Investment Portfolio Report
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Transcript of Investment Portfolio Report
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Investment Portfolio
Investment is a commitment of funds made in the expectation of some positive rate of return.
The Investment needs of an Investor:-
1) Capital Preservation.2) Wealth Generation.3) Tax Savings.4) Income.5) Future Uncertainty.6) Retirement Planning.
Investment Planning
It helps in deciding upon the right Investment strategy.
It is a balance of three components:-
1) Liquidity.2) Risk Tolerance.3) Return.
Portfolio Management
A Portfolio is a collection of securities that are grouped together to diversify the total Risk. An Optimal Portfolio provides the highest possible utility, given the constraints imposed by the
opportunity set and efficiency frontier.
Beta measures the risk associated with Individual Portfolio in relation to the Market Portfolio.
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Meaning of Portfolio Management
The Art & Science of making decisions about Investment mix & policy, matching Investments to
Objectives, asset allocation for Individuals & balancing risk vs. Performance.
Portfolio Objectives:-
1) Stability of Principal.2) Income.3) Growth of Income.4) Capital Appreciation.
Investment Pyramid
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Objectives
1) To study the demographical factors affected the choice of Portfolio of Investors.2) To identify the purpose of investment & extent of financial literacy of Investors.3) To know the most preferred Investment avenues of Investors.4) To find out the Risk Tolerance limit of Investors.
Research Methodology
Research Problem: -A Comparative Analysis on Investment Portfolio of Business & Service Class Investors of Ranchi (Lalpur
to Kutchahry).
Research Design: -Descriptive Research Design.
Data Collection: -Primary Research:- Questionnaires and interview.
Secondary Research: - Journals & Magazines. Sample:-
The Business & Service class Investors of Ranchi (Lalpur to Kutchahry).
Sampling Unit:-Those Business & Service class Investors using PM Services of Ranchi (Lalpur to Kutchahry).
Sample Size:- 100.50- Business Class Investors
50- Service Class Investors.
Sampling Frame:- It includes the Clients Database using PMS of HSBC InvestDirect, Ludhiana &the Walking Investors in Ludhiana Branch.
Sampling Technique:- Simple Random Sampling & Convenience Sampling Techniques.
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Data Analysis & Interpretation
Male Female
Business 88% 12%
Service 78% 22%
88%
12%
78%
22%
0%
20%
40%
60%
80%
100%
PercentageOfInvestors
Demoghraphic Profile of Investors
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2:- The Age Group of Investors.
Below 35 35-50 51-60Above
60
Business 30% 56% 10% 4%
Service 78% 20% 2% 0%
30%
56%
10%4%
78%
20%
2% 0%0%
10%20%30%
40%50%60%70%80%90%
Percentage
OfInvestors
Age Group of Investors
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3:- The Marital Status of Investors.
Unmarried Married
Business 20% 80%
Service 52% 48%
20%
80%
52% 48%
0%10%20%30%40%50%
60%70%80%90%
PercentageofInvestors
Marital Status of Investors
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5:- Monthly Flow of Income of Investors.
Under
Rs.10,000
Rs.10,001
to
Rs.20,000
Rs.20,001
to
Rs.30,000
Above
Rs.30,000
Business 12% 20% 22% 46%
Service 4% 22% 44% 30%
12%
20% 22%
46%
4%
22%
44%
30%
0%
10%
20%
30%
40%
50%
PercentageofInvestors
Monthly Inflow of Income
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6:- Awareness among Business class Investors regarding various Investment Plans.
Bank &
P.O.
Fixed
Deposit
s
Insuran
ce
Schem
es
Equitie
s
Comm
odities/
Derivat
ives
Real
Estate
Yes 100% 92% 92% 48% 86%
No 0% 8% 8% 52% 14%
100%92% 92%
48%
86%
0%8% 8%
52%
14%
0%
20%40%
60%
80%
100%
120%
PercentageOfBusines
sClass
Investors
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7:- Awareness among Service Class Investors regarding various Investment Plans.
Bank &
P.O.
Fixed
Depo
Insuran
ce
Schem
es
Equitie
s
Comm
odities/
Derivat
ives
Real
Estate
Yes 100% 98% 88% 66% 80%
No 0% 2% 12% 34% 20%
100% 98% 88%66% 80%
0% 2% 12%34% 20%
0%20%
40%60%80%
100%120%
PercentageofServic
eClass
Investors
Awareness regarding various Investment
Plans
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8:- The Purpose of Investors behind their Investments.
Capital AppreciationBalance of Capital App. &
Current Income
Supplement to Current
Income
Business 30% 62% 8%
Service 46% 38% 16%
30%
62%
8%
46%
38%
16%
0%
10%
20%
30%
40%
50%
60%
70%
Percentage
ofInvestors
Purpose of Investors behind theirInvestments
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9:- The Basis which initiates the Investors to invest in any Financial Security.
Fundamental Analysis Financial Advisor Portfolio Services
Business 0.277 0.349 0.374Service 0.342 0.237 0.421
0.277
0.3490.374
0.342
0.237
0.421
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
Mean/Averag
e
Basis of Investments
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10:- Important Features required in Investors Portfolio Plan.
Growth Income Safety Tax Efficiency
Business 2.48 1.84 3.34 2.34
Service 2.62 1.9 3.26 2.22
2.48
1.84
3.34
2.34
2.62
1.9
3.26
2.22
0
0.5
1
1.5
2
2.5
3
3.5
4
M
ean/Average
Features required in Investors'
Portfolio Plan
33
1
1 4
4
22
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11:- Most Preferred Investment Avenues by the Investors.
Bank & P.O.
Fixed
Deposits
Insurance
Schemes
Mutual Fund
SchemesEquities
Commodities
/DerivativesReal Estate
Business 3.6 4.18 2.72 2.58 4.42 3.38
Service 3.14 3.3 2.88 2.96 4.82 3.92
3.6
4.18
2.722.58
4.42
3.383.14
3.3
2.88 2.96
4.82
3.92
0
1
2
3
4
5
6
Mean/Average
Most Preferred Investment Avenues
4
3
54
21 1 2
6
6 3
5
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12:- Type of Investments which are covered under their Current Portfolio.
Mainly Cash/Bank
Deposits with small
portion in Low risk
Bonds
Mainly Debt
Instruments & some
Portion in Blue Chip
Stocks
A mix of Debt
Instrument, Blue Chip
& Aggressive Stocks
Mostly Speculative or
High Risk Investments
Business 18% 14% 52% 16%
Service 36% 28% 30% 6%
18%
14%
52%
16%
36%
28%30%
6%
0%
10%
20%
30%
40%
50%
60%
Perce
ntageOf
Inve
stments
Current Portfolio of Investors
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13:-Important sources of Information which influence the Investors decision regarding their
Investments.
Newspaper/
Magazines
Electronic
Media (T.V.)
Peer Group/
Friends
Broker/
Financial
Advisor
Internet
Business 0.26 0.4 -0.58 0.7 -0.76
Service 0.8 0.34 -0.88 0.38 -0.64
0.260.4
-0.58
0.7
-0.76
0.8
0.34
-0.88
0.38
-0.64
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
1
Mean
Sources Of Information
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14:- The Time Period for which Investors prefer to keep their Investments.
Less than 1 month1 month - 6
months
6 months - 12
months
More than 12
months
Business 2% 20% 38% 40%
Service 0% 16% 34% 50%
2%
20%
38%40%
0%
16%
34%
50%
0%
10%
20%
30%
40%
50%
60%
Perc
entageof
In
vestors
Time Period of keeping
Investment
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15:- The Decision of the Investors at the time of Fluctuation in the Market.
Withdraw your Money Wait & Watch Invest more in it
Business 10% 52% 38%
Service 34% 36% 30%
10%
52%
38%
34%36%
30%
0%
10%
20%
30%
40%
50%
60%
Perc
entageof
In
vestors
Investors' Decision
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16:- The Investors belong to Risk Category.
Findings & Conclusion
Conclusion of 1st
Objective:-
Majority of Business class Investors are adults and they have the family size of more than 3because 80% of them are married and they have monthly Income of above Rs. 30,000. It means
high incomes Business Investors are doing more Investments.
Whereas majority of Service class Investors is Young and they have less number of dependents(0-1) because majority (80%) is unmarried and they start doing Investments with the SalaryPackage of Rs.20,001 to Rs.30,000 because as they have less number of dependents so they are
using more of their money into Investments.
Aggressive Capital
PreservationBalanced Portfolio
Aggressive Capital
Appreciation Portfolio
Business 14% 36% 50%
Service 20% 54% 26%
14%
36%
50%
20%
54%
26%
0%
10%
20%
30%
40%
50%
60%
PercentageofInvestors
The Investors' Risk Categories
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Conclusion of 2nd
Objective
The Business Investors have the awareness of all Investment avenues especially Equities & Realestate, few of them dont know about Commodities/Derivatives & thats why they do
Investments with the purpose of appreciation in their Capital as well as a source of their current
Income & whenever they do Investment in any security, they do so because their PortfolioManagement Services & Financial Advisor initiate them to do so.
Whereas Service class Investors have the awareness of all Investment avenues especiallyInsurance schemes and Equities and very few of them dont know about Derivatives. They do
Investments with the purpose of Capital Appreciation & they do Investments by having Portfolio
Services Initiation as well as Fundamental analysis of that particular Scrip/Company.
Conclusion of 3rd
Objective
Business class Investors have given the highest preference means Rank 1 to Equities. Whereas Service class Investors have given the highest preference to Mutual Funds.
Conclusion of 4th
Objective
The most preferred Investment Avenue for Business Investors is Equity & Real Estate and theykeep it with themselves for more than 12 months because Equity is a long term Investment.
They wait & watch or they invest more whenever they noticed any fluctuation in the market . Thats why they come under Aggressive Capital Appreciation Category which refers to higher
risk & higher returns.
Whereas the Service class Investors have most preferred Investment Avenue is Mutual Fund sothey keep it for long period and most of them withdraw their Investment or they wait & watch
when any fluctuation is noticed in the market.
Thats why; they have a Balanced Portfolio which refers to moderate risk & moderate return.
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Conclusion
Business Class Investors are more Risk taking. They prefer to invest in High risk Investments suchas Equity & hold their securities for a longer period of time.
They come under the Aggressive Capital Appreciation Portfolio. Whereas; the Service Class Investors are less Risk taking. Whenever they noticed any fluctuation in the market they try to withdraw their money. They do Safer Investments such as Mutual Fund and prefer to take moderate risk & moderate
return. So, they come under a Balanced Portfolio.