Copy of Summer Project 2003

8/6/2019 Copy of Summer Project 2003

1/28

To Recommend to Divers ify into PORTFOLIO

MANAGEMENT SERVICES

To highlight various investment options available

for investment.

To Suggest the way this proposal would be

implemented.

To Increase the employability of Employees.

OBJECTIVES


2/28

Primary Data Collected by conducting telephonic survey

from existing clients ofHavmore Insurance Brokers Pvt

Ltd. Telephonic Survey was conducted with 15 clients and

replies have been used to make this report effective.

RESEARCH METHODOLOGY


3/28

ANALYSIS AND INTREPRETATION

AIMS 3

Following questions were asked during telephonic survey:-

1.What Risk are you willing to take in your investment portfolio?

Less-8

Moderate-6

High-1


4/28

AIMS 4

If you are given amount of Rs.50,00,000 where would you invest?

Equity securities of Blue chip Companies.2

Fixed Deposit and Government Bonds.8

Real Estate.3Gold.2

Derivative Instruments.1


5/28

AIMS 5

Whom do you consult for investment purpose?

Friends, Relatives etc-4

Hereditary-9

Financial Consultants-2


6/28

Lack of Awareness

Lack of Guidance

INTERPRETATION

AIMS 6


7/28

The Art and Science of Investment Mix and Policy.

Matching Investment to Objectives.

Done by Asset Allocation for Individuals and

Institution.

Includes Balancing Risk against Performance.

MEANING OF PORTFOLIO

MANAGEMENT


8/28

8AIMS

INVESTMENT

PYRAMID


9/28

AIMS 9

Speculation(Options,Futures,Spread Betting)

Growth(Small CapStock,Large Cap Stock,

Equity MF)

Income(Properties,Bonds)

Security(Cash deposit,MMFS,T.Bills)

Foundation(Gold Bullion)


10/28

99.5% Gold hence

durable.

Low RiskHighly Liquid

Inflationary Hedge

No Brokerage

However prone to

Theft.

AIMS 10

GOLD BULLION


11/28

Current Account

Savings Account

Time Deposit

AIMS 11

CASH DEPOSIT


12/28

MF that invest

solely in Money

Market instruments.

Debt that mature in

less than one year.

AIMS 12

MONEY MARKET MUTUAL FUNDS


13/28

Safest Instrument

Opportunity to invest in

money market

instrumentsRating

AIMS 13

FEATURES OF MMMF


14/28

Institutional

Marketed to

Corporations,Government, and

fiduciaries

High minimum

investment

Retail

Individuals

33% of total MMFassets

AIMS 14

TYPES OF MMFS


15/28

Short termborrowing by thestate/central govt.

Can be purchasedby any one (excl.state government)

Min. value Rs.1

Lac.Rate of Interest

based on marketdemand

AIMS 15

TREASURY BILLS


16/28

Huge FDI

Higher Returns

Multiplicity ofSectors

AIMS 16

REAL ESTATE


17/28

Government bonds

Bonds issued by

government in homecurrency.

Risk-free.

Used to determine

risk-free rate ofreturn.

Corporate bonds

Issued by

CorporationHigher risk than

government bonds

hence higher

interest.

AIMS 17

BONDS


18/28

Small market

capitalization

Ideal forsmall/Amateur

investor as they are

priced low but have

huge potential.Very risky

AIMS 18

SMALL CAP STOCK


19/28

LARGE CAP STOCK

Market Capitalization of

more than $10 billion

Market Capitalization=

No of Shares x marketPrice of Shares

Examples:- Microsoft,

Wal-Mart, General

Electric.

AIMS 19


20/28

EQUITY MUTUAL FUNDS

Funds which invest

primarily in Stocks.

Higher returns with

Relatively higherdegree of risk.

AIMS 20


21/28

EQUITY MUTUAL FUNDS

ADVANTAGES

Liquidity

Professional

Management

Diversification

Affordability

Record-Keeping

DISADVANTAGES

Tax Consequences

Daily Share Pricing

AIMS 21


22/28

OPTIONS

Financial Instrument

Creates a Contract

Underlying asset to be

bought at a price fixedtoday (house to be

bought @Rs 1 Crore)

CALL

PUT

AIMS 22


23/28

FUTURES

Contract

Deliver @specified date, Specified Quantity of

Specified Quality

Traded on Future Exchange

Future Exchange- To minimize the Risk of Default


24/28

SO WHATS THE DIFFERENCE DUDE?

Options Create A

RIGHT to fulfill the

terms of the Contract

Futures create AOBLIGATION to fulfill

the terms of the

Contract.

AIMS 24


25/28

SPREAD-BETTING

BET on the price

movement of the

Security.

Spread-BettingCompany offer 2

prices- BID & OFFER

price.

Investor concernedDoes Not Own the

Security

They just Speculate on

the price movement.AIMS 25


26/28

Services to be

provided only to clientswho have exhausted

their insurance quota.

Proper Training.

Free of cost

Proper performance

appraisal.

RECOMMENDATION

AIMS 26


27/28


28/28

AIMS 28

Documents

Copy of Summer Project 2003