PORTFOLIO MANAGEMENT - EXECUTIVE SUMMARY FOR MANAGEMENT STUDENTS

EXECUTIVE SUMMARY

            “TODAY’S MONEY IS NOT EQUAL TO TOMORROW’S MONEY”, this says that the money invested today does not have same value tomorrow, the time value of money affects to a great extent. So, one has to consider time value of money when going for investment especially in securities as equity shares etc. because the price fluctuations are very rapid.

            Every individual wants to save money and instead of keeping it idle he/she wants to invest it further for its appreciation i.e., for the returns earned from it in the future. There are many number of investment alternatives, it depends on the individual who wants to invest in which alternative he has to choose i.e., it depends on the rate of return or the amount of return and risk that the individual expect from the investment. Some individuals want high returns and ready to take high risk, few don’t want to take risk and they will be satisfied with the returns they get from the minimum risk.

            The individuals or the investors who are willing to take risk will go for equity investment, in which they can earn more returns and the other hand those who don’t want to take risk or who wants to minimize the risk will go for bank deposits, investments in mutual funds, debenture bonds, preference shares etc, where they can get a fixed amount who don’t take risk or avoid risk are called as risk averters.
Thus our study is mainly conducted to analysis financial risk of investors and also to know the relationship between company return and NSE return.

            My intention of choosing the topic “Analysis of Financial Risk & Return of Investors or Portfolio Management NSE at IIFL Ltd. Gulbarga” is that, public sector is emerging sector now. India is now opening up its economy for investments and any one can start investment in India. Thus keeping in mind I took up the study to know how risky the investment in public Sector companies and the expected return that can get for the risk he has undertaken.

           

            Objective of the study is to evaluate Risk faced by the investors in the investment and Returns analysis of NSE securities and to identify and analyze the correlation between company’s returns with NSE returns.

            The method of data collection is through primary a source that is collected by interacting with the executives in the organization as well with the external guide. Secondary data regarding prices and regarding company profile is collected through internet, news paper etc.

            Limitations of the study are a good number of explanatory variables must be taken into consideration in order to assess the share prices movement. But, due to time constraints detailed analysis of each company were now made. Confidentiality of data and then the analysis carried out and suggestions offered are limited to the researcher’s ability to understand complex financial aspects.