This document discusses portfolio management and analysis. It begins with an introduction and outlines the objectives of the study. It then presents results and discussions on portfolio construction approaches, the Markowitz model, and analysis of returns, risks, and correlations for different companies. Tables show return and risk data for cement and pharmaceutical companies. Recommendations are provided for Karvy stock broking to attract more customers through low fees and genuine information. References used in the study are listed at the end.

2. CONTENTS:
 Introduction
 Company Profile
 Research Methodology
 Objectives of study
 Results & Discussions
 Findings & Conclusions
 Recommendations to Organizations
 References

3. • The basic objective of Portfolio Management is to maximize yield
and minimize risk

4. Process of portfolio management:

5. There are two approaches in construction of the portfolio of
securities.
Traditional approach: finding out the standard deviation and that
security should be chosen where the deviation was the lowest
Traditional approach basically deals with two major decisions. They are
 Determining the objectives of the portfolio
 Selection of securities to be included in the portfolio
Modern approach: The modern approach discusses the relationship
between different securities and then draws inter-relationships of
risks between them.
MARKOWITZ MODEL: this approach determines an efficient set of
portfolio return through three important variable that is,
• Return
• Standard Deviation
• Coefficient of correlation

6. Year
Opening
share price
(P0)
Closing
share price
(P1) (P1-P0)
(P1-P0)/
P0*100
2003-2004 213.70 527.35 313.65 146.77
2004-2005 530.00 982.00 452.00 85.28
2005-2006 988.70 1844.20 855.50 86.53
2006-2007 1845.00 1442.95 -402.05 -21.79
2007-2008 1400.00 1703.20 303.20 21.66
TOTAL RETURN
318.45
LARSEN AND TOUBRO (LNT):
-500
0
500
1000
1500
2000
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008

7. STANDARD DEVIATION
LARSEN & TOUBRO:
Year Return (R)
Avg. Return
(R¯ )
d=
(R-R¯)
D2
2003-2004 146.77 63.69 83.08 6902.29
2004-2005 85.28 63.69 21.59 466.13
2005-2006 86.53 63.69 22.84 521.67
2006-2007 -21.79 63.69 -85.48 7306.83
2007-2008 21.66 63.69 -42.03 1766.52
TOTAL
∑d2=16963.44
-1000
0
1000
2000
3000
4000
5000
6000
7000
8000
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008

8. CALCULATION OF CORRELATION:
BETWEEN TWO COMPANIES:
YEAR
Dev. Of GACL
(dx)
Dev. Of LNT
(dy)
Product of dev.
(dx)(dy)
2003-2004 66.24 83.08 5503.2192
2004-2005 12.15 21.59 262.3185
2005-2006 -61.32 22.84 -1400.5488
2006-2007 57.6 -85.48 -4923.648
2007-2008 -36.66 -42.03 1540.8198
TOTAL
∑dx. dy = 982.1607
-6000
-4000
-2000
0
2000
4000
6000
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008

9. Company name
Expected return
(%)
Standard
deviation (%)
CEMENT
GACL
LNT
19.03
63.69
56.91
65.12
PHARMACEUTIC
AL
RANBAXY
CIPLA
9.02
-8.25
54.82
52.43
Company name Returns (%) Risks (%)
CEMENT
GACL
LNT
38.2338 44.23
PHARMACEUTICAL
RANBAXY
CIPLA
-0.6512 48.63
Expected returns and SD
Return & Risk

11. • It is ranked among the top five in the country across its
business segments.
• Other than India, it also has a presence in Bahrain, Dubai,
Malaysia, Philippines and the United States.
• It offers a range of financial services like stock broking,
distribution of financial products, depository participant,
commodities broking, wealth management, and more.

14.  Take advantage of volatility before reaching a new equilibrium.
 Listen to rumors and tips, check for yourself.
 Don’t put your trust in only one investment. It is like “putting all the
eggs in one basket “. This will help lesson the risk in the long term.
 Professionalized advisory is the most important feature to the
investors. Professionalized research, analysis which will be helpful for
reducing any kind of risk to overcome.

16. MTNL & BHARTI ARTL
• The proportion of investment for MTNL is -1.15 and for
BHARTI ARTL 2.15. BHARTI ARTL bears a major proportion
which is dominating one. The standard deviations of the two
companies are 67.97 and 126.51 respectively.
• This combination yields a return of 253.99 and a risk of
252.45. hence investor should invest his major proportion in
BHARTI ARTL in order to minimize risk.

17. • Not to charge fee for opening de-mat account while similar
companies are not charging.
Ex: Share khan, Angel broking.
• To gain customers it is better to give offers like giving free
brokerage for a while at the time of opening trading accounts.
• Most of the potential customers are concerned about
the genuine information and moderate brokerage so
Karvy can look upon this. If it can give good information
and charge moderate brokerage it will help to attract
more and more customers.

18. References
Books referred:
 Security analysis and portfolio management by Fischer
& Jordan
 Investment decisions by V.K. Bhalla.
Websites:
 www.investopedia.com
 www.wikipedia.com
 www.bse.com
 www.nse.com
 www.karvy.com

19. THANK YOU
!!
dreamstim
e
THANK
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