Portfolio Management

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The project is based on analyzing the 40 scrip’s and preparing a portfolio of 20 scrip’s and evaluates the performance of portfolio for the next one year. The sample size is 40 companies stocks. The company stocks are chosen based on their nature 1) Aggressive in nature (β>1).2) Conservative in nature (β<1) and 3).Balanced in nature (β=1).The portfolio performance is compared with various mutual funds and with market to pullout or adds some companies according to their performances. The virtual money investing in the portfolio is 100 Crores.



I express my sincere thanks to my college, AURORA’S BUSINESS SCHOOL for giving me this opportunity to work in one of the leading organizations in the financial services field. I thank our director, Dr.Ravi Paturi and also the faculty of ABS for their support.

I thank India bull’s securities Ltd. for giving me the opportunity to work here and gain valuable experience in the corporate environment.

I am thankful and feel very privileged for having Mr. Pavan Kumar as my assigned project guide. I thank him for the support and guidance he has given during this project.

I would also like to express my heartfelt gratitude for the support given to me by the research team at India bull’s securities Ltd. This project could not have been completed without the constant support and guidance given by them. Y.SRINATH REDDY


Serial no| TOPIC| Page no| 1| Executive summary| |
2| Company profile | |
3| Introduction to the topic | |
4| Objective of the study | |
5| Introduction to portfolio management | |
6| Steps involved in portfolio construction | |
7| Portfolio tracking and portfolio analysis | |
| Results and findings| |

Executive summary

The study is conducted to understand the construction process of portfolio and to know how a portfolio will help for an investor to maximize his returns rather than investing the money in a single company. I created a diversified portfolio in order to maximize returns by minimizing the risk. Firstly, I understand the concept of beta which explains the correlation between the market and a particular company stock. Based on the beta nature I have taken 40 stocks from national stock exchange, from which 20 company stocks are shortlisted to create a balanced nature of portfolio. I have taken the past one year stock prices of all 20 company stocks and calculated the daily returns. I calculated the correlations for 20 stocks to know the degree of relationship between all 20 company stocks. To know the risk pattern between 20 stocks I have calculated the variance and standard deviation. Thereafter, I calculated the total variance of the portfolio which contains 20 stocks. In this project I came across with an excellent tool solver, solver is mainly used for linear programming, it is much like regression analysis it will try to optimize a solution. In this project solver is used to derive the percentages of investment in all 20 stocks by optimizing the variance with some defined constraints. The virtual money taken for the investment in the portfolio is 100 crores. I calculated the weekly and monthly returns for the constructed portfolio. I evaluated the performance of the created portfolio with the existed different types of funds in the market. The portfolio is giving 2.24 percentage returns for a month whereas Tata balanced fund is giving 0.7 percentage return and reliance regular savings balanced fund is giving 0.5 percentage return.


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