INTRODUCTION

POROTFOLIO MANAGEMENT is a workmanship and investigation of the executives of assets so that

yielding most extreme return at the least hazard. Each financial specialist's essential objective is procuring
most extreme hazard premium. So in this cutting edge time of privatization, globalization and
advancement the significance of a unique control which manages ventures for example portfolio the board
is growing up quickly in the money related world. Portfolio the executives has risen as a different
scholastic control in India. Portfolio hypothesis that manages the discerning venture basic leadership
procedure has now turned into a vital piece of monetary writing.

1.1 INTRODUCTION TO THE STUDY:

This investigation is proposed to think about portfolio the executives rehearses and applying different
speculations of portfolio in portfolio the board choices

1.2 NEED and IMPORTANCE OF STUDY:

Putting resources into protections, for example, shares, debentures and bonds is productive just as
energizing. It is without a doubt fulfilling however includes a lot of hazard and need imaginative
expertise. Putting resources into budgetary protections is currently viewed as a standout amongst the most
unsafe roads of speculation. It is uncommon to discover speculators putting their whole investment funds
in a solitary security. Rather, they will in general put resources into a gathering of Securities. Such
gathering of protections (resources) is called as PORTFOLIO. Making of portfolio decreases chance
without giving up returns. Portfolio the board manages the examination of individual protections just as
with the hypothesis and routine with regards to ideally joining protections into portfolios.

The cutting edge hypothesis is of the view that by enhancement, hazard can be decreased. The financial
specialist can make expansion either by having countless portions of organizations in various locales, in
various businesses or those creating various kinds of product offerings. Present day hypothesis puts stock
in The viewpoint of blends of protections under limitations of hazard and return.
Any country's development is reliant on the exhibition of organizations. The organizations are needing
minimal effort capital. Yet, due to over changes in the business sectors the regular financial specialist,
being hazard averter is giving less consideration towards the portions of organizations because of absence
of information on portfolio the board which lower the hazard level.

So the examination on portfolio the executives is mandatory for the financial specialist in nowadays of

Exceedingly unstable markets to amplify the arrival and limit chance. In the event that the sure financial
specialists are more in number, at that point more the no of organizations will exit and there by assume its
job in country's advancement.

1.3. OBJECTIVE OF THE STUDY:

The targets of the examination are as per the following:

 To evaluate the viability of portfolio the board administrations.

 To examine whether the portfolio hazard is not exactly the individual hazard.
 To comprehend, break down and select the best portfolio
 To ponder whether the chose portfolios are yielding an agreeable and steady come back to the
financial specialist.
 To discover ideal portfolio, which gives ideal return at a limited hazard?
 To thinking about portfolio the board and how it is helpful to speculator in taking choices on the
planning of ventures.
 To estimating and assessing the portfolio execution

1.4 SCOPEiOFiSTUDY:i

ThisiinvestigationicoversitheiMarkowitzimodeliandiCAPM.

The examination covers the computation of relationships between's the various protections so as
to discover at what rate assets ought to be put among the organizations in the portfolio.

 It incorporates the figuring of individual Standard Deviation of protections, loads of individual

protections engaged with the portfolio.

 These rates help in allotting the assets accessible for speculation dependent on unsafe portfolios.

It additionally incorporates hazard and return of portfolios and their exhibition assessment for a

set number of scrip

1.5 DATA COLLECTION METHODS:

The information accumulation strategies incorporate both the essential and optional gathering techniques.

 Primary gathering techniques: This strategy incorporates the information accumulation from the
individual exchange with the approved individuals from the MOTHILAL OSWAL FINANCIAL
SERVISES restricted.
 Secondary gathering techniques: The optional accumulation strategies incorporates the addresses
of the superintend of the market tasks and staff of preparing, etc, likewise the information
gathered from the different sites, magazines, various books and writing issued by approved
instructional hub of MOTHILAL OSWAL FINANCIAL SERVISES constrained. for this
investigation.

1.6 LIMITATIONS OF THE STUDY:

This investigation has been led absolutely to comprehend Portfolio Management for financial
specialists.

 ConstructioniofiPortfolioiisiconfineditoicontentsitwoiorganizationsidependentioniMarkowit
zimodel.
 Very couple of scrips/organizations are chosen and examined from the comman rundown
of BSE sensex and NSE clever contributing organizations.
 Data gathering with respect to chosen contents was carefully kept to auxiliary source. No
essential information is related with the undertaking.
 Detailed investigation of the subject was unrealistic because of constrained size of the
venture. -

There was a requirement concerning time portion for the examination think about for example
for a time of two months.
 REVIEW OF LITERATURE
PORTFOLIO BUILDING

Portfolio choices for an individual financial specialist are affected by a wide assortment of elements.
People contrast enormously in their conditions and in this manner, a budgetary program appropriate to
one individual might be in fitting for another. Preferably, a person's portfolio ought to be tailor-mode to
accommodate one's individual needs.

FINANCIAL SPECIALIST'S CHARACTERISTICS:

An investigation of a person's speculation circumstance requires an investigation of individual qualities,

for example, age, wellbeing conditions, individual propensities, family obligations, business or expert
circumstance, and expense status, all of which influence the speculator's ability to expect hazard.

STAGE IN THE LIFE CYCLE:

A standout amongst the most significant variables influencing the person's venture goal is his phase in the
existence cycle. A youngster may put more prominent accentuation on development and lesser
accentuation on liquidity. He can stand to hang tight for acknowledgment of capital gains as his time
skyline is enormous.

FAMILY DUTIES:

The financial specialist's conjugal status and his obligations towards different individuals from the family
can largy affect his speculation needs and objectives.

FINANCIAL SPECIALIST'S INVOLVEMENT:

The achievement of portfolio relies on the speculator's information and involvement in monetary issues.
On the off chance that a speculator has a fitness for money related illicit relationships, he may wish to be
increasingly forceful in his ventures.

MENTALITY TOWARDS RISK:

An individual's mental make-up and monetary position direct his capacity to expect the hazard. Various
children of protections have various types of dangers. The higher the hazard, the more noteworthy the
open door for higher addition or misfortune.
LIQUIDITY NEEDS:

Liquidity needs differ impressively among individual financial specialists. Speculators with ordinary
salary from different sources may not stress a lot over quick liquidity, yet people who depend intensely
upon venture for gathering their general or explicit needs, must arrangement portfolio to coordinate their
liquidity needs. Liquidity can be gotten in two different ways:

1. By apportioning a proper level of the portfolio to bank stores, and

2. By necessitating that securities and values obtained be profoundly attractive.

EXPENSE CONTEMPLATIONS:

Since various people, contingent on their livelihoods, are exposed to various minor rates of charges,
charge contemplations become most significant factor in person's portfolio technique. There are varying
expense medications for interest in different sorts of advantages.

Time Horizon:

In speculation arranging, time skyline turns into a significant thought. It is exceptionally factor from
individual to person. People in their young age have long time skyline for arranging, they can smooth out
and retain the good and bad times of dangerous blend. People who are old have littler time skyline, they
by and large will in general stay away from unstable portfolios.

PERSON'S FINANCIAL OBJECTIVES:

In the underlying stages, the essential destinations of an individual could be to amass riches through
customary month to month reserve funds and have a venture program to accomplish long haul capital
increases.

SECURITY OF PRINCIPAL:

The assurance of the rupee estimation of the venture is of prime significance to generally financial
specialists. The first speculation can be recuperated just if the security can be promptly sold in the market
without mush loss of significant worth.

Affirmation of Income:

Various speculators have distinctive current pay needs. In the event that an individual is needy of its
speculation pay for current utilization the pay got now as profit and intrigue installments become essential
goal.
VENTURE RISK:

All venture choices rotate around the exchange off among hazard and return. Every single discerning
financial specialist need a considerable come back from their speculation. A capacity to get, measure and
appropriately oversee venture hazard is central to any insightful financial specialist of a theorist. As often
as possible, the hazard related with security speculation is overlooked and just the prizes are underscored.
A speculator who does not completely value the dangers in security ventures will think that its hard to
acquire proceeding with positive results

HAZARD AND EXPECTED RETURN:

There is a positive connection between the measure of hazard and the measure of expected return i.e., the
more prominent the hazard, the bigger the normal return and bigger the odds of generous misfortune. A
standout amongst the most troublesome issues for a speculator is to assess the largest amount of hazard he
can expect.

• Risk is estimated along the flat hub and increments from the left to right.

• Expected rate of profit is estimated for the vertical hub and ascends from base to top.

• The line from 0 to R (f) is known as the rate of return or hazard less ventures normally connected
with the yield on government protections.

• The slanting line from R (f) to E(r) delineates the idea of expected rate of return expanding as
level of hazard increments.

Sorts OF RISKS:

Dangers comprise of two parts. They are

1. Systematic Risk
2. Un-orderly Risk

1. Systematic Risk:

Precise hazard is brought about by elements outer to the specific organization and wild by the
organization. The orderly hazard influences the market all in all. Variables influence the deliberate hazard
are

• Economic conditions

• Political conditions

• Sociological changes

The efficient hazard is unavoidable. Precise hazard is further sub-separated into three sorts. They are

a) Market Risk

b) Interest Rate Risk

c) Purchasing Power Risk

a) Market Risk:

One would see that when the securities exchange floods up, most stocks post more expensive rate. Then
again, when the market falls strongly, most basic stocks will drop. It isn't phenomenal to discover stock
costs tumbling every once in a while an organization's income are raising and the other way around. The
cost of stock may vary broadly inside a brief span despite the fact that profit stay unaltered or moderately
steady.

b) Interest Rate Risk:

Financing cost hazard is the danger of loss of chief realized the adjustments in the loan cost paid on new
protections as of now being issued.

c) Purchasing Power Risk:

The regular financial specialist looks for a venture which will give him current pay and/or capital
gratefulness notwithstanding his unique speculation.
2. Un-precise Risk:

Un-precise hazard is interesting and impossible to miss to a firm or an industry. The nature and method of
raising fund and paying back the credits, include the hazard component. Money related influence of the
organizations that is obligation value bit of the organizations varies from one another. Every one of these
elements influence the un-deliberate hazard and contribute a part in the all out inconstancy of the arrival.

 Managerial wastefully
 Technological change in the generation procedure
 Availability of crude materials
 Changes in the shopper inclination
 Labour issues

The nature and greatness of the previously mentioned variables vary from industry to industry and friends
to organization. They must be dissected independently for every industry and firm. Un-precise hazard can
be comprehensively ordered into:

a) Business Risk

b) Financial Risk

a. Business Risk:

Business hazard is that bit of the unsystematic hazard brought about by the working condition of the
business. Business emerges from the powerlessness of a firm to keep up its focused edge and
development or strength of the profit. The instability in stock costs because of elements natural for the
organization itself is knows as Business chance. Business hazard is worried about the distinction among
income and profit before intrigue and expense. Business hazard can be separated into
i) Internal Business Risk:

Inside business hazard is related with the operational effectiveness of the firm. The operational
effectiveness contrasts from organization to organization. The productivity of activity is considered the
organization's accomplishment of its pre-define objectives and the satisfaction of the guarantees to its
financial specialists.

ii) External Business Risk:

Outside business hazard is the consequence of working conditions forced on the firm by conditions
outside its ability to control. The outer conditions where it works apply some weight on the firm. The
outer variables are social and administrative components, money related and financial approaches of the
administration, business cycle and the general monetary condition inside which a firm or an industry
works.

b. Financial Risk:

It alludes to the inconstancy of the pay to the value capital because of the obligation capital. Monetary
hazard in an organization is related with the capital structure of the organization. Capital structure of the
organization comprises of value assets and obtained reserves

PORTFOLIO ANALYSIS:

Different gatherings of protections when held together act in an alternate way and give intrigue
installments and profits likewise, which are distinctive to the examination of individual protections. A
mix of protections held together will give a useful outcome if the yare gathered in a way to verify higher
return in the wake of thinking about the hazard component.

There are two methodologies in development of the arrangement of protections. They are

Traditional approach

Modern approach
 INDUSTRY PROFILE
HISTORY OF STOCK EXCHANGE

The main stock trades working in the 19 the century were those of Bombay set up in 1875 and
Ahmadabad set up in 1894. These were sorted out as willful non-benefit causing relationship of
dealers to manage and secure their interests. Before the control on protections exchanging
become a focal subject and the Bombay protections contracts (control) Act of 1925 used to
manage exchanging protections. Under this Act, the Bombay stock trade was perceived in 1927
and Ahmadabad in 1937

During the war blast, various stock trades were sorted out even in Bombay, Ahmadabad and
different focuses, however they were not perceived. Not long after it turned into a focal subject,
focal enactment was proposed and a council's and open talk, the protections contracts (guideline)
Act progressed toward becoming law in 1956.

MEANING OF STOCK EXCHANGE

"Stock trade implies anyone or people whether fused or not, established to help, managing or
controlling the matter of purchasing, selling or managing in protections."

It is a relationship of part representatives with the end goal of self-guideline and securing the
interests of its individuals.

It can work just on the off chance that it is perceived by the Government under the protections
contracts (guideline) Act, 1956. The acknowledgment is allowed under segment 3 of the
demonstration by the focal government, Ministry of Finance.
PROTECTIONSiANDiEXCHANGEiBOARDiOFiINDIAi(SEBI)i

ProtectionsiandiExchangeiBoardiofiIndiai(SEBI)isetiupiasianiindependentiadministrativeispecialistiby
itheilegislatureiofiIndiaiini1988i"toiensureitheipremiumsiofifinancialispecialistsiiniprotectionsianditoia

dvanceitheiimprovementiof,ianditoimanageitheiprotectionsishowcaseiandiforiissuesiassociateditherew
ithioricoincidentalithereto".iItiisienabledibyitwoiactsitoibeispecificitheiSEBIiAct,i1992ianditheiprotecti
onsicontracti(guideline)iAct,i1956itoiplayioutitheicapacityiofiensuringispeculator'sirightsiandimanagin
githeicapitalimarkets.i

ProtectionsiandiExchangeiBoardiofiIndiai(SEBI)iadministrativeireachihasibeenistretchedioutitoimorei
zonesiandithereiisianiimpressiveichangeiinitheicapitalimarket.iSEBI'siyearlyireportifori1997-
98ihasiexpressedithatiallithroughiitsisix-
yearipresenceiasiaistatutoryibody,iitihasilookeditoiadjustitheitwinidestinationsiofifinancialispecialistise
curityiandimarketiadvancement.iItihasidetailedinewiguidelinesiandicreatediguidelinesitoicultivateiadv
ancement.iObservingiandiobservationiwasisetiupiinitheiStockiExchangesiini1996-
97iandifortifiediini1997-98.i

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heipremiumsiofispeculatorsiiniprotectionsianditoiadvanceitheiimprovementiof,ianditoimanageitheiprot
ectionsishowcaseiandiforiissuesiassociateditherewithioriaccidentalithereto".iItiisienabledibyitwoiactsiin
iparticularitheiSEBIiAct,i1992ianditheiprotectionsicontracti(guideline)iAct,i1956itoiplayioutitheicapaci

tyiofisecuringifinancialispecialist'sirightsiandicontrollingitheicapitalimarkets.i

DESTINATIONS OF SEBI

The proclamation of the SEBI mandate in the parliament gave statutory status to SEBI in 1992.
As indicated by the introduction of the SEBI, the three fundamental targets are: -

To ensure the premiums of the financial specialists in protections.

 To advance the improvement of protections advertise.

To direct the protections advertise.

Elements OF SEBI

Regulating the business in Stock Exchange and some other protections advertise.

Enlisting and directing the working of Stock Brokers, Sub-Brokers, Share Transfer Agents,
Bankers to the issue, Trustees to confide in deeds, Registrars to an issue, Merchant Bankers,
Underwriters, Portfolio Managers, Investment Advisers and such different Intermediaries who
might be related with protections showcase in any way.

Registering and directing the working of aggregate venture plans including Mutual
Funds.

Promoting and managing self-administrative associations.

Prohibiting fake and out of line exchange rehearses the protections advertise.

Promoting financial specialist's instruction and preparing of mediators in protections

advertise.

Prohibiting Insiders Trading in protections.

Regulating considerable procurement of offers and take-over of organizations.

 Calling for data, getting review, leading enquiries and reviews of the Stock Exchanges,
Intermediaries and Self-Regulatory associations in the protections showcase.

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uslyiknowniasi"BSE",iitiwasibuiltiupiasi"TheiNativeiShareiandiStockiBrokersiAssociation"iini1875.
iBSEihasiassumediaispearheadingijobiinitheiIndianiSecuritiesiMarketi-

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gurediexhaustiveiarrangementiofiRulesiandiRegulationsiforitheiIndianiCapitaliMarkets.iItiadditiona
llyisetidowniacceptediproceduresireceivedibyitheiIndianiCapitaliMarketsiafteriIndiaipickediupiitsiIn
dependence.i

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eiGovernmentiofiIndiaiunderitheiSecuritiesiContractsi(Regulation)iAct,i1956.iTheibaseiyeariofiSE
NSEXiisi1978-79.iFromiSeptemberi2003,itheiSENSEXiisideterminedioniaifree-
glideiadvertiseicapitalizationiapproach.iThei"free-coastiMarketiCapitalization-
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ofiworldwideivalueibenchmarksiareibased.i

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iofiIndia.iTheiframeworksiandiproceduresiofitheiExchangeiareiintendeditoishieldishowcaseirespect

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nvolvesiprominentiexperts,iagentsiofiTradingiMembersianditheiManagingiDirectoriofitheiExchang
e.iTheiBoardiisicomprehensiveiandiisiintendeditoiprofitibyitheisupportiofimarketidelegates.i
NATIONAL STOCK EXCHANGE OF INDIA LIMITED

The National Stock Exchange of India Limited has beginning in the report of the High Powered
Study Group on Establishment of New Stock Exchanges, which prescribed advancement of a
National Stock Exchange by monetary organizations (FIs) to give access to speculators from the
whole way across the nation on an equivalent balance. In view of the suggestions, NSE was
advanced by driving Financial Institutions at the command of the Government of India and was
fused in November 1992 as an expense paying organization not at all like other stock trades in
the nation.

On its acknowledgment as a stock trade under the Securities Contracts (Regulation) Act, 1956 in
April 1993, NSE initiated tasks in the Wholesale Debt Market (WDM) fragment in June 1994.
The Capital Market (Equities) portion started tasks in November 1994 and activities in
Derivatives fragment initiated in June 2000.

The national stock trade of India ltd is the biggest stock trade of the nation. NSE is setting the
motivation for change in the protections advertises in India. For most recent 5 years it has
assumed a noteworthy job in bringing speculators from 347 urban communities and towns web
based, guaranteeing total straightforwardness, acquainting budgetary assurance with settlements,
guaranteeing logically structured and expertly overseen files and by sustaining the
dematerialization exertion over the country.NSE is a finished capital market prime mover. It's
entirely claimed backups, National protections clearing company ltd (NSCCL) gives cleaning
and settlement of protections, India record administrations and items ltd (IISL) furnishes files
and file administrations with a counseling and authorizing concurrence with Standard and Poor's
(S&P), and IT ltd frames the innovation quality that NSE deals with.

OBJECITVES OF NATIONAL STOCK EXCHANGE

 To build up an across the country exchanging office for values, obligation instruments
and crossovers.

 To guarantee equivalent access to speculators everywhere throughout the nation through

suitable correspondence arrange.
  To give a reasonable, proficient and straightforward protections market to financial
specialists utilizing an electronic correspondence arrange.

 To empower shorter settlement cycle and book section settlement framework.

 To fulfill current universal guidelines of protections showcase.

ADVERTISERS OF NATIONAL STOCK EXCHANGE

IDBI, ICICI, IFCI, LIC, GIC, SBI, Bank of Baroda, Canara Bank, Corporation Bank, Indian
Bank, Oriental Bank of Commerce, Union Bank of India, Punjab National Bank, Infrastructure
Leasing and Financial Services, Stock

Holding Corporation of India and SBI Capital Market are the advertisers of NSE.

NSE-NIFTY

The National Stock Exchange on April 22, 1996 propelled another Equity Index. The NSE-50.
The new Index which replaces the current NSE-100 Index is relied upon to fill in as a proper
Index for the new section of fates and choices.

"Clever" signifies National Index for Fifty Stock.

The NSE-50 contains 50 organizations that speak to 20 wide Industry bunches with a total
market capitalization of around Rs.1,70,000 crores. All organizations incorporated into the Index
have a market capitalization in abundance of Rs.500crores each and ought to have exchanged for
85% of exchanging days at an effect cost of under 1.5%.

The base time frame for the list is the end of costs on Nov 3, 1995, which makes one year of
consummation of activity of NSE's capital market portion. The base estimation of the Index has
been set at 1000.
NSE-MIDCAP INDEX

 The National Stock Exchange Midcap Index or the Junior Nifty involves 50 stocks that
speaks to 21 board Industry gatherings and will give appropriate portrayal of the silly
section of the Indian Capital Market. All stocks in the Index ought to build up an across
the nation exchanging office for values, obligation instruments and crossovers.
 COMPANY PROFILE
KARVY, is a chief coordinated monetary administrations supplier, and positioned among the
main five in the nation in the entirety of its business portions, benefits more than 16 million
individual speculators in different limits, and gives financial specialist administrations to more
than 300 corporate, including the who will be who of Corporate India. KARVY covers the whole
range of money related administrations, for example, Stock broking, Depository Participants,
Distribution of budgetary items - shared assets, securities, fixed store, values, Insurance Broking,
Commodities Broking, Personal Finance Advisory Services, Merchant Banking and Corporate
Finance, arrangement of value, IPO's, among others. Karvy has an expert supervisory crew and
positions among the best in innovation, activities and research of different mechanical fragments.
Mile Stones:

Karvy – milestones

2003/04
 Equity Derivatives broking commenced
 Expanding Institutional segment clientele. Setting up of 2001
the Research desk and Private Client Group at Mumbai

1997
 ADTO in broking crosses Rs 4,500 mn
 Custodial (DP$) services  Ranked@ no 1in IPO and in Mutual
launched fund distribution in 2003-04
 DP accounts exceed 640,000

 Distribution of investment
 Broking accounts exceed 220,000
1990-95 (retail)
products (mutual funds, IPOs,
Bonds, etc)  WDM# membership obtained
 Commenced NSE operations  Branches – 495+
 Commenced commodity and insurance
broking operations

1990  Retail broking operations (Cash

segment) commenced on the HSE**

1985  Share Registry and Transfer

(R&T)
 Business recently hived off to a
JV with Computershare, Australia
$ - Depository business

1982
# - Wholesale Debt Market segment on the NSE

EARLY DAYS:

The introduction of Karvy was on an unobtrusive scale in 1981. It started with the vision and
venture of a little gathering of rehearsing Chartered Accountants who established the lead
organization … Karvy Consultants Limited. Organization began with counseling and monetary
bookkeeping computerization, and cut advances into the field of vault and offer bookkeeping by
1985. From that point forward, they have used their experience and superlative skill to go from
solidarity to quality… to better their administrations, to give new ones, to enhance, enhance and
all the while, developed Karvy as one of India's head coordinated budgetary administration
venture.

Hence throughout the most recent 20 years Karvy has ventured to every part of the achievement
course, towards structure a notoriety for being a coordinated money related administrations
supplier, offering a wide range of administrations. Furthermore, we have made this adventure by
taking the course of value administration, way breaking advancements in administration,
flexibility in administration lastly… totality in administration. Their very qualified labor,
bleeding edge innovation, exhaustive framework and all out client center has verified for them
the situation of a rising monetary administrations goliath getting a charge out of the certainty and
backing of an advantageous customer base crosswise over assorted fields in the money related
world.

Achievements:

KARVY GROUP COMPANIES

(1) KARVY CONSULTANTS LIMITED

As the lead organization of the Karvy Group, Karvy Consultants Limited has dependably stayed
in charge of authoritative issues, spearheading business arrangements, hard working attitude and
channels of advancement.

Having risen as an innovator in the vault business, the first of the organizations that Karvy
wandered into, organization have now moved this business into a joint endeavor with Computer
offer Limited of Australia, the world's biggest enlistment center. With the coming of safes in the
Indian capital market and the connections that Company have made in the vault business, Karvy
accept that they were best situated to wander into this action as a Depository Participant. Karvy
were one of the early contestants enlisted as Depository Participant with NSDL (National
Securities Depository Limited), the main Depository in the nation and after that with CDSL
(Central Depository Services Limited). Today, Karvy administration more than 6 lakhs client
accounts around here spread crosswise over more than 250 urban areas/towns in India and are
positioned among the biggest Depository Participants in the nation. With a developing optional
market nearness, they have moved this business to Karvy Stock Broking Limited (KSBL), their
partner and an individual from NSE, BSE and HSE.

The corporate site of the organization, "www.karvy.com", offers access to top to bottom data on
money related issues including Mutual Funds, IPOs, Fixed Income Schemes, Insurance, Stock
Market and considerably more. A connection called 'Asset Center', dedicated exclusively to
research directed by group of specialists on different budgetary angles like 'Division Research',
manages top to bottom investigation of the key segments of the Indian economy. In addition, a
large group of different connections like 'My Portfolio' which goes about as a customized and
tweaked budgetary measure, makes this site incredibly instructive about venture alternatives,
advertise patterns, news and furthermore about our their organization and every one of the
administrations offered here.

(2) KARVY STOCK BROKING LIMITED

Karvy Stock Broking Limited, one of the foundations of the Karvy structure, streams openly
towards accomplishing various objectives of the client through fluctuated administrations.
Making a plenty of chances for the client by opening up speculation vistas sponsored by
research-based warning administrations. Here, development knows no restrictions and
achievement perceives no limits. Helping the client make waves in his portfolio and engaging the
financial specialist totally is a definitive objective.

Karvy is a Member of National Stock Exchange (NSE), The Bombay Stock Exchange (BSE),
and The Hyderabad Stock Exchange (HSE).

(3) KARVY INVESTORS SERVICES LIMITED

Trader Banking-Recognized as a main dealer financier in the nation, Karvy are enlisted with
SEBI as a Category I vendor investor. This notoriety was worked by profiting by circumstances
in corporate unions, mergers and acquisitions and corporate rebuilding, which have earned us the
notoriety of a vendor broker. Raising assets for corporate or Government Undertaking effectively
in the course of recent decades have given us the certainty to reestablish organization center in
this division.
Karvy quality expert group and their work-situated commitment have moved organization to
offer worth included corporate money related administrations and go about as an expert guide for
long haul development of organizations customers, which incorporates driving corporate, State
Governments, remote institutional financial specialists, open and private part organizations and
banks, in Indian and worldwide markets.

Karvy monetary guidance and help with rebuilding, divestitures, acquisitions, de-mergers, turn
offs, joint endeavors, privatization and takeover resistance systems have raised organization
association with the customer to one dependent on resolute trust and certainty.

(4) KARVY COMPUTERSHARE PVT. Restricted

Karvy have navigated wide spaces to tie up with the world's biggest exchange operator, the main
Australian organization, Computershare Limited. The organization that administrations in excess
of 75 million investors crosswise over 7000 corporate customers and makes its quality felt in
more than 12 nations crosswise over 5 landmasses has gone into a 50-50 joint endeavor with
KARVY.

Shared Fund Services

Karvy have achieved a place of colossal quality as a supplier of no matter how you look at it
move office administrations to AMCs, Distributors and Investors.

About 40% of the first class AMCs including renowned customers like Deutsche AMC and UTI
swear by the quality and scope of administrations that organization offer. Other than giving the
whole back office handling, Karvy give the connection between different Mutual Funds and the
speculator, including administrations to the merchant, the prime divert in this task.

Karvy administration improvements, for example, 'Karvy Converz', an undeniable call focus, a
top-line site (www.karvymfs.com), the 'm-financial specialist' and some more, making a system
of client focal points. www.karvymfs.com
ISSUE REGISTRY

In organization voyage towards turning into the biggest exchange preparing house in the Indian
Corporate portion, KARVY have activated assets for various corporate, and developed as the
biggest exchange handling house for the Indian Corporate area. With an encounter of taking care
of more than 700 issues, Karvy today, can execute voluminous exchanges and in-your-face skill
in innovation applications have picked up organization the No.1 opening in the business. Karvy
is the principal Registry Company to get ISO 9002 affirmation in India that stands declaration to
its stature

Corporate Shareholder Services

Karvy has been a client driven organization since its commencement. Karvy offers a solitary
stage overhauling different monetary instruments in its offer to offer total money related answers
for the fluctuating needs of both corporate and retail speculators where a broad scope of
administrations are given extraordinary volume-the board capacity.

Today, Karvy is perceived as an organization that can surpass client desires which is the purpose
behind the dependability of clients towards Karvy for all his money related needs. An assessment
survey dispatched by "The Merchant Banker Update" and led by the presumed statistical
surveying organization, MARG uncovered that Karvy was considered the "Most Admired" in the
enlistment center class among money related administrations organizations.

(5) KARVY GLOBAL SERVICES LIMITED

The master Business Process Outsourcing unit of the Karvy Group. The inheritance of mastery
and involvement in budgetary administrations of the Karvy Group serves us well as organization
enter the worldwide field with the certainty of having the option to convey and convey well.

Here organization offer a few conveyance models on the understanding that business needs are
novel and in this manner just an altered administration could possess all the necessary qualities.
KARVY administration lattice has changes and blends that make a few alternatives to browse.
KARVY is in re-designing and overseeing forms or conveying new efficiencies, organization's
administration gets together to the most stringent of universal benchmarks. Their redistributing
models are intended for the worldwide client and are supported by sound corporate and tasks
ways of thinking, and space mastery. Giving efficiency enhancements, operational cost control,
cost investment funds, improved responsibility and an entire range of different points of interest.

KARVY work in the center market fragments that have rising prerequisites for particular
administrations. Their wide vertical market inclusion incorporates Banking, Financial and
Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and
Utility and Healthcare.

(6) KARVY COMMODITIES BROKING LIMITED

At Karvy Commodities, they are centered around taking wares exchanging to new elements of
unwavering quality and benefit. They have made items traditional.
 DATA ANALYSIS AND INTERPRETATION
ANALYSIS AND INTERPRETATION

AVERAGE RETURNS

INFOSYS

OPENING CLOSING
SHARE SHARE D+(P1-
YEAR DIVIDEND BONUS PRICE(P0) PRICE(P1) D+(P1-P0) P0)/P0*100

2011-12 45 NIL 2235.85 2981.4 790.55 35.35

2012-13 11.5 2018.65 3142.15 2018.65 906.65 44.91

2013-14 33.25 NIL 1922.95 1439.9 -449.8 -23.39

2014-15 23.5 NIL 1421.35 1324.1 -73.75 -5.18

2015-16 NIL NIL 1375.5 2615.1 1239.6 90.11

TOTAL RETURN 141.8

AVERAGE RETURN = R/N 141.8/5 = 28.36

HCLTECH

OPENING CLOSING
SHARE SHARE D+(P1-
YEAR DIVIDEND BONUS PRICE(P0) PRICE(P1) D+(P1-P0) P0)/P0*100

2011-12 16 NIL 383.55 654.2 286.65 74.73

2012-13 8 291.4 662.15 291.4 -71.35 -10.77

2013-14 9 NIL 272.5 253.25 -10.25 -3.76

2014-15 7 NIL 246.4 101.75 -137.65 -55.86

2015-16 NIL NIL 100.85 357.8 256.95 254.78

TOTAL RETURN 259.12

AVERAGE RETURN = R/N 259.12/5 = 51.82

 WIPRO

OPENING CLOSING
SHARE SHARE D+(P1-
YEAR DIVIDEND BONUS PRICE(P0) PRICE(P1) D+(P1-P0) P0)/P0*100

2011-12 5 559.7 672.65 559.7 451.75 67.15

2012-13 6 NIL 560 559.4 5.4 0.96

2013-14 6 NIL 518.75 432.1 -80.65 -15.54

2014-15 4 NIL 409 245.4 -159.6 -39.02

2015-16 NIL NIL 251.6 706.8 455.2 180.92

TOTAL RETURN 194.47

AVERAGE RETURN = R/N 194.47/5 = 38.89

CMC

OPENING CLOSING
SHARE SHARE D+(P1-
YEAR DIVIDEND BONUS PRICE(P0) PRICE(P1) D+(P1-P0) P0)/P0*100

2011-12 5 NIL 623.8 531.4 -87.4 -14

2012-13 8 NIL 575 1211.85 644.85 112.14

2013-14 11 NIL 1163.75 806.3 -346.45 -29.77

2014-15 15 NIL 792.3 319.95 -457.35 -57.72

2015-16 NIL NIL 366.25 1340.3 974.05 265.95

TOTAL RETURN 276.6

AVERAGE RETURN = R/N 276.6/5 = 55.32

I-FLEX

OPENING CLOSING
SHARE SHARE D+(P1-
YEAR DIVIDEND BONUS PRICE(P0) PRICE(P1) D+(P1-P0) P0)/P0*100

2011-12 5 NIL 594.8 1327 737.2 123.94

2012-13 NIL NIL 1352.3 2081.65 729.35 53.93

2013-14 NIL NIL 2055.05 941.1 -1113.95 -54.2

2014-15 NIL NIL 942.05 741.55 -200.5 -21.28

2015-16 NIL NIL 786 2300.5 1514.5 192.68

TOTAL RETURN 295.07

AVERAGE RETURN = R/N 295.07/5 = 59.01

AVERAGE RETURNS

INFOSYS(IT) 28.36

HCLTECH 51.82

WIPRO 38.89

CMC 55.32

I-FLEX 59.01
 70
60
50
40
Series1
30
20
10
0
) X
IT CH RO C
LE
S( E IP CM F
S Y LT W I-
F O HC
IN

Average Return = (R)/N

(R) = Return of the security for the year T

N = Number of years

Based on the above average return of securities I-FLEX is earning highest

return and INFOSYS (IT) is earning lowest return. Other securities are
earning medium range of returns
 STANDARD DEVIATIONS

INFOSYS

YEAR RETURN (R ) AVG RET(R) R-R R-R2

2011-12 35.35 141.8 (106.45) 11,331.60

2012-13 44.91 141.8 (96.89) 9,387.67

2013-14 -23.39 141.8 (165.19) 27,287.74

2014-15 -5.18 141.8 (146.98) 21,603.12

2015-16 90.11 141.8 (51.69) 2,671.86

TOTAL 72,281.99

Variance = 1/n-1 (R-R) 2 = 1/5-1 (72281.99) = 18070.49

Standard Deviation = Variance = 18070.49 = 134.4

 HCLTECH

RETURN (R
YEAR ) AVG RET(R) R-R R-R2

2011-12 74.73 259.12 (184.39) 33,999.67

2012-13 -10.77 259.12 (269.89) 72,840.61

2013-14 -3.76 259.12 (262.88) 69,105.89

2014-15 -55.86 259.12 (314.98) 99,212.40

2015-16 254.78 259.12 (4.34) 18.84

TOTAL 275,177.41

Variance = 1/n-1 (R-R) 2 = 1/5-1 (275177.41) = 68794.35

Standard Deviation = Variance = 68794.35 = 262.28

 WIPRO

AVG
YEAR RETURN (R ) RET(R) R-R R-R2

2011-12 67.15 194.47 (127.32) 16,210.38

2012-13 0.96 194.47 (193.51) 37,446.12

2013-14 -15.54 194.47 (210.01) 44,104.20

2014-15 -39.02 194.47 (233.49) 54,517.58

2015-16 180.92 194.47 (13.55) 183.60

TOTAL 152,461.89

Variance = 1/n-1 (R-R) 2 = 1/5-1 (152461.89) = 38115.47

Standard Deviation = Variance = 38115.47 = 195.23

 CMC

AVG
YEAR RETURN (R ) RET(R) R-R R-R2

2011-12 -14 276.60 (290.60) 84,448.36

2012-13 112.14 276.60 (164.46) 27,047.09

2013-14 -29.77 276.60 (306.37) 93,862.58

2014-15 -57.72 276.60 (334.32) 111,769.86

2015-16 265.95 276.60 (10.65) 113.42

TOTAL 317,241.31

Variance = 1/n-1 (R-R) 2 = 1/5-1 (317241.31) = 79310.32

Standard Deviation = Variance = 79310.32 = 281.62

 I-FLEX

RETURN
YEAR (R ) AVG RET(R) R-R R-R2

2011-12 123.94 295.07 (171.13) 29,285.48

2012-13 53.93 295.07 (241.14) 58,148.50

2013-14 -54.2 295.07 (349.27) 121,989.53

2014-15 -21.28 295.07 (316.35) 100,077.32

2015-16 192.68 295.07 (102.39) 10,483.71

TOTAL 319,984.54

Variance = 1/n-1 (R-R) 2 = 1/5-1 (319984.54) = 79996.13

Standard Deviation = Variance = 79996.13 = 282.83

STANDARD DEVIATIN OF COMPANIES

INFOSYS(IT) 131.4

HCLTECH 262.28

WIPRO 195.23

CMC 281.62

I-FLEX 282.83
 300

250

200

150 Series1

100

50

0
) X
IT CH RO C
LE
S( E IP CM F
S Y LT W I-
F O HC
IN

STANDARD DEVIATION =1/n (R-R) 2

Based on the above calculations Standard Deviation of the I-FLEX is highest and
INFOSYS (IT) is lowest. Where other securities are having medium Standard
Deviation.
CORRELATION COFFICIENT BETWEEN THE SECURITIES

Covariance (COV ab) = 1/n-1 (RA-RA) (RB-RB)

Correlation Coefficient = COV ab/ a* b

1. INFOSYS (RA) & HCLTECH (RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 -106.45 (184.39) 19,628.32

2011-12 -96.89 (269.89) 26,149.64

2012-13 -165.19 (262.88) 43,425.15

2013-14 -146.98 (314.98) 46,295.76

2014-15 -51.69 (4.34) 224.33

TOTAL 135,723.20

Covariance (COV ab) = 1/5-1 (135723.20) =33930.8

Correlation Coefficient = COV ab/a*b

a =131.4; b =262.28

= 33930.8/ (131.4) (262.28) =0.9845

2. INFOSYS (RA)& WIPRO(RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 -106.45 (127.32) 13,553.21

2011-12 -96.89 (193.51) 18,749.18

2012-13 -165.19 (210.01) 34,691.55

2013-14 -146.98 (233.49) 34,318.36

2014-15 -51.69 (13.55) 700.40

TOTAL 102,012.71

Covariance (COV ab) = 1/5-1 (102012.71) = 25503.17

Correlation Coefficient = COV ab/a*b

a = 131.4; b =195.23

= 25503.17/ (131.4) (195.23) = 0.99

3. INFOSYS (RA) & CMC (RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 -106.45 (290.60) 30,934.37

2011-12 -96.89 (164.46) 15,934.53

2012-13 -165.19 (306.37) 50,609.26

2013-14 -146.98 (334.32) 49,138.35

2014-15 -51.69 (10.65) 550.50

TOTAL 147,167.01

Covariance (COV ab) = 1/5-1 (147167.01) =36791.75

Correlation Coefficient = COV ab/a*b

a = 131.4; b = 281.62

= 36791.75/ (131.4) (281.62) = 0.99

4. INFOSYS (RA) &I-FLEX (RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 -106.45 (171.13) 18,216.79

2011-12 -96.89 (241.14) 23,364.05

2012-13 -165.19 (349.27) 57,695.91

2013-14 -146.98 (316.35) 46,497.12

2014-15 -51.69 (102.39) 5,292.54

TOTAL 151,066.42

Covariance (COV ab) = 1/5-1 (151066.42) = 37766.6

Correlation Coefficient = COV ab/a*b

a = 131.4; b = 283.8

= 37766.6/ (131.4) (283.8) =1.012

5. HCLTECH (RA) & WIPRO (RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 (184.39) (127.32) 23,476.53

2011-12 (269.89) (193.51) 52,226.41

2012-13 (262.88) (210.01) 55,207.43

2013-14 (314.98) (233.49) 73,544.68

2014-15 (4.34) (13.55) 58.81

TOTAL 204,513.86
 Covariance (COV ab) = 1/5-1 (204513.86) = 5112.96

Correlation Coefficient = COV ab/a*b

a =262.28; b = 195.23

= 5112.96/ (262.28) (195.23) = 0.099

6. HCLTECH (RA) & CMC (RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 (184.39) (290.60) 53,583.73

2011-12 (269.89) (164.46) 44,386.11

2012-13 (262.88) (306.37) 80,538.55

2013-14 (314.98) (334.32) 105,304.11

2014-15 (4.34) (10.65) 46.22

TOTAL 283,858.72

Covariance (COV ab) = 1/5-1 (283858.72) =70964.68

Correlation Coefficient = COV ab/a*b

a = 262.28; b = 281.62

= 70964.68/ (262.28) (281.62) = 0.960

7. HCLTECH (RA) & I-FLEX (RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 (184.39) (171.13) 31,554.66

2011-12 (269.89) (241.14) 65,081.27

2012-13 (262.88) (349.27) 91,816.10

2013-14 (314.98) (316.35) 99,643.92

2014-15 (4.34) (102.39) 444.37

TOTAL 288,540.33

Covariance (COV ab) = 1/5-1 (288540.33) =72135.08

Correlation Coefficient = COV ab/a*b

a = 262.28; b = 283.83

= 72135.08/ (262.28) (283.83) = 0.96

8. WIPRO (RA) & CMC (RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 (127.32) (290.60) 36,999.19

2011-12 (193.51) (164.46) 31,824.65

2012-13 (210.01) (306.37) 64,340.76

2013-14 (233.49) (334.32) 78,060.38

2014-15 (13.55) (10.65) 144.31

TOTAL 211,369.29
 Covariance (COV ab) = 1/5-1 (211369.29) = 52842.32

Correlation Coefficient = COV ab/ a* b

a = 195.23; b = 281.62

= 52842.32/ (195.23) (281.62) = 0.96

9. WIPRO (RA) & I-FLEX (RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 (127.32) (171.13) 21,788.27

2011-12 (193.51) (241.14) 46,663.00

2012-13 (210.01) (349.27) 73,350.19

2013-14 (233.49) (316.35) 73,864.56

2014-15 (13.55) (102.39) 1,387.38

TOTAL 217,053.41

Covariance (COV ab) = 1/5-1 (217053.41) =54263.35

Correlation Coefficient = COV ab/a*b

a = 195.23; b = 283.83

= 54263.35/ (195.23) (283.83) =0.97

10. CMC (RA) & I-FLEX (RB)

YEAR RA-RA RB-RB (RA-RA)(RB-RB)

2010-11 (290.60) (171.13) 49,730.38

2011-12 (164.46) (241.14) 39,657.88

2012-13 (306.37) (349.27) 107,005.85

2013-14 (334.32) (316.35) 105,762.13

2014-15 (10.65) (102.39) 1,090.45

TOTAL 303,246.70

Covariance (COV ab) = 1/5-1 (303246.70) = 75811.67

Correlation Coefficient = COV ab/a*b

a = 281.62; b = 283.83

= 75811.67/ (281.62) (283.83) =0.94

CORRELATION COFFICIENT BETWEEN THE SECURITIES

Covariance (COV ab) = 1/n-1 (RA-RA)(RB-RB)

Correlation Coefficient = COV ab/a*b

SECURITY INFOSYS HCLTECH WIPRO CMC I-FLEX

INFOSYS 1 0.98 0.99 0.99 1.01

HCLTECH 1 0.09 0.96 0.96

WIPRO 1 0.96 0.97

CMC 1 0.94

I-FLEX 1

FORMULA:

CORRELATION COEFFICIENT (ab) = cov (ab)/σaσb

Where COV (ab) = 1/n-1 (RA-RA) (RB-RB)

CALCULATION OF PORTFOLIO WEIGHTS: :(FORMULA):

Wa = b [ b-(nab*a)]

a2 + b2 - 2nab*a*b

Wb = 1 – Wa

1. INFOSYS (a) &HCLTECH (b):a = 131.4;b = 262.28;nab = 0.98

Wa = 262.28 [262.28-(0.98*131.4)]/2 + 2 – 2(0.98)**

Wa =1.90; Wb = 1- 1.90 = -0.9;

2. INFOSYS (a) &WIPRO (b):a = 131.4;b = 195.23;nab = 0.99

Wa = 195.23 [195.23-(0.99*131.4)]/2 + 2 – 2(0.99)**

Wa =2.77; Wb = 1- 2.77 = -1.77;

3. INFOSYS (a) &CMC (b): a = 131.4; b = 281.62;nab = 0.99

Wa = 281.62 [281.62-(0.99*131.4)]/ 2
+ 2
–
2(0.99)* *
Wa =1.83; Wb = 1-1.83 =-0.83

4. INFOSYS (a) &I-FLEX (b): a = 131.4; b = 283.83;nab = 1.01

Wa = 283.83 [283.83-(1.01*131.4)]/ 2
+ 2
–
2(1.01)* *

Wa =1.933; Wb = 1-1.933 = -0.93;

5. HCLTECH (a) &WIPRO (b): a = 262.28; b = 195.23; nab =0.09

Wa = 195.23[195.23-(0.09*262.28)]/ 2
+ –
2

2(0.09)* *

Wa =0.93; Wb = 1- 0.93 = 0.07;

6. HCLTECH (a) &CMC (b): a = 262.28; b = 281.62; nab =0.96

Wa = 281.62 [281.62-(0.96*262.28)]/ 2
+ 2
–
2(0.96)* *

Wa =1.33; Wb = 1- 1.33 = -0.33;

7. HCLTECH (a) &I-FLEX (b): a = 262.28; b = 283.83; nab = 0.96

Wa = 283.83 [283.83-(0.96*262.28)]/ 2
+ 2
–
2(0.96)* *
Wa =0.26; Wb = 1- 0.26 = 0.74;

8. WIPRO (a) &CMC (b): a = 195.23; b = 281.62; nab = 0.96

Wa = 281.62[281.62-(0.96*281.62)]/ 2
+ 2
–
2(0.96)* *

Wa =0.26; Wb = 1- 0.26 = 0.74;

9. WIPRO (a) &I-FLEX (b): a = 195.23; b = 283.83; nab = 0.97

Wa = 283.83[283.83-(0.97*195.23)]/ 2
+ 2
–
2(0.97)* *

Wa =2.39; Wb = 1- 2.39 = -1.39;

10. CMC (a) &I-FLEX (b): a = 281.62; b = 283.83 nab = 0.94

Wa = 283.83 [283.83-(0.94*281.62)]/ 2
+ 2
–
2(0.94)* *

Wa = 0.03; Wb = 1- 0.03 = 0.97;

 S.NO PORTFOLIO (A/B) CORRELATION WEIGHT A WEIGHT B

1 INFOSYS & HCL 0.98 1.90 -0.9

2 INFOSYS & WIPRO 0.99 2.77 -1.77

3 INFOSYS & CMC 0.99 1.83 -0.83

4 INFOSYS & I-FLEX 1.01 1.93 -0.93

5 HCLTECH & WIPRO 0.09 0.93 0.07

6 HCLTECH & CMC 0.96 1.33 -0.33

7 HCLTECH & I-FLEX 0.96 0.26 0.74

8 WIPRO & CMC 0.96 0.26 0.74

9 WIPRO & I-FLEX 0.97 2.39 -1.39

10 CMC & I-FLEX 0.94 0.03 0.97

PORTFOLIO RISK

CALCULATION OF PORTFOLIO RISK:

RP = a2*Wa2 + b2*Wb2 + 2nab* a* b*Wa*Wb

CALCULATION OF PORTFOLIO RISK OF ALL COMPANIES:

1. INFOSYS (a) & HCLTECH (b): a = 131.4; b = 262.28; Wa= 1.90; Wb= -0.9;

Nab = 0.98;
RP = (131.4)2(1.90)2+ (262.28 2
(-0.9)2+2(0.98) * *(1.90)*(-0.9)

2313.54 = 48.09

2. INFOSYS (a) & WIPRO (b): a = 131.4; b = 195.23; Wa= 2.77; Wb= -1.77;

Nab = 0.99;

RP = (131.4)2(2.77)2+ (195.23 2
(-1.77)2+2(0.99) * *(2.77)*(-1.77)

2854.82 = 53.43

3. INFOSYS (a) & CMC (b): a = 131.4; b = 281.62; Wa= 1.83; Wb= -0.83;

Nab = 0.99;

RP = (131.4)2(1.83)2+ (281.62 2
(-0.83)2+2(0.99) * *(1.83)*(-0.83)

1165.805 = 34.14

4. INFOSYS (a) & I-FLEX (b): a = 131.4; b = 283.83; Wa= 1.93; Wb= -0.93;
Nab = 1.01;

RP = (131.4)2(1.93)2+ (283.83 2
(-0.93)2+2(1.01) * *(1.93)*(-0.93)

-1231.49 = 35.09

5. HCLTECH (a) & WIPRO (b): a = 262.28; b = 195.23; Wa= 0.93; Wb= 0.07;

Nab = 0.09;

RP = (262.28)2(0.93)2+ (195.23 2
(0.07)2+2(0.09) * *(0.93)*(0.07)

60283.93 = 245.53

6. HCLTECH (a) & CMC (b): a = 262.28; b = 281.62; Wa= 1.33; Wb=-0.33 ;

Nab = 0.96;

RP = (262.28)2(1.33)2+ (281.62 2
(-0.33)2+2(0.96) * *(1.33)*(-0.33)

68077.16 = 260.91
7. HCLTECH (a) & I-FLEX (b): a = 262.28; b = 283.83; Wa= 0.26; Wb= 0.74;

Nab = 0.96;

RP = (262.28)2(0.26)2+ (283.83 2
(0.74)2+2(0.96) * *(0.26)*(0.74)

76264.42 = 276.16

8. WIPRO (a) & CMC (b): a = 195.23; b = 281.62; Wa= 0.26; Wb= 0.74;

Nab = 0.96

RP = (195.23)2(0.26)2+ (281.62 2
(0.74)2+2(0.96) * *(0.26)*(0.74)

= 6631690 =257.2

9. WIPRO (a) & I-FLEX (b): a = 195.23; b =283.83; Wa= 2.39; Wb= -1.39;

Nab = 0.97;

RP = (195.23)2(2.39)2+ (283.83 2
(-1.39)2+2(0.97) * *(2.39)*(-1.39)

94802.09 = 441.36
10. CMC (a) & I-FLEX (b): a = 281.62; b = 283.83; Wa= 0.03; Wb= 0.97;

Nab = 0.94;

RP = (281.62)2(0.03)2+ (283.83 2
(0.97)2+2(0.94) * *(0.03)*(0.97)

80242.712 = 283.27

PORTFOLIO RISK

S.NO COMBINATION PORTFOLIO RISK

1 INFOSYS & HCL 48.09

2 INFOSYS & WIPRO 53.43

3 INFOSYS & CMC 34.13

4 INFOSYS & I-FLEX 35.09

5 HCLTECH & WIPRO 245.53

6 HCLTECH & CMC 260.91

7 HCLTECH & I-FLEX 276.16

8 WIPRO & CMC 257.52

9 WIPRO & I-FLEX 441.36

10 CMC & I-FLEX 283.27

 CALCULATION OF PORTFOLIO RISK:

RP = a2*Wa2 + b2*Wb2 + 2nab* a* b*Wa*Wb

Where

a = Std deviation of security a

b = Std deviation of security b

Wa = weight of security a

Wb = weight of security b

nab = Correlation Coefficient between security a & b

a = Portfolio risk

PORT FOLIO RETURN

FORMULA :

Rp = (Ra*Wa)+(Rb*Wb);

Where

Rp = Portfolio return
Ra = Average return on security a;

Rb = Average return on security b

Wa = Weight of security a;

Wb = Weight of security b;
 CALCULATION OF PORTFOLIO RETURNS

AVERAG AVERAG
E E PORTFOLIO
RETURN WEIGHT RETURN WEIGHT RETURN
ON OF ON OF Rp
S.N COMBINATIO SECURI SECURI SECURI SECURI (Ra*Wa)+(Rb*
O N(A & B) TY (A) TY (A) TY (B) TY (B) Wb)

INFOSYS &
1 HCL 28.36 1.9 51.82 -0.9 7.246

INFOSYS &
2 WIPRO 28.36 2.77 38.89 -1.77 9.7219

INFOSYS &
3 CMC 28.36 1.83 55.32 -0.83 5.9832

INFOSYS & I-
4 FLEX 28.36 1.93 59.01 -0.93 -0.1445

HCLTECH &
5 WIPRO 51.82 0.93 38.89 0.07 50.9149

HCLTECH &
6 CMC 51.82 1.33 55.32 -0.33 50.665

HCLTECH &
7 I-FLEX 51.82 0.26 59.01 0.74 57.1406

WIPRO &
8 CMC 38.89 0.26 55.32 0.74 51.0482

WIPRO & I-
9 FLEX 38.89 2.39 59.01 -1.39 10.9232

CMC & I-
10 FLEX 55.32 0.03 59.01 0.97 58.8993
 PORTFOLIO RISK AND RETURN

PORTFOLIO PORTFOLIO
S.NO COMBINATION(A & B) RETURN RISK

1 INFOSYS & HCL 7.246 48.09

2 INFOSYS & WIPRO 9.72 53.43

3 INFOSYS & CMC 5.98 34.13

4 INFOSYS & I-FLEX -0.14 35.09

5 HCLTECH & WIPRO 50.9 245.53

6 HCLTECH & CMC 50.66 260.91

7 HCLTECH & I-FLEX 57.14 276.16

8 WIPRO & CMC 51.04 257.52

9 WIPRO & I-FLEX 10.92 441.36

10 CMC & I-FLEX 58.89 283.27

 PORTFOLIO RISK AND RETURN

500
450
400
350
300
250 PORTFOLIO RETURN
200 PORTFOLIO RISK
150
100
50
0

& I-FLEX
& I-FLEX

& I-FLEX
HCLTECH

HCLTECH

HCLTECH
INFOSYS

INFOSYS

INFOSYS

INFOSYS

& I-FLEX
-50
& CMC

& CMC
& CMC
& HCL

WIPRO

WIPRO
&

&

CMC
1 2 3 4 5 6 7 8 9 10

PORTFOLIO SELECTION

Portfolio analysis provided the input for next phase in portfolio management, which is portfolio
selection. The proper goal of portfolio construction is to generate a portfolio that provided the highest
returns at a given level of risk. These inputs from portfolio analysis can be used to identify the set of
efficient portfolios. From this the optimal portfolio in a disciplined and objective way.

So, out of the various combinations (related to 5 companies), the optimal portfolio is INFOSYS
& CMC, as this portfolio has minimum risk of 34.13% with maximum return of 5.98%. Hence, we can
say that it is better to invest in these portfolios.
 PORTFOLIO REVISION

Economy and financial markets are dynamic changes take place almost daily. As time passes
securities which were once attractive may lease to be so. New securities with promises of high return and
low risk may emerge. The investor now has to revise his portfolio in the light of the developments in the
market. This leads to purchase of some new securities and sale of some of the existing securities and their
proportion in the portfolio changes as a result of the revision.

The revision has to be scientifically and objectively so as to ensure the optimally of the revised
portfolio, its important as portfolio analysis and selection.

PORTFOLIO EVALUATION

The objective of constructing a portfolio and revising it periodically is to earn maximum returns with
minimum risk. Portfolio evaluation is the process, which is concerned with assessing the performance of
the portfolio over a selected period of time in terms of return and risk. This involves quantitative
measurement of actual return realized. Alternative measures of performance evaluation have been
developed by investor and portfolio managers for their use.

It provides a mechanism for identifying weaknesses in the investment process and improving them.
The portfolio management process is an ongoing process to portfolio construction, continues with
portfolio revision and evaluation. The evaluation provided the necessary feedback for better designing of
portfolio the next time around. Superior performance is achieved through continual refinement of
portfolio management skills

Ends and SUGGESTIONS

Before putting resources into offers you should take a gander at the sort of offers, you need to
purchase and the path in
Need to bargain on the financial exchange.

Their principle courses for putting resources into offers:

Invest your capital in a solitary organization.

Invest your capital in number of various organizations, an arrangement of offers.

Invest in a roundabout way and spread your hazard through aggregate ventures, for
example, speculation trusts and unit trust.

PUT RESOURCES INTO SHARES:

Open organizations issue shares, which enable speculators to purchase a piece of a specific
organization share possession qualifies you for part of the organization Profits of profits are paid.
Offers might be ordered in a range from preservationist to theoretical. Blue chip is regularly used
to depict the most astounding quality and offers, as they are shares in organizations with a
demonstrated reputation, delivering benefits in all sorts of challenges. They normally set the
degree of the market. All offers are influenced by offer market variance. Individual offer
procedure additionally shift dependent on free market activity from venders and purchasers. Data
about offers recorded on the stock trade is printed to a great extent every day in news papers.

You can purchase and sell offers recorded on the stock trade through a stockbroker.

When you purchase a bundle of offers, you get a CHESS articulation of property structure the

organization, appearing number of offers you possess and the date you purchased them.As an
investor you need to state in the organization's future through casting a ballot rights, you will be
stayed with educated about the, through its yearly reports and other correspondence.
INTERESTING POINTS:
Share costs fall just as rise. Huge misfortunes may happen, especially if offers are sold
when market has dropped.

If you are content with the additions made with your offer and are worried about their

Future worth, you could sell them and understand your benefit. In the event that you hold them
so as to benefit further and the market worth drops, it is essential to recall this misfortune is just
on paper except if you sell.

Incomes from profits may change, when benefits are low, profits might be low or even
Nil.

Unless you plan to effectively exchange your offers, you ought to think of them as a long
haul speculation

You need to keep cautious records, cecause capital increases charge accumulations can
end up complex, particularly in a profit reinvestment paid.

THINGS TO REMEMBER:

Remember, shares are not momentary speculation, for the most part the best returns will
be increased over the medium and long haul.

Past execution is definitely not a solid manual for future execution.

As with any speculation that offers capital development, wide vacillations in worth can
happen.
 Spread you share property to incorporate various organizations crosswise over various
markets segments, for example, industry, mining of account. This lessens the hazard.

Ask your stock agent for data about the organization's profile, execution history and
monetary gauges before purchasing or selling any offers. Quite a bit of his data is additionally
now accessible on different INTERNET website.

Balance of the extent of offer in your general speculation portfolio with the degree of
hazard you are set up to take. On the off chance that an organization goes into liquidation,
investors are the lost to be paid.

Remember that occasion the most completely investigate data inquire about data and
counsel given with the best aim may in any case result in a misfortune.

DO'S and DON'TS:

The time spent expanding your insight will pay profits later:

By the day's end, it is your cash and you deserve to know where and why it is being contributed.
Utilize asset accessible today, take a couse, read books, peruse the web club, read papers and
friends Annual General Meetings.

Almost the first and last standard( DIVERSIFY):

Ensure your speculations are differentiated. This implies incorporating into your portfolio
various resources classes, for example, property, offers and fixed intrigue, distinctive
industries(to shield against monetary effect on one classification) and various nations ( to
consider worldwide cycles, financial elements and diverse trade rates).

Start minimalistically:

In the event that you are certain simply beginning, form a firm base around Blue chip offer and
addition

experience structure this. Putting resources into trustworthy oversaw assets is likewise as
astounding approach to assemble a differentiated portfolio without choosing explicit protections.

Section 5

Discoveries, SUGGESTIONS

What's more,

End

Discoveries:

1. With the reference to the Portfolio ventures, the proficient portfolio is an all around enhanced
speculation.

2. INFOSYS and HCL having a hazard is 48.09 and the arrival is 7.246.
3. INFOSYS and WIPRO having a hazard is 53.43 and the arrival is 9.72.

4. INFOSYS and CMC having a hazard is 34.13 and the arrival is 5.98.

5. INFOSYS and I-FLEX having a hazard are 35.09 and the arrival is - 0.14.

6. HCLTECH and WIPRO having a hazard is 245.53 and the arrival is 50.9.

7. HCLTECH and CMC having a hazard is 260.91 and the arrival is 50.66.

8. HCLTECH and I-FLEX having a hazard is 276.16 and the arrival is 57.14.

9. WIPRO and CMC having a hazard is 257.52 and the arrival is 51.04.

10. WIPRO and I-FLEX having a hazard is 441.36 and the arrival is 10.92.

11. CMC and I-FLEX having a hazard is 283.27 and the arrival is 58.89.

Recommendations:

1. Indian administrative framework and job of SEBI ought to be expanded for verifying
enthusiasm of financial specialists and different plays.

2. Government should execute different measures to improve money related framework.

3. At the point when various resources are added to the Portfolio, the absolute hazard will in
general decline.

4. Financial specialist choice is exclusively relies upon the normal return and difference of return
as it were.

5. MOFS ought to grow the financial specialist showcase, agent's system, for long advantage.

6. For given degree of hazard financial specialist lean towards higher come back to lower return.
Moreover for a given degree of return speculator lean towards lower chance than higher hazard.

7. In developing Portfolio less associated divisions choice will decrease the hazard i.e., less
relationship between's two organizations will lessen chance.

8. For better outcomes least hazard portfolio loads ought to be executed.

End:

From above investigation we can close the accompanying things.

In the above estimations, the two portfolio's INFOSYS and CMC contains LOW RISK (34.13)
HIGH RETURN (5.98).

For any speculation the elements to be consider are return in venture and hazard related that
speculation differentiated in the interest in to various resources can diminished the hazard by
following Modern Portfolio Theorem Risk can be decreased for a required return.

Part 6
BIBLOGRAPHY

BIBLOGRAPHY:

1. SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

- Donald. E. Fisher, Ronald. J. Jordan

2. INVESTMENTS

- William.F.Sharpe,Gordon,J.Alexander and Jeffery. Bailey.

3. PORTFOLIO MANAGEMENT

- Strong R.A.

WEB REFFERENCES:

http;//www.nseindia.com

http;//www.bseindia.com

http;//www.economictimes.com
http;//www.answers.com

http;//www.investsmartindia.com

http;//www.motilal oswal.com