project report. final

32
Project Report on Portfolio Management Services- An Investment option at By Ashutosh Kumar Singh PGDM-08/14 ICBM-SBE

Upload: ashutoshicbm

Post on 16-Nov-2014

696 views

Category:

Documents


11 download

DESCRIPTION

This Presentations is all about the Portfolio Management Services offed by Sharekhan Limited

TRANSCRIPT

Page 1: Project Report. Final

Project Report on

Portfolio Management Services-An Investment option

at

ByAshutosh Kumar Singh

PGDM-08/14ICBM-SBE

Page 2: Project Report. Final

Table of ContentsIntroduction

Company Profile

Research Methodology

Portfolio Management Services

Sharekhan PMS

Data Interpretation

Observation and Finding

Suggestion and Conclusion

Page 3: Project Report. Final

Introduction

Introduction to study

The field of investment traditionally divided into security analysis and portfolio management. The heart of security analysis is valuation of financial assets. Value in turn is the function of risk and return. These two concepts are in the study of investment .Investment can be defined the commitment of funds to one or more assets that will be held over for some future time period.

PMS is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities, managed by a professional money manager that can potentially be tailored to meet specific investment objectives.

PMS can be provided in the following ways:Discretionary Non DiscretionaryAdvisory

Page 4: Project Report. Final
Page 5: Project Report. Final
Page 6: Project Report. Final
Page 7: Project Report. Final
Page 8: Project Report. Final

Research MethodologyEach research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. Our research study has the following objectives.Objectives: To know the concept of Portfolio Management. To know about the schemes offered by the different insurance companies, new IPO’s, Mutual Funds. To know about the awareness towards stock brokers and share market. To study about the effectiveness & efficiency of Sharekhan Ltd in relation to its competitors To study about whether people are satisfied with Sharekhan Services & Management System or not.  To study about the difficulties faced by persons while Trading in Sharekhan. To study about the need of improvement in existing Trading system.

Page 9: Project Report. Final

Scope of the Study

It is offers professional management of equity investment of the investor with an aim to deliver consistent return with an eye on risk.

Identify the key Stock in each portfolio.

To look out for new prospective customers who are willing to invest in PMS.

To find out the Sharekhan, PMS services effectiveness in the current situation.

It also covers the scenario of the Investment Philosophy of a Fund Manager.

Page 10: Project Report. Final

MethodologySOURCES OF DATA  Primary data: Questionnaire

Secondary data: Published materials of Sharekhan Limited. Such as periodicals, journals, news papers, and website.

SAMPLING PLAN Sampling:  Since Sharekhan Limited has many segments I selected Portfolio Management Services (PMS) segment as per my profile to do market research. 100% coverage was difficult within the limited period of time.Sampling size: A sample of hundred was chosen for the purpose of the study. Sample consisted of Investor as based on their Income and Profession as well as Educational Background.  

 

Page 11: Project Report. Final
Page 12: Project Report. Final

Limitation of the Project

As only Hyderabad was dealt in the survey so it does not represent the view of the total Indian market.

The sample size was restricted with hundred respondents.

There was lack of time on the part of respondents.

The survey was carried through questionnaire and the questions were based on perception.There may be biasness in information by market participant.

Complete data was not available due to company privacy and secrecy.

Some people were not willing to disclose the investment profile.    

Page 13: Project Report. Final
Page 14: Project Report. Final

Borrowers

Secondary

Mkt

Client Management

Origination

PortfolioPortfolio

ManagerManagerCredit decision

Risk Rating

Pricing/Return

Portfolio Decision

Syndication

Loan Trading

Hedging & Securitization

Servicing

Need of PMS

Page 15: Project Report. Final

TECHNOQUES OF PORTFOLIO MANAGEMENT

1). Equity portfolioEquity portfolio is affected by internal and external factors(a)Internal factors

Market value of shares Book value of shares Price earnings ratio (P/E ratio)Dividend payout ratio

(b) External factors   Government policiesNorms prescribed by institutions Business environment Trade cycles

Page 16: Project Report. Final

2). Equity stock analysis – The basic objective behind the analysis is to determine the probable future – value of the shares of the concerned company. It is carried out primarily fewer than two ways.  (a) Earnings per share(b) Price earnings ratio

(3) Quality of management: - Investors decide about the ability and caliber of management and hold and dispose of equity academy. P/E ratio is more where a company is managed by reputed entrepreneurs with good past records of management performance. 

Page 17: Project Report. Final

Types of PortfolioAggressive Portfolio: Objective: Growth. This strategy might be appropriate for investors who seek High growth and who can tolerate wide fluctuations in market values, over the short term.

Growth Portfolio:

 Objective: Growth. This strategy might be appropriate for investors who have a preference for growth and who can withstand significant fluctuations in market value.

Balanced Portfolio:Objective: This strategy might be appropriate for investors who want the potential for capital appreciation and some growth, and who can withstand moderate fluctuations in market values.

Conservative Portfolio:Objective: This strategy may be appropriate for investors who want to preserve their capital and minimize fluctuations in market value.

Page 18: Project Report. Final
Page 19: Project Report. Final

Data Analysis and Interpretation

1.Do you know about the Investment Option available?

Page 20: Project Report. Final

2. What is the basic purpose of your Investments?

Page 21: Project Report. Final

3)What is the most important factor you consider at the time of Investment?

 

Page 22: Project Report. Final

4. From which option you will get the best returns?

Page 23: Project Report. Final

5. “Investing in PMS is far safer than Investing in Mutual Fund”. Do you agree?

Page 24: Project Report. Final

6. How do you trade in Share Market?

Page 25: Project Report. Final

7. How do you manage your Portfolio?

Page 26: Project Report. Final

8. Are you using Portfolio Management services (PMS) of Sharekhan?

Page 27: Project Report. Final

9. Which Portfolio Type you preferred?

Page 28: Project Report. Final

10. Do you recommend Sharekhan PMS to others?

Page 29: Project Report. Final

OBSERVATION AND FINDING

85% Respondents knows about the Investment Option, because remaining 15% take his /her residential property as Investment.

More than 75% Investors are investing their money for Liquidity, Return and Tax benefits. At the time of Investment the Investors basically considered the both Risk and Return in more %age around 65%.

76% of Investors feels that PMS is less risky than investing money in Mutual Funds.

45% respondents do the Trade in the Market with Derivatives Tools Speculation compare to 24% through Hedging .And the rest 31% trade their money in Investments.

57% residents manage their Portfolio through the different company whereas 43%Investor manage their portfolio themselves.

56% are ready to recommended the PMS of Sharekhan to their peers, relatives etc.

 

Page 30: Project Report. Final

Conclusion and Suggestions

We can conclude the following with above analysis.Sharekhan Ltd has better Portfolio Management services than Other Companies.

It keeps its process more transparent.

It gives more returns to its investors.

It charges are less than other portfolio Management Services

It provides daily updates about the stocks information.

Investors are looking for those investment options where they get maximum returns with less returns.

Market is becoming complex & it means that the individual investor will not have the time to play stock game on his own.

People are not so much ware aware about the Investment option available in the Market.    

Page 31: Project Report. Final

Suggestions

The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers.

Investor’s accounts must be more transparent as compared to other companies.

Sharekhan limited must try to promote more its Portfolio Management Services through Advertisements.

Sharekhan needs to improve more it’s Customer Services

There is need to change in lock in period in all three PMS i.e.Protech, Proprime, Pro Arbitrage.

Page 32: Project Report. Final