Investment management

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Investment management

  1. 1. Investment Management Anil Kumar Yadav Ashok Pershad Dhiraj Gaur Gaurav Bansal Mukul Verma Manoj Aggarwal Ritesh Gupta
  2. 2. Portfolio Constituents  Bharti Airtel – 20%  Infosys Technologies – 20%  L&T – 30%  Reliance – 15%  State Bank of India – 15%
  3. 3. Portfolio Details (Contd)  Range of Study - 14/05/2009 to 05/06/2009  Historical range – 21/05/2007 to 05/06/2009  Diversification into heterogeneous sectors
  4. 4. Returns of Stocks Reliance Bharti Infosys SBI L&T Return 0.10 % 0.05% 0.01 % 0.24% 0.07% Simple Avg 26% -3% -13% 35% -13% Sensex 0.04% Simple Avg 4%
  5. 5. Efficient Portfolio 0.1 0.2 0.3 0.4 Reliance Industries 22% 41% 38.8542% 36.9426% 35.0309% 33.1193% Bharti Airtel 19% 12% 12.4762% 13.1956% 13.9150% 14.6344% Infosys technologies 36% 17% 18.4277% 20.3404% 22.2531% 24.1658% State Bank of India 17% 28% 27.2616% 26.1108% 24.9600% 23.8092% Larsen & Toubro 7% 3% 2.9802% 3.4106% 3.8409% 4.2713% Return 0.00080926 0.0012 0.00116093 0.001122 0.001083 0.001044 Varience 0.00068715 0.000926 0.00089511 0.000866 0.000838 0.000811 SD 0.02621349 0.030434 0.02991847 0.029421 0.028943 0.028485
  6. 6. Efficient Frontier
  7. 7. Name of Company Today's Price Investment % Amount Invested - Proposed No of Shares Bought Amount Invested - Actual 5/6/09 Price Diff Gain/Loss % Return Reliance Industries 1908.95 20% 200000 105 200439.8 2212.75 303.8 31899 Bharti Airtel 764.65 20% 200000 262 200338.3 826.75 62.1 16270.2 Infosys technologie s 1567.2 30% 300000 191 299335.2 1698.9 131.7 25154.7 State Bank of India 1267.35 15% 150000 118 149547.3 1817.65 550.3 64935.4 Larsen & Toubro 946.4 15% 150000 158 149531.2 1519 572.6 90470.8 TOTAL 100% 1000000 834 999191.8 228730.1 22.892% Varience 0.002574501 SD 0.05073954
  8. 8. RATIOS RATIOS   SHARPE'S RATIO 4.45% TREYNOR RATIO 21.57% JENSEN'S ALPHA 29.87%
  9. 9. Name of Company Today's Price Investmen t % Amount Invested - Proposed No of Shares Bought Amount Invested - Actual 5/6/09 Price Diff Gain/Loss % Return Reliance 1908.95 33.119% 331193 173 330248.4 2212.75 303.8 52557.4  Bharti 764.65 14.634% 146344 191 146048.2 826.75 62.1 11861.1  Infosys 1567.2 24.166% 241658 154 241348.8 1698.9 131.7 20281.8  SBI 1267.35 23.809% 238092 188 238261.8 1817.65 550.3 103456.4  L&T 946.4 4.271% 42713 45 42588 1519 572.6 25767  TOTAL 100% 1000000 751 998495.1    213923.7 21.425% Name of Company Today's Price Investmen t % Amount Invested - Proposed No of Shares Bought Amount Invested - Actual 5/6/09 Price Diff Gain/Loss % Return Reliance 1908.95 20% 200000 105 200439.8 2212.75 303.8 31899  Bharti 764.65 20% 200000 262 200338.3 826.75 62.1 16270.2  Infosys 1567.2 30% 300000 191 299335.2 1698.9 131.7 25154.7  SBI 1267.35 15% 150000 118 149547.3 1817.65 550.3 64935.4  L&T 946.4 15% 150000 158 149531.2 1519 572.6 90470.8  TOTAL 100% 1000000 834 999191.8    228730.1 22.892%
  10. 10. Annualized Market Return Net Annualized Return = 522% Risk Free Rate = 7% Net Annualized Return = 515%
  11. 11. Conclusion  Returns from the efficient portfolio and actual portfolio are quite close and hence the securities distribution in our portfolio is close to the most OPTIMAL one. 

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