formal
investment instruments that are negotiable and fungible. #orporations or governmental
agencies) stoc' options or other options) limited partnership units) and various other
formal investment instruments those are negotiable and fungible
PORTFOLIO<
% portfolio is a collection of securities since it is really desirable to invest the
entire funds of an individual or an institution or a single security) it is essential that every
security be vie&ed in a portfolio conte,t. Thus it seems logical that the e,pected return
of the portfolio. +ortfolio analysis considers the determine of future ris' and return in
holding various blends of individual securities.
+ortfolio e,pected return is a &eighted average of the e,pected return of the
individual securities but portfolio variance) in short contrast) can be something reduced
portfolio ris' is because ris' depends greatly on the co.variance among returns of
individual securities. +ortfolios) &hich are combination of securities) may or may not
ta'e on the aggregate characteristics of their individual parts.
>?:@
Since portfolios e,pected return is a &eighted average of the e,pected return of
its securities) the contribution of each security the portfolio!s e,pected returns depends
on its e,pected returns and its proportionate share of the initial portfolio!s mar'et value.
It follo&s that an investor &ho simply &ants the greatest possible e,pected return should
hold one security; the one &hich is considered to have a greatest e,pected return. 4ery
fe& investors do this) and very fe& investment advisors &ould counsel such and e,treme
policy instead) investors should diversify) meaning that their portfolio should include
more than one security.
OBJECTIVES OF PORTFOLIOMANAGEMENT<
The main objective of investment portfolio management is to ma,imi0e the
returns from the investment and to minimi0e the ris' involved in investment. oreover)
ris' in price or inflation erodes the value of money and hence investment must provide a
protection against inflation.
S%)(0$+r4 (5=%),*?%'<
T"% -(22(G*01 +r% ,"% (,"%r +0)*22+r4 (5=%),*?%'<
*egular return.
Stable income.
%ppreciation of capital.
ore liquidity.
Safety of investment.
Ta, benefits.
>AK@
+ortfolio management services helps investors to ma'e a &ise choice bet&een
alternative investments &ith pit any post trading hassle!s this service renders optimum
returns to the investors by proper selection of continuous change of one plan to another
plane &ith in the same scheme) any portfolio management must specify the objectives
li'e ma,imum return!s) and ris' capital appreciation) safety etc in their offer.
R%,#r0 Fr(/ ,"% +012% (- '%)#r*,*%' )+0 5% -*>%$ *0)(/% '%)#r*,*%' '#)"
+'<
2a3 Eebentures =partly convertibles and non.convertibles debentures debt &ith tradable
7arrants.
2b3 +reference shares
2c3 -overnment securities and bonds
2d3 1ther debt instruments
2e3 4ariable income securities
2f3 "quity shares
2g3 oney mar'et securities li'e treasury bills commercial papers etc.
+ortfolio managers has to decide up on the mi, of securities on the basis of
contract &ith the client and objectives of portfolio
NEED FOR PORTFOLIO MANAGEMENT<
+ortfolio management is a process encompassing many activities of investment in
assets and securities. It is a dynamic and fle,ible concept and involves regular and
systematic analysis) judgment and action. The objective of this service is to help the
un'no&n and investors &ith the e,pertise of professionals in investment portfolio
management. It involves construction of a portfolio based upon the investor!s objectives)
constraints) preferences for ris' and returns and ta, liability. The portfolio is revie&ed
and adjusted from time to time in tune &ith the mar'et conditions. The evaluation of
portfolio is to be done in terms of targets set for ris' and returns. The changes in the
portfolio are to be effected to meet the changing condition.
+ortfolio construction refers to the allocation of surplus funds in hand among a variety
of financial assets open for investment. +ortfolio theory concerns itself &ith the
>A9@
principles governing such allocation. The modern vie& of investment is oriented more go
to&ards the assembly of proper combination of individual securities to form investment
portfolio. % combination of securities held together &ill give a beneficial result if they
grouped in a manner to secure higher returns after ta'ing into consideration the ris'
elements.
The modern theory is the vie& that by diversification ris' can be reduced.
Eiversification can be made by the investor either by having a large number of shares of
companies in different regions) in different industries or those producing different types
of product lines. odern theory believes in the perspective of combination of securities
under constraints of ris' and returns.
PORTFOLIO MANAGEMENT PROCESS<
Investment management is a comple, activity &hich may be bro'en do&n into the
follo&ing steps/
9. S.%)*-*)+,*(0 (- *0?%',/%0, (5=%),*?%' +0$ )(0',r+*0,'/
The typical objectives sought by investors are current income) capital
appreciation) and safety of principle. The relative importance of these objectives
should be specified further the constraints arising from liquidity) time hori0on)
ta, and special circumstances must be identified.
. C"(*)% (- ,"% +''%, /*> <
The most important decision in portfolio management is the asset mi,
decision very broadly; this is concerned &ith the proportions of 8stoc's! 2equity
shares and units<shares of equity.oriented mutual funds3 and 8bonds! in the
portfolio.
The appropriate 8stoc'.bond! mi, depends mainly on the ris' tolerance
and investment hori0on of the investor.
ELEMENTS OF PORTFOLIO MANAGEMENT<
P(r,-(2*( /+0+1%/%0, *' (081(*01 .r()%'' *0?(2?*01 ,"% -(22(G*01 5+'*) ,+'A'/
Identification of the investor!s objectives) constraints and preferences.
>A?@
Strategies are to be developed and implemented in tune &ith investment
policy formulated.
*evie& and monitoring of the performance of the portfolio.
Ninally the evaluation of the portfolio.
R*'A<
*is' is uncertainty of the income <capital appreciation or loss or both. %ll
investments are ris'y. The higher the ris' ta'en) the higher is the return. $ut proper
management of ris' involves the right choice of investments &hose ris's are
compensating. The total ris's of t&o companies may be different and even lo&er than the
ris' of a group of t&o companies if their companies are offset by each other.
SOURCES OF INVESTMENT RISK<
B#'*0%'' r*'A<
%s a holder of corporate securities 2equity shares or debentures3) you are e,posed
to the ris' of poor business performance. This may be caused by a variety of factors li'e
heightened competition) emergence of ne& technologies) development of substitute
products) shifts in consumer preferences) inadequate supply of essential inputs) changes
in governmental policies) and so on.
I0,%r%', R+,% R*'A<
The changes in interest rate have a bearing on the &elfare on investors. %s the
interest rate goes up) the mar'et price of e,isting firmed income securities falls) and vice
versa. This happens because the buyer of a fi,ed income security &ould not buy it at its
par value of face value o its fi,ed interest rate is lo&er than the prevailing interest rate on
a similar security. Nor e,ample) a debenture that has a face value of *S. 9KK and a fi,ed
rate of 9?Q &ill sell a discount if the interest rate moves up from) say 9?Q to 9CQ.&hile
the chances in interest rate have a direct bearing on the prices of fi,ed income securities)
they affect equity prices too) albeit some&hat indirectly.
T"% ,G( /+=(r ,4.%' (- r*'A' +r%<
Systematic or mar'et related ris'.
Unsystematic or company related ris's.
>AA@
S4',%/+,*) R*'A'< affected from the entire mar'et are 2the problems) ra& material
availability) ta, policy or government policy) inflation ris') interest ris' and financial
ris'3. It is managed by the use of $eta of different company shares.
T"% U0'4',%/+,*) R*'A' are mismanagement) increasing inventory) &rong financial
policy) defective mar'eting etc. this is diversifiable or avoidable because it is possible to
eliminate or diversify a&ay this component of ris' to a considerable e,tent by investing
in a large portfolio of securities. The unsystematic ris' stems from inefficiency
magnitude of those factors different form one company to another.
RETURNS ON PORTFOLIO/
"ach security in a portfolio contributes return in the proportion of its investments
in security. Thus the portfolio e,pected return is the &eighted average of the e,pected
return) from each of the securities) &ith &eights representing the proportions share of the
security in the total investment. 7hy does an investor have so many securities in his
portfolioR If the security %$# gives the ma,imum return &hy not he invests in that
security all his funds and thus ma,imi0e returnR The ans&er to this questions lie in the
investor!s perception of ris' attached to investments) his objectives of income) safety)
appreciation) liquidity and hedge against loss of value of money etc. this pattern of
investment in different asset categories) types of investment) etc.) &ould all be described
under the caption of diversification) &hich aims at the reduction or even elimination of
non.systematic ris's and achieve the specific objectives of investors
>AC@
RISK ON PORTFOLIO<
The e,pected returns from individual securities carry some degree of ris'. *is'
on the portfolio is different from the ris' on individual securities. The ris' is reflected in
the variability of the returns from 0ero to infinity. *is' of the individual assets or a
portfolio is measured by the variance of its return. The e,pected return depends on the
probability of the returns and their &eighted contribution to the ris' of the portfolio.
These are t&o measures of ris' in this conte,t one is the absolute deviation and other
standard deviation.

ost investors invest in a portfolio of assets) because as to spread ris' by not
putting all eggs in one bas'et. Hence) &hat really matters to them is not the ris' and
return of stoc's in isolation) but the ris' and return of the portfolio as a &hole. *is' is
mainly reduced by Eiversification.
RISK RETURN ANALYSIS<
%ll investment has some ris'. Investment in shares of companies has its o&n ris'
or uncertainty; these ris's arise out of variability of yields and uncertainty of
appreciation or depreciation of share prices) losses of liquidity etc.
The ris' over time can be represented by the variance of the returns. 7hile the
return over time is capital appreciation plus payout) divided by the purchase price of the
share.
>AD@
Normally) the higher the ris' that the investor ta'es) the higher is the return.
There is) ho&ever) a ris' less return on capital of about 9?Q &hich is the ban') rate
charged by the *.$.I or long term) yielded on government securities at around 9AQ to
9CQ. This ris' less return refers to lac' of variability of return and no uncertainty in the
repayment or capital. $ut other ris's such as loss of liquidity due to parting &ith money
etc.) may ho&ever remain) but are re&arded by the total return on the capital. *is'.return
is subject to variation and the objectives of the portfolio manager are to reduce that
variability and thus reduce the ris' by choosing an appropriate portfolio.
Traditional approach advocates that one security holds the better) it is according
to the modern approach diversification should not be quantity that should be related to
the quality of scripts &hich leads to quality of portfolio.
",perience has sho&n that beyond the certain securities by adding more
securities e,pensive.
S*/.2% D*?%r'*-*)+,*(0 R%$#)%'/
%n asset!s total ris' can be divided into systematic plus unsystematic ris') as
sho&n belo&/
S4',%/+,*) r*'A (#0$*?%r'*-*+52% r*'A! J #0'4',%/+,*) r*'A ($*?%r'*-*%$ r*'A! KT(,+2
r*'A KV+r (r!.
Unsystematic ris' is that portion of the ris' that is unique to the firm 2for
e,ample) ris' due to stri'es and management errors.3 Unsystematic ris' can be reduced
to 0ero by simple diversification.
Simple diversification is the random selection of securities that are to be added to
a portfolio. %s the number of randomly selected securities added to a portfolio is
increased) the level of unsystematic ris' approaches 0ero. Ho&ever mar'et related
systematic ris' cannot be reduced by simple diversification. This ris' is common to all
securities.
P%r'(0' *0?(2?%$ *0 .(r,-(2*( /+0+1%/%0,/
I0?%',(r<
>AF@
%re the people &ho are interested in investing their fundsR
P(r,-(2*( M+0+1%r'<
Is a person &ho is in the &a'e of a contract agreement &ith a client) advices or
directs or underta'es on behalf of the clients) the management or distribution or
management of the funds of the client as the case may be.
D*')r%,*(0+r4 P(r,-(2*( M+0+1%r<
eans a manager &ho e,ercise under a contract relating to a portfolio
management e,ercise any degree of discretion as to the investment or management of
portfolio or securities or funds of clients as the case may be.
T"% r%2+,*(0'"*. 5%,G%%0 +0 *0?%',(r +0$ .(r,-(2*( /+0+1%r *' (- + "*1"24
*0,%r+),*?% 0+,#r%
The portfolio manager carries out all the transactions pertaining to the investor
under the po&er of attorney during the last t&o decades) and increasing comple,ity &as
&itnessed in the capital mar'et and its trading procedures in this conte,t a 'ey
2uninformed3 investor formed 3 investor found him self in a tric'y situation ) to 'eep
trac' of mar'et movement )update his 'no&ledge) yet stay in the capital mar'et and
ma'e money ) therefore in loo'ed for&ard to resuming help from portfolio manager to do
the job for him .The portfolio management see's to stri'e a balance bet&een ris'!s and
return.
The generally rule in that greater ris' more of the profits but S.".$.I. in its
guidelines prohibits portfolio managers to promise any return to investor. +ortfolio
management is not a substitute to the inherent ris's associated &ith equity investment.
>AI@
@"( )+0 5% + P(r,-(2*( M+0+1%rH
1nly those &ho are registered and pay the required license fee are eligible to
operate as portfolio managers. %n applicant for this purpose should have necessary
infrastructure &ith professionally qualified persons and &ith a minimum of t&o persons
&ith e,perience in this business and a minimum net &orth of *s. DKla'h!s. The
certificate once granted is valid for three years. Nees payable for registration are *s
?.Dla'h!s every for t&o years and *s.9la'h!s for the third year. Nrom the fourth year
on&ards) rene&al fees per annum are *s IDKKK. These are subjected to change by the
S.".$.I.
The S.".$.I. has imposed a number of obligations and a code of conduct on them.
The portfolio manager should have a high standard of integrity) honesty and should not
have been convicted of any economic offence or moral turpitude. He should not resort to
rigging up of prices) insider trading or creating false mar'ets) etc. their boo's of accounts
are subject to inspection to inspection and audit by S.".$.I... The observance of the code
of conduct and guidelines given by the S.".$.I. are subject to inspection and penalties for
violation are imposed. The manager has to submit periodical returns and documents as
may be required by the S"$I from time.to. time.
F#0),*(0' (- P(r,-(2*( M+0+1%r'<
A$?*'(r4 R(2%< advice ne& investments) revie& the e,isting ones)
identification of objectives) recommending high yield securities etc.
C(0$#),*01 M+rA%, +0$ E)(0(/*) S%r?*)%< this is essential for
recommending good yielding securities they have to study the current fiscal
policy) budget proposal; individual policies etc further portfolio manager should
ta'e in to account the credit policy) industrial gro&th) foreign e,change possible
change in corporate la&!s etc.
F*0+0)*+2 A0+24'*'< he should evaluate the financial statement of company
in order to understand) their net &orth future earnings) prospectus and strength.
S,#$4 (- ',()A /+rA%, < he should observe the trends at various stoc'
e,change and analysis scripts so that he is able to identify the right securities for
investment
>AJ@
S,#$4 (- *0$#',r4< he should study the industry to 'no& its future prospects)
technical changes etc) required for investment proposal he should also see the
problem!s of the industry.
D%)*$% ,"% ,4.% (- .(r, -(2*(< 'eeping in mind the objectives of portfolio a
portfolio manager has to decide &eather the portfolio should comprise equity
preference shares) debentures) convertibles) non.convertibles or partly
convertibles) money mar'et) securities etc or a mi, of more than one type of
proper mi, ensures higher safety) yield and liquidity coupled &ith balanced ris'
techniques of portfolio management.
% portfolio manager in the Indian conte,t has been $ro'ers 2$ig bro'ers3 &ho on
the basis of their e,perience) mar'et trends) Insider trader) helps the limited 'no&ledge
persons.
*egistered merchant ban'ers can act!s as portfolio manager!s Investor!s must
loo' for&ard) for qualification and performance and ability and research base of the
portfolio managers.
T%)"0*L#%' (- .(r,-(2*( /+0+1%/%0,<
%s of no& the under noted technique of portfolio management/ are in vogue in our
country
9. EL#*,4 P(r,-(2*(< Is influenced by internal and e,ternal factors the internal
factors affect the inner &or'ing of the company!s gro&th plans are analy0ed &ith
referenced to $alance sheet) profit H loss a<c 2account3 of the company. %mong
the e,ternal factor are changes in the government policies) Trade cycle!s)
+olitical stability etc.
?. EL#*,4 S,()A A0+24'*'< under this method the probable future value of a
share of a company is determined it can be done by ratio!s of earning per share of
the company and price earnings ratio.

Shares "quity of No.
Ta, %fter +rofit
"+S=
>A:@
Share per "arnings
+rice ar'et
*atio "arning +rice =
1ne can estimate trend of earning by "+S) &hich reflects trends of earning
quality of company) dividend policy) and quality of management.
+rice earnings ratio indicate a confidence of mar'et about the company future) a high
rating is preferable.
T"% -(22(G*01 .(*0,' /#', 5% )(0'*$%r%$ 54 .(r,-(2*( /+0+1%r' G"*2%
+0+24M*01 ,"% '%)#r*,*%'.
1. N+,#r% (- ,"% *0$#',r4 +0$ *,' .r($#),< long term trends of industries)
competition &ithin) and outside the industry) Technical changes) labour relations)
sensitivity) to Trade cycle.
. I0$#',r*+2 +0+24'*' (- .r('.%),*?% %+r0*01'& )+'" -2(G'& G(rA*01
)+.*,+2& $*?*$%0$'& %,).
9. R+,*( +0+24'*'< R+,*( such as debt equity ratio!s current ratio!s net &orth)
profit earnings ratio) return on investment) and are &or'ed out to decide the portfolio.
The &ise principle of portfolio management suggests that (B#4 G"%0 ,"% /+rA%, *' 2(G
(r BEARIS3) +0$ '%22 G"%0 ,"% /+rA%, *' r*'*01 (r BULLIS3;.
Stoc' mar'et operation can be analy0ed by/
a3 Nundamental approach /. based on intrinsic value of share!s
b3 Technical approach/.based on Eo&jone!s theory) *andom &al' theory)
etc.
Pr*)%' +r% 5+'%$ #.(0 $%/+0$ +0$ '#..24 (- ,"% /+rA%,.
i. Traditional approach assumes that
ii. 1bjectives are ma,imi0ation of &ealth and minimi0ation of ris'.
iii. Eiversification reduces ris' and volatility.
iv. 4ariable returns) high illiquidity; etc.
#apital %ssets pricing approach 2#%+3 it pay!s more &eight age) to ris' or portfolio
diversification of portfolio.
>CK@
D*?%r'*-*)+,*(0 (- .(r,-(2*( r%$#)%' r*'A 5#, *, '"(#2$ 5% 5+'%$ (0
)%r,+*0 +''%''/%0, '#)" +'<
Trend analysis of past share prices.
4aluation of intrinsic value of company 2trend.mar'er moves are 'no&n for their
Uncertainties they are compared to be high) and lo& prompts of &ave mar'et trends are
constituted by these &aves it is a pattern of movement based on past3.
The follo&ing rules must be studied &hile cautious portfolio manager before decide to
invest their funds in portfolio!s.
9. #ompile the financials of the companies in the immediate past A years such as
turnover) gross profit) net profit before ta,) compare the profit earning of company &ith
that of the industry average nature of product manufacture service render and it future
demand )'no& about the promoters and their bac' ground) dividend trac' record) bonus
shares in the past A to D years )reflects company!s commitment to share holders the
relevant information can be accessed from the *E#2registrant of companies3published
financial results financed quarters) journals and ledgers.
?. 7atch out the highs and lo&s of the scripts for the past ? to A years and their timing
cyclical scripts have a tendency to repeat their performance )this hypothesis can be true
of all other financial )
A. The higher the trading volume higher is liquidity and still higher the chance of
speculation) it is futile to invest in such shares &ho!s daily movements cannot be 'ept
trac') if you &ant to reap rich returns 'eep investment over along hori0on and it &ill
offset the &ild intraday trading fluctuation!s) the minor movement of scripts may be
ignored) &e must remember that share mar'et moves in phases and the span of each
phase is F months to D years.
a. Mong term of the mar'et should be the guiding factor to enable you to invest and
quit. The mar'et is no& bullish and the trend is li'ely to continue for some more
time.
b. UN tradable shares must find a last place in portfolio apart from return; even capital
invested is eroded &ith no &ay of e,it &ith no &ay of e,it &ith inside.
>C9@
Ho& at all one should avoid such scripts in futureR
293 Never invest on the basis of an insider trader tip in a company &hich is not sound
2insider trader is person &ho gives tip for trading in securities based on prices sensitive
up price sensitive un published information relating to such security3.
2?3 Never invest in the so called promoter quota of lesser 'no&n company
2A3 Never invest in a company about &hich you do not have appropriate 'no&ledge.
2C3 Never at all invest in a company &hich doesn!t have a stringent financial record your
portfolio should not a stagnate
2D3 Shuffle the portfolio and replace the slo& moving sector &ith active ones ) investors
&ere shatter &hen the technology ) media) soft&are ) stops have ta'en a do&n slight.
2F3 Never fall to the magic of the scripts don!t confine to the blue chip company8s) loo'
out for other portfolio that ensure regular dividends.
2I3 In the same &ay never react to sudden raise or fall in stoc' mar'et inde, such
fluctuation is movement minor correction!s in stoc' mar'et held in consolidation of
mar'et their by reading out a &ea' player often taste on &ait for the dust and dim to
settle to ma'e your moveB .
>C?@
PORT FOLIO MANAGEMENT AND DIVESIFICATOIN/
#ombinations of securities that have high ris' and return features ma'e up a portfolio.
+ortfolio!s may or may not ta'e on the aggregate characteristics of individual
part) portfolio analysis ta'es various components of ris' and return for each industry and
consider the effort of combined security.
+ortfolio selection involves choosing the best portfolio to suit the ris' return
preferences of portfolio investor management of portfolio is a dynamic activity of
evaluating and revising the portfolio in terms of portfolios objectives
It may include in cash also) even if one goes bad the other &ill provide protection from
the loss even cash is subject to inflation the diversification can be either vertical or
hori0ontal the vertical diversification portfolio can have script of different company!s
&ithin the same industry.
In hori0ontal diversification one can have different scripts chosen from different
industries. It should be an adequate diversification loo'ing in to the si0e of portfolio.
Traditional approach advocates the more security one holds in a portfolio ) the better it is
according to modern approach diversification should not be quantified but should be related to
the quality of scripts &hich leads to the quality and portfolio subsequently e,perience can
sho& that beyond a certain number of securities adding more securities become e,pensive.
Investment in a fi,ed return securities in the current mar'et scenario &hich is passing
through a an uncertain phase investors are facing the problem of lac' of liquidity combined
&ith minimum returns the important point to both is that the equity mar'et and debt mar'et
moves in opposite direction .&here the stoc' mar'et is booming) equities perform better &here
as in depressed mar'et the assured returns related securities mar'et outperform equities.
It is cyclic and is evident in more global mar'et 'eeping this in mind an investor can shift
from fi,ed income securities to equities and vise versa along &ith the changing mar'et
scenario ) if the investment are &isely planned they ) fetch good returns even &hen the mar'et
is depressed most ) important the investor must adopt the time bound strategy in differing
state of mar'et to achieve the optimum result &hen the aim is short term returns it &ould be
>CA@
&ise for the investor to invest in equities &hen the mar'et is in boom H it could be revie&ed if
the same is done. a,imum of returns can be achieved by follo&ing a composite pattern of
investment by having) suitable investment allocation strategy among the available resources.
N%?%r *0?%', *0 + '*012% '%)#r*,*%' 4(#r *0?%',/%0, )+0 5% +22()+,%$ *0
,"% -(22(G*01 +r%+'<
9. "quities/.primary and secondary mar'et.
?. utual Nunds
A. $an' deposits
C. Ni,ed deposits H bonds and the ta, saving schemes
T"% $*--%r%0, +r%+' (- -*>%$ *0)(/% +r% +'<8
Ni,ed deposits in company
$onds
utual funds schemes
&ith an investment strategy to invest in debt investment in fi,ed deposit can be made for the
simple reason that assured fi,ed income of a high of 9C.9IQ per annum can be e,pected
&hich is much safer then investing a highly volatile stoc' mar'et) even in comparison to
ban's deposit &hich gives a ma,imum return of 9?Q per annum) fi,ed deposit s in high
profile esteemed &ill performing companies definitely gives a higher returns.
BETA<
The concept of $eta as a measure of systematic ris' is useful in portfolio
management. The beta measures the movement of one script in relation to the mar'et trendS.
Thus $"T% can be positive or negative depending on &hether the individual scrip moves in
the same direction as the mar'et or in the opposite direction and the e,tent of variance of one
scrip vis.T.vis the mar'et is being measured by $"T%. The $"T% is negative if the share
price moves contrary to the general trend and positive if it moves in the same direction. The
scrip!s &ith higher $"T% of more than one are called aggressive) and those &ith a lo&
$"T% of less than one are called defensive.
It is therefore it is necessary) to calculate $etas for all scrip!s and choose those &ith
high $eta for a portfolio of high returns.
>CC@
D%-*0*,*(0 (- *0?%',/%0,<
%ccording to N. %MIN- (Investment may be defined as the purchase by an
individual or an Institutional investor of a financial or real asset that produces a return
proportional to the ris' assumed over some future investment periodB. %ccording to E.".
Nisher and *.J. Jordon) Investment is a commitment of funds made in the e,pectation of
some positive rate of return. If the investment is properly underta'en) the return &ill be
commensurate &ith the ris' of the investor assumesB.
C(0)%., (- I0?%',/%0,<
Investment &ill generally be used in its financial sense and as such investment is the
allocation of monetary resources to assets that are e,pected to yield some gain or positive
return over a given period of time. Investment is a commitment of a person!s funds to derive
future income in the form of interest) dividends) rent) premiums) pension benefits or the
appreciation of the value of his principal capital.
any types of investment media or channels for ma'ing investments are available.
Securities ranging from ris' free instruments to highly speculative shares and debentures are
available for alternative investments.
%ll investments are ris'y) as the investor parts &ith his money. %n efficient investor
&ith proper training can reduce the ris' and ma,imi0e returns. He can avoid pitfalls and
protect his interest.
There are different methods of classifying the investment avenues. % major
classification is physical Investments and Ninancial Investments. They are physical) if
savings are used to acquire physical assets) useful for consumption or production.
Some physical assets li'e ploughs) tractors or harvesters are useful in agricultural
production. % fe& useful physical assets li'e cars) jeeps etc.) are useful in business.
any items of physical assets are not useful for further production or goods or create
income as in the case of consumer durables) gold) silver etc. among different types of
investment) some are mar'etable and transferable and others are not. ",amples of
mar'etable assets are shares and debentures of public limited companies) particularly the
>CD@
listed companies on Stoc' ",change) $onds of +.S.U.) -overnment securities etc. non.
mar'etable securities or investments in ban' deposits) provident fund and pension funds)
insurance certificates) post office deposits) national savings certificate) company deposits)
private limited companies shares etc.
T"% *0?%',/%0, .r()%'' /+4 5% $%')r*5%$ *0 ,"% -(22(G*01 ',+1%'<
I0?%',/%0, P(2*)4<
The first stage determines and involves personal financial affairs and objectives
before ma'ing investment. It may also be called the preparation of investment policy stage.
The investor has to see that he should be able to create an emergency fund) an element of
liquidity and quic' convertibility of securities into cash. This stage may) therefore be called
the proper time of identifying investment assets and considering the various features of
investments.
I0?%',/%0, A0+24'*'<
%fter arranging a logical order of types of investment preferred) the ne,t step is to
analy0e the securities available for investment. The investor must ta'e a comparative
analysis of type of industry) 'ind of securities etc. the primary concerns at this stage &ould
be to form beliefs regarding future behavior of prices and stoc's) the e,pected return and
associated ris's.
I0?%',/%0, V+2#+,*(0<
Investment value) in general is ta'en to be the present &orth to the o&ners of future
benefits from investments. The investor has to bear in mind the value of these investments.
%n appropriate set of &eights have to be applied &ith the use of forecasted benefits to
estimate the value of the investment assets such as stoc's) debentures) and bonds and other
assets. #omparison of the value &ith the current mar'et price of the assets allo&s a
determination of the relative attractiveness of the asset allo&s a determination of the relative
attractiveness of the asset. "ach asset must be value on its individual merit.
P(r,-(2*( C(0',r#),*(0 +0$ F%%$8B+)A<
+ortfolio construction requires 'no&ledge of different aspects of securities in relation
to safety and gro&th of principal) liquidity of assets etc. In this stage) &e study)
>CF@
determination of diversification level) consideration of investment timing selection of
investment assets) allocation of invest able &ealth to different investments) evaluation of
portfolio for feed.bac'.
INVESTMENT DECISIONS8 GUIDELINES FOR EIUITY
INVESTMENT<
"quity shares are characteri0ed by price fluctuations) &hich can produce substantial
gains or inflict severe losses. -iven the volatility and dynamism of the stoc' mar'et)
investor requires greater competence and s'ill.along &ith a touch of good luc' too.to invest
in equity shares. Here are some general guidelines to play to equity game) irrespective of
&eather you aggressive or conservative.
%dopt a suitable formula plan.
"stablish value anchors.
%ssets mar'et psychology.
#ombination of fundamental and technical analy0e.
Eiversify sensibly.
+eriodically revie& and revise your portfolio.
R%L#*r%/%0, (- P(r,-(2*(<
9. aintain adequate diversification &hen relative values of various securities in the
portfolio change.
?. Incorporate ne& information relevant for return investment.
A. ",pand or contrast the si0e of portfolio to absorb funds or &ith dra& funds.
C. *eflect changes in investor ris' disposition.
.
I#+2*,*%' -(r S#))%''-#2 I0?%',*01<
#ontrary thin'ing
+atience
#omposure
Nle,ibility
1penness
>CI@
INVESTORS PORTFOLIO C3OICE<
%n investor tends to choose that portfolio) &hich yields him ma,imum return by
applying utility theory. Utility Theory is the foundation for the choice under uncertainty.
#ardinal and ordinal theories are the t&o alternatives) &hich is used by economist to
determine ho& people and societies choose to allocate scare resources and to distribute
&ealth among one another.
The former theory implies that a consumer is capable of assigning to every
commodity or combination of commodities a number representing the amount of degree
of utility associated &ith it. 7hereas the latter theory) implies that a consumer needs not
be liable to assign numbers that represents the degree or amount of utility associated &ith
commodity or combination of commodity. The consumer can only ran' and order the
amount or degree of utility associated &ith commodity.
In an uncertain environment it becomes necessary to ascertain ho& different
individual &ill react to ris'y situation. The ris' is defined as a probability of success or
failure or ris' could be described as variability of outcomes) payoffs or returns. This
implies that there is a distribution of outcomes associated &ith each investment decision.
Therefore &e can say that there is a relationship bet&een the e,pected utility and ris'.
",pected utility &ith a particular portfolio return. This numerical value is calculated by
ta'ing a &eighted average of the utilities of the various possible returns. The &eights are
the probabilities of occurrence associated &ith each of the possible returns.
MARKO@ITF MODEL
T3E MEAN8VARIENCE CRITERION
Er. Harry . ar'o&it0 is credited &ith developing the first modern portfolio
analysis in order to arrange for the optimum allocation of assets &ith in portfolio. To
reach this objective) ar'o&it0 generated portfolios &ithin a re&ard ris' conte,t. In
essence) ar'o&it0!s model is a theoretical frame&or' for the analysis of ris' return
choices. Eecisions are based on the concept of efficient portfolios.
% portfolio is efficient &hen it is e,pected to yield the highest return for the level
of ris' accepted or) alternatively) the smallest portfolio ris' for a specified level of
>CJ@
e,pected return. To build an efficient portfolio an e,pected return level is chosen) and
assets are substituted until the portfolio combination &ith the smallest variance at the
return level is found. %t this process is repeated for e,pected returns) set of efficient
portfolio is generated.
ASSUMPTIONS<
9. Investors consider each investment alternative as being represented by a
probability distribution of e,pected returns over some holding period.
?. Investors ma,imi0e one period.e,pected utility and posse!s utility curve) &hich
demonstrates diminishing marginal utility of &ealth.
A. Individuals estimate ris' on the ris' on the basis of the variability of e,pected
returns.
C. Investors base decisions solely on e,pected return and variance or returns only.
D. Nor a given ris' level) investors prefer high returns to lo&er return similarly for a
given level of e,pected return) Investors prefer ris' to more ris'.
Under these assumptions) a single asset or portfolio of assets is considered to be
(efficientB if no other asset or portfolio of assets offers higher e,pected return &ith the
same ris' or lo&er ris' &ith the same e,pected return.
T3E SPECIFIC MODEL<
In developing his model) or'o&it0 first disposed of the investment behavior
rule that the investor should ma,imi0e e,pected return. This rule implies that the non.
diversified single security portfolio &ith the highest return is the most desirable portfolio.
1nly by buying that single security can e,pected return be ma,imi0ed. The single.
security portfolio &ould obviously be preferable if the investor &ere perfectly certain
that this highest e,pected return &ould turn out be the actual return. Ho&ever) under real
&orld conditions of uncertainty) most ris' adverse investors join &ith ar'o&it0 in
discarding the role of calling for ma,imi0ing e,pected returns. %s an alternative)
ar'o&it0 offers the (e,pected returns<variance of returnsB rule.
ar'o&it0 has sho&n the effect of diversification by reading the ris' of
securities. %ccording to him) the security &ith covariance &hich is either negative or lo&
>C:@
amongst them is the best manner to reduce ris'. ar'o&it0 has been able to sho& that
securities &hich have less than positive correlation &ill reduce ris' &ithout) in any &ay
bringing the return do&n. %ccording to his research study a lo& correlation level
bet&een securities in the portfolio &ill sho& less ris'. %ccording to him) investing in a
large number of securities is not the right method of investment. It is the right 'ind of
security &hich brings the ma,imum result.
CONSTRUCTION OF T3E STUDY
P#r.('% (- ,"% S,#$4<
The purpose of the study is to find out at &hat percentage of investment should
be invested bet&een t&o companies) on the basis of ris' and return of each security in
comparison. These percentages helps in allocating the funds available for investment
based on ris'y portfolios.
I/.2%/%0,+,*(0 (- S,#$4/
Nor implementing the study)J security!s or scripts constituting the Sense, mar'et
are selected of one month closing share movement price data from "conomic Times and
financial e,press from Jan A
rd
to A9
st
Jan ?K9K.
In order to 'no& ho& the ris' of the stoc' or script) &e use the formula) &hich is
given belo&/
4ariance Eeviation Standard =

=
n
t
R R
n
9
?
3 2
9
9
4ariance
7here
?
3 2

R R
U square of difference bet&een sample and mean.
N U number of sample observed.
%fter that) &e need to compare the stoc's or scripts of t&o companies &ith each other by
using the formula or correlation co.efficient as given belo&.

=

=
n
t
RB RB RA RA
n
9
%$
3 32 2
9
3 ov 4ariance2# . #o
Std.$ Std.%
3 2#ov
3 2 t #oefficien n #orrelatio
%$
%$

=
>DK@
7here
3 32 2

RB RB RA RA
U #ombined Eeviations of % H $
2Std. %3 2Std. $3 U Standard Eeviation of % H $
#14
%$
U #ovariance bet&een % H $
N U Number of 1bservation
The ne,t step &ould be the construction of the optimal portfolio on the basis of
&hat percentage of investment should be invested &hen t&o securities and stoc's are
combined i.e. calculation of t&o assets portfolio &eight by using minimum variance
equation &hich is given belo&.
FORMULA
.b3 Std.a32Std 2 ? 2Std.b3 2Std.a3
.b3 Std.a32Std 2 2Std.b3
V
? ?
?
a
ab
ab

=
7here
Std. b U Standard Eeviation of b
Std. a U Standard Eeviation of a
W
ab
U #orrelation #o."fficient bet&een % H $
The ne,t step is final step to calculate the portfolio ris' 2combined ris'3) that
sho&s ho& much is the ris' is reduced by combining t&o stoc's or scripts by using this
formula/
X9X? V V V ? X? V X9 V X+
9? ? 9
? ?
?
? ?
9
+ + =
@"%r%
V
9
U +roportion of Investment in Security 9.
V
?
U +roportion of Investment in Security ?.
X9U Standard Eeviation of Security 9.
X? U Standard Eeviation of Security ?.
V
9?
U #orrelation #o.efficient bet&een Security 9 H ?.
Wp U +ortfolio *is'
>D9@
Chapter !
DATA ANSLYSIS
&
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
1. C+2)#2+,*(0 (- R%,#r0 (- ICICI
Table No. 1
Y%+r B%1*00*01 Pr*)% (R'.! E0$*01 Pr*)% (R'.! D*?*$%0$ (R'.!
?KKI = ?KKJ 9C9.CD ?:D.CD I.DK
?KKJ = ?KK: ?:I.:K AI9.AD I.DK
?KK: = ?K9K AID.KK DJD.KD J.DK
?K9K = ?K99 DJI.IK J:9.D J.DK
?K99 = ?K9? J:?.KK 9?AJ.I 9K.KK
+rice $egining
+rice3 $egining . +rice 2"nding Eividend
*eturn
+
=

R%,#r0 (008! K
99C.9IQ 9KK
9C9.CD
9C9.CD3 . 2?:D.CD I.DK
=
+
R%,#r0 (00D! K
?I.9IQ 9KK
?:I.:K
?:I.:K3 . 2AI9.AD I.DK
=
+

R%,#r0 (010! K
DJ.?JQ 9KK
AID.KK
AID.KK3 . 2DJD.KD J.DK
=
+
R%,#r0 (011! K
DA.9AQ 9KK
DJI.IK
DJI.IK3 . 2J:9.DK J.DK
=
+
R%,#r0 (01! K
A:.:JQ 9KK
J:?.KK
J:?.KK3 . 29?AJ.IK 9K.KK
=
+
>D?@
. CALCULATION OF RETURN OF 3DFC
Table No. 2
+rice $eginnging
+rice3 $egining . +rice 2"nding Eividend
*eturn
+
=

R%,#r0 (008! K
JK.:KQ 9KK
ADJ.DK
ADJ.DK3 . 2FCD.DD A
=
+

R%,#r0 (00D! K
9:.FKQ 9KK
FCD.:K
FCD.:K3 . 2IF:.KD A.DK
=
+

R%,#r0 (010! K
DI.9AQ 9KK
II9.KK
II9.KK3 . 29?KI.KK C.DK
=
+
R%,#r0 (011! K
AF.FKQ 9KK
99:D.KK
99:D.KK3 . 29F?F.:K D.KK
=
+
R%,#r0 (01! K
IF.:IQ 9KK
9FAK.KK
9FAK.KK3 . 2?JII.ID I.KK
=
+
>DA@
Y%+r B%1*00*01 Pr*)% (R'.! E0$*01 Pr*)% (R'.! D*?*$%0$ (R'.!
00E C 008 968.6 N76.66 9
008 C 00D N76.D END.06 9.60
00D C 010 EE1 10E 7.60
010 C 011 11D6 1NN.D 6.60
011 C 01 1N90 8EE.E6 E.00
9. C+2)#2+,*(0 (- ',+0$+r$ $%?*+,*(0 (- ICICI
Table No.
Y%+r R%,#r0 (R! R 3 * . 2*
?
3 * . 2*
?KKI = ?KKJ 117.E 68.N6 6N.078 978N.N
?KKJ = ?KK: E.1E 68.N6 891.78 DD1.11
?KK: = ?K9K 68.8 68.N6 80.9E 0.198987
?K9K = ?K99 69.19 68.N6 86.6 90.7D
?K99 = ?K9? 9D.D8 68.N6 818.NE 978.N7
D9.N 786N.D8
N
R

= 3 * 2 %verage K
DJ.FD?
D
?F . ?:A
=

=
?
3 * . 2*
9 . n
9
4ariance
4ariance Eeviation Standard =
3 AI: . 99:KD 2
9 . D
9
Eeviation Standard =
K 97.87N
>DC@
7. C+2)#2+,*(0 (- ',+0$+r$ $%?*+,*(0 (- 3DFC
Table No. !
Y%+r R%,#r0 (R! R 3 * . 2*
?
3 * . 2*
?KKI = ?KKJ
80.D 67.7 N.NN E10.E6
?KKJ = ?KK:
1D.N0 67.7 897.N7 11DD.D
?KK: = ?K9K
6E.19 67.7 .8D 8.961
?K9K = ?K99
9N.N 67.7 81E.N7 911.1N
?K99 = ?K9?
EN.DE 67.7 .E9 61N.N6
E1. 7EN.8
N
R

= 3 * 2 %verage K
D
?K . ?I9
K 67.7

=
?
3 * . 2*
9 . n
9
4ariance
4ariance Eeviation Standard =
K
3 JK . ?CIF 2
9 . D
9

K 7.88

>DD@
6. C(rr%2+,*(0 5%,G%%0 3DFC & ICICI
Table No. "
Y%+r
DEVIATION OF
3DFC
*% *%
DEVIATION OF
ICICI
*$ *$
COMBINED DEVIATION
3 *$ *$ 32 *% 2*%
?KKI = ?KKJ N.NN 6N.078 17D7.7
?KKJ = ?KK: 897.N7 891.78 10D0.6
?KK: = ?K9K .8D 80.9E 81.0E6
?K9K = ?K99 81E.N7 86.6 DE.71
?K99 = ?K9? .E9 818.NE 877.7
6N.NE6

=
n
9 t
%$
3 *$ 32*$ *% 2*%
n
9
3 2#ov 4ariance #o
3 FID . ??DF 2
D
9
3 2#ov 4ariance #o
%$
=
K 761.996
3 . 32 . 2
3 2
B Std A Std
Cov
t Coefficien n Correlatio
AB
AB
=
K
3 JCF . AC 32 JJ . ?C 2
AAD . CD9
K 0.60N
>DF@
N. C(rr%2+,*(0 5%,G%%0 ITC & COLGATE CPALMOLIVE<
Table No. #
Y%+r
DEVIATION OF
ITC
*% *%
DEVIATION OF
COLGATE8 PALMOLIVE
*$ *$
COMBINED DEVIATION
3 *$ *$ 32 *% 2*%
?KKI.?KKJ 71.07 89.7 819.DE
?KKJ.?KK: 6.E17 817.1N 89N7.1
?KK:.?K9K 8D6.66N N.7N 868.7
?K9K.?K99 1E.117 18.0N 90D.0E
?K99.?K9? 11.E17 8E.1 891E.N8
89097.08

=
n
9 t
%$
3 *$ 32*$ *% 2*%
n
9
3 2#ov 4ariance #o
C(8V+r*+0)% (COV
AB
! K
3 KJ . AKAC 2
D
9

K N0N.81N

3 . 32 . 2
3 2
B Std A Std
Cov
t Coefficien n Correlatio
AB
AB
=
U
3 ?9 . ?? 32 DD . DC 2
J9F . FKF
K 80.6008
>DI@
STANDARD DEVIATION<
Table No. $
COMPANY STANDARED DEVIATION
ITC 67.66
COL8PAL .1
BAJAJ 67.N0
M&M 107.18N
3DFC 7.88
ICICI 97.87N
RANBABY 66.19
@IPRO 96.19
CIPLA 66.
>DJ@
G%a&': 1
>D:@
0
20
40
60
80
100
120
STANDARD DEVIATION
AVERAGE
Table No. (
COMPANY AVERAGE
ITC 8.N8N
COLGATE & PALMOLIVE E.E7
BAJAJ 78.1E6
M&M E1.E68
3DFC 67.7
ICICI 68.N6
RANBABY 10.18
@IPRO 81.D9
CIPLA 8E.E77
>FK@
G%a&': 2

>F9@
-20
-10
0
10
20
30
40
50
60
70
80
CORRELATION COEFFICIENT
Table No. )
COMPANY R
3DFC & ICICI 0.60N
ITC & COLGATE 0.6008
BAJAJAUTO & MA3INDRA 0.N06
CIPLA & RANBABY 0.0D6
3DFC & @IPRO 0.0E9
COLGATE & SATYAM 0.90
BAJAJ &I TC 80.0D
CIPLA & 3DFC 0.NN8
RANBABY & @IPRO 0.967
CIPLA & BAJAJ 0.ND0
>F?@
PORTFOLIO @EIG3TS
3DFC & ICICI
F(r/#2+<
3 . 32 . 2 ? 3 . 2 3 . 2
3 . 32 . 2 3 . 2
V
? ?
?
a
b Std a Std b Std a Std
b Std a Std b Std
ab
ab

=
B
5
K 1 C B
+
@"%r%
B
+
K 3DFC
B
5
K ICICI
S,+0$+r$ D%?*+,*(0 (- + K 7.88
S,+0$+r$ D%?*+,*(0 (- 5 K 97.86
O
+5
K 0.60N
3 JD . AC 32 JJ . ?C 2 D?KF . ?K 3 JD . AC 2 3 JJ . ?C 2
3 JD . AC 32 JJ . ?C 2 D?KF . K 3 JD . AC 2
V
? ?
?
a
+

=
a b
=9
B
+
K 0.81DD

B
5 K
0.1801


>FA@
PORTFOLIO @EIG3TS
@IPRO & ICICI
F(r/#2+<
3 . 32 . 2 ? 3 . 2 3 . 2
3 . 32 . 2 3 . 2
V
? ?
?
a
b Std a Std b Std a Std
b Std a Std b Std
ab
ab

=
B
5
K 1 C B
+
@"%r%
B
+
K @IPRO
B
5
K ICICI
S,+0$+r$ D%?*+,*(0 (- + K 96.19
S,+0$+r$ D%?*+,*(0 (- 5 K 97.87N

3 JCF . AC 32 9?A . AD 2 D?KF . K ? 3 JCF . AC 2 3 9?A . AD 2
3 JCF . AC 32 9?A . AD 2 D?KF . K 3 JCF . AC 2
V
? ?
?
a
+

=
U 2AC.JCF3
B
5
K 1 C

B
+
B
+
K 0.7D06
B
5
K 0.60D6
>FC@
PORTFOLIO @EIG3TS
ITC & COLGATE<
F(r/#2+<
3 . 32 . 2 ? 3 . 2 3 . 2
3 . 32 . 2 3 . 2
V
? ?
?
a
b Std a Std b Std a Std
b Std a Std b Std
ab
ab

=
B
5
K 1 C B
+
@"%r%
B
+
K ITC
B
5
K COLGATE
S,+0$+r$ D%?*+,*(0 (- + K 67.66
S,+0$+r$ D%?*+,*(0 (- 5 K .1
O
+5
K 0.6008
3 ?9 . ?? 32 DD . DC 2 D?KJ . K ? 3 ?9 . ?? 2 3 DD . DC 2
3 ?9 . ?? 32 DD . DC 2 D?KJ . K 3 ?9 . ?? 2
V
? ?
?
a
+

=
B
5
K 1 C

B
+


B
+
K 0.0609
B
5
K 0.D7DE
>FD@
PORTFOLIO @EIG3TS
CIPLA & RANBABY<
F(r/#2+<
3 . 32 . 2 ? 3 . 2 3 . 2
3 . 32 . 2 3 . 2
V
? ?
?
a
b Std a Std b Std a Std
b Std a Std b Std
ab
ab

=
B
5
K 1 C B
+
@"%r%
B
+
K CIPLA
B
5
K RANBAB
S,+0$+r$ D%?*+,*(0 (- + K 66.
S,+0$+r$ D%?*+,*(0 (- 5 K 66.19
O
+5
K 0.0D6
3 9A . DD 32 ?? . DD 2 K?:D . K ? 3 9A . DD 2 3 ?? . DD 2
3 9A . DD 32 ?? . DD 2 K?:D . K 3 9A . DD 2
V
? ?
?
a
+

=
B
5
K 1 C

B
+


B
+
K 0.7DD1N
B
5
K 0.60087
>FF@
PORTFOLIO @EIG3TS
BAJAJ AUTO & MA3ENDRA<
F(r/#2+<
3 . 32 . 2 ? 3 . 2 3 . 2
3 . 32 . 2 3 . 2
V
? ?
?
a
b Std a Std b Std a Std
b Std a Std b Std
ab
ab

=
B
5
K 1 C B
+
@"%r%
B
+
K BAJAJ AUTO
B
5
K MA3ENDRA
S,+0$+r$ D%?*+,*(0 (- + K 67.N0
S,+0$+r$ D%?*+,*(0 (- 5 K 107.18N
O
+5
K 0.N06
3 9: . 9KC 32 FK . DC 2 FKD . K ? 3 9: . 9KC 2 3 FK . DC 2
3 9: . 9KC 32 FK . DC 2 FKD . K 3 9: . 9KC 2
V
? ?
?
a
+

=
B
5
K 1 C

B
+
B
+
K 1.N0N
B
5
K 80.N0N
>FI@
TG( P(r,-(2*(' C(rr%2+,*(0
C(%--*)*%0,
COMPANY
B
+
COMPANY
B
5
PORTFOLIO
RETURN R
.
PORTFOLO
RISK X.
ICICI & 3DFC 0.60N 0.81DD ..0.1801 117.7 91.17
ITC & COLGATE 0.6008 0.06N9 0.D7DE N.896 .EE
CIPLA & RANBABI 0.N06 0.7DD1N 0.60087 1.996 7D.79
M&M & BAJAJ 0.0D6 1.N0N 80.N0 1.N1 1E1.
PORTFOLIO RETURN b b a a p
V * V * * + =

PORTFOLIO RISK
? 9 9? ? 9
?
?
?
?
?
9
?
9
V V V ? V V X+ + + =
>FJ@
P(r,-(2*( R%,#r0 R
.

ICICI & 3DFC 117.7
ITC & COLGATE N.896
CIPLA & RANBABI 1.97
M&M & BAJAJ 1.N1
G%a&':
>F:@
P(r,-(2*( R*'A<
ICICI & 3DFC 91.17
ITC & COLGATE .EE
CIPLA & RANBABI 7D.79
M&M & BAJAJ 1E1. "$"E
",cel.#hart.J Ys
G%a&': !
>IK@
Chapter "
FINDINGS
SUGGESTIONS
FINDINGS
ICICI & 3DFC<
The combination of I#I#I and HEN# gives the proportion of investment is
9.9JK9 and K.J9:: for I#I#I and HEN#) based on the standard deviations The standard
deviation for I#I#I is AC.JCF and for HEN# is ?C.JJ.
Hence the investor should invest their funds more in HEN# &hen compared to
I#I#I as the ris' involved in HEN# is less than I#I#I as the standard deviation of HEN#
is less than that of I#I#I.
ITC & COLGATE PALMOLIVE<
The combination of IT# and #1M-%T" gives the proportion of investment is
K.KDFA and K.DKKJC for IT# and #1M-%T") based on the standard deviations The
standard deviation for IT# is DC.DD and for #1M-%T" is ??.?.
Hence the investor should invest their funds more in #1M-%T" &hen compared
to IT# as the ris' involved in #1M-%T" is less than IT# as the standard deviation of
#1M-%T" is less than that of IT#.
CIPLA & RANBABY<
The combination of #I+M% and *%N$%VO gives the proportion of investment
is K.C::9F and K.DKKJC for #I+M% and *%N$%VO) based on the standard deviations the
standard deviation for #I+M% is DD.?? and for *%N$%VO is DD.9A. 7hen compared
to both the ris' is almost same) hence the ris' is same &hen invested in either of the
security.
MA3ENDRA & BAJAJ AUTO<
The combination of H and $%J%J %UT1 gives the proportion of investment is
9.F?KF and K.F?KF for H and $%J%J %UT1) based on the standard deviations The
standard deviation for H is 9KC. 9JF and for $%J%J %UT1 is DC.F.
Hence the investor should invest their funds more in $%J%J %UT1 &hen
compared to H as the ris' involved in $%J%J %UT1 is less than H as the
standard deviation of $%J%J %UT1 is less than that of H.
>I9@
In case of perfectly correlated securities or stoc's) the ris' can be reduced to a
minimum point.
In case of negatively correlative securities the ris' can be reduced to a 0ero.
27hich is company!s ris'3 but the mar'et ris' prevails the same for the security or stoc'
in the portfolio.
>I?@
S#11%',*(0'
Investor &ould be able to achieve &hen the returns of shares and debentures
resultant portfolio &ould be 'no&n as diversified portfolio. Thus portfolio construction
&ould address itself to three major via. Selectivity) timing and diversification
In case of portfolio management) negatively correlated assets are most profitable.
#orrelation bet&een the $%J%J H IT# are negatively correlated &hich means
both the combinations of portfolios are at good position to gain in future.
Investors may invest their money for long run) as both the combinations are most
suitable portfolios. % rational investor &ould constantly e,amine his chosen portfolio
both for average return and ris'.
>IA@
BIBLIOGRAP3Y

BIBLIOGRAP3Y
$11GS
9. E1N%ME") NISH"* H *1N%ME J.J1E1N
S"#U*ITI"S %N%MOSIS %NE +1*TN1MI1 %N%-""NT)F
TH
"EITI1N
?. 4.G.$H%MM%
IN4"ST"NTS %N%-""NT S. #H%NE +U$MI#%TI1N.
A. 4.%.%4%EH%NI.
IN4"ST"NT %N%-""NT
7ebsite/
C. &&&. Investopedia.com
D. &&&.nseindia.com
F. &&&.bseindia.com.
I. &&&.arihantcapital.com
Ne&spapers H aga0ine/
E%I*O N"7S +%+"*S.
"#1N1I# TI") NIN%N#I%M "V+*"S."T#
>IC@