nestle and engro

1. Financial Portfolio

2. Portfolio
“Portfolio refers to any combination of financial risk such
as stocks, bonds and cash. Portfolios may be held by
individual investors and/or managed by financial
professionals, hedge funds, banks and other financial
institutions.”

3. Nestlé
Nestlé is...
...the world's leading nutrition, health and Wellness
Company. "Good Food, Good Life" is the promise we
commit to everyday, everywhere – to enhance lives,
throughout life, with good food and beverages.

5. Brands

6. What products does Nestlé sell?
 Almost every different type of food and beverage! We
sell everything from baby food and bottled water to
cereal and healthcare nutrition products.
 Nestlé supports individuals and families to make tastier
and healthier choices with all the products we sell.
 We know how important it is for people to enjoy a
healthy diet, so we’re reducing salt, sugar and saturated
fats in our foods. We’re also adding more wholegrain,
fibred and vegetables, as well as essential nutrients.

7. Biggest brands
Our biggest brands
Include Nescafé, KitKat, Nespresso, Maggi, Toll
House and Milo..

8. Nestlé
 We have more than 2,000 brands, from global icons to local
favorites. We help people live more enjoyable, healthier lives,
drawing on our 150 years of passion for nutrition to bring them
products they can trust.

9. Engro Foods

10. Engro Foods
 Engro Foods is a Pakistani multinational food and beverage
company headquartered in Karachi, Pakistan. Its product
portfolio comprises Olper's, Olper's Lite, OMORÉ, Dairy
Omung, Olper's Lassi and Tarang.

11. Engro Foods
 Its major subsidiaries include Engro Fertilizers - which is one of
the largest fertilizer manufacturers of the world, Engro
Foods which manufactures, processes and markets dairy
products, frozen desserts, faizan steels and fruit drinks including
the ice cream brand of OMORÉ. Other major subsidiaries
include Sindh Engro Coal Mining Company, Engro Powergen
Limited and Engro Polymer & Chemicals Limited.

12. Businesses

13. Construction of a portfolio
A portfolio is a combination of securities. By constructing
a portfolio, investors attempt to spread risk by not
putting all their eggs into one basket and it also helps to
meet their goals and objectives.

14. Construction of a portfolio
a) Diversification:
The main objective of diversification is the reduction of risk
in the form of loss of capital and income. A diversified
portfolio is comparatively less risky than holding a single
portfolio. Several models are available to diversify a
portfolio.
i) Debt and equity diversification
ii) Industry diversification
iii) Company diversification
b) Selection and allocation:
Securities have to be selected based on the level of
diversification and funds are allocated for selected securities.

15. Portfolio Evaluation
It is the process which is concerned with assessing the performance
of the portfolio over a selected period of time in terms of return
and risk.
a) Appraisal:
Developments in the economy, industry and relevant
companies from which stocks are bought have to be appraised.
The appraisal warns of the loss and steps can be taken to avoid
such losses.
b) Revision:
It depends on the results of the appraisal. Low-yielding
securities with high risk are replaced with high-yielding securities
with low risk factor. The investor periodically revises the
components of the portfolio to keep the return at a level.

17. Investment Avenues
1) Negotiable investments
2) Non-negotiable investments
Negotiable investments:
 Variable income securities
 Fixed income securities

18. Variable income securities
Equity shares are commonly referred as common stock
or ordinary shares.
The most common classification under these shares
is:
a) Large-cap, mid-cap and small-cap stocks
b) Growth shares
c) Income shares
d) Defensive shares
e) cyclical shares

19. Fixed Income Securities
Fixed income shares are categorized as follows:
a) Preference shares
b) Debentures / Bonds
c) Government Securities
d) Money market securities

20. Risk returns trade-off
 The principal that potential return raises with an
increase in risk. Low levels of uncertainty (low risk)
are associated with low potential returns whereas
high levels of uncertainty (high risk) are associated
with high potential returns.
 According to risk return trade-off, invested money
can render higher profits only if it is subject to the
possibility of being cost.
 The trade off which an investor faces between risk ad
return while considering investment decisions is
called Risk Return Trade-off.

21. Financial Highlight of
Nestle

24. Financial Highlight of
Engro