Basics about Portfolio Management

1. By- Prof. M.A.Tamboli
Mob- 9766010560
eMail-mohasinat@gmail.com
PORTFOLIO MANAGEMENT
1 Prof. M.A.Tamboli

2. Portfolio
 A portfolio is collection of asset. In portfolio
management these assets are financial in
nature
 According to SEBI portfolio is the total
holdings of securities belonging to one
person.
Prof. M.A.Tamboli2

3. Portfolio Manager
 The portfolio manager invest the money id
diverse assets with the aim of maximizing
return and minimizing the risk.
 Portfolio manager means any person who
pursuant to a contract with a client undertakes
the management of a portfolio of securities or
fund of the client
Prof. M.A.Tamboli3

4. Functions of Portfolio Management
1. To frame investment strategy and select
investment mix
2. Hedge against inflation and also optimize
returns.
3. To make timely decision about sell and
purchase of securities.
4. To maximize after tax return by investing
part of the portfolio in tax savings
investments.
Prof. M.A.Tamboli4

5. 1.THE DISCRETIONARY PORTFOLIO
MANAGEMENT SERVICE:
The client gives his money for investment to the
manager, who handle the paperwork, makes all
investment decision and gives a good return to
the investor and charges a fee for the service
rendered. Prof. M.A.Tamboli5
Types of Portfolio Management

6. Types of Portfolio Management
2. THE NON-DISCRETIONARY PORTFOLIO
MANAGEMENT SERVICE:
In this type manager functions as a counselor, but
investor is free to accept or reject the
manager’s advise.
The paperwork is also undertaken by the
manager for a service charge.
Prof. M.A.Tamboli6

7. Qualities of Portfolio Manager
1. Sound general knowledge
2. Analytical ability
3. Marketing skills
4. experience
Prof. M.A.Tamboli7

8. Steps in Portfolio Management
Specification and quantification of investor objective, constraints and preference in the policy
statement
Determination of capital market expectation for the economy, market sectors, industries and individual securities
Allocation of assets and selection of individual securities
Performance measurement to ensure that investors objectives are attained
Responding to changes in investors objectives
Rebalancing the portfolio whenever necessary
Prof. M.A.Tamboli
8

9. Factors That Influence Portfolio
Decisions
 Investors Characteristics
 Liquidity needs
 Tax considerations
 Safety of principal
 Assurance of income
 Investment risk
 Interest rate risk
 Business and market risk
Prof. M.A.Tamboli9

10. Code of Conduct for Portfolio
Manager
1. He shall observe high standards of integrity
and fairness in all dealings.
2. The client’s money should be deployed as
soon as possible and money due and payable
to client should be paid forthwith.
3. He shall render at all time high standards of
services.
4. Ensure proper care and exercise independent
professional judgement
Prof. M.A.Tamboli10

11. Code of Conduct for Portfolio
Manager
5. He shall not involved in unfair competition.
6. He should not disclose any confidential
information about his client
7. A portfolio manager shall not be a party to :
• Creation of false market in securities
• Price manipulation of securities
• Passing of price sensitive information to any
participants in the market.
Prof. M.A.Tamboli11

12. Thank You !!!
Prof. M.A.Tamboli12