Security Analysis & Portfolio Karvykirankumar

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Transcript of Security Analysis & Portfolio Karvykirankumar


NEED & IMPORTANCE:Economic liberalization has accelerated the pace of development in the securities market, which has undergone a sea change during the last 2 decades. In India, the role of securities market in mobilizing & channel sing private capital for the economic development of the country has increased over the year and securities market itself has undergone structural transformation with the introduction of computerized online trading & interconnected market system.

Over the years as investment in securities gathered momentum, the investment decisions were more often made by the whims & fancies of the investors & rumors heard rather than by rational analysis. Only recent security analysis & Portfolio management has emerged as a separate academic discipline in India. Portfolio theory that deals with the rational investment decision-making process has now become an integral part of financial literature.

Investing in securities such as shares, debenture & bonds is profitable well as exiting. It is indeed rewarding but involves a great risk if risky & need artistic skill. Investing in financial securities is now considered to be one of the most risky avenues of investment. It is rare to find investors investing their entire savings in a single security instead; they tend to invest in a group of securities. Such group of securities is called a portfolio. Creation of a portfolio helps to reduce risk without sacrificing returns. Portfolio management deals with the analysis of individual securities as well as with the theory & practice of optimally combining securities into portfolio.


OBJECTIVES OF THE STUDY 1. How to analyze securities and Portfolio Management 2. To study the investment pattern and its related risk & return 3. To assist the investors to choose wisely between the investment 4. To understand, analyze and select the best portfolio of securities 5. To strike the balance between costs of funds, risk and returns. alternative

SCOPE OF STUDY : This study covers markowitz model. The study covers the calculation of Return on between the different securities in order to find out at what percentage funds should be invested among the companies in the different securities(means Portfolio). Also the study includes the calculation of individual standard deviation of securities and ends at the calculation of weights of individual securities involved in the portfolio .these percentages help in allocating the funds available for investment based on risky portfolios.

RESEARCH METHODOLOGY PRIMARY SOURCE OF DATA : Primary source of data is the data which needs the personal efforts of collecting and which are not readily available. Primary data is the first hand information, which has been collected directly from the company Financial Analysts and Investors.

SECONDARY DATA : y y y Companies Annual Reports Information from web sites Publication(News Papers, Magazines)2

y y

Information provided by Hyderabad Stock Exchange. Text Books

Period of Study For different companies, financial data has been collected from the year 2004-05 TO 2008-09.

Selection of Companies Companies selected for analysis are:y y y y y GE Infosys Indian Tobacco Corporation (ITC) Hero Honda Reliance

Limitation of the study y y y y This study has been conducted purely to understand portfolio management for investor. For study purpose 5 companies have been taken for calculations. Study is limited to period from 2004-05-2008-09 Data collection was strictly confined to secondary source. No primary data associated with the project. y y y There was a constraint with regard to time allocated for the research study, a period of one and half month i.e., from Apr 1st to May 15th 2010. Detailed study of the topic was not possible due to limited size of the project The availability of information in the form of annual reports and price fluctuations of the companies was a big constraint to the study.


INTRODUCTION KARVY COMPUTERSHARE PVT LIMITEDHistorical Background: The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company Karvy Consultants Limited. We started with consulting and financial accounting automation, and carved inroads into the field of registry and share accounting by 1985. Since then, we have utilized our experience and superlative expertise to go from strength to strengthto better our services, to provide new ones, to innovate, diversify and in the process, evolved Karvy as one of Indias premier integrated financial service enterprise. Thus over the last 20 years Karvy has traveled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And we have made this journey by taking the route of quality service, path breaking innovations in service, versatility in service and finallytotality in service. Our highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer-focus has secured for us the position of an emerging financial services giant enjoying the confidence and support of an enviable clientele across diverse fields in the financial world. Our values and vision of attaining total competence in our servicing has served as the building block for creating a great financial enterprise, which stands solid on our fortresses of financial strength - our various companies.With the experience of years of holistic financial servicing behind us and years of complete expertise in the industry to look forward to, we have now emerged as a premier integrated financial services provider. And today, we can look with pride at the fruits of our mastery and experience comprehensive financial services that are competently segregated to service and manage a diverse range of customer requirements.4

PROFILE OF KARVY FINANCIAL POLICYS:It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and a safety anchor in the market is provided by indepth knowledge of market functioning and changing trends, planning with foresight and choosing one s options with care. This is what we provide in our Stock Broking services. We offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country.

We offer trading on a vast platform; National Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. More importantly, we make trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. We are assisted in this task by our in-depth research, constant feedback and sound advisory facilities. Our highly skilled research team, comprising of technical analysts as well as fundamental specialists, secure result-oriented information on market trends, market analysis and market predictions. This crucial information is given as a constant feedback to our customers, through daily reports delivered thrice daily; The Presession Report, where market scenario for the day is predicted, The Mid-session Report, timed to arrive during lunch break, where the market forecast for the rest of the day is given and The Post-session Report, the final report for the day, where the market and the report itself is reviewed. To add to this repository of information, we publish a monthly magazine Karvy ; The Finapolis & rdquo;, which analyzes the latest stock market trends and takes a close look at the various investment options, and products available in the market, while a weekly report, called Karvy Bazaar Baatein, keeps you more informed on the immediate trends in the stock market. In addition, our specific industry reports give comprehensive information on various industries. Besides this, we also offer special portfolio analysis packages that provide5

daily technical advice on scrips for successful portfolio management and provide customized advisory services to help you make the right financial moves that are specifically suited to your portfolio. Our Stock Broking services are widely networked across India, with the number of our trading terminals providing retail stock broking facilities. Our services have increasingly offered customer oriented convenience, which we provide to a spectrum of investors, high-networth or otherwise, with equal dedication and competence. But true to our spirit, this success is not our final destination, but just a platform to launch further enhanced quality services to provide you the latest in convenient, customer-friendly stock management. Over the years we have ensured that the trust of our customers is our biggest returns. Factors such as our success in the Electronic custody business has helped build on our tradition of trust even more. Consequentially our retail client base expanded very fast.


Karvy Computershare Private Limited is a 50:50 joint venture of Karvy Consultants Limited and Computershare Limited, Australia. Computer share Limited is world's largest -- and only global -- share registry, and a leading financial market services provider to the global securities industry. The joint venture with Computer share, reckoned as the largest registrar in the world, servicing over 60 million shareholder accounts for over 7,000 corporations across eleven countries spread across five continents. Computer share manages more than 70 million shar