Study on Portfolio Management and Investment Decision

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PROJECT REPORT ON

“A STUDY ON PORTFOLIO MANAGEMENT AND INVESTMENT DECISION”

AT

HYDERABAD STOCK EXCHANGE

SUBMITTED BY

C.Shilpa

M.B.A 2nd YEAR

H.T.NO:1245-09-672-013

VIVEKANANDA SCHOOL OF P.G STUDIES

[pic]

Project submitted in partial fulfillment for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

To

Osmania University, Hyderabad -500007

2009-2011

DECLARATION

I, C.SHILPA student of Vivekananda School of post graduate studies, here by declare that, the project work entitled “A STUDY ON PORTFOLIO MANAGEMENT AND INVESTMENT DECISION” is an original work carried out by me availing the guidance and my entire satisfaction. This report bears no resemblance with any other report submitted to OSMANIA UNIVERSITY during the current academic year, earlier or any other university for the award of any degree or diploma.

Place: Hyderabad C.SHILPA

Date:

ACKNOWLEDGEMENT

I wish to express my heart full thanks to Professor Mr. Krishna Reddy, Trainer at Hyderabad Stock Exchange.

I wish to express my deep sense of gratitude to the management of Hyderabad Stock Exchange.

I would also like to put on paper my sincere thanks to my guide Mr. Pritesh Rathi (HOD-Finance) & Mrs.Sangeetha for extending their support, cooperation and guidance with out whose help the project would not have been success, and I would like to express my special thanks to our principal Mr. P. venkateshwar rao.

Place: Hyderabad C.SHILPA

Date:

TABLE OF CONTENTS

CHAPTER – 1 PAGE NO

• INTRODUCTION
• OBJECTIVES OF THE STUDY
• SCOPE OF THE STUDY
• METHODOLOGY OF THE STUDY
• RESEARCH METHODOLOGY
• TIME SPAN OF THE STUDY
• LIMITATIONS OF THE STUDY
CHAPTER - 2

• COMPANY PROFILE
CHAPTER – 3

• PORTFOLIO MANAGEMENT AND

INVESTMENT DECISION

CHAPTER – 4

• DATA ANALYSIS AND INTERPRETATION
CHAPTER – 5

• FINDINGS AND SUGGESTIONS
• CONCLUSIONS
• BIBILOGRAPHY

CHAPTER-I

INTRODUCTION

INTRODUCTION:

Concept of Portfolio:

A portfolio is a collection of securities. Since it is rarely desirable to invest the entire funds of an institution in a single security, it is essential that ever security be viewed in portfolio context. Thus it seems logical that the expected return on a portfolio should depend on the expected return of each of the security contained in the portfolio.

Portfolio analysis considers the determination of future risk and return in holding various blends of the individual securities. Portfolio expected return is a weighted average of the expected return of individual securities but portfolio variance, in short contrast, can be something less than a weighted average of security variances. As a result an investor can sometime reduce portfolio risk by adding security with greater individual risk than any other security in the portfolio. This is because risk depends greatly on the co-variance among returns of individual security. Portfolio, which is combination of securities, may or may not take on the aggregate characteristics of their individual parts.

Since portfolios expected return is a weighted average of the expected return of its securities, the combination of each security to the portfolio’s expected returns depends on its expected returns and its proportionate share of the initials portfolio’s market value. It follows than an investor who simply wants the greatest possible expected return should hold one security. Very few investors do this and very few investment advisors would counsel such an extreme policy. Instead, investors should diversify, meaning that their portfolio should include more than one...
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