Pushkar Portfolio_management

8/2/2019 Pushkar Portfolio_management

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PADMASHREE DR. D.Y. PATIL UNIVERSITY

DEPARTMENT OF BUSINESS MANAGEMENT

ASSIGNMENT

ON

EMOTIONAL MARKETING ,PORTFOLIO

MANAGEMENT & BETA

SUBJECT: SECURITY ANALYSIS & PORTFOLIO

MANAGEMENT

SUBMITTED TO: SUBMITTED BY:

MISS. NEETU SHARMA PUSHKAR KARANDIKAR

FINANCE CLASS-I

ROLL NO. – 10124.

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INTRODUCTION

Gone are the days when producers were regarded as king of the market, they

use to decide which products were to be produced, size, color, features were

decided by the producers as customers were concerned about the availability of the product due to nonexistence of alternatives, that era was producers era.

Slowly scenario changed many producers came into the market and competition

entered in the market, customers started getting choice and era of marketing

started. Customers became the king of the market. Now producers started

manufacturing product as per customers' desire. Market was bombarded with n

number of products. Each and every marketer started providing products with

numerous features and gradually all the marketer continuing providing same

type of product with similar features and same price. Marketer realized for survival they will have to change their marketing strategies.

Marketer realized that human beings are quite emotional in nature and they take

their purchase decision emotionally, and if customers' emotions are hit in right

manner, they can get more loyal customers. There came a new model in

marketing and that is emotional marketing.

NEED OF EMOTIONAL MARKETING ARISES

This concept has been followed by big corporate' from decades. To achieve

higher success in marketing basic understanding of human psychology is

required which has been realized by marketer. This has helped marketer in

understanding what attributes is to be added in their product and how it is to be

communicated to the prospects. Customers buy products either to satisfy their

needs or their desires. Marketers are inquisitive in knowing what motivates

customer to purchase a product. For instance, customers aren't buying Shampoo just to clean their hair but they are buying a now look for their hair. Car is not

purchased only for transportation but for maintaining status. But if customers

are considered as bundle of emotions that is completely imprudent thought and

if well thought-out as only calculating machine that is also a failure.

Marketers add emotions in their appeal to entice their prospects. Just think

about the last purchase you have made, for any product. What was concealed

force that has compelled you to purchase that product, to check your purse,

bank balance; it was emotion, was not it? You believe it or not but for making

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purchase decision some percentage of emotions are always involved. Emotion

act as fuel in the engine of purchase decision process. Customers always put in

logic behind every purchase and try to prove that he/she has made rational

decision and emotion has not played any role, but the ultimate driver is the

emotion which has played major role in final purchase decision, whether

believed or not. Rationality is required but it just only generates interest in

product, its emotion which ultimately leads customers to purchase. Customers

are not much interested in attributes of the product; they want to know how that

product suits their personality. It is not in the case of single customer, all

customers behaves in same manner that's why marketers always make their

customers feel about product and services they provide. Customers purchases

products emotionally and then rationalize their choice intellectually.

Marketers mostly follow concept of emotional marketing, they endeavor to

include more emotions as emotional marketing is more profitable than rational

marketing in many cases as emotional marketing is all about winning mind of

customers, it is about getting share in customers heart more than share in

customers wallet. Emotional marketing if strategically deployed can remove the

rational questions which can take prospects to some other products.

Some marketers believe that if they provide value added products to the

customers they will be able to close the deal but they fail miserably, as it does

not ensue every time. Marketer should communicate their product as value

driven emotions and utility oriented motive to obtain attention of customers.

Customers do not always behave as calculating machine. They breathe, weep,

enjoy and having a heart which drives with emotions, they always get attracted

with the products which makes them feel and they get attached with the product

emotionally. Now question is how customers take decision for purchasing product? How do they evaluate the product? What are different criteria they

consider at the time of making decision?

The Value Star Method

Hallmark's Value Star system is a model for applying emotion marketing to

your company. It's based on a five-pointed star, with each of the points

representing a vital element in the marketing equation.

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The first two elements are familiar from traditional marketing:

Money: Is the product affordable and offered at a competitive price? Are any

promotions or discounts compelling?

Product : Is the product or service desirable? Does it have the proper features

and does it get the job done?

As we now know, if customers are buying a product or a service based on price

alone, the brand is at risk - unless it's a low-cost provider and that price

advantage can be sustained over the long term. Even competition based on a

product is becoming less practical. New features get duplicated very quickly

today by "fast-following" competitors.

Competitive pricing and quality products are the cost of entry to today's market.

Even the considerable power of emotion can't overcome an obviously inferior

or unreasonably priced product. But in the end, price and product are too easy to

copy. You need other value drivers - the emotional E's in the Value Star

model:

Equity: This is the combination of the trust a brand earns and an identity that

allows consumers to feel emotionally connected to it. A company makes a

promise, consistently delivers, and over time its customers come to rely on it.

Simply seeing the logo or hearing the

name tells them the product or service is worth the investment. "Emotionally

loyal customers relate to the brand as they might to other human beings -

feelings of affection, a common history, possibly a sense of trust and two-way

commitment, which goes well beyond the satisfaction of a specific need," note

Horacio Rozanski, Allen Baum and Bradley Wolfsen in Strategy & Business.

Experience: This deals with customers' interactions with a brand. Customer

attitudes are affected by visits to a store or web site, employee contacts,communications, loyalty programs and, of course, use of the product or service

itself. In every encounter there's an opportunity to meet a need and make an

emotional connection.

Energy: This is the investment of time and effort a customer makes in a product

or service. Is it easy? Accessible? Worthwhile? These days, with so many

people feeling pressed for time, companies must pay attention to whether they

are offering convenience and saving time for their customers.

Equity, experience and energy are the emotional components of the Value Star.

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Money and product are the rational elements. Together, they offer a path for

appealing to both the emotional and rational impulses that drive consumer

buying decisions.

EVALUATION CRITERIA OF CUSTOMERS

Consumers consciously or unconsciously evaluate products on several criteria,

some of them are:

Economical: Customers are interested in purchasing those products which are

economical i.e. fits in their budget and make them to feel. For instance Bajaj

Platina, Bajaj XCD always highlights that they are economical as well as stylish

too, by these kinds of appeals they pull those customers whose psychologicalcost of paying for product reduces their excitement in that product. But there are

some customers who are interested in paying high prices if it is worth paying

and helps in maintaining their status.

Technological: Customers are well informed nowadays. Customers are

interested in product which possess additional features, can perform various

functions and must be easier to deal with. They bargain on technological

aspects while purchasing. These reasons compel marketers to fight in the battle

field with extra features and ease of use.

Pleasure: Consumers are interested in the products which can offer them

pleasure after possessing it. Companies' adjoin pleasure against the features and

benefits of their products and at last deal gets closed with gladness.

For instance Raymond's suiting in their appeal shows that owners feel pleasure

while dressing themselves with Raymond suiting.

Achievement: Human beings in this world desire for some or other achievements in their life and even they expect these achievements from the

products which they purchase. Now question arises that how products can fulfill

their desire of achievements? Marketer frames and communicates their message

in such a manner that it encompasses the idea of achievement. Advertisement of

Maruti 800 which showed that middle class customers get sense of achievement

in their life after getting possession of Maruti 800.

Status: Different income levels of customers' shows different purchasing

patterns to maintain their standard of living. Higher income group customers' go

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for diamond, platinum, Mercedes to maintain their status. For them silver and

gold are inferior goods but for middle class customers these are superior items.

Perception of customers behind purchasing any product that it should contribute

to status even if customers spend small percentage of their income for that product. Detergent like Wheel which targets middle class customers

communicates their message in very effective manner by using punch line

"Manhgi wali dhuali budget mein samai"

Style: Younger generations of today are much more inclined towards products

which suit their style and to their looks, are preferred mostly. Celebrities are

endorsed so that stylish look. Pulsar, Karizma, Glamour, Enticer are first choice

of youngsters who believes in lavish and stylish life and these products

themselves explain importance of style in the life of customers with respect to

product.

Security: Insurance products are best example of this criterion. Marketers

appeal customers through fear in their messages. "Papa please yeh rakh lo" a

father thinks about his future where his daughter is giving money for his

fulfillment of his daily requirements and then he realizes importance of

Insurance in life. This is the most important factor as customers are always

interested in securing themselves.

Belongingness: Human beings live in social groups. They want to confirm to

their society, they feel humiliated if they don't match. So they constantly try to

stride for those products which balance their self esteem and membership in

society. So products which raise their self-esteem and satisfy them emotionally

are favored. Business people endeavor to fit their products with potential

customer's social group or personal identity. This can be elucidating with the

instance of college students, they go for Laptops not only to get connected with

the world but to make them selves fit in their friend circle.

Self improvement: Human being shows their interest which can improve their

personality and social status. For that they captivated them to books, internet

and many other sources and due to all this major portion of population are

heavily inclined towards internet. Even now customers ask for the website

address of the companies, they evaluate companies authenticity on the basis of

their website address. Big corporate and website designers are realizing

importance of internet and taking it as a platform to communicate their messageeffectively. For more effective and efficient communication of message they

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have taken emotions as most important ingredient. Many websites designers are

keeping these criteria in mind and working hard for emotion addition as many

websites have seen big face of failure due to non inclusion of this factor in their

websites.

Conformity - Does your product/service fall into a conformity niche? People

do not want to be alone. They flock together in groups. You have seen them

throughout school, and surely have seen them in your adult life. Does your

product or service command a group following? How would your

product/service help to fulfill the need of community? Does peer pressure play a

role in your product/service?

Ambition - How does your product/service help people to get more out of life?

More out of life is a broad term and can be applied to money, love, security, power, or just about anything else you can think of. What is it that people want

more of that your product or service can help them get more of?

Power - In what ways does your product/service offer a person more power?

Power can be over something as simple as their own lives, time, or any number

of other things. What ways can you come up with that will help people gain

more control over things that they want more control over?

Love - This one is the grand daddy of them all. As mentioned earlier in thisarticle where the person was looking for ways to expand their financial stability

and offer more to their children. That would be an example of a feeling of love.

STRATEGIC OPPORTUNITES FOR INCREASING MARKET SHARE

Business people are interested in adding more spices in their dish (message) to

provide more flavors in their messages. Marketer can get more shares incustomers' heart as well as in wallet if they work hard on the following factors:

Catching the attention of customers'

Countless strategic opportunities for drawing customers' attention are there,

some of them are:

Benefits: Customers purchase products for benefits; it can be direct or indirect

benefit. Direct benefit are very simple in nature, it is all about cause and effect.

A lady joins English speaking classes to make herself comfortable to converse

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in English, this is direct benefit. Indirect benefits are that she will be able to

make herself updated, to get herself fit in the society, she can help her kids also

and many more. Marketers should give much more concern to the indirect

benefits as it possesses strong emotional appeal.

Features: Consumers purchases product not because of the feature but because

of benefits. Features can attract customer attention towards product but it is

benefit which finally closes the deal. Marketer offer different features in their

product but finally those who can associate benefit with feature through

impressive emotional appeal, becomes champion of the market.

Affection: It a very powerful tool to build relationship with customers. This

concept can be very well explained with the case of Cadbury's celebration pack,

in the advertisement they convey how one can show affection towards their

beloved at the time of occasion like Diwali, Rakhabandhan etc. They have got

success in changing people's perception towards gifts which they give at the

time of occasion to their near and dear ones. Now boys prefer Cadbury

celebration pack over any other gift to present their sisters at the time of Rakhi.

Free /Gift: This is the one of the most powerful tool for today's marketer. Every

one is interested in getting something free with the product they purchase.

Nowadays customers ask retailers about the gift offered with the product whichthey are purchasing as preference is given those products with which gift is

attached. Customers feel delighted when they receive product free of cost which

they have never dreamed of like DVD player free with TV or while purchasing

a refrigerator a trip to Singapore is given by the marketer.

Effortless: We all are living in the era where maximum number of task can be

performed with a simple click. Customers of today are interested in getting

everything without performing anything. They are interested in those products

where minimum or less energy is expended for the fulfillment of the task. For

this take the example of Banks, previously banks were offering only limited

services, customers use to stand in queue for hours for simple transaction, but

now all the banks are offering n number of benefits to the customers like 24

hour ATM facility, internet banking, phone banking and many other. Now one

can withdraw money very easily there is no need to stand in queue for long

hours, funds can be transferred from one account to another, from one city to

another country within a fraction of second. ICICI Bank in their promotional

strategies highlights all their features of effortlessness (8-8 banking, internet,

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phone banking etc.) with full of emotions, that's why now it is first preference

of customers.

Punch line: Companies nowadays put lots of efforts for creation of tagline.

Punch line is combination of few words which conveys company visions and benefits. It helps in proper positioning of products and helps in informing

distinct benefits within fraction of seconds. Few examples are: ICICI Prudential

"We cover you at every step in life", TATA Group "improving the quality of

life", Bajaj "Distinctly Ahead", DLF "Building India", Nestle "Good Food,

Good Life" etc.

Make prospects so much inquisitive so that they take action quickly:

Customers generally purchase those products which they enjoy while

purchasing so marketers should make efforts to make their customers laugh,

they should add excitements in their offerings. Take the instance of shopping

mall, nowadays shopping mall is increasing in numbers. Customers are much

more fascinated towards malls as wide ranges of products are offered in malls

(from pin to durable items) with lots of convenience. If marketer gets success in

adding fun, enthusiasm, thrill and pleasure in their appeal they can compel their

customers running in to their stores, if they do not get success they will have to

wait for the prospect to walk towards their stores for months.

Give satisfaction by providing benefits which has been promised:

Marketers emotionally appeal customers through love, fear, pride, joy and by

many other ways. They always associate their products with customers feeling

to make their product sellable in the market as customers are ultimate decider of

their destiny. Customers will purchase products till products emotionally and

rationally appeals to them but quality and service factors cannot be ignored

because for the first time customer can purchase product by getting emotional

but repeat purchase is not possible if customers gets dissatisfied with the

product.

PITFALLS IN EMOTIONAL MARKETING

Emotional marketing provides many opportunities to marketer for facing and

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fighting competition with that there are some pitfalls associated with the

opportunities, they are

Expectation mismatch: Many a times firms believe that customers buy

features alone. If a product is having extraordinary features and offer incomparable value to the customers, it may fail as customers always evaluate

products benefits and features associated with others products.

Appearance: This pitfall covers every aspect from infrastructure to reputation.

If retailer is not having eye-catching location and if the product display is also

not tremendous then how much beneficial and value added that product is, it

will not be able to attract customers attention.

Retailers may not have control over location but he/she can get number of customers through their long year of service and relationship by that they can

build reputation in the market.

Employee-employer commitment: In today's competitive era, business

concern can survive through relationship marketing. Relationship can be

developed only through front-line employee's behavior and attitude towards

customer. It is very important to understand how much employee is concerned

in giving his best service to the customer. Many a time's lack of commitment

from both salesperson and employer destroys the rapport. A proper sales plan is

required for achievement of goal which includes sales person training and sales

target both in terms of quality and quantity. Every stakeholder should be

emotionally committed to their plan then only ultimate objective i.e. winning

heart of customers can be achieved.

Summary

Emotional marketing is the act of taking into consideration the feelings and

needs of the visitors coming to your site, and finding ways to capitalize on those

feelings and needs to bring them back, and create higher volume sales through

meeting their needs. By getting to know the visitor and their needs you are

better equipped to add value to your website, offerings, and the ability to chose

affiliate programs that also satisfy your visitor's needs. Choosing the right

affiliate program to match your visitors' needs will help generate better revenue

from the affiliate programs you make available on your site.

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Most new webmasters/website designers fail to consider such things when they

design their website. Although it isn't really their fault, they have failed to

educate themselves about the added possibility emotion can add to their site.

When they fail to generate the needed emotions to convert visitors, they usually

get frustrated and give up. Many times, they simply run out of finances to keepthe site going which ultimately causes website failure.

By learning more about your visitors and what emotional buttons you need to

push, you can tailor your site to fit visitor needs, increase both your

product/service sales, and affiliate program revenue. Learning what your

visitors need also expands your ability to offer other products/services you do

not offer through affiliate programs that do. I can not stress enough the

importance of knowing your visitors. It is the key to a successful marketing

campaign and continued revenue and growth.

There are at least ten emotions that you can capitalize on to increase your sales

volume. The more of those that you can incorporate into your content and

design, the better results you will get from your design and promotional efforts.

You must be careful though because failure to deliver on promises will only

have a negative effect on your site. Make sure that the emotions you are

incorporating and the claims that you make about your products/services are

truthful. Word of mouth advertising also plays a part in marketing. The old

saying goes that even one happy customer will complain to at least 10 other

people about their plight, and those 10 will complain to 10 more, and it all

snowballs.

There are words in the english language that generates an emotional response

when read. The more of those words you can incorporate into your content and

offerings, the higher your potential for sales. You also need to keep in mind

industry specific information that applies to your products/services, and make

sure that your offerings fall in line with your industry. Failure to do that will

destroy your credibility and reduce the trust you are trying to build. It's that trust

and rapport that will fuel study growth.

As with all of my articles, this one is also based on knowledge, experience,

surfer experience, and common sense. I do not want my readers to simply take

my word for things. I invite you to think about my words. Apply them and see

if they sound true. I am sure that when you apply common sense and think

about the article that you will wonder why you had to read the article in the first

place. You already had the answers. All you needed was some guidance and

questions to help direct your thought process.

Example

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of

You strive to provide comfort, happiness and security to your family. Even if

something unfortunate were to happen to you, you would want your family’s

future to be secured at all times.With ICICI Pru iCare, protect your family’s future and ensure that they lead

their lives comfortably without any financial worries, even in your absence.

Also, get the advantage of instant life insurance cover at the click of a button

Today, ICICI Prudential, one of India’s largest private sector life insurance

companies announced the launch of its new online pure term insurance plan –

iCare.

iCare will succeed the flagship online term plan of ICICI Pru - iProtect. The

new online plan iCare carries some best-selling features of iProtect such as the

Option 2 which has an inbuilt Accidental Death Benefit rider.

Key Features of iCare Term Plan:

- Instant Life Cover through simple online application process

- Flexibility to choose protection cover from two options:

- Option I - Death benefit equal to Sum Assured

- Option II - Additional death benefit in case of death due to accident

ICICI Pru iCare term plan provides the option of attaching an accidental death

benefit rider for a small addition in the premium amount. In Option II, the

accidental death benefit paid is equal to Sum Assured, subject to a maximum of

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Rs 50 lakhs.

A policyholder can opt for a policy term of minimum 5 years up to a maximum

of 30 years, but the maximum age at maturity cannot exceed 75 years. The

maximum Sum Assured that a person can opt for is between 18 – 50 years is Rs1.5 crores and the Sum Assured is capped at Rs 70 lakhs for persons between

51 – 65 years of age.

The policy can be also purchased by making a Single premium in addition to

the regular mode of Yearly Premiums can be paid either yearly or one-shot

payment can be made at the start of the policy; and are eligible for tax benefits

under section 80C of the Income Tax Act 1961.

A Quick Look

You strive to provide comfort, happiness, and security to your family. Even if

something unfortunate were to happen to you, you would want your family’s

future to be secured at all times.

With ICICI Pru iCare, protect your family’s future and ensure that they lead

their lives comfortably without any financial worries, even in your absence.

Also, get the advantage of instant life insurance cover at the click of a button.

Key benefits

Flexibility to choose protection cover based on your needs from:

Option I: Death benefit equal to Sum Assured

Option II: An additional death benefit equal to Sum Assured or Rs. 50 lakhs,whichever is lower, payable only in case of death due to accident

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• Instant life insurance cover1 through a simple online application process

• Insurance cover at extremely affordable premiums

• Option of regular pay and one pay

• Tax benefits on the premiums paid2

1. The life insurance cover will begin immediately on acceptance of proposal.

After submission of the application form, if it is found that the customer has

existing policies which have not been disclosed and due to which, there is a

change in the underwriting decision of the Company, the Company will

withdraw the cover subject to Section 45 of the Insurance Act, 1938 and below

mentioned clause 1a.

1a. The maximum benefit payable on death, excluding the Accidental Death

Benefit under ICICI Pru iCare Option II, in respect of all policies issued on the

same Life Assured will be limited to the maximum Sum Assured applicable for

this product. The additional Accidental Death Benefit payable under ICICI Pru

iCare Option II in respect of all policies issued on the same Life Assured will be

limited to Rs. 50 lakhs.

2. Tax benefits under the policy are subject to conditions u/s 80C of the Income

Tax Act, 1961.

Service tax and education cess will be charged extra, as per applicable rates.

The tax laws are subject to amendments from time to time.

How does this term insurance plan work?

• Choose between two options available under ICICI Pru iCare, based on

your protection needs.

•

Fill in your personal details and answer some simple questions related toyour health.

• Pay the premium through your internet banking account or through your

credit/debit card. You will have to pay the premium as per the premium

payment option chosen.

• Life insurance cover on your policy begins immediately on acceptance of

proposal1

How can I buy this plan?

•

Buy Online• Meet an advisor

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• Visit your nearest branch

PORTFOLIO MANAGEMENT

A Portfolio Management refers to the science of analyzing the strengths,

weaknesses, opportunities and threats for performing wide range of activities

related to the one’s portfolio for maximizing the return at a given risk. It helps in

making selection of Debt Vs Equity, Growth Vs Safety, and various other

tradeoffs.

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Managing investments in equities requires time, knowledge, experience and

constant monitoring of stock market. Those who need an expert to help to

manage their investments,

Major tasks involved with Portfolio Management are as follows.

Taking decisions about investment mix and policy

Matching investments to objectives

Asset allocation for individuals and institution

Balancing risk against performance

Securities Portfolio Management

Professional securities portfolio management gives Investors benefits resulting

from the specialization and know-how of the managing company. We have

created a large team of specialists whose sole objective is to conduct analyses

and make investment decisions. Trade Ways experience and results have

positioned the brokerage house among the leading asset management

institutions. Securities portfolio management consists in the investment and

management of a Client's assets by the brokerage house on behalf and account

of the Client, in accordance with the selected investment strategy and under the

Management Agreement and Regulations.

The Client at all times Remains the Sole Owner of the assets entrusted to the

House Brokerage, Investment Decisions Are whereas made by Investment

Advisers employed by Trade Ways LTD The Portfolio Management Agreement is

concluded for a Period of 12 months. The required Minimum initial Investment is

USD 10.000. The portfolios are customised to Individual Client's Needs. Each

one reflects other Client preferences and requirements as regards acceptable

risk while using the opportunity to invest funds within a precisely defined

investment strategy.

Offering comprises the Standard Three types of Portfolio: Portfolio Risk-Free "3# 3" balanced Portfolio Stock "6 # 3" Portfolio Risk-Free Portfolio Securities in

Foreign currencies Dividend Portfolio and upon consultation with an investment

advisor, it is also possible to create an individually customised portfolio, in the

value of at least USD 100,000.

Treasury debt securities portfolio

Composition of the Portfolio

This type of Portfolio consists solely of State Treasury Debt Instruments (bonds

and Treasury Bills), bank Deposits and Cash.

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Portfolio Profile

this is an Extremely Secure type of Portfolio, designed to offset the Effects of

Inflation on the value of assets, and generate Higher Than Treasury Bills yield

bonds That Are Not quoted on the Exchange Are excluded from Risk-Free

portfolios generated by the Returns portfolio are credited to the Client's portfolioand used in accordance with re-invested in accordance with the adopted

investment strategy.

Dividend portfolio

Composition of the Portfolio

The Portfolio includes: Publicly traded shares of companies (Not less Than 75%

of the portfolio value), debt securities and cash (up to 25% of the portfolio

value).

Portfolio profile

The portfolio may comprise only shares of companies paying out dividend and

the WIG 20 index companies, in the CASE Whose Payment of the Current-Year

dividend is HIGHLY probable. None of the Share of the companies exceed 20%

May of the Portfolio value. IT is possible to purchase and subscribe for shares

within an Initial Public Offering and the first offering.

" 3 # 3 "balanced portfolio

Composition of the portfolio

40% to 60% of the portfolio - shares of companies from the 9 Sectors of

Economy Considered to Have the Strongest Growth Potential;

and the Remaining 40% to 60% of the portfolio value is invested in bonds,

Treasury bills, bank deposits and cash.

Portfolio Profile

of a Share None of the Sectors May exceed 25% of the Portfolio value of a

Share None of the companies exceed 10% May of the Portfolio value the

Investment Strategy precludes Purchase and subscription for shares in a Primary

Offering and an initial Public Offering IT is Possible to Purchase shares on the

market within the Primary exercise of pre-emptive rights Returns generated by

the Portfolio Are credited to the Client's Portfolio and in accordance with Used

Adopted the Investment Strategy.

Stock "6 # 3" portfolio

Portfolio profile

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a share of none of the sectors may exceed 50% of the Portfolio value of a Share

None of the companies exceed 15% May of the Portfolio value this Investment

Strategy precludes the Purchase and subscription for shares in a Primary

Offering and an initial Public Offering IT is Possible to Purchase shares on the

market within the Primary exercise of pre-emptive rights Returns generated by

the Portfolio Are credited to the Client's Portfolio and in accordance with Used

Adopted the Investment Strategy.

Treasury debt securities portfolio in foreign currencies

Portfolio profile

Minimum value of the Portfolio: 100.000 USD or EUR Expected return on

Investment Interest Earned exceeds Standard on Foreign Currency Deposits

bank (After Portfolio Management Costs - about 04.05% per annum)

Investments in high Instruments That Meet Profitability and Security Standardssupplementing Other Investments Professional placements with in the segment

of Debt Instruments denominated in Foreign currencies medium Portfolio assets

Liquidity Risk Investment low.

Advantages of professional securities portfolio management

Costs minimization

Management of assets by an Investment Company involves much LowerTransaction Costs and fees Than Those Charged to Individual Investors.

Security

Depending on the type of Portfolio, all the Funds or the Greater Part thereof, Are

Invested in State Treasury Debt Instruments or shares of the Best companies

representing leading Sectors of the Economy.

100% allocation of Funds

The Funds entrusted Are Invested continually and thus all profits Earned Arereinvested in accordance with the Investment Strategy Adopted.

Tax-Free income

On the Portfolio Returns Are Exempt from income Tax.

Reports and information

Investors receive monthly Current Reports about the value of Their Portfolio.

Statements are delivered within 14 days after the end of every month.

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Example of a Portfolio Management of a client is as follows.

Value: Rs. 16,497.50 -14.48% TODAY: Rs. -197.50 -1.18%

Stocks 16,497.50 100.00 % Mutual Funds 0.00 0.00 %

Value: Rs. 16,497.50 TODAY: Rs.-160.00 -2.61%

Stocks

Company

Qty

Avg. Buy

Price

Value at Avg.

Buy Price

Last Traded

Price (+/-)

Value at LastTraded Price

Gain

in Rs.

Gainin %

Tata Teleservices (M 400 23.14 9,256.00 14.90 (-0.40) 5,960.00 -3,296.00 -35.61

Reliance Natural Res 250 40.14 10,035.00 42.15 (0.00) 10,537.50 +502.50 5.01

Beta:

Beta is a measure of a stock's volatility in relation to the market. By definition, the market has

a beta of 1.0, and individual stocks are ranked according to how much they deviate from the

market. A stock that swings more than the market over time has a beta above 1.0. If a stock

moves less than the market, the stock's beta is less than 1.0. High-beta stocks are supposed to

be riskier but provide a potential for higher returns; low-beta stocks pose less risk but also

lower returns.

Beta is a key component for the capital asset pricing model (CAPM), which is used to calculate

cost of equity. Recall that the cost of capital represents the discount rate used to arrive at the

present value of a company's future cash flows. All things being equal, the higher a company's

beta is, the higher its cost of capital discount rate. The higher the discount rate, the lower the

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http://portfolio.rediff.com/money/jsp/portfolio.jsp





















http://money.rediff.com/companies/tata-teleservices-m/15200002.01

http://money.rediff.com/companies/reliance-natural-res/15130106

http://www.investopedia.com/terms/v/volatility.asp


http://www.investopedia.com/terms/c/capm.asp


http://www.investopedia.com/terms/c/costofequity.asp

http://www.investopedia.com/terms/c/costofcapital.asp

http://www.investopedia.com/terms/d/discountrate.asp























http://money.rediff.com/companies/tata-teleservices-m/15200002.01

http://money.rediff.com/companies/reliance-natural-res/15130106



http://www.investopedia.com/terms/c/costofequity.asp

http://www.investopedia.com/terms/c/costofcapital.asp

http://www.investopedia.com/terms/d/discountrate.asp



present value placed on the company's future cash flows. In short, beta can impact a company's

share valuation.

Following are the Beta values of Companies:

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