pushkar portfolio_management
TRANSCRIPT
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PADMASHREE DR. D.Y. PATIL UNIVERSITY
DEPARTMENT OF BUSINESS MANAGEMENT
ASSIGNMENT
ON
EMOTIONAL MARKETING ,PORTFOLIO
MANAGEMENT & BETA
SUBJECT: SECURITY ANALYSIS & PORTFOLIO
MANAGEMENT
SUBMITTED TO: SUBMITTED BY:
MISS. NEETU SHARMA PUSHKAR KARANDIKAR
FINANCE CLASS-I
ROLL NO. – 10124.
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INTRODUCTION
Gone are the days when producers were regarded as king of the market, they
use to decide which products were to be produced, size, color, features were
decided by the producers as customers were concerned about the availability of the product due to nonexistence of alternatives, that era was producers era.
Slowly scenario changed many producers came into the market and competition
entered in the market, customers started getting choice and era of marketing
started. Customers became the king of the market. Now producers started
manufacturing product as per customers' desire. Market was bombarded with n
number of products. Each and every marketer started providing products with
numerous features and gradually all the marketer continuing providing same
type of product with similar features and same price. Marketer realized for survival they will have to change their marketing strategies.
Marketer realized that human beings are quite emotional in nature and they take
their purchase decision emotionally, and if customers' emotions are hit in right
manner, they can get more loyal customers. There came a new model in
marketing and that is emotional marketing.
NEED OF EMOTIONAL MARKETING ARISES
This concept has been followed by big corporate' from decades. To achieve
higher success in marketing basic understanding of human psychology is
required which has been realized by marketer. This has helped marketer in
understanding what attributes is to be added in their product and how it is to be
communicated to the prospects. Customers buy products either to satisfy their
needs or their desires. Marketers are inquisitive in knowing what motivates
customer to purchase a product. For instance, customers aren't buying Shampoo just to clean their hair but they are buying a now look for their hair. Car is not
purchased only for transportation but for maintaining status. But if customers
are considered as bundle of emotions that is completely imprudent thought and
if well thought-out as only calculating machine that is also a failure.
Marketers add emotions in their appeal to entice their prospects. Just think
about the last purchase you have made, for any product. What was concealed
force that has compelled you to purchase that product, to check your purse,
bank balance; it was emotion, was not it? You believe it or not but for making
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purchase decision some percentage of emotions are always involved. Emotion
act as fuel in the engine of purchase decision process. Customers always put in
logic behind every purchase and try to prove that he/she has made rational
decision and emotion has not played any role, but the ultimate driver is the
emotion which has played major role in final purchase decision, whether
believed or not. Rationality is required but it just only generates interest in
product, its emotion which ultimately leads customers to purchase. Customers
are not much interested in attributes of the product; they want to know how that
product suits their personality. It is not in the case of single customer, all
customers behaves in same manner that's why marketers always make their
customers feel about product and services they provide. Customers purchases
products emotionally and then rationalize their choice intellectually.
Marketers mostly follow concept of emotional marketing, they endeavor to
include more emotions as emotional marketing is more profitable than rational
marketing in many cases as emotional marketing is all about winning mind of
customers, it is about getting share in customers heart more than share in
customers wallet. Emotional marketing if strategically deployed can remove the
rational questions which can take prospects to some other products.
Some marketers believe that if they provide value added products to the
customers they will be able to close the deal but they fail miserably, as it does
not ensue every time. Marketer should communicate their product as value
driven emotions and utility oriented motive to obtain attention of customers.
Customers do not always behave as calculating machine. They breathe, weep,
enjoy and having a heart which drives with emotions, they always get attracted
with the products which makes them feel and they get attached with the product
emotionally. Now question is how customers take decision for purchasing product? How do they evaluate the product? What are different criteria they
consider at the time of making decision?
The Value Star Method
Hallmark's Value Star system is a model for applying emotion marketing to
your company. It's based on a five-pointed star, with each of the points
representing a vital element in the marketing equation.
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The first two elements are familiar from traditional marketing:
Money: Is the product affordable and offered at a competitive price? Are any
promotions or discounts compelling?
Product : Is the product or service desirable? Does it have the proper features
and does it get the job done?
As we now know, if customers are buying a product or a service based on price
alone, the brand is at risk - unless it's a low-cost provider and that price
advantage can be sustained over the long term. Even competition based on a
product is becoming less practical. New features get duplicated very quickly
today by "fast-following" competitors.
Competitive pricing and quality products are the cost of entry to today's market.
Even the considerable power of emotion can't overcome an obviously inferior
or unreasonably priced product. But in the end, price and product are too easy to
copy. You need other value drivers - the emotional E's in the Value Star
model:
Equity: This is the combination of the trust a brand earns and an identity that
allows consumers to feel emotionally connected to it. A company makes a
promise, consistently delivers, and over time its customers come to rely on it.
Simply seeing the logo or hearing the
name tells them the product or service is worth the investment. "Emotionally
loyal customers relate to the brand as they might to other human beings -
feelings of affection, a common history, possibly a sense of trust and two-way
commitment, which goes well beyond the satisfaction of a specific need," note
Horacio Rozanski, Allen Baum and Bradley Wolfsen in Strategy & Business.
Experience: This deals with customers' interactions with a brand. Customer
attitudes are affected by visits to a store or web site, employee contacts,communications, loyalty programs and, of course, use of the product or service
itself. In every encounter there's an opportunity to meet a need and make an
emotional connection.
Energy: This is the investment of time and effort a customer makes in a product
or service. Is it easy? Accessible? Worthwhile? These days, with so many
people feeling pressed for time, companies must pay attention to whether they
are offering convenience and saving time for their customers.
Equity, experience and energy are the emotional components of the Value Star.
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Money and product are the rational elements. Together, they offer a path for
appealing to both the emotional and rational impulses that drive consumer
buying decisions.
EVALUATION CRITERIA OF CUSTOMERS
Consumers consciously or unconsciously evaluate products on several criteria,
some of them are:
Economical: Customers are interested in purchasing those products which are
economical i.e. fits in their budget and make them to feel. For instance Bajaj
Platina, Bajaj XCD always highlights that they are economical as well as stylish
too, by these kinds of appeals they pull those customers whose psychologicalcost of paying for product reduces their excitement in that product. But there are
some customers who are interested in paying high prices if it is worth paying
and helps in maintaining their status.
Technological: Customers are well informed nowadays. Customers are
interested in product which possess additional features, can perform various
functions and must be easier to deal with. They bargain on technological
aspects while purchasing. These reasons compel marketers to fight in the battle
field with extra features and ease of use.
Pleasure: Consumers are interested in the products which can offer them
pleasure after possessing it. Companies' adjoin pleasure against the features and
benefits of their products and at last deal gets closed with gladness.
For instance Raymond's suiting in their appeal shows that owners feel pleasure
while dressing themselves with Raymond suiting.
Achievement: Human beings in this world desire for some or other achievements in their life and even they expect these achievements from the
products which they purchase. Now question arises that how products can fulfill
their desire of achievements? Marketer frames and communicates their message
in such a manner that it encompasses the idea of achievement. Advertisement of
Maruti 800 which showed that middle class customers get sense of achievement
in their life after getting possession of Maruti 800.
Status: Different income levels of customers' shows different purchasing
patterns to maintain their standard of living. Higher income group customers' go
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for diamond, platinum, Mercedes to maintain their status. For them silver and
gold are inferior goods but for middle class customers these are superior items.
Perception of customers behind purchasing any product that it should contribute
to status even if customers spend small percentage of their income for that product. Detergent like Wheel which targets middle class customers
communicates their message in very effective manner by using punch line
"Manhgi wali dhuali budget mein samai"
Style: Younger generations of today are much more inclined towards products
which suit their style and to their looks, are preferred mostly. Celebrities are
endorsed so that stylish look. Pulsar, Karizma, Glamour, Enticer are first choice
of youngsters who believes in lavish and stylish life and these products
themselves explain importance of style in the life of customers with respect to
product.
Security: Insurance products are best example of this criterion. Marketers
appeal customers through fear in their messages. "Papa please yeh rakh lo" a
father thinks about his future where his daughter is giving money for his
fulfillment of his daily requirements and then he realizes importance of
Insurance in life. This is the most important factor as customers are always
interested in securing themselves.
Belongingness: Human beings live in social groups. They want to confirm to
their society, they feel humiliated if they don't match. So they constantly try to
stride for those products which balance their self esteem and membership in
society. So products which raise their self-esteem and satisfy them emotionally
are favored. Business people endeavor to fit their products with potential
customer's social group or personal identity. This can be elucidating with the
instance of college students, they go for Laptops not only to get connected with
the world but to make them selves fit in their friend circle.
Self improvement: Human being shows their interest which can improve their
personality and social status. For that they captivated them to books, internet
and many other sources and due to all this major portion of population are
heavily inclined towards internet. Even now customers ask for the website
address of the companies, they evaluate companies authenticity on the basis of
their website address. Big corporate and website designers are realizing
importance of internet and taking it as a platform to communicate their messageeffectively. For more effective and efficient communication of message they
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have taken emotions as most important ingredient. Many websites designers are
keeping these criteria in mind and working hard for emotion addition as many
websites have seen big face of failure due to non inclusion of this factor in their
websites.
Conformity - Does your product/service fall into a conformity niche? People
do not want to be alone. They flock together in groups. You have seen them
throughout school, and surely have seen them in your adult life. Does your
product or service command a group following? How would your
product/service help to fulfill the need of community? Does peer pressure play a
role in your product/service?
Ambition - How does your product/service help people to get more out of life?
More out of life is a broad term and can be applied to money, love, security, power, or just about anything else you can think of. What is it that people want
more of that your product or service can help them get more of?
Power - In what ways does your product/service offer a person more power?
Power can be over something as simple as their own lives, time, or any number
of other things. What ways can you come up with that will help people gain
more control over things that they want more control over?
Love - This one is the grand daddy of them all. As mentioned earlier in thisarticle where the person was looking for ways to expand their financial stability
and offer more to their children. That would be an example of a feeling of love.
STRATEGIC OPPORTUNITES FOR INCREASING MARKET SHARE
Business people are interested in adding more spices in their dish (message) to
provide more flavors in their messages. Marketer can get more shares incustomers' heart as well as in wallet if they work hard on the following factors:
Catching the attention of customers'
Countless strategic opportunities for drawing customers' attention are there,
some of them are:
Benefits: Customers purchase products for benefits; it can be direct or indirect
benefit. Direct benefit are very simple in nature, it is all about cause and effect.
A lady joins English speaking classes to make herself comfortable to converse
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in English, this is direct benefit. Indirect benefits are that she will be able to
make herself updated, to get herself fit in the society, she can help her kids also
and many more. Marketers should give much more concern to the indirect
benefits as it possesses strong emotional appeal.
Features: Consumers purchases product not because of the feature but because
of benefits. Features can attract customer attention towards product but it is
benefit which finally closes the deal. Marketer offer different features in their
product but finally those who can associate benefit with feature through
impressive emotional appeal, becomes champion of the market.
Affection: It a very powerful tool to build relationship with customers. This
concept can be very well explained with the case of Cadbury's celebration pack,
in the advertisement they convey how one can show affection towards their
beloved at the time of occasion like Diwali, Rakhabandhan etc. They have got
success in changing people's perception towards gifts which they give at the
time of occasion to their near and dear ones. Now boys prefer Cadbury
celebration pack over any other gift to present their sisters at the time of Rakhi.
Free /Gift: This is the one of the most powerful tool for today's marketer. Every
one is interested in getting something free with the product they purchase.
Nowadays customers ask retailers about the gift offered with the product whichthey are purchasing as preference is given those products with which gift is
attached. Customers feel delighted when they receive product free of cost which
they have never dreamed of like DVD player free with TV or while purchasing
a refrigerator a trip to Singapore is given by the marketer.
Effortless: We all are living in the era where maximum number of task can be
performed with a simple click. Customers of today are interested in getting
everything without performing anything. They are interested in those products
where minimum or less energy is expended for the fulfillment of the task. For
this take the example of Banks, previously banks were offering only limited
services, customers use to stand in queue for hours for simple transaction, but
now all the banks are offering n number of benefits to the customers like 24
hour ATM facility, internet banking, phone banking and many other. Now one
can withdraw money very easily there is no need to stand in queue for long
hours, funds can be transferred from one account to another, from one city to
another country within a fraction of second. ICICI Bank in their promotional
strategies highlights all their features of effortlessness (8-8 banking, internet,
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phone banking etc.) with full of emotions, that's why now it is first preference
of customers.
Punch line: Companies nowadays put lots of efforts for creation of tagline.
Punch line is combination of few words which conveys company visions and benefits. It helps in proper positioning of products and helps in informing
distinct benefits within fraction of seconds. Few examples are: ICICI Prudential
"We cover you at every step in life", TATA Group "improving the quality of
life", Bajaj "Distinctly Ahead", DLF "Building India", Nestle "Good Food,
Good Life" etc.
Make prospects so much inquisitive so that they take action quickly:
Customers generally purchase those products which they enjoy while
purchasing so marketers should make efforts to make their customers laugh,
they should add excitements in their offerings. Take the instance of shopping
mall, nowadays shopping mall is increasing in numbers. Customers are much
more fascinated towards malls as wide ranges of products are offered in malls
(from pin to durable items) with lots of convenience. If marketer gets success in
adding fun, enthusiasm, thrill and pleasure in their appeal they can compel their
customers running in to their stores, if they do not get success they will have to
wait for the prospect to walk towards their stores for months.
Give satisfaction by providing benefits which has been promised:
Marketers emotionally appeal customers through love, fear, pride, joy and by
many other ways. They always associate their products with customers feeling
to make their product sellable in the market as customers are ultimate decider of
their destiny. Customers will purchase products till products emotionally and
rationally appeals to them but quality and service factors cannot be ignored
because for the first time customer can purchase product by getting emotional
but repeat purchase is not possible if customers gets dissatisfied with the
product.
PITFALLS IN EMOTIONAL MARKETING
Emotional marketing provides many opportunities to marketer for facing and
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fighting competition with that there are some pitfalls associated with the
opportunities, they are
Expectation mismatch: Many a times firms believe that customers buy
features alone. If a product is having extraordinary features and offer incomparable value to the customers, it may fail as customers always evaluate
products benefits and features associated with others products.
Appearance: This pitfall covers every aspect from infrastructure to reputation.
If retailer is not having eye-catching location and if the product display is also
not tremendous then how much beneficial and value added that product is, it
will not be able to attract customers attention.
Retailers may not have control over location but he/she can get number of customers through their long year of service and relationship by that they can
build reputation in the market.
Employee-employer commitment: In today's competitive era, business
concern can survive through relationship marketing. Relationship can be
developed only through front-line employee's behavior and attitude towards
customer. It is very important to understand how much employee is concerned
in giving his best service to the customer. Many a time's lack of commitment
from both salesperson and employer destroys the rapport. A proper sales plan is
required for achievement of goal which includes sales person training and sales
target both in terms of quality and quantity. Every stakeholder should be
emotionally committed to their plan then only ultimate objective i.e. winning
heart of customers can be achieved.
Summary
Emotional marketing is the act of taking into consideration the feelings and
needs of the visitors coming to your site, and finding ways to capitalize on those
feelings and needs to bring them back, and create higher volume sales through
meeting their needs. By getting to know the visitor and their needs you are
better equipped to add value to your website, offerings, and the ability to chose
affiliate programs that also satisfy your visitor's needs. Choosing the right
affiliate program to match your visitors' needs will help generate better revenue
from the affiliate programs you make available on your site.
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Most new webmasters/website designers fail to consider such things when they
design their website. Although it isn't really their fault, they have failed to
educate themselves about the added possibility emotion can add to their site.
When they fail to generate the needed emotions to convert visitors, they usually
get frustrated and give up. Many times, they simply run out of finances to keepthe site going which ultimately causes website failure.
By learning more about your visitors and what emotional buttons you need to
push, you can tailor your site to fit visitor needs, increase both your
product/service sales, and affiliate program revenue. Learning what your
visitors need also expands your ability to offer other products/services you do
not offer through affiliate programs that do. I can not stress enough the
importance of knowing your visitors. It is the key to a successful marketing
campaign and continued revenue and growth.
There are at least ten emotions that you can capitalize on to increase your sales
volume. The more of those that you can incorporate into your content and
design, the better results you will get from your design and promotional efforts.
You must be careful though because failure to deliver on promises will only
have a negative effect on your site. Make sure that the emotions you are
incorporating and the claims that you make about your products/services are
truthful. Word of mouth advertising also plays a part in marketing. The old
saying goes that even one happy customer will complain to at least 10 other
people about their plight, and those 10 will complain to 10 more, and it all
snowballs.
There are words in the english language that generates an emotional response
when read. The more of those words you can incorporate into your content and
offerings, the higher your potential for sales. You also need to keep in mind
industry specific information that applies to your products/services, and make
sure that your offerings fall in line with your industry. Failure to do that will
destroy your credibility and reduce the trust you are trying to build. It's that trust
and rapport that will fuel study growth.
As with all of my articles, this one is also based on knowledge, experience,
surfer experience, and common sense. I do not want my readers to simply take
my word for things. I invite you to think about my words. Apply them and see
if they sound true. I am sure that when you apply common sense and think
about the article that you will wonder why you had to read the article in the first
place. You already had the answers. All you needed was some guidance and
questions to help direct your thought process.
Example
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of
You strive to provide comfort, happiness and security to your family. Even if
something unfortunate were to happen to you, you would want your family’s
future to be secured at all times.With ICICI Pru iCare, protect your family’s future and ensure that they lead
their lives comfortably without any financial worries, even in your absence.
Also, get the advantage of instant life insurance cover at the click of a button
Today, ICICI Prudential, one of India’s largest private sector life insurance
companies announced the launch of its new online pure term insurance plan –
iCare.
iCare will succeed the flagship online term plan of ICICI Pru - iProtect. The
new online plan iCare carries some best-selling features of iProtect such as the
Option 2 which has an inbuilt Accidental Death Benefit rider.
Key Features of iCare Term Plan:
- Instant Life Cover through simple online application process
- Flexibility to choose protection cover from two options:
- Option I - Death benefit equal to Sum Assured
- Option II - Additional death benefit in case of death due to accident
ICICI Pru iCare term plan provides the option of attaching an accidental death
benefit rider for a small addition in the premium amount. In Option II, the
accidental death benefit paid is equal to Sum Assured, subject to a maximum of
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Rs 50 lakhs.
A policyholder can opt for a policy term of minimum 5 years up to a maximum
of 30 years, but the maximum age at maturity cannot exceed 75 years. The
maximum Sum Assured that a person can opt for is between 18 – 50 years is Rs1.5 crores and the Sum Assured is capped at Rs 70 lakhs for persons between
51 – 65 years of age.
The policy can be also purchased by making a Single premium in addition to
the regular mode of Yearly Premiums can be paid either yearly or one-shot
payment can be made at the start of the policy; and are eligible for tax benefits
under section 80C of the Income Tax Act 1961.
A Quick Look
You strive to provide comfort, happiness, and security to your family. Even if
something unfortunate were to happen to you, you would want your family’s
future to be secured at all times.
With ICICI Pru iCare, protect your family’s future and ensure that they lead
their lives comfortably without any financial worries, even in your absence.
Also, get the advantage of instant life insurance cover at the click of a button.
Key benefits
Flexibility to choose protection cover based on your needs from:
Option I: Death benefit equal to Sum Assured
Option II: An additional death benefit equal to Sum Assured or Rs. 50 lakhs,whichever is lower, payable only in case of death due to accident
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• Instant life insurance cover1 through a simple online application process
• Insurance cover at extremely affordable premiums
• Option of regular pay and one pay
• Tax benefits on the premiums paid2
1. The life insurance cover will begin immediately on acceptance of proposal.
After submission of the application form, if it is found that the customer has
existing policies which have not been disclosed and due to which, there is a
change in the underwriting decision of the Company, the Company will
withdraw the cover subject to Section 45 of the Insurance Act, 1938 and below
mentioned clause 1a.
1a. The maximum benefit payable on death, excluding the Accidental Death
Benefit under ICICI Pru iCare Option II, in respect of all policies issued on the
same Life Assured will be limited to the maximum Sum Assured applicable for
this product. The additional Accidental Death Benefit payable under ICICI Pru
iCare Option II in respect of all policies issued on the same Life Assured will be
limited to Rs. 50 lakhs.
2. Tax benefits under the policy are subject to conditions u/s 80C of the Income
Tax Act, 1961.
Service tax and education cess will be charged extra, as per applicable rates.
The tax laws are subject to amendments from time to time.
How does this term insurance plan work?
• Choose between two options available under ICICI Pru iCare, based on
your protection needs.
•
Fill in your personal details and answer some simple questions related toyour health.
• Pay the premium through your internet banking account or through your
credit/debit card. You will have to pay the premium as per the premium
payment option chosen.
• Life insurance cover on your policy begins immediately on acceptance of
proposal1
How can I buy this plan?
•
Buy Online• Meet an advisor
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• Visit your nearest branch
PORTFOLIO MANAGEMENT
A Portfolio Management refers to the science of analyzing the strengths,
weaknesses, opportunities and threats for performing wide range of activities
related to the one’s portfolio for maximizing the return at a given risk. It helps in
making selection of Debt Vs Equity, Growth Vs Safety, and various other
tradeoffs.
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Managing investments in equities requires time, knowledge, experience and
constant monitoring of stock market. Those who need an expert to help to
manage their investments,
Major tasks involved with Portfolio Management are as follows.
Taking decisions about investment mix and policy
Matching investments to objectives
Asset allocation for individuals and institution
Balancing risk against performance
Securities Portfolio Management
Professional securities portfolio management gives Investors benefits resulting
from the specialization and know-how of the managing company. We have
created a large team of specialists whose sole objective is to conduct analyses
and make investment decisions. Trade Ways experience and results have
positioned the brokerage house among the leading asset management
institutions. Securities portfolio management consists in the investment and
management of a Client's assets by the brokerage house on behalf and account
of the Client, in accordance with the selected investment strategy and under the
Management Agreement and Regulations.
The Client at all times Remains the Sole Owner of the assets entrusted to the
House Brokerage, Investment Decisions Are whereas made by Investment
Advisers employed by Trade Ways LTD The Portfolio Management Agreement is
concluded for a Period of 12 months. The required Minimum initial Investment is
USD 10.000. The portfolios are customised to Individual Client's Needs. Each
one reflects other Client preferences and requirements as regards acceptable
risk while using the opportunity to invest funds within a precisely defined
investment strategy.
Offering comprises the Standard Three types of Portfolio: Portfolio Risk-Free "3# 3" balanced Portfolio Stock "6 # 3" Portfolio Risk-Free Portfolio Securities in
Foreign currencies Dividend Portfolio and upon consultation with an investment
advisor, it is also possible to create an individually customised portfolio, in the
value of at least USD 100,000.
Treasury debt securities portfolio
Composition of the Portfolio
This type of Portfolio consists solely of State Treasury Debt Instruments (bonds
and Treasury Bills), bank Deposits and Cash.
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Portfolio Profile
this is an Extremely Secure type of Portfolio, designed to offset the Effects of
Inflation on the value of assets, and generate Higher Than Treasury Bills yield
bonds That Are Not quoted on the Exchange Are excluded from Risk-Free
portfolios generated by the Returns portfolio are credited to the Client's portfolioand used in accordance with re-invested in accordance with the adopted
investment strategy.
Dividend portfolio
Composition of the Portfolio
The Portfolio includes: Publicly traded shares of companies (Not less Than 75%
of the portfolio value), debt securities and cash (up to 25% of the portfolio
value).
Portfolio profile
The portfolio may comprise only shares of companies paying out dividend and
the WIG 20 index companies, in the CASE Whose Payment of the Current-Year
dividend is HIGHLY probable. None of the Share of the companies exceed 20%
May of the Portfolio value. IT is possible to purchase and subscribe for shares
within an Initial Public Offering and the first offering.
" 3 # 3 "balanced portfolio
Composition of the portfolio
40% to 60% of the portfolio - shares of companies from the 9 Sectors of
Economy Considered to Have the Strongest Growth Potential;
and the Remaining 40% to 60% of the portfolio value is invested in bonds,
Treasury bills, bank deposits and cash.
Portfolio Profile
of a Share None of the Sectors May exceed 25% of the Portfolio value of a
Share None of the companies exceed 10% May of the Portfolio value the
Investment Strategy precludes Purchase and subscription for shares in a Primary
Offering and an initial Public Offering IT is Possible to Purchase shares on the
market within the Primary exercise of pre-emptive rights Returns generated by
the Portfolio Are credited to the Client's Portfolio and in accordance with Used
Adopted the Investment Strategy.
Stock "6 # 3" portfolio
Portfolio profile
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a share of none of the sectors may exceed 50% of the Portfolio value of a Share
None of the companies exceed 15% May of the Portfolio value this Investment
Strategy precludes the Purchase and subscription for shares in a Primary
Offering and an initial Public Offering IT is Possible to Purchase shares on the
market within the Primary exercise of pre-emptive rights Returns generated by
the Portfolio Are credited to the Client's Portfolio and in accordance with Used
Adopted the Investment Strategy.
Treasury debt securities portfolio in foreign currencies
Portfolio profile
Minimum value of the Portfolio: 100.000 USD or EUR Expected return on
Investment Interest Earned exceeds Standard on Foreign Currency Deposits
bank (After Portfolio Management Costs - about 04.05% per annum)
Investments in high Instruments That Meet Profitability and Security Standardssupplementing Other Investments Professional placements with in the segment
of Debt Instruments denominated in Foreign currencies medium Portfolio assets
Liquidity Risk Investment low.
Advantages of professional securities portfolio management
Costs minimization
Management of assets by an Investment Company involves much LowerTransaction Costs and fees Than Those Charged to Individual Investors.
Security
Depending on the type of Portfolio, all the Funds or the Greater Part thereof, Are
Invested in State Treasury Debt Instruments or shares of the Best companies
representing leading Sectors of the Economy.
100% allocation of Funds
The Funds entrusted Are Invested continually and thus all profits Earned Arereinvested in accordance with the Investment Strategy Adopted.
Tax-Free income
On the Portfolio Returns Are Exempt from income Tax.
Reports and information
Investors receive monthly Current Reports about the value of Their Portfolio.
Statements are delivered within 14 days after the end of every month.
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Example of a Portfolio Management of a client is as follows.
Value: Rs. 16,497.50 -14.48% TODAY: Rs. -197.50 -1.18%
Stocks 16,497.50 100.00 % Mutual Funds 0.00 0.00 %
Value: Rs. 16,497.50 TODAY: Rs.-160.00 -2.61%
Stocks
Company
Qty
Avg. Buy
Price
Value at Avg.
Buy Price
Last Traded
Price (+/-)
Value at LastTraded Price
Gain
in Rs.
Gainin %
Tata Teleservices (M 400 23.14 9,256.00 14.90 (-0.40) 5,960.00 -3,296.00 -35.61
Reliance Natural Res 250 40.14 10,035.00 42.15 (0.00) 10,537.50 +502.50 5.01
Beta:
Beta is a measure of a stock's volatility in relation to the market. By definition, the market has
a beta of 1.0, and individual stocks are ranked according to how much they deviate from the
market. A stock that swings more than the market over time has a beta above 1.0. If a stock
moves less than the market, the stock's beta is less than 1.0. High-beta stocks are supposed to
be riskier but provide a potential for higher returns; low-beta stocks pose less risk but also
lower returns.
Beta is a key component for the capital asset pricing model (CAPM), which is used to calculate
cost of equity. Recall that the cost of capital represents the discount rate used to arrive at the
present value of a company's future cash flows. All things being equal, the higher a company's
beta is, the higher its cost of capital discount rate. The higher the discount rate, the lower the
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present value placed on the company's future cash flows. In short, beta can impact a company's
share valuation.
Following are the Beta values of Companies:
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