21983778 summer internship report final

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PROJECT REPORT

ON

“PORTFOLIO MANAGEMENT SERVICES -AN INVESTMENT

OPTION”

With Reference to

(SHAREKHAN LIMITED)

Submitted in partial fulfillment of the Requirement

For the award of

POST GRADUATE DIPLOMA IN MANAGEMENT

By

ASHUTOSH KUMAR SINGH

PGDM-2008-10

(Registration No: 08/014)

INTERNAL GUIDE COMPANY

GUIDE

Mr. Naresh Verma Mr.Suman K. Adepu

& &

Prof. Jitender Govindani Mr. Y Mahesh Kumar

ICBM-SCHOOL OF BUSINESS EXCELLENCE

(Approved by AICTE, Govt. of India)




ACKNOWLEDGEMENT

“Expression of feelings by words makes them less significant when it comes to make

statement of gratitude”

With regard to my Project with Share Khan, Hyderabad, I would like to thank

each and every one who offered help, guidelines and support whenever required.

I sincerely express my thankfulness to Mrs.Ritu Zarar , Prof.Shamshuddin

Zarar and Prof.Jitender Govindani , ICBM-School of Business Excellence,Hyderabd for their valuable suggestions and help during the project.

I am extremely grateful to my college guide, Mr.NareshVerma (Lecturer-

cum-Trainer, Business Communication) and all the faculty member of mycollege for their valuable suggestions and able guidance.

I express my deep sense of gratitude to my company mentors, Mr.Suman

K.Adepu (Equity and Commodities Manger) and Mr. Y Mahesh Kumar

(Regional Franchisee Manager) without whose support and cooperation thisproject could not have been completed successfully.

Last, but not the least, my heartfelt love for my parents and my friends, whoseconstant support and blessings kept me enthusiastic throughout this project.




CERTIFICATE FROM GUIDE

This is to certify that the project entitled “Portfolio Management

Services –An investment option” is a bonafide work of Ashutosh

Kumar Singh, a student of ICBM-School of Business Excellence

bearing Roll No. PGDM/08-10/14, and was successfully conducted at

Sharekhan, Hyderabad, from 29th April to 15th June ‟08, for the partial

fulfillment for the award of Post Graduate Diploma in Management

(PGDM). To the best of my knowledge this is an original piece of work.

I wish him all the very best in his career endeavors.

MR.NARESH VERMA

(…………………………………….)

(PROJECT GUIDE)




DECLARATION

I hereby declare that this Summer Internship Project Report entitled

“POTFOLIO MANAGEMENT SERVICES –AN INVESTEMNET OPTION”

in Share Khan Limited submitted in partial fulfillment of requirement of Post

Graduation Diploma in Management (PGDM) to the Institute of Computer and

Business Management (ICBM-SBE),Hyderabad is based on primary and

secondary data founded by me in various department ,books ,magazines and

websites .

This is an original piece of work and has not been submitted to any other

institution or university for any purpose.

Place:-Hyderabad Ashutosh Kumar Singh

Date:-21st

June 2009 (……………………………)




CHAPTER TABLE OF CONTENTS PAGE NO.EXECUTIVE SUMMARY 1-2

CHAPTER-1 INTRODUCTION 3Introduction to Study 4-5

Myths About PMS 5-7

Introduction to Stock Exchange 8-12

CHAPTER-2 COMPANY PROFILE 13-14

Work structure of Sharekhan 15

Product and Services offered by

Company16

Reasons to Choose Sharekhan 17-20

CHAPTER-3 RESEARCH METHODOLOGY 21

Objective of the Project 22

Scope of the Study 23

Methodology for Data Collection 24-25

CHAPTER-4 PORTFOLIO MANAGEMENT SERVICES 26-27

Need of PMS 28

Objective of PMS 29

Portfolio Construction 30-35

Risk and Risk Aversion 36-38Risk versus Return 39-44

Portfolio Diversification 45-49

Techniques of PMS 50-54

Sharekhan PMS 55-61

CHAPTER-5

DATA ANALYSIS AND

INTERPRETATION 62-77

CHAPTER-6 CONCLUSION & SUGGESTIONS 78

Observation and Findings 79-80

Limitations of the Project 81

Suggestions & Recommendations 82-83

ANNEXURE 84-85

BIBLIOGRAPHY 86




EXECUTIVE SUMMARY




EXECUTIVE SUMMARY

Investing is both Arts and Science. Every Individual has their own specific financial need

and expectation based on their risk taking capabilities, whereas some needs and expectation are

universal. Therefore, we find that the scenario of the Stock Market is changing day by day hours

by hours and minute by minute. The evaluation of financial planning has been increased through

decades, which can be best seen in customers. Now a day‟s investments have become veryimportant part of income saving.

In order to keep the Investor safe from market fluctuation and make them profitable,

Portfolio Management Services (PMS) is fast gaining Investment Option for the High Networth

Individual (HNI). There is growing competition between brokerage firms in post reform India.

For investor it is always difficult to decide which brokerage firm to choose.

The research design is analytical in nature. A questionnaire was prepared and distributed to

Investors. The investor‟s profile is based on the results of a questionnaire that the Investors

completed. The Sample consists of 100 investors from various broker‟s premises. The targetcustomers were Investors who are trading in the stock market.

In order to identify the effectiveness of Sharekhan PMS services this Research is carried

throughout the area of Hyderabad. At the time of investing money everyone look for the Risk

factor involve in the Investment option. The Report is prepared on the basis of Research work

done through the different Research Mythology the data is collected from both the source

Primary sources which consist of Questionnaire and secondary data is collected from different

sources such as Company website, Magazine and other sources.

As the PMS services of Sharekhan Limited have the best result in its field .It has given

43.50% return in Trailing stops, 94.30%return in Nifty and 38.10% in Beta Portfolio which

is the result when the Market was not doing well from last one year.

In this project I have shown the details of financial planning as well as wealth management

so as to understand about the customer‟s needs and wants with respect to market and how a

client‟s portfolio can be designed and what factors a portfolio manager must consider for

designing a portfolio.




CHAPTER-1

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.

In today fast growing world many opportunities are available, so in order to move with

changes and grab the best opportunities in the field of investments a professional fund manageris necessary.

Therefore, in the present scenario the Portfolio Management Services (PMS) is fast gaining

importance as an investment alternative for the High Networth Investors.

Portfolio Management Services (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.

When you invest in PMS, you own individual securities unlike a mutual fund investor, who

owns units of the entire fund. You have the freedom and flexibility to tailor your portfolio to

address personal preferences and financial goals. Although portfolio managers may oversee

hundreds of portfolio, your account may be unique.

Investment Management Solution in PMS can be provided in the following ways:

i. Discretionary

ii. Non Discretionary

iii. Advisory

Discretionary: Under these services, the choice as well as the timings of the investment

decisions rest solely with the Portfolio Manager.




Non Discretionary: Under these services, the portfolio manager only suggests the investment

ideas. The choice as well as the timings of the investment decisions rest solely with the Investor.

However the execution of trade is done by the portfolio manager.

Advisory: Under these services, the portfolio manager only suggests the investment ideas.

The choice as well as the execution of the investment decisions rest solely with the Investor.

Rule 2, clause (d) of the SEBI (portfolio managers) Rules, 1993 defines the term “Portfolio”as “total holding of securities belonging to any person”.

As a matter of fact, portfolio is combination of assets the outcomes of which cannot be

defined with certainty new assets could be physical assets, real estates, land, building, gold etc.

or financial assets like stocks, equity, debenture, deposits etc.

Portfolio management refers to managing efficiently the investment in the securities held by

professional for others.

Merchant banker and the portfolio management with a view to ensure maximum return by

such investment with minimum risk of loss of return on the money invested in securities held by

them for their clients. The aim Portfolio management is to achieve the maximum return from a

portfolio, which has been delegated to be managed by manger or financial institution.

There are lots of organization in the market on the lookout for the people like you who need

their portfolios managed for them .They have trained and skilled talent will work on your money

to make it do more for you.

Therefore, if any investors still insist on managing their own portfolio, then ensure you build

discipline into their investment. Work out their strategy and stand by it.




MYTHS ABOUT PMS

There are two most common myths found about Portfolio Management Services (PMS)

which we found among most of the Investors. They are as follows.

Myth No. 1: “PMS and Mutual Fund are Similar as the investment option”

As in the Finance Basket both the PMS and Mutual Fund are used for minimizing risk and

maximize the profit of the Investors. The objectives are similar as in both the product but they

are different from each other in certain aspects. They are as follows.

Management Side

In PMS, it‟s ongoing personalized access to professional money management services.

Whereas, in Mutual fund gives personalize access to money.

Customization

In PMS, Portfolio can be tailored to address each investor's specific needs. Whereas in

Mutual Fund Portfolio structured to meet the fund's stated investment objectives.

Ownership

In PMS, Investors directly own the individual securities in their portfolio, allowing for tax

management flexibility, whereas in Mutual Fund Shareholders own shares of the fund and cannot

influence buy and sell decisions or control their exposure to incurring tax liabilities.

Liquidity

In PMS, managers may hold cash; they are not required to hold cash to meet redemptions,

whereas, Mutual funds generally hold some cash to meet redemptions.




Minimums

PMS generally gives higher minimum investments than mutual funds. Generally, minimum

ranges from: Rs. 1 Crore + for Equity Options Rs. 5 Crore + for Fixed Income Options Rs. 20

Lacs + for Structured Products, whereas in Mutual Fund Provide ongoing, personalized access to

professional money management services.

Flexibility

PMS is generally more flexible than mutual funds. The Portfolio Manager may move to 100%

cash if it required. The Portfolio Manager may take his own time in building up the portfolio.

The Portfolio Manager can also manage a portfolio with disproportionate allocation to select

compelling opportunities whereas, in Mutual Fund comparatively less flexible.

Myth No. 2: “PMS is more Risk free than other Financial Instrument”

In Financial Market Risk factor is common in all the financial products, but yes it is true that

Risk Factor vary from each other due to its nature. All investments involve a certain amount of

risk, including the possible erosion of the principal amount invested, which varies depending on

the security selected. For example, investments in small and mid-sized companies tend to

involve more risk than investments in larger companies.




INTRODUCTION TO STOCK EXCHANGE

The emergence of stock market can be traced back to 1830. In Bombay, business passed in

the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank,

the oriental bank and the old bank of Bombay and shares of cotton presses. In Calcutta,

Englishman reported the quotations of 4%, 5%, and 6% loans of East India Company as well as

the shares of the bank of Bengal in 1836. This list was a further broadened in 1839 when the

Calcutta newspaper printed the quotations of banks like union bank and Agra bank. It alsoquoted the prices of business ventures like the Bengal bonded warehouse, the Docking Company

and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited business. But

during the share mania of 1860-65, the number of brokers increased considerably. By 1860, the

number of brokers was about 60 and during the exciting period of the American Civil war, their

number increased to about 200 to 250. The end of American Civil war brought disillusionment

and many

Failures and the brokers decreased in number and prosperity. It was in those troublesometimes between 1868 and 1875 that brokers organized an informal association and finally as

recited in the Indenture constituting the “Articles of Association of the Exchange”.

On or about 9th day of July,1875, a few native brokers doing brokerage business in shares

and stocks resolved upon forming in Bombay an association for protecting the character, status

and interest of native share and stock brokers and providing a hall or building for the use of the

Members of such association.

As a meeting held in the broker‟ Hall on the 5th day of February, 1887, it was resolved toexecute a formal deal of association and to constitute the first managing committee and to

appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock

Exchange was formally established in Bombay on 3rd day of December, 1887. The Association

is now known as “The Stock Exchange”.




The entrance fee for new member was Re.1 and there were 318 members on the list, when

the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in

1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500

in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about

6000 stock brokers. Organization structure of stock exchange varies.

14 stock exchanges are organized as public limited companies, 6 as companies limited by

guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges

have been permanent recognition. Others have to seek recognition on annual basis.

These exchange do not work of its own, rather, these are run by some persons and with the

help of some persons and institution. All these are down as functionaries on stock exchange.

These are:

i. Stockbrokers

ii. Sub-broker

iii. Market makers

iv. Portfolio consultants etc.

1. Stockbrokers:

Stock brokers are the members of stock exchanges. These are the personswho buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as

a broker. SEBI can impose certain conditions while granting the certificate of registrations. It is

obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are

commission broker, floor broker, arbitrageur etc.

Detail of Registered Brokers

Total no. of registered brokers as on

31.03.09

Total no. of sub-broker as on 31.03.09

9000 24,000




2. Sub-broker:

A sub-broker acts as agent of stock broker. He is not a member of a stock

exchange. He assists the investors in buying, selling or dealing in securities through stockbroker.

The broker and sub-broker should enter into an agreement in which obligations of both should be

specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered

with SEBI, he must fulfill certain rules and regulation.

3. Market Makers:

Market maker is a designated specialist in the specified securities. They

make both bid and offer at the same time. A market maker has to abide by bye-laws, rules

regulations of the concerned stock exchange. He is exempt from the margin requirements. As per

the listing requirements, a company where the paid-up capital is Rs. 3 Crore but not more than

Rs. 5 core and having a commercial operation for less than 2 years should appoint a market

maker at the time of issue of securities.

4. Portfolio Consultants:

A combination of securities such as stocks, bonds and money

market instruments is collectively called as portfolio. Whereas the portfolio consultants are the

persons, firms or companies who advise, direct or undertake the management or administration

of securities or funds on behalf of their clients.

Traditionally stock trading is done through stock brokers, personally or through telephones.

As number of people trading in stock market increase enormously in last few years, some

issues like location constrains, busy phone lines, miss communication etc start growing in stock

broker offices. Information technology (Stock Market Software) helps stock brokers in solving

these problems with Online Stock Trading.

Online Stock Market Trading is an internet based stock trading facility. Investor can tradeshares through a website without any manual intervention from Stock Broker.




There are two different type of trading environments available for online equity trading.

1. Installable software based Stock Trading Terminals

This trading environment requires software to be installed on investor‟s computer. This

software is provided by the stock broker. This software requires high speed internet connection.

These kind of trading terminals are used by high volume intraday equity traders.

2.Web (Internet) based trading application

This kind of trading environment doesn't require any additional software installation. Theyare like other internet websites which investor can access from around the world through normal

internet connection.

Stock exchanges are like market places, where stockbrokers buy and sell securities for

individuals or institutions. As per the SCRA (Securities Contracts Regulation Act) 1956, the

definition of securities includes shares, bonds, stocks, debentures, government securities,

derivatives of securities, units of collective investment scheme (CIS) etc. The securities market

has two interdependent segments: the primary and secondary market.

The primary market is the channel for creation of new securities issued by public limited

companies or by government agencies. New securities issued in the primary market are traded in

the secondary market.

The secondary market operates through the over-the-counter (OTC) market and the exchange

trade market.

Advantages of Stocks Trading

1. Better returns

Actively trading stocks can produce better overall returns than simply buying and holding.




2. Huge Choice

There are thousands of stocks listed on markets around the world. There is always a stock

whose price is moving - it‟s just a matter of finding them.

3. Familiarity

The most traded stocks are in the largest companies that most of us have heard of and

understand - Microsoft, IBM, and Cisco etc.

Disadvantages of Stocks Trading

1. Leverage

With a margined account the maximum amount of leverage available for stock trading is

usually 4:1. Meaning a $25,000 could trade up to $100,000 of stock. This is pretty low compared

to Forex trading or futures trading.

2. Pattern Day Trader Rules

It requires at least $25,000 to be held in a trading account if the trader completes more than 4

trades in a 5 day period. No such rule applies to Forex trading or futures trading.

3. Uptick Rule on Short Selling

A trader must wait until a stock price ticks up before they can short sell it. Again there are no

such rules in Forex trading or futures trading where going short are as easy as going long.

4. Need to Borrow Stock to Short

Stocks are physical commodities and if a trader wishes to go short then the broker must have

arrangements in place to borrow that stock from a shareholder until the trader closes their

position. This limits the opportunities available for short selling. Contrast this to futures trading

where selling is as easy as buying.

5. Costs




Although online trading costs for stock trading are low they still add considerably to the costs

of day trading. Online futures trading are about 1/4 of the cost for the equivalent value. In the

UK 0.5% stamp duty is also levied on all share purchases making trading virtually impossible,

hence the popularity of spread betting.

CHAPTER- 2

COMPANY PROFILE




COMPANY PROFILE

Sharekhan is one of the leading retail brokerage of Citi Venture which is running

successfully since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based

SSKI Group, which has over eight decades of experience in the stock broking business. Share

khan offers its customers a wide range of equity related services including trade execution on

BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured

into institutional broking and corporate finance 18 years ago. SSKI is one of the leading players

in institutional broking and corporate finance activities. SSKI holds a sizeable portion of the

market in each of these segments. SSKI‟s institutional broking arm accounts for 7% of themarket for Foreign Institutional portfolio investment and 5% of all Domestic Institutional

portfolio investment in the country.

It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional

Investors generate about 65% of the organization‟s revenue, with a daily turnover of over US$ 2

million. The content-rich and research oriented portal has stood out among its contemporariesbecause of its steadfast dedication to offering customers best-of-breed technology and superior

market information. The objective has been to let customers make informed decisions and to

simplify the process of investing in stocks

Mission of the Sharekhan is

“To educate and empower the individual investor to make better investment decisions

through

QUALITY ADVICE




INNOVATIVE PRODUCTS and

SUPERIOR SERVICE.”

WORK STRUCUTRE OF SHAREKHAN

Sharekhan has always believed in investing in technology to build its business. The company

has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,

Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India

Ltd, Spider Software Pvt. Ltd. to build its trading engine and content. The Citi Venture holds a

majority stake in the company. HSBC, Intel & Carlyle are the other investors.

On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger, are net-based

executable application that emulates the broker terminals along with host of other information

relevant to the Day Traders. This was for the first time that a net-based trading station of this

caliber was offered to the traders. In the last six months SpeedTrade has become a de facto

standard for the Day Trading community over the net. Sharekhan‟s ground network includesover 700+ Shareshops in 130+ cities in India.

The firm‟s online trading and investment site www.sharekhan.com - was launched on Feb 8,

2000. The site gives access to superior content and transaction facility to retail customers across

the country. Known for its jargon-free, investor friendly language and high quality research, thesite has a registered base of over 3 Lacs customers. The number of trading members currently

stands at over 7 Lacs. While online trading currently accounts for just over 5 per cent of the daily

trading in stocks in India, Sharekhan alone accounts for 27 per cent of the volumes traded online.

The Corporate Finance section has a list of very prestigious clients and has many „firsts‟ toits credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion

in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav,

Essar, Hutchison, Planetasia, and Shopper‟s Stop. Finally, Sharekhan shifted hands and Citi

venture get holds on it.




PRODUCT AND SERVICES OFFERD BY SHAREKHAN

1- Equity Trading Platform (Online/Offline).

2- Commodities Trading Platform (Online/Offline).

3- Portfolio Management Service.

4- Mutual Fund Advisory and Distribution.

5- Insurance Distribution.

6-Forex

6. Forex.




REASON TO CHOOSE SAHREKHAN LIMITED

Experience

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the

Asia Money broker's poll held recently, SSKI won the 'India's best broking house for 2004'

award. Ever since it launched Sharekhan as its retail broking division in February 2000, it has

been providing institutional-level research and broking services to individual investors.

Technology

With their online trading account one can buy and sell shares in an instant from any PC with

an internet connection. Customers get access to the powerful online trading tools that will help

them to take complete control over their investment in shares.

Accessibility

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services forinvestors. These services are accessible through many centers across the country (Over 650

locations in 150 cities), over the Internet (through the website www.sharekhan.com) as well as

over the Voice Tool.

Knowledge

In a business where the right information at the right time can translate into direct profits,

investors get access to a wide range of information on the content-rich portal,

www.sharekhan.com. Investors will also get a useful set of knowledge-based tools that will

empower them to take informed decisions.

Convenience

http://www.sharekhan.com/






One can call Sharekhan‟s Dial-N-Trade number to get investment advice and execute his/her

transactions. They have a dedicated call-center to provide this service via a Toll Free Number

1800 22-7500 & 39707500 from anywhere in India.

Customer Service

Its customer service team assist their customer for any help that they need relating to

transactions, billing, demat and other queries. Their customer service can be contacted via a toll-

free number, email or live chat on www.sharekhan.com.

Investment Advice

Sharekhan has dedicated research teams of more than 30 people for fundamental and

technical research. Their analysts constantly track the pulse of the market and provide timely

investment advice to customer in the form of daily research emails, online chat, printed reports

etc.

Benefits

Free Depository A/c

Instant Cash Transfer

Multiple Bank Option.

Secure Order by Voice Tool Dial-n-Trade.

Automated Portfolio to keep track of the value of your actual purchases.

24x7 Voice Tool access to your trading account.

Personalized Price and Account Alerts delivered instantly to your Mobile Phone & E-

mail address.

Live Chat facility with Relationship Manager on Yahoo Messenger

Special Personal Inbox for order and trade confirmations. On-line Customer Service via Web Chat.

Enjoy Automated Portfolio.

Buy or sell even single share




Anytime Ordering.

Sharekhan offers the following products:-

CLASSIC ACCOUNT

This is a User Friendly Product which allows the client to trade through website

www.sharekhan.com and is suitable for the retail investors who is risk-averse and hence prefers

to invest in stocks or who does not trade too frequently.

Features

Online trading account for investing in Equity and Derivatives via www.sharekhan.com

Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

Integration of On-line trading, Saving Bank and Demat Account.

Instant cash transfer facility against purchase & sale of shares.

Competitive transaction charges. Instant order and trade confirmation by E-mail.

Streaming Quotes (Cash & Derivatives).

Personalized market watch.

Single screen interface for Cash and derivatives and more.

Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE

SPEEDTRADE is an internet-based software application that enables you to buy and sell in

an instant. It is ideal for active traders and jobbers who transact frequently during day‟s sessionto capitalize on intra-day price movement.








Features

Instant order Execution and Confirmation.

Single screen trading terminal for NSE Cash, NSE F&O & BSE.

Technical Studies.

Multiple Charting.

Real-time streaming quotes, tic-by-tic charts.

Market summary (Cost traded scrip, highest clue etc.)

Hot keys similar to broker‟s terminal.

Alerts and reminders.

Back-up facility to place trades on Direct Phone lines. Live market debts.

DIAL-N-TRADE

Along with enabling access for trade online, the CLASSIC and SPEEDTRADE ACCOUNT

also gives Dial-n-trade services. With this service, one can dial Sharekhan‟s dedicated phonelines 1800-22-7500, 3970-7500. Beside this, Relationship Managers are always available on

Office Phone and Mobile to resolve customer queries.

SHARE MOBILE

Sharekhan had introduced Share Mobile , mobile based software where one can watch Stock

Prices, Intra Day Charts, Research & Advice and Trading Calls live on the Mobile. (As per SEBI

regulations, buying-selling shares through a mobile phone are not yet permitted.)

PREPAID ACCOUNT

Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in

their Account. Beside this, great discount are also available (up to 50%) on brokerage.

Prepaid Classic Account: - Rs. 2000

Prepaid Speed trade Account: - Rs. 6000

IPO ON-LINE




Customers can apply to all the forthcoming IPOs online. This is quite hassle-free, paperless

and time saving. Simply allocate fund to IPO Account, Apply for the IPO and Sit Back & Relax.

Mutual Fund Online

Investors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI

Prudential, SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with

Sharekhan.

Zero Balance ICICI Saving Account

Sharekhan had tied-up with ICICI bank for Zero Balance Account for Sharekhan‟s Clients.Now their customers can have a Zero Balance Saving Account with ICICI Bank after your demat

account creation with Sharekhan.




CHAPTER-3

RESEARCH METHODOLOGY




RESEARCH METHODOLOGY

OBJECTIVE OF THE PROJECT

Each 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 two 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 in depth about Insurance, Mutual Funds, Stock, Bonds etc.

To know about the awareness towards stock brokers and share market.

To study about the competitive position of Sharekhan Ltd in Competitive 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.




Scope of the Study

The study of the Portfolio Management Services is helpful in the following areas.

In today's complex financial environment, investors have unique needs which are derived

from their risk appetite and financial goals. But regardless of this, every investor seeks to

maximize his returns on investments without capital erosion. Portfolio Management

Services (PMS) recognize this, and manage the investments professionally to achieve

specific investment objectives, and not to forget, relieving the investors from the day today hassles which investment require.

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.




RESEARCH DESISGN OF THE STUDY

This report is based on primary as well secondary data, however primary data collection was

given more importance since it is overhearing factor in attitude studies. One of the most

important users of research methodology is that it helps in identifying the problem, collecting,

analyzing the required information data and providing an alternative solution to the problem .It

also helps in collecting the vital information that is required by the top management to assist

them for the better decision making both day to day decision and critical ones.

The study consists of analysis about Investors Perception about the Portfolio Management

Services offered by Sharekhan Limited. For the purpose of the study 100 customers were picked

up at random and their views solicited on different parameters.

The methodology adopted includes

Questionnaire

Random sample survey of customers

Discussions with the concerned

SOURCES OF DATA

Primary data: Questionnaire

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

Duration of Study




The Study was carried out for the period of one and half months from 29 th April to 15th of June2009.

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. Hence sampling survey method was adopted for the purpose of the study.

Population: (Universe) customers & non consumers of Sharekhan limited

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.

Sampling Methods:

Probability sampling requires complete knowledge about all sampling units in the universe.

Due to time constraint non-probability sampling was chosen for the study.

Sampling procedure:From large number of customers & non consumers sample lot were randomly picked up by

me.




Field Study:

Directly approached respondents by the following strategies

Tele-calling Personal Visits Clients References Promotional Activities Database provided by the Sharekhan Limited.

CHAPTER-4

PORTFOLIO MANAGMENT SERVICES




PORTFOLIO MANGEMNT SERVICES (PMS)

Portfolio (finance) means a collection of investments held by an institution or a private

individual. Holding a portfolio is often part of an investment and risk-limiting strategy called

diversification. By owning several assets, certain types of risk (in particular specific risk) can be

reduced. There are also portfolios which are aimed at taking high risks – these are called

concentrated portfolios.

Investment management is the professional management of various securities (shares, bonds

etc) and other assets (e.g. real estate), to meet specified investment goals for the benefit of the

investors. Investors may be institutions (insurance companies, pension funds, corporations etc.)

or private investors (both directly via investment contracts and more commonly via collective

investment schemes e.g. mutual funds).

The term asset management is often used to refer to the investment management of collective

investments, whilst the more generic fund management may refer to all forms of institutional

investment as well as investment management for private investors. Investment managers who

specialize in advisory or discretionary management on behalf of (normally wealthy) private

investors may often refer to their services as wealth management or portfolio management oftenwithin the context of so-called "private banking".

The provision of 'investment management services' includes elements of financial analysis,

asset selection, stock selection, plan implementation and ongoing monitoring of investments.

Outside of the financial industry, the term "investment management" is often applied to

investments other than financial instruments. Investments are often meant to include projects,

brands, patents and many things other than stocks and bonds. Even in this case, the term implies

that rigorous financial and economic analysis methods are used.




Need of PMS

As in the current scenario the effectiveness of PMS is required. As the PMS gives investors

periodically review their asset allocation across different assets as the portfolio can get skewed

over a period of time. This can be largely due to appreciation / depreciation in the value of the

investments.

As the financial goals are diverse, the investment choices also need to be different to meet

those needs. No single investment is likely to meet all the needs, so one should keep some

money in bank deposits and / liquid funds to meet any urgent need for cash and keep the balance

in other investment products/ schemes that would maximize the return and minimize the risk.Investment allocation can also change depending on one‟s risk -return profile.




Objective of PMS

There are the following objective which is full filled by Portfolio Management Services.

1. Safety Of Fund: - The investment should be preserved, not be lost, and should remain in the returnable

position in cash or kind.

2. Marketability: - The investment made in securities should be marketable that means, the securities

must be listed and traded in stock exchange so as to avoid difficulty in their encashment.

3. Liquidity: -The portfolio must consist of such securities, which could be en-cashed without any

difficulty or involvement of time to meet urgent need for funds. Marketability ensures

liquidity to the portfolio.

4. Reasonable return: -

The investment should earn a reasonable return to upkeep the declining value of

money and be compatible with opportunity cost of the money in terms of current income

in the form of interest or dividend.

5. Appreciation in Capital: -The money invested in portfolio should grow and result into capital gains.

6. Tax planning: -Efficient portfolio management is concerned with composite tax planning covering

income tax, capital gain tax, wealth tax and gift tax.

7. Minimize risk: -Risk avoidance and minimization of risk are important objective of portfolio

management. Portfolio managers achieve these objectives by effective investment planning and periodical review of market, situation and economic environment affecting

the financial market.




PORTFOLIO CONSTRUCTION

The Portfolio Construction of Rational investors wish to maximize the returns on their funds

for a given level of risk. All investments possess varying degrees of risk. Returns come in the

form of income, such as interest or dividends, or through growth in capital values (i.e. capital

gains).

The portfolio construction process can be broadly characterized as comprising the following

steps:

1. Setting objectives.

The first step in building a portfolio is to determine the main objectives of the fund given the

constraints (i.e. tax and liquidity requirements) that may apply. Each investor has different

objectives, time horizons and attitude towards risk. Pension funds have long-term obligations

and, as a result, invest for the long term. Their objective may be to maximize total returns in

excess of the inflation rate. A charity might wish to generate the highest level of income whilst

maintaining the value of its capital received from bequests. An individual may have certain

liabilities and wish to match them at a future date. Assessing a client‟s risk tolerance can bedifficult. The concepts of efficient portfolios and diversification must also be considered when

setting up the investment objectives.

2. Defining Policy.

Once the objectives have been set, a suitable investment policy must be established. The

standard procedure is for the money manager to ask clients to select their preferred mix of assets,

for example equities and bonds, to provide an idea of the normal mix desired. Clients are then

asked to specify limits or maximum and minimum amounts they will allow to be invested in the

different assets available. The main asset classes are cash, equities, gilts/bonds and other debt

instruments, derivatives, property and overseas assets. Alternative investments, such as private

equity, are also growing in popularity, and will be discussed in a later chapter. Attaining the

optimal asset mix over time is one of the key factors of successful investing.

3. Applying portfolio strategy.

At either end of the portfolio management spectrum of strategies are active and passive

strategies. An active strategy involves predicting trends and changing expectations about the

likely future performance of the various asset classes and actively dealing in and out of




investments to seek a better performance. For example, if the manager expects interest rates to

rise, bond prices are likely to fall and so bonds should be sold, unless this expectation is already

factored into bond prices. At this stage, the active fund manager should also determine the style

of the portfolio. For example, will the fund invest primarily in companies with large market

capitalizations, in shares of companies expected to generate high growth rates, or in companies

whose valuations are low? A passive strategy usually involves buying securities to match a

preselected market index. Alternatively, a portfolio can be set up to match the investor‟s choiceof tailor-made index. Passive strategies rely on diversification to reduce risk. Outperformance

versus the chosen index is not expected. This strategy requires minimum input from the portfolio

manager. In practice, many active funds are managed somewhere between the active and passive

extremes, the core holdings of the fund being passively managed and the balance being actively

managed.

4. Asset selections.

Once the strategy is decided, the fund manager must select individual assets in which to

invest. Usually a systematic procedure known as an investment process is established, which sets

guidelines or criteria for asset selection. Active strategies require that the fund managers apply

analytical skills and judgment for asset selection in order to identify undervalued assets and to

try to generate superior performance.

5. Performance assessments.

In order to assess the success of the fund manager, the performance of the fund is

periodically measured against a pre-agreed benchmark – perhaps a suitable stock exchange index

or against a group of similar portfolios (peer group comparison). The portfolio construction

process is continuously iterative, reflecting changes internally and externally. For example,

expected movements in exchange rates may make overseas investment more attractive, leading

to changes in asset allocation. Or, if many large-scale investors simultaneously decide to switch

from passive to more active strategies, pressure will be put on the fund managers to offer more

active funds. Poor performance of a fund may lead to modifications in individual asset holdings

or, as an extreme measure; the manager of the fund may be changed altogether.




Steps to Stock Selection Process

\




Types of assets

The structure of a portfolio will depend ultimately on the investor‟s objectives and on the

asset selection decision reached. The portfolio structure takes into account a range of factors,

including the investor‟s time horizon, attitude to risk, liquidity requirements, tax position andavailability of investments. The main asset classes are cash, bonds and other fixed income

securities, equities, derivatives, property and overseas assets.

Cash and cash instruments

Cash can be invested over any desired period, to generate interest income, in a range of highly

liquid or easily redeemable instruments, from simple bank deposits, negotiable certificates of

deposits, commercial paper (short term corporate debt) and Treasury bills (short termgovernment debt) to money market funds, which actively manage cash resources across a range

of domestic and foreign markets. Cash is normally held over the short term pending use

elsewhere (perhaps for paying claims by a non-life insurance company or for paying pensions),

but may be held over the longer term as well. Returns on cash are driven by the general demand

for funds in an economy, interest rates, and the expected rate of inflation. A portfolio will

normally maintain at least a small proportion of its funds in cash in order to take advantage of

buying opportunities.

Bonds

Bonds are debt instruments on which the issuer (the borrower) agrees to make interest

payments at periodic intervals over the life of the bond – this can be for two to thirty years or,

sometimes, in perpetuity. Interest payments can be fixed or variable, the latter being linked to

prevailing levels of interest rates. Bond markets are international and have grown rapidly over

recent years. The bond markets are highly liquid, with many issuers of similar standing,

including governments (sovereigns) and state-guaranteed organizations. Corporate bonds are

bonds that are issued by companies. To assist investors and to help in the efficient pricing of

bond issues, many bond issues are given ratings by specialist agencies such as Standard & Poor‟sand Moody‟s. The highest investment grade is AAA, going all the way down to D, which is

graded as in default. Depending on expected movements in future interest rates, the capital

values of bonds fluctuate daily, providing investors with the potential for capital gains or losses.

Future interest rates are driven by the likely demand/ supply of money in an economy, future

inflation rates, political events and interest rates elsewhere in world markets. Investors with

short-term horizons and liquidity requirements may choose to invest in bonds because of their




relatively higher return than cash and their prospects for possible capital appreciation. Long-term

investors, such as pension funds, may acquire bonds for the higher income and may hold them

until redemption – for perhaps seven or fifteen years. Because of the greater risk, long bonds

(over ten years to maturity) tend to be more volatile in price than medium- and short-term bonds,

and have a higher yield.

Equities

Equity consists of shares in a company representing the capital originally provided by

shareholders. An ordinary shareholder owns a proportional share of the company and an ordinary

share carries the residual risk and rewards after all liabilities and costs have been paid. Ordinary

shares carry the right to receive income in the form of dividends (once declared out of

distributable profits) and any residual claim on the company‟s assets once its liabilities have beenpaid in full. Preference shares are another type of share capital. They differ from ordinary shares

in that the dividend on a preference share is usually fixed at some amount and does not change.

Also, preference shares usually do not carry voting rights and, in the event of firm failure,

preference shareholders are paid before ordinary shareholders. Returns from investing in equities

are generated in the form of dividend income and capital gain arising from the ultimate sale of

the shares. The level of dividends may vary from year to year, reflecting the changing

profitability of a company. Similarly, the market price of a share will change from day to day to

reflect all relevant available information. Although not guaranteed, equity prices generally rise

over time, reflecting general economic growth, and have been found over the long term to

generate growing levels of income in excess of the rate of inflation. Granted, there may beperiods of time, even years, when equity prices trend downwards – usually during recessionary

times. The overall long-term prospect, however, for capital appreciation makes equities an

attractive investment proposition for major institutional investors.

Derivatives

Derivative instruments are financial assets that are derived from existing primary assets as

opposed to being issued by a company or government entity. The two most popular derivatives

are futures and options. The extent to which a fund may incorporate derivatives products in the

fund will be specified in the fund rules and, depending on the type of fund established for the

client and depending on the client, may not be allowable at all.

A futures contract is an agreement in the form of a standardized contract between two

counterparties to exchange an asset at a fixed price and date in the future. The underlying asset of




the futures contract can be a commodity or a financial security. Each contract specifies the type

and amount of the asset to be exchanged, and where it is to be delivered (usually one of a few

approved locations for that particular asset). Futures contracts can be set up for the delivery of

cocoa, steel, oil or coffee. Likewise, financial futures contracts can specify the delivery of

foreign currency or a range of government bonds. The buyer of a futures contract takes a „long position‟, and will make a profit if the value of the contract rises after the purchase. The seller of

the futures contract takes a „short position‟ and will, in turn, make a profit if the price of thefutures contract falls. When the futures contract expires, the seller of the contract is required to

deliver the underlying asset to the buyer of the contract. Regarding financial futures contracts,

however, in the vast majority of cases no physical delivery of the underlying asset takes place as

many contracts are cash settled or closed out with the offsetting position before the expiry date.

An option contract is an agreement that gives the owner the right, but not obligation, tobuy or sell (depending on the type of option) a certain asset for a specified period of time. A call

option gives the holder the right to buy the asset. A put option gives the holder the right to sell

the asset. European options can be exercised only on the options‟ expiry date. US options can be

exercised at any time before the contract‟s maturity date. Option contracts on stocks or stock indices are particularly popular. Buying an option involves paying a premium; selling an option

involves receiving the premium. Options have the potential for large gains or losses, and are

considered to be high-risk instruments. Sometimes, however, option contracts are used to reduce

risk. For example, fund managers can use a call option to reduce risk when they own an asset.

Only very specific funds are allowed to hold options.

Property

Property investment can be made either directly by buying properties, or indirectly by buying

shares in listed property companies. Only major institutional investors with long-term time

horizons and no liquidity pressures tend to make direct property investments. These institutions

purchase freehold and leasehold properties as part of a property portfolio held for the long term,

perhaps twenty or more years. Property sectors of interest would include prime, quality, well-located commercial office and shop properties, modern industrial warehouses and estates, hotels,

farmland and woodland. Returns are generated from annual rents and any capital gains on

realization. These investments are often highly illiquid.




Risk and Risk Aversion

Portfolio theory also assumes that investors are basically risk averse, meaning that, given a

choice between two assets with equal rates of return they will select the asset with lower level of

risk.

For example, they purchased various type of insurance including life insurance, Health

insurance and car insurance. The Combination of risk preference and risk aversion can be

explained by an attitude toward risk that depends on the amount of money involved.

A discussion of portfolio or fund management must include some thought given to the

concept of risk. Any portfolio that is being developed will have certain risk constraints specified

in the fund rules, very often to cater to a particular segment of investor who possesses a

particular level of risk appetite. It is, therefore, important to spend some time discussing the basictheories of quantifying the level of risk in an investment, and to attempt to explain the way in

which market values of investments are determined

Definition of Risk

Although there is a difference in the specific definitions of risk and uncertainty, for our purpose

and in most financial literature the two terms are used interchangeably. In fact, one way to define

risk is the uncertainty of future outcomes. An alternative definition might be the probability

of an adverse outcome.

Composite risks involve the different risk as explained below:-

(1). Interest rate risk: -

It occurs due to variability cause in return by changes in level of interest rate. In long runs all

interest rate move up or downwards. These changes affect the value of security. RBI, in India, is

the monitoring authority which effectalises the change in interest rate. Any upward revision in

interest rate affects fixed income security, which carry old lower rate of interest and thus

declining market value. Thus it establishes an inverse relationship in the prize of security.




TYPES RISK EXTENT

Cash equivalent Less vulnerable to interest rate risk

Long term Bond More vulnerable to interest rate risk.

(2) Purchasing power risk:

It is known as inflation risk also. This risk emanates from the very fact that inflation affects

the purchasing power adversely. Purchasing power risk is more in inflationary times in bonds

and fixed income securities. It is desirable to invest in such securities during deflationary period

or a period of decelerating inflation. Purchasing power risk is less in flexible income securities

like equity shares or common stuffs where rise in dividend income offset increase in the rate of

inflation and provide advantage of capital gains.

(3) Business risk:

Business risk emanates from sale and purchase of securities affected by business cycles,

technological change etc. Business cycle affects all the type of securities viz. there is cheerfulmovement in boom due to bullish trend in stock prizes where as bearish trend in depression

brings downfall in the prizes of all types of securities. Flexible income securities are nearly

affected than fix rate securities during depression due to decline n the market prize.

(4) Financial risk:

Financial risk emanates from the changes in the capital structure of the company. It is also

known as leveraged risk and expressed in term of debt equity ratio. Excess of debts against

equity in the capital structure indicates the company to be highly geared or highly levered.

Although leveraged company‟s earnings per share (EPS) are more but dependence on borrowingexposes it to the risk of winding up. For, its inability to the honor its commitments towards the

creditors are most important.




Here it is imperative to express the relationship between risk and return, which is depicted

graphically below

Maximize returns, minimize risks

RISK VERSUS RETURN




Risk versus return is the reason why investors invest in portfolios. The ideal goal in portfolio

management is to create an optimal portfolio derived from the best risk – return opportunities

available given a particular set of risk constraints. To be able to make decisions, it must be

possible to quantify the degree of risk in a particular opportunity. The most common method is

to use the standard deviation of the expected returns. This method measures spreads, and it is the

possible returns of these spreads that provide the measure of risk. The presence of risk means

that more than one outcome is possible. An investment is expected to produce different returns

depending on the set of circumstances that prevail.

For example, given the following for Investment A:

Circumstance Return(x) Probability(p)

I 10% 0.2

II 12% 0.3

III 15% 0.4

IV 19% 0.1

It is possible to calculate:

1. The expected (or average) returnMean (average) = x = expected value (EV) = ∑px

Circumsta

nce

Return(x) Probability(p

)

px

I 10% 0.2 2.0

II 12% 0.3 3.6

III 15% 0.4 6.0

IV 19% 0.1 1.9

Expected Return (∑px) = 13.5%

2. The Standard deviation




Standard deviation =σ=√ ∑p(x- x)2

Also. Variance (VAR) is equal to the standard deviation squared or σ 2

Circumstance Return Probability

Deviation from

expected Return (x -x) p (x -x)2

I 10% 0.2 -3.5% 2.45

II 12% 0.3 -1.5% .68

III 15% 0.4 +1.5% 1.90

IV 19% 0.1 +5.5% 3.03

VARAIANCE= 7.06

Standard deviation (σ) = √Variance

= √ 7.06

= 2.66%

The standard deviation is a measure of risk, whereby the greater the standard deviation, the

greater the spread, and the greater the spread, the greater the risk.

If the above exercise were to be performed using another investment that offered the same

expected return, but a different standard deviation, then the following result might occur:




If the above exercise were to be performed using another investment that offered the same

expected return, but a different standard deviation, then the following result might occur:

Plan Expected Return Risk(standard deviation)

Investment A 9% 2.5%

Investment B 9% 4.0%

Since both investments have the same expected return, the best selection of investment would

be Investment A, which provides the lower risk. Similarly, if there are two investments

presenting the same risk, but one has a higher return than the other, that investment would be

chosen over the investment with the lower return for the same risk.

In the real world, there are all types of investors. Some investors are completely risk averse

and others are willing to take some risk, but expect a higher return for that risk. Different

investors will also have different tolerances or threshold levels for risk – return trade-offs – i.e. for

a given level of risk, one investor may demand a higher rate of return than another investor.

INDIFFERNCE CURVE

Suppose the following situation exists

Plan Expected Return Risk(Standard

Deviation)

Investment A 10% 5%

Investment B 20% 10%

The question to ask here is, does the extra 10% return compensate for the extra risk? There is no

right answer, as the decision would depend on the particular investor‟s attitude to risk. A

particular investor‟s indifference curve can be ascertained by plotting what rate of return the

investor would require for each level of risk to be indifferent amongst all of the investments.

For example, there may be an investor who can obtain a return of 50% with zero risk and a return

of 55 %with a risk or standard deviation of 5% who will be indifferent between the two

investments. If further investments were considered, each with a higher degree of risk, the




investor would require still higher returns to make all of the investments equally attractive. The

investor being discussed could present the following as the indifference curve shown in Figure.

Indifference Curve

Expected Return Risk

50% 0%

55% 5%

70% 10%

100% 15%

120% 18%

230% 25%

Risk

Indifference curve

It could be the case that this investor would have different indifference curves given a

different starting level of return for zero risk. The exercise would need to be repeated for variouslevels of risk – return starting points. An entire set of indifference curves could be constructed that

would portray a particular investor‟s attitude towards risk




Indifference Curve

Utility scores

At this stage the concept of utility scores can be introduced. These can be seen as a way of

ranking competing portfolios based on the expected return and risk of those portfolios. Thus if afund manager had to determine which investment a particular investor would prefer, i.e.Investment A equaling a return of 10% for a risk of 5% or Investment B equaling a return of 20% for a risk of 10%, the manager would create indifference curves for that particular investorand look at the utility scores. Higher utility scores are assigned to portfolios or investments withmore attractive risk – return profiles. Although several scoring systems are legitimate, onefunction that is commonly employed assigns a portfolio or investment with expected return orvalue EV and variance of returns σ 2the following utility value:

U = EV –.005Aσ2 where:

U = utility valueA = an index of the investor‟s aversion, (the factor of .005 is a scaling convention that allows

expression of the expected return and standard deviation in the equation as a percentage ratherthan a decimal).




Utility is enhanced by high expected returns and diminished by high risk. Investors choosing

amongst competing investment portfolios will select the one providing the highest utility value.

Thus, in the example above, the investor will select the investment (portfolio) with the higher

utility value of 18.

Expected

Return(EV)

Standard deviation(σ) Utility=EV-.005Aσ2

10% 5% 10 –.005 4 25 = 9.5

20% 10% 20 –.005 4 100 = 18

(Assume A= 4 in this case)

Portfolio Diversification

There are several different factors that cause risk or lead to variability in returns on an

individual investment. Factors that may influence risk in any given investment vehicle include

uncertainty of income, interest rates, inflation, exchange rates, tax rates, the state of the

economy, default risk and liquidity risk (the risk of not being able to sell on the investment). In

addition, an investor will assess the risk of a given investment (portfolio) within the context of

other types of investments that may already be owned, i.e. stakes in pension funds, life insurancepolicies with savings components, and property.

One way to control portfolio risk is via diversification, whereby investments are made in a

wide variety of assets so that the exposure to the risk of any particular security is limited. This

concept is based on the old adage „do not put all your eggs in one basket‟. If an investor ownsshares in only one company, that investment will fluctuate depending on the factors influencing

that company. If that company goes bankrupt, the investor might lose 100 per cent of the

investment. If, however, the investor owns shares in several companies in different sectors, then

the likelihood of all of those companies going bankrupt simultaneously is greatly diminished. Thus, diversification reduces risk. Although bankruptcy risk has been considered here, the same

principle applies to other forms of risk.




RISK – RETURN MATRIX

Covariance and Correlation

The goal is to hold a group of investments or securities within a portfolio potentially to

reduce the risk level suffered without reducing the level of return. To measure the success of a

potentially diversified portfolio, covariance and correlation are considered. Covariance

measures to what degree the returns of two risky assets move in tandem. A positive covariance

means that the returns of the two assets move together, whilst a negative covariance means that

they move in inverse directions.




Covariance

COV(x, y) = ∑p(x-x) (y-y) for two investments x and y, where p is the probability.

Covariance is an absolute measure, and covariances cannot be compared with one another.

To obtain a relative measure, the formula for correlation coefficient [r] is used.

Correlation coefficient

r = COVxy

σxσy

To illustrate the above, here is the example:

Circumstance Probability x-x y-y∑p(x-x) (y-y)

I 0.2 +1.0 -3.5 -0.7

II 0.3 0 -1.5 0

III 0.4 +1.5 +1.5 0.9

IV 0.1 -4 +5.5 -2.2

COVxy =-2.0

For data regarding (y – y), see earlier example. Assume that a similar exercise has been run

for data regarding (x – x). Assume the variance or σ2of x= 2.45, and the variance or σ2

of y

= 7.06. Thus, the correlation coefficient would be

r = -2.0 = -0.481

√ 2.45 *√7.056




If, the same example is run again, but using a different set of numbers for y, a differentcorrelation coefficient might result of say, – 0.988. It can be concluded that a large negativecorrelation confirms the strong tendency of the two investments to move inversely.

Perfect positive correlation (correlation coefficient = +1) occurs when the returns from

two securities move up and down together in proportion. If these securities were combined in a

portfolio, the „offsetting‟ effect would not occur.

Perfect negative correlation (correlation coefficient = – 1) takes place when one

security moves up and the other one down in exact proportion. Combining these two securities in

a portfolio would increase the diversification effect.

Uncorrelated (correlation coefficient = 0) occurs when returns from two securities moveindependently of each other – that is, if one goes up, the other may go up or down or may not

move at all. As a result, the combination of these two securities in a portfolio may or may not

create a diversification effect. However, it is still better to be in this position than in a perfect

positive correlation situation.

Unsystematic and systematic risk

As mentioned previously, diversification diminishes risk: the more shares or assets held in a

portfolio or in investments, the greater the risk reduction. However, it is impossible to eliminate

all risk completely even with extensive diversification. The risk that remains is called market

risk; the risk that is caused by general market influences. This risk is also known as systematic

risk or non-diversifiable risk. The risk that is associated with a specific asset and that can be

abolished with diversification is known as unsystematic risk, unique risk or diversifiable risk.

Total risk = Systematic risk + Unsystematic risk

Systematic risk = the potential variability in the returns offered by a security or asset caused

by general market factors, such as interest rate changes, inflation rate movements, tax rates, state

of the economy.

Unsystematic risk = the potential variability in the returns offered by a security or asset

caused by factors specific to that company, such as profitability margins, debt levels, quality of

management, susceptibility to demands of customers and suppliers.




As the number of assets in a portfolio increases, the total risk may decline as a result of the

decline in the unsystematic risk in that portfolio. The relationship amongst these risks can be

quantified as follows

TR2

= SR2

+ UR2 or σ2

i = σs2+ σu

2

Where:

σ¡ = the investment‟s total risk (standard deviation)σs = the investment„s systematic risk σu =the investment‟s unsystematic risk.

The correlation coefficient between two investment opportunities can beexpressed as:

σs = σi CORim

Where,σs = the investment systematic risk σi = the investment‟s total risk (systematic and unsystematic) CORim = the correlation coefficient between the return of the investment and those of

the market.

If an investment were perfectly correlated to the market so that all its movements could be

fully explained by movements in market, then all of the risk would be systematic & σi = σ s If

an investment were not correlated at all to the market, then all of its risk would be unsystematic




TECHNOQUES OF PORTFOLIO MANAGEMENT

Various types of portfolio require different techniques to be adopted to achieve the desiredobjectives. Some of the techniques followed in India by portfolio managers are summarizedbelow.

(1). Equity portfolio-Equity portfolio is affected by internal and external factors:

(a) Internal factors – Pertain to the inner working of the particular company of which equity shares are held. These

factors generally include:

(1) Market value of shares(2) Book value of shares

(3) Price earnings ratio (P/E ratio)

(4) Dividend payout ratio

(b) External factors –

(1) Government policies

(2) Norms prescribed by institutions

(3) Business environment

(4) Trade cycles

(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

(A) Trend of earning: -

A higher price-earnings ratio discount expected profit growth. Conversely, a downward

trend in earning results in a low price-earnings ratio to discount anticipated decrease in

profits, price and dividend. Rising EPS causes appreciation in price of shares, which




benefits investors in lower tax brackets? Such investors have not pay tax or to give lower

rate tax on capital gains.

Many institutional investor like stability and growth and support high EPS.

Growth of EPS is diluted when a company finances internally its expansion program and

offers new stock.

EPS increase rapidly and result in higher P/E ratio when a company finances its

expansion program from internal sources and borrowings without offering new stock.

(B) Quality of reported earning: -

Quality of reported earnings affects P/E ratio. The factors that affect the quality of reported

earnings are as under:

Depreciation allowances: -

Larger (Non Cash) deduction for depreciation provides more funds to company to

finance profitable expansion schemes internally. This builds up future earning power of

company.

Research and development outlets: -

There is higher P/E ratio for a company, which carries R&D programs. R&D

enhances profit earning strength of the company through increased future sales.

Inventory and other non-recurring type of profit: -

Low cost inventory may be sold at higher price due to inflationary conditions among

profit but such profit may not always occur and hence low P/E ratio.




(C) Dividend policy: -

Dividend policy is significant in affecting P/E ratio. With higher dividend ratio, equity price goes

up and thus raises P/E ratio. Dividend rates are raised to push in share prices up. Dividend cover

is calculated to find out the time the dividend is protected, In terms of earnings. It is calculated as

under:

Dividend Cover = EPS / Dividend per Share

(D) Investors demand: -

Demand from institutional investors for equity also enhances the P/E 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.




Types of Portfolios

The different types of Portfolio which is carried by any Fund Manager to maximize profitand minimize losses are different as per their objectives .They are as follows.

Aggressive Portfolio:

Objective: Growth. This strategy might be appropriate for investors who seek High growth and who can tolerate wide fluctuations in market values, over theshort 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 marketvalue.




Balanced Portfolio:

Objective: Capital appreciation and income. This strategy might beappropriate for investors who want the potential for capital appreciation and somegrowth, and who can withstand moderate fluctuations in market values

Conservative Portfolio:

Objective:

Income and capital appreciation. This strategy may be appropriatefor investors who want to preserve their capital and minimize fluctuations inmarket value.

Sharekhan Portfolio Management Services




Pro Prime

Product Approach

Investment will be keeping in mind 3 investment tenets.

1. Consistent, steady and sustainable returns.

2. Margin of Safety

3. Low Volatility

PRO PRIME PRO

ARBITRAGE

PRO TECH




Product offering

Pro Prime is the ideal for investors looking at steady and superior with low and medium risk

appetite.

The portfolio consists of a blend of quality blue chip and growth stocks ensuring a balanced

portfolio with relatively medium risk profile.

The portfolio constitutes of relatively large capitalization stocks, based on sector and themes

which have medium to long term growth potential.

Product Characteristics

Bottom up stock selection

In depth ,independent fundamental research

High quality companies with relatively large capitalization

Disciplined valuation approach applying multiple valuation measure.

Medium to long term vision, resulting in low portfolio turnover.

How to invest?

Minimum Investment : 10 Lacs

Lock in : 6 months

Reporting: Access to website showing clients holding .Monthly reporting of

portfolio holding /transaction.




Charges: 2.5% pa AMC (Annual Maintenances Charges) fees charged every

quarter ,0.5% brokerage ,20% profit sharing after 15% hurdle is crossed

chargeable at the end of fiscal year.

Pro Arbitrage

Product Approach

An opportunity lies in basis which is the difference between cash and future. Whenever basisis high we buy the stocks and sell the future to lock in difference .The difference is bound to bezero at expiry.

Product Offered

Cash – future arbitrage:

The product intends to spot low risk opportunities which will yield more than the normal lowrisk product .Whenever such opportunity is spotted stocks will be bought and to lock in the basis,

future will be sold .This position will be liquated in the expiry or before that if the basis vanishes

early .Similarly the scheme will move on from opportunity to opportunity.


Low – Risk: This is relatively low risk product which can be compared with liquid funds

issued by mutual funds.

High return: Compared with other low risk products, this products offers an indicative

post tax return of 8 to 10% plus.

Product Details




Minimum Investment:Rs.1 Crore

Lock in :6 months

Reporting: Fortnightly for portfolio Net worth, Monthly reporting pf

portfolio Holding /transaction.

Charges: 0.035% brokerage for future ,0.07% for delivery

Pro Tech

Protech using the knowledge of technique analysis and the power of depravities markets to

identify trading opportunities in the market .The protech line of the product is designed aroundvarious risk / reward / volatility profiles for the different kind of investment needs.

Product Approach

Better performance is possible from superior market timing and from picking stocks before

inflation points in their trading cycles .Linear return are possible from having hedged / sell

market positions in downtrends .Absolute return are targeted by focusing on finding trading

opportunities & not out performance of an index.

Product offered

1. Nifty Thirty :

Nifty futures will be bought and sold on the basis of an automated trading system

generated calls to go long/short. The exposure will never exceed the value of portfolio i.e.

no leveraging; but allows us to be short /hedged in Nifty in falling market therefore

allowing the client to earn irrespective of the market direction.

2. Beta Portfolio :




Positional trading opportunities are identified in the future segment based on

technical analysis .Inflection points in the momentum cycles are identified to go long

/short on stock/index futures with 1-2 months time horizon .The idea is to generate the

best possible return in the medium term irrespective of the direction of the market

without really leveraging beyond the portfolio value. Risk protection is done based on

stop losses on daily closing prices.

3. Star Nifty:

Swing trading technique and Dow theory is used to identify short – term reversal

levels for Nifty futures and ride with trend both on the long and short side .This returncan be earned in bull and bear market .Stop and reverse means to reverse ones position

from long to short or vice a versa at the reversal levels simultaneously .The exposure

never exceeds value of portfolio i.e. there is no leveraging.

4. Trailing Stops.

Momentum trading techniques are used to spot short – term momentum of 5-10 daysin stocks and stocks /index futures .Trailing stop loss method of risk management or

profit protection is used to lower the portfolio volatility and maximize return .Trading

opportunities are exposed both on the long side and the short side as the market demands

to get the best of both upward and downward trends.


Using swing based index – trading systems stop and reverse .trend following and

momentum trading technique.

Nifty based products for low impact cost and low product volatility

Both long and short strategies to earn returns even in falling market.




Trading in future market to allow for active risk protection using trailing stop losses.

How to invest?

Minimum : Rs.10 Lacs

Lock in : 6 months

Reporting: Fortnightly reporting of portfolio Net Worth, monthly

reporting of portfolio Holding / Transaction.

Charges: 0% AMC (Annual Maintenance Charges), 0.05% brokerage

for derivatives, 20% profit sharing on booked profit quarterly basis

Protech Performance Report




Nifty Thrifty:

How it works:

Our first product is based completely on a mathematical model with zero human intervention.

This product has come out of its fifth draw-down period (in 28 years of back testing) and the netasset value (NAV) is taking off to new heights.

Beta portfolio:

NIFTY THRIFTY

Date NAV Sensex

01/02/2006 10.00 9859.26

29/04/2009 19.43 11403.25

Returns(%)

94.30 15.66




BETA PORTFOLIO

Date NAV Sensex

03/08/2007 10.00 15138.40

29/04/2009 13.81 11403.25

Returns(%)

38.10 -24.67

How it works:

Our product is based on positional trading with a long and short model investing in plain

vanilla stock futures. In this, we identify stocks with greater risk-reward ratios with a time

horizon of 1 to 2 months, based on the prevalent market situation.

Trailing Stops:

TRAILING STOPS

NAV Sensex

20/10/2007 10.00 17559.98

24/04/2009 15.32 9708.50

Returns (%) 43.50 -35.06

How it works:

The trading strategy is to buy short-term momentum over a time frame of 1 to 5 days and

then book small profits consistently.




CHAPTER -5

DATA ANALYSIS AND

INTERPRETATION




1. Do you know about the Investment Option available?

Interpretation

As the above table shows the knowledge of Investor out of 100 respondentcarried throughout the Hyderabad Area is only 85%. The remaining 15% takehis/her residential property as an investment. According to law purpose this is not

an investment because of it is not create any profit for the owner. The mainproblem is that in this time from year 2008-2009 , the recession and the Inflationmake the investor think before investing a even a Rs. 100.So , it also create theproblem for the Investor to not take interest in Investment option.




2. What is the basic purpose of your Investments?

Interpretation

As with the above analysis, it is found 75% people are interested in liquidity,returns and tax benefits. And remaining 25% are interested in capital appreciations,risk covering, and others. In the entire respondent it is common that this timeeveryone is looking for minimizing the risk and maximizing their profit with theshort time of period.

As explaining them About the Portfolio Management Services of Sharekhan,they were quite interested in Protech Services.




3. What is the most important factor you consider at the time of

Investment?

Interpretation

As the above analysis gives the clear idea that most of the Investors consideredthe market factor as around 12% for Risk and 23% Return, but most importantcommon things in all are that they are even ready for taking both Risk and Returnin around 65% investor.

Moreover, the Market is fluctuating now days, so as it also getting

improvement. So, Investor are looking for Investment in long term and Short-term.




4. From which option you will get the best

returns?

Interpretation

Most of the respondents say they will get more returns in Share Market. Since

Share Market is said to be the best place to invest to get more returns. The risk in

the investment is also high.

Similarly, the Investor are more Interested in Investing their money in Mutual

Fund Schemes as that is also very important financial product due to its nature of

minimizing risk and maximizing the profit. As the commodities market is doingwell from last few months so Investor also prefer to invest their money in

Commodities Market basically in GOLD nowadays.




Moreover, even who don‟t want to take Risk they are looking for investing inFixed Deposit for long period of time.

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

agree?

Interpretation

In the above graphs it‟s clear that 24% of respondent out of hundred feel thatinvesting their money in Mutual Fund Scheme are far safer than Investing in PMS.this is because of lack of proper information about the Portfolio managementservices. As the basis is same for the mutual fund and PMS but the investment

pattern is totally different from each other and which depends upon different risk factor available in both the Financial Products.




6. How much you carry the expectation in Rise of your Income from

Investments?

Interpretation

The optimism is shown in the attitude of the respondents. The confidence was

appreciable with which they are looking forward to a rise in their investments.

Major part of the sample feels that the rise would be of around 15%. Only 8% of

the respondents were confident enough to expect a rise of upto 35%.

As all the respondents were considering the Risk factor also before filling thequestionnaire and they were asking about the performance report of all the PMS

services offered by Sharekhan limited.




7. If you invested in Share Market, what has been your experience?

Interpretation

20% of the respondents have invested in Share market and received satisfactoryreturns, 40% of the respondents have not at all invested in Share Market. Some of the investors face problems due to less knowledge about the market. Some of therespondents don‟t have complete overview of the happenings and invest theirmoney in wrong shares which result in Loss. This is the reason most of therespondents prefer Portfolio Management Services to trade

now a days, whichgives the Investor the clear idea when is the right time to buy and right time to sellthe shares which is recommended by their Fund Manger.




8. How do you trade in Share Market?

Interpretation

As we know that Share market is totally based on psychological parameters of

Investors, which changed as per the market condition, but at the same time the

around 45% investor trade on the basis of speculation and 31% depend upon

Investment option Bonds, Mutual Funds etc.

Moreover, the now a day‟s Hedging is most common derivatives tools which isused by the Investor to get more return from the Market ,this is mostly used in the

Commodities Market.




9. How do you manage your Portfolio?

Interpretation

About 57% of the respondents say they themselves manage their portfolio and

43% of the respondents say they depends on the security company for portfolio

Management. 43% of the respondents prefer PMS of the company because they

don‟t have to keep a close eye on their investment; they get all the information

time to time from their Fund Manager.

Moreover, talking about the Sharekhan PMS services they are far satisfied with

the Protech and Prop rime Performance during last year. They are satisfied with the

quick and active services of Sharekhan customer services where, they get the

updated knowledge about the scrip detail everyday from their Fund Manager.




10. If you trade with Sharekhan limited then why?

Interpretation

As the above research shows the reasons and the parameters on which investor

lie on Sharekhan and they do the trade.

Among hundred respondents 35% respondents do the trade with the company

due to its research Report, 28% based on Brokerage Rate whereas 22 % are happy

with its Services.

Last but not the least, 15% respondents are depends upon the tips of Sharekhan

which gives them idea where to invest and when to invest.

At the time of research what I found is that still Sharekhan need to make the

clients more knowledge about their PMS product.




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

Interpretation

As talking about the Investment option, in most of clients it was common that

they know about the Option but as the PMS of Sharekhan have different Product

offering, Product Characteristics and the Investment amount is also different this

makes the clients to think differently.

It is found that 56% of Sharekhan client where using PMS services as for their

Investment Option.




12. Which Portfolio Type you preferred?

Interpretation

The above analysis shows, in which portfolio the investor like to deal more in

PMS.

As 45% investor likes to go for Equity Portfolio and 28% with Balanced

Portfolio, whereas around 27% investor like to, go for Debt Portfolio.




13. How was your experience about Portfolio Management services (PMS)

of Sharekhan Limited?

Interpretation

In the above analysis it is clear that the Investor have the good and the bad

experience both with the Sharekhan PMS services.

In this current scenario 52% of the Investor earned, whereas around 18% have

to suffer losses in the market. Similarly 30% of the Respondents are there in

Breakeven Point (BEP), where no loss and no profit.




14. Does Sharekhan Limited keep it PMS process Transparent?

Interpretation

The above analysis is talking about the Sharekhan Transparency of their PMS

services. In hundred respondents 63% said that they get all the information about

their scrip buying and selling information day by day, where as 37% of

respondents are not satisfied with the PMS information and Transparency because

they don‟t get any type of extra services in PMS as they were saying.




15. Do you recommend Sharekhan PMS to others?

Interpretation

The above analysis shows the Investor perception toward the Sharekhan PMS

as on the basis of their good and bad experience with Sharekhan limited. Among

hundred respondents 86% respondents were agree to recommend the PMS of

Sharekhan to their peers, relatives etc.




CHAPTER-6

CONCULSION

AND

SUGGESTIONS




OBSERVATION AND FINDING

About 85% Respondents knows about the Investment Option, because remaining 15%

take his /her residential property as Investment, but in actual it not an investment

philosophy carries that all the Investment does not create any profit for the owner.

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%.

As among all Investment Option for Investor the most important area to get more return

is share around 22%after that Mutual Fund and other comes into existence.

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

Funds.

As expected return from the Market more than 48% respondents expect the rise in

Income more than 15%, 32% respondents are expecting between 15-25% return.

As the experience from the Market more than 34% Investor had lose their money during

the concerned year, whereas 20% respondents have got satisfied return.




About 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.

Around 57% residents manage their Portfolio through the different company whereas

43%Investor manage their portfolio themselves.

The most important reasons for doing trade with Sharekhan limited is Sharekhan

Research Department than its Brokerage rate Structure.

Out of hundred respondents 56% respondents are using Sharekhan PMs services.

Investors preferred more than 45% equity Portfolio, 28%Balanceed Portfolio and about

27% Debt Portfolio with Sharekhan PMS.

About 52% Respondents earned through Sharekhan PMS product, whereas 18% investor

faced loses also.

More than 63% Investor are happy with the Transparency system of Sharekhan limited.




As based on the good and bad experience with Sharekhan limited around 86% are ready

to recommended the PMS of Sharekhan to their peers, relatives etc.

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.

CONCLUSION AND SUGGESTIONS

On the basis of the study it is found that Sharekhan Ltd is better services provider than the

other stockbrokers because of their timely research and personalized advice on what stocks to

buy and sell. Sharekhan Ltd. provides the facility of Trade tiger as well as relationship manager

facility for encouragement and protects the interest of the investors. It also provides the




information through the internet and mobile alerts that what IPO‟s are coming in the market and

it also provides its research on the future prospect of the IPO. 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 withless returns.

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

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

Suggestions

The company should also organize seminars and similar activities to enhance the

knowledge of prospective and existing customers, so that they feel more comfortable

while investing in the stock market.

Investors must feel safe about their money invested.




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.

ANNEXURE

QUESTIONNAIRE




NAME…………………………………. AGE…………………………………………

OCCUPATION……………………………... PHONE NO..................................

1. Do you know about the Investments Option available?

A) YES B) NO

2. What is the basic purpose of your Investments?

A) Liquidity B) Return C) Tax Benefits D) Risk Covering

E) Capital Appreciation F) Others

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

A) Risk B) Return C) Both

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

A) Mutual Funds B) Shares C) Commodities Market D) Bonds

E) Fixed Deposits F) Property G) Others

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

A) Yes B) No

6. How much you carry the expectation in Rise of your Income from Investments?

A) Upto 15% B) 15-25% C) 25-35% D) More than 35%

7. If you invested in Share Market, what has been your experience?

A) Satisfactory Return B) Burned Finger C) Unsatisfactory Results

D) No

8. How do you trade in Share Market?




A) Hedging B) Speculation C) Investment

9. How do you manage your Portfolio?

A) Self B) Depends on the company for portfolio

10. If, you trade with Sharekhan limited then why?

A) Research B) Brokerage C) Services D) Investments Tips

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

A) Yes B) No

12. Which Portfolio Type you preferred?

A) Equity B) Debt C) Balanced

13. How was your experience about Portfolio Management services (PMS) of SharekhanLimited?

A) Earned B) Faced Loss C) No profit No loss

14. Does Sharekhan Limited keep it PMS process Transparent?

A) Yes B) No

15. Do you recommend Sharekhan PMS to others?

A) Yes B) No

REFERENCES

www.sharekha.com

www.sebi.gov.in

www.moneycontrol.com

http://www.sharekha.com/

http://www.moneycontrol.com/

http://www.moneycontrol.com/

http://www.sharekha.com/



www.karvy.com

www.valueresarchonline.com

www.yahoofinance.com

www.theeconomist.com

www.nseindia.com

www.bseindia.com

Book Referred

Value guide by Sharekhan

Investors Eyes by Sharekhan

Business world.

The economist

http://www.karvy.com/

http://www.valueresarchonline.com/

http://www.yahoofinance.com/

http://www.theeconomist.com/

http://www.nseindia.com/

http://www.bseindia.com/

http://www.bseindia.com/

http://www.nseindia.com/

http://www.theeconomist.com/

http://www.yahoofinance.com/

http://www.valueresarchonline.com/

http://www.karvy.com/

21983778 summer internship report final

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