Portfolio analysis and selection approache

Requirements required for presentation

1. PORTFOLIO ANALYSIS AND SELECTION (INVESTORS APPROACH ) Lovish Gupta 03680303917 MBA 4 th Sem Even A

2. INTRODUCTION Estimates are prepared of the return and risk associated with available security over a forward holding period known as security analysis . risk return estimates must be compared in order to decide how to allocate available funds among these securities on a continuing basis known as Portfolio Analysis, Selection and Management security analysis investors are concerned with two principle properties ie . The expected Return and the Risk .

3. PORTFOLIO MANAGEMENT Portfolio Management , is a course overview of the areas of portfolio management and security analysis . Topics covered include: exchange traded funds, mutual funds, portfolio strategy and policies, stock and bond analysis , security selection, hedge funds, and evaluation of performance and risk.  The course is designed for upper-level finance majors to provide them with advanced skills in economic analysis security analysis management.

4. Successful security analysis and portfolio management requires the development of a broad array of quantitative and qualitative skills, involving an analysis of both the investment instruments available in the capital market and the objectives and constraints of the ultimate investor ..

5. OBJECTIVES To know the investors preferences about the risk and return criteria and to know the inner motive about investment in securities . To aware about what should be a optimal portfolio for any kind of investors either large investors or small investors . To aware about the basic requirement of making a investment portfolio any aware about how to manage . To show the practical interference about the investment activities and to show how to achieve a best way of security investment.

6. RESEARCH APPROACHS PRIMARY DATA   Personally visit to the branches of different Investment Solutions companies like KOTAK SECURITIES, RELIGARE, RELIANCE MONEY, and UNICON INVESTMENT SOLUTION and take the references about their investors. Another way to take the direct information through the officials about their customer’s perception and about their mind make-ups. An easy going method for getting survey data was directly analyzing the data of the daily basis security movement in sensex through the newspapers magazines etc.

7. SECONDARY DATA Secondary data on the other hand, are those which have already been collected by some other agency and which have already been processed. These secondary data have previously been collected by some organization to satisfy their own needs but it is being used by the department under reference for an entirely different reason. Secondary Data- are collected by the internet, journals, articles, business magazines, and market index positions. The books and journals and business magazines also show the track records of any company, their collection and analysis gives the knowledge about the market position to any investor

8. TOOLS FOR ANALYSIS Maximizing return, given an acceptable level of risk. Modern portfolio theory—a model proposed by Harry Markowitz among others. Capital asset pricing model. Arbitrage pricing theory.   The Sharpe Diagonal (or Index) model.