investment portfolio report

8/3/2019 Investment Portfolio Report

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Investment Portfolio

Investment is a commitment of funds made in the expectation of some positive rate of return.

The Investment needs of an Investor:-

1) Capital Preservation.2) Wealth Generation.3) Tax Savings.4) Income.5) Future Uncertainty.6) Retirement Planning.

Investment Planning

It helps in deciding upon the right Investment strategy.

It is a balance of three components:-

1) Liquidity.2) Risk Tolerance.3) Return.

Portfolio Management

A Portfolio is a collection of securities that are grouped together to diversify the total Risk. An Optimal Portfolio provides the highest possible utility, given the constraints imposed by the

opportunity set and efficiency frontier.

Beta measures the risk associated with Individual Portfolio in relation to the Market Portfolio.


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Meaning of Portfolio Management

The Art & Science of making decisions about Investment mix & policy, matching Investments to

Objectives, asset allocation for Individuals & balancing risk vs. Performance.

Portfolio Objectives:-

1) Stability of Principal.2) Income.3) Growth of Income.4) Capital Appreciation.

Investment Pyramid


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Objectives

1) To study the demographical factors affected the choice of Portfolio of Investors.2) To identify the purpose of investment & extent of financial literacy of Investors.3) To know the most preferred Investment avenues of Investors.4) To find out the Risk Tolerance limit of Investors.

Research Methodology

Research Problem: -A Comparative Analysis on Investment Portfolio of Business & Service Class Investors of Ranchi (Lalpur

to Kutchahry).

Research Design: -Descriptive Research Design.

Data Collection: -Primary Research:- Questionnaires and interview.

Secondary Research: - Journals & Magazines. Sample:-

The Business & Service class Investors of Ranchi (Lalpur to Kutchahry).

Sampling Unit:-Those Business & Service class Investors using PM Services of Ranchi (Lalpur to Kutchahry).

Sample Size:- 100.50- Business Class Investors

50- Service Class Investors.

Sampling Frame:- It includes the Clients Database using PMS of HSBC InvestDirect, Ludhiana &the Walking Investors in Ludhiana Branch.

Sampling Technique:- Simple Random Sampling & Convenience Sampling Techniques.


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Data Analysis & Interpretation

Male Female

Business 88% 12%

Service 78% 22%

88%

12%

78%

22%

0%

20%

40%

60%

80%

100%

PercentageOfInvestors

Demoghraphic Profile of Investors


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2:- The Age Group of Investors.

Below 35 35-50 51-60Above

60

Business 30% 56% 10% 4%

Service 78% 20% 2% 0%

30%

56%

10%4%

78%

20%

2% 0%0%

10%20%30%

40%50%60%70%80%90%

Percentage

OfInvestors

Age Group of Investors


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3:- The Marital Status of Investors.

Unmarried Married

Business 20% 80%

Service 52% 48%

20%

80%

52% 48%

0%10%20%30%40%50%

60%70%80%90%

PercentageofInvestors

Marital Status of Investors


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5:- Monthly Flow of Income of Investors.

Under

Rs.10,000

Rs.10,001

to

Rs.20,000

Rs.20,001

to

Rs.30,000

Above

Rs.30,000

Business 12% 20% 22% 46%

Service 4% 22% 44% 30%

12%

20% 22%

46%

4%

22%

44%

30%

0%

10%

20%

30%

40%

50%


Monthly Inflow of Income


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6:- Awareness among Business class Investors regarding various Investment Plans.

Bank &

P.O.

Fixed

Deposit

s

Insuran

ce

Schem

es

Equitie

s

Comm

odities/

Derivat

ives

Real

Estate

Yes 100% 92% 92% 48% 86%

No 0% 8% 8% 52% 14%

100%92% 92%

48%

86%

0%8% 8%

52%

14%

0%

20%40%

60%

80%

100%

120%

PercentageOfBusines

sClass

Investors


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7:- Awareness among Service Class Investors regarding various Investment Plans.

Bank &

P.O.

Fixed

Depo

Insuran

ce

Schem

es

Equitie

s

Comm

odities/

Derivat

ives

Real

Estate

Yes 100% 98% 88% 66% 80%

No 0% 2% 12% 34% 20%

100% 98% 88%66% 80%

0% 2% 12%34% 20%

0%20%

40%60%80%

100%120%

PercentageofServic

eClass

Investors

Awareness regarding various Investment

Plans


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8:- The Purpose of Investors behind their Investments.

Capital AppreciationBalance of Capital App. &

Current Income

Supplement to Current

Income

Business 30% 62% 8%

Service 46% 38% 16%

30%

62%

8%

46%

38%

16%

0%

10%

20%

30%

40%

50%

60%

70%

Percentage

ofInvestors

Purpose of Investors behind theirInvestments


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9:- The Basis which initiates the Investors to invest in any Financial Security.

Fundamental Analysis Financial Advisor Portfolio Services

Business 0.277 0.349 0.374Service 0.342 0.237 0.421

0.277

0.3490.374

0.342

0.237

0.421

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Mean/Averag

e

Basis of Investments


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10:- Important Features required in Investors Portfolio Plan.

Growth Income Safety Tax Efficiency

Business 2.48 1.84 3.34 2.34

Service 2.62 1.9 3.26 2.22

2.48

1.84

3.34

2.34

2.62

1.9

3.26

2.22

0

0.5

1

1.5

2

2.5

3

3.5

4

M

ean/Average

Features required in Investors'

Portfolio Plan

33

1

1 4

4

22


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11:- Most Preferred Investment Avenues by the Investors.

Bank & P.O.

Fixed

Deposits

Insurance

Schemes

Mutual Fund

SchemesEquities

Commodities

/DerivativesReal Estate

Business 3.6 4.18 2.72 2.58 4.42 3.38

Service 3.14 3.3 2.88 2.96 4.82 3.92

3.6

4.18

2.722.58

4.42

3.383.14

3.3

2.88 2.96

4.82

3.92

0

1

2

3

4

5

6

Mean/Average

Most Preferred Investment Avenues

4

3

54

21 1 2

6

6 3

5


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12:- Type of Investments which are covered under their Current Portfolio.

Mainly Cash/Bank

Deposits with small

portion in Low risk

Bonds

Mainly Debt

Instruments & some

Portion in Blue Chip

Stocks

A mix of Debt

Instrument, Blue Chip

& Aggressive Stocks

Mostly Speculative or

High Risk Investments

Business 18% 14% 52% 16%

Service 36% 28% 30% 6%

18%

14%

52%

16%

36%

28%30%

6%

0%

10%

20%

30%

40%

50%

60%

Perce

ntageOf

Inve

stments

Current Portfolio of Investors


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13:-Important sources of Information which influence the Investors decision regarding their

Investments.

Newspaper/

Magazines

Electronic

Media (T.V.)

Peer Group/

Friends

Broker/

Financial

Advisor

Internet

Business 0.26 0.4 -0.58 0.7 -0.76

Service 0.8 0.34 -0.88 0.38 -0.64

0.260.4

-0.58

0.7

-0.76

0.8

0.34

-0.88

0.38

-0.64

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

Mean

Sources Of Information


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14:- The Time Period for which Investors prefer to keep their Investments.

Less than 1 month1 month - 6

months

6 months - 12

months

More than 12

months

Business 2% 20% 38% 40%

Service 0% 16% 34% 50%

2%

20%

38%40%

0%

16%

34%

50%

0%

10%

20%

30%

40%

50%

60%

Perc

entageof

In

vestors

Time Period of keeping

Investment


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15:- The Decision of the Investors at the time of Fluctuation in the Market.

Withdraw your Money Wait & Watch Invest more in it

Business 10% 52% 38%

Service 34% 36% 30%

10%

52%

38%

34%36%

30%

0%

10%

20%

30%

40%

50%

60%

Perc

entageof

In

vestors

Investors' Decision


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16:- The Investors belong to Risk Category.

Findings & Conclusion

Conclusion of 1st

Objective:-

Majority of Business class Investors are adults and they have the family size of more than 3because 80% of them are married and they have monthly Income of above Rs. 30,000. It means

high incomes Business Investors are doing more Investments.

Whereas majority of Service class Investors is Young and they have less number of dependents(0-1) because majority (80%) is unmarried and they start doing Investments with the SalaryPackage of Rs.20,001 to Rs.30,000 because as they have less number of dependents so they are

using more of their money into Investments.

Aggressive Capital

PreservationBalanced Portfolio

Aggressive Capital

Appreciation Portfolio

Business 14% 36% 50%

Service 20% 54% 26%

14%

36%

50%

20%

54%

26%

0%

10%

20%

30%

40%

50%

60%


The Investors' Risk Categories


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Conclusion of 2nd

Objective

The Business Investors have the awareness of all Investment avenues especially Equities & Realestate, few of them dont know about Commodities/Derivatives & thats why they do

Investments with the purpose of appreciation in their Capital as well as a source of their current

Income & whenever they do Investment in any security, they do so because their PortfolioManagement Services & Financial Advisor initiate them to do so.

Whereas Service class Investors have the awareness of all Investment avenues especiallyInsurance schemes and Equities and very few of them dont know about Derivatives. They do

Investments with the purpose of Capital Appreciation & they do Investments by having Portfolio

Services Initiation as well as Fundamental analysis of that particular Scrip/Company.

Conclusion of 3rd

Objective

Business class Investors have given the highest preference means Rank 1 to Equities. Whereas Service class Investors have given the highest preference to Mutual Funds.

Conclusion of 4th

Objective

The most preferred Investment Avenue for Business Investors is Equity & Real Estate and theykeep it with themselves for more than 12 months because Equity is a long term Investment.

They wait & watch or they invest more whenever they noticed any fluctuation in the market . Thats why they come under Aggressive Capital Appreciation Category which refers to higher

risk & higher returns.

Whereas the Service class Investors have most preferred Investment Avenue is Mutual Fund sothey keep it for long period and most of them withdraw their Investment or they wait & watch

when any fluctuation is noticed in the market.

Thats why; they have a Balanced Portfolio which refers to moderate risk & moderate return.


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Conclusion

Business Class Investors are more Risk taking. They prefer to invest in High risk Investments suchas Equity & hold their securities for a longer period of time.

They come under the Aggressive Capital Appreciation Portfolio. Whereas; the Service Class Investors are less Risk taking. Whenever they noticed any fluctuation in the market they try to withdraw their money. They do Safer Investments such as Mutual Fund and prefer to take moderate risk & moderate

return. So, they come under a Balanced Portfolio.

investment portfolio report

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