ABOUT AIRTELPortfolio Management Services

-Ikram Vora

Ikram Vora-26

Introduction of BirlaSun Life

A Joint Venture between the Aditya Birla Group and Sun Life Financial Inc.

Its operations has contributed significantly to the growth and development of the Life Insurance industry in India.

It pioneered the launch of Unit Linked Life Insurance Plans (ULIP) amongst the private players in India.

Portfolio Management Service

In Simpler terms can also be referred as Investment Management.

Successful Investing demands expertise and time.

Investments need to be evaluated continuously and strategies are formed accordingly.

PMS Broadly Covers……..

Risk profile and client analysis.

Goal setting.

Asset Allocation.

Measuring & Evaluating Performance.

Asset Classes

Equity Debt

Mutual Fund

Insurance

Equity Market

Primary Market

New Securities

Raising fresh resources

All companies can Enter

Subject to outside control by SEBI,

SE, & Companies Act

Secondary Market

Existing Securities

Transfer of Securities

Only Listed Company can be

traded

Subject to control by SEBI & Stock

Exchange

Initial Public Offering (IPO)

It is simply referred as an "offering" or "flotation,“ when a company issues common stock or shares.

IPO can be a risky investment.

IPOs are of companies going through a transitory growth period.

Reasons for ListingInitial Subscription amount goes directly to the company coming out

with IPO.

The company is never required to repay the capital.

Once a company is listed, it will be able to issue further shares via rights issue, thereby again providing itself with capital required for expansion.

Cellular Players

Leader : Airtel

Challenger : Vodafone

Follower : Idea, Reliance, BSNL,Aircel,Tata etc

Nicher : Loop (Now Part of Airtel)

Benefits of an IPO (From Investors point of View)

IPOs are attractive mainly because they may be undervalued.

IPOs are more attractive for investors as they are offered at a low rate (Price band).

Indian Debt Market

Debt market refers to the financial market where investors buy and sell debt securities, mostly in the form of bonds.

India debt market is one of the largest in Asia.Returns are risk-free.Indian debt market can be classified into two categories: 1) G-Sec Market 2) Bond Market

Debt Instruments

Insurance

Insurance is the act of providing assurance against a possible lossIt’s a business growing at the rate of 15-20 per cent annuallyNearly 80 per cent of Indian population is without life insurance

cover Insurance is generally considered as tax-saving device instead of its

other implied long term financial benefits.

Mutual Funds

It allows a group of investors to pool their money together.

A fund manager is responsible for investing the pooled money into specific securities.

Diversification of Portfolio.

Concept of Mutual Fund

Sponsor

Trustee

AMC

3-Tier Structure

Calculation of NAVMkt Value +Receivables+Accr. Income– Liab-Accr. Expenses

          Number of Outstanding units

Example :If NAV on Jan 1, 2014 was Rs. 12.75June 30, 2014 was Rs. 14.35 Percentage change in NAV = (14.35-12.75)/12.75*100=12.55%Annualized return=12.55*12/6=25.10%

FUNDAMENTAL ANALYSIS

Fundamental analysis is the examination of the underlying forces that affect the well being of the economy, industry groups, and companies.

APPROACHES :Top-down approach Bottom-up approach

Contd..

Fundamental analysis includes

Economic Forecast

Company Analysis

Business Plan

Management

Financial Analysis

TECHNICAL ANALYSIS

Technical analysis is all about studying stock price graphs and a few momentum oscillators derived thereof.

It is the examination of past price movements to forecast future price movements.

TYPES OF CHARTS

Candlestick

Bar Chart

SECTORAL ANALYSIS

The sectors we covered are as follows:Banking

Telecom

Auto

Cement

Future Prospects of Banking

Private sector Banks, are likely to face penetration concerns.

Entry of foreign banks and the acquisition of stake in Indian private banks.

Cabinet's approval to allow PSU banks to bring down the Govt. stake below 51%.

Major Operators and Top Performing Banks in India Public Sector Banks Private Sector Banks Foreign Banks

State Bank of India HDFC Bank Citi Bank

State Bank of Mysore UTI Bank Standard Chartered Bank

Allahabad Bank ICICI Bank HSBC Bank

Vijaya Bank Axis Bank ABN Amro Bank

Punjab National Bank Centurion Bank of Punjab American Express Bank

Dena Bank Kotak Mahindra Bank

Future Prospects of Telecom

Demand & Internet Services

Subscriber base of 500 Mln.

Upcoming Services (4G,VOIP)

Future Prospects of Auto

Indian auto industry is saw 10-12 percent sales growth in 2010.

New players entering the Indian small car market.

Increasing penetration of global original equipment manufacturer.

By 2016 automotive sector would contribute 10% to GDP as from current level of 5%.

Cement consumption in India is forecasted to grow by 25% by 2010-11.

Among the states, Maharashtra has the highest share in consumption at 13.5%, followed by Uttar Pradesh.

Housing Sector is expected to remain the largest cement consumer in coming years.

overview of Cement sector

Case Study: Mock stock

• One should start financial planning and investing early.

• Take advice of professional fund managers if the investor does not have appropriate knowledge about the financial market.

• Regularly analyse investments and track their performance.

RECOMMENDATION

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