Risk Preception and Portfolio Management of Equity Investors PDF

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A PROJECTONRISK PERCEPTION AND PORTFOLIO MANAGEMENT OF EQUITYINVESTORS(University logo)SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTFOR MASTER OF BUSINESS ADMINISTRATIONYEAR:SUBMITTED BY:(ROLL NO:)GUIDED BY: ASST. PROFESSOR:FULL NAME AND ADDRESS OF UNIVERISTYDECLARATIONI, _________________ Stud...

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A PROJECT ON RISK PERCEPTION AND PORTFOLIO MANAGEMENT OF EQUITY INVESTORS

(University logo)

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR MASTER OF BUSINESS ADMINISTRATION

YEAR: SUBMITTED BY: (ROLL NO:) GUIDED BY: ASST. PROFESSOR:

FULL NAME AND ADDRESS OF UNIVERISTY

DECLARATION

I, _________________ Student of M.B.A FINANCE,_________________University Name hereby declare that the Project Report on RISK PERCEPTION AND PORTFOLIO MANAGEMENT OF EQUITY INVESTORS is been result of my own work and has been carried out under supervision of _____________Guide Name.

I declare that this submitted work is done solely by me and to the best of my knowledge; no such work has been submitted by any other person for the award of post-graduation degree or diploma. I also declare that all the information collected from various secondary sources has been duly acknowledged in this project report.

PLACE:

Name

DATE:

Signature

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CERTIFICATE This is to certify that ____________________(Name) has satisfactory completed the project work entitled, RISK PERCEPTION AND PORTFOLIO MANAGEMENT OF EQUITY INVESTORS is based on the declaration made by the candidate and me association as a guide for carrying out this project work, I recommended this project for evaluation as a part of the MBA programme of ___________________ University Name and address.

Guide Name and Details:Date: Place:

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ACKNOWLEDGEMENT My debts are many and I acknowledge them with much pride and delight. This project Report was undertaken for the fulfilment of MBA Programme pursuing at _______________University Name. I would like to thank my institute which has provided me the opportunity for doing this project work. I am extremely great full to _________________(Guide Name), for his invaluable help and guidance throughout my work. He kindly evinced keen interest in my work and furnished some useful comments, which could enrich the work substantially. In fact it is very difficult to acknowledge all the names and nature of help and encouragement provided by them. I would never forget the help and support extended directly or indirectly to me by all.

Name

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TABLE OF CONTENTS

CHAPTER

TABLE OF CONTENTS EXECUTIVE SUMMARY

PAGE NO. 6

INTRODUCTION CHAPTER-1

CHAPTER-2 CHAPTER-3 CHAPTER-4 CHAPTER-5 CHAPTER-6 CHAPTER-7

 INTRODUCTION TO STOCK EXCHANGE RESEARCH METHODOLOGY 

RESEARCH DESISGN OF THE STUDY



SOURCES OF DATA



SAMPLING PLAN



OBJECTIVE OF THE PROJECT

 SCOPE OF THE STUDY RISK PRECEPTION

10 AND

MANAGEMENT OVERVIEW DATA ANALYSIS AND INTERPRETATION FINDING OF THE STUDY

CONCLUSION AND SUGGESTIONS LIMITATIONS OF THE STUDY

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PORTFOLIO 13 19 30 33 35

ANNEXURE 36 BIBLIOGRAPHY 38

EXECUTIVE SUMMARY

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Investments are both artistic and scientific. Individuals have their own specific needs and financial expectations based on their risk taking ability, while some of these needs and expectations are universal. Hence, we see that the stock market scenario is changing day by day, hour by hour and minute by minute. The valuation of financial plans has been increasing for decades, which can be best seen in the consumer. Now-a-days investing has become a very important part of saving money. To keep investors safe from market fluctuations and make them profitable, portfolio management services are gaining rapid investment options for high-net-worth individuals (HNI). There is growing competition between brokerage firms in post-India reforms. For investors, it is difficult to decide which brokerage firm to choose. The research design is analytical. The questionnaire was prepared and distributed to investors. Investor profile is based on the results of the questionnaire completed by the investor. To determine the effectiveness of risk perceptions and portfolio management of venture capitalists, this research was conducted across all urban areas. When investing money, everyone looks for risk factors related to investment options. The report is organized on the basis of research work done through different mythological research, data is collected from primary sources, questionnaires and secondary data are collected from different sources such as websites. Company, magazine and other sources. In this project, I present the details of the financial plan as well as the asset management to understand the needs and needs of the clients in relation to the market and how the client portfolio can be designed and what factors a portfolio manager should have. Must consider for portfolio design. .

CHAPTER-1

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INTRODUCTION OF THE TOPIC The investment sector is usually divided into security analysis and portfolio management. At the heart of security analysis is the valuation of financial assets. Value in turn is a function of risk and return. Both of these concepts are in the study of investment. Submissions may be limited to the Fund's commitment to one or more assets that will be held at any time in the future. In today's fast-growing world, many opportunities are available, so to keep up with the changes and capture the best opportunities in the field of investment, a professional fund manager is necessary. Therefore, in the current scenario, portfolio management is rapidly gaining importance as an investment option for net worth investors. When you invest in portfolio management, you own individual securities, unlike mutual fund investors who own the entire fund. You have the freedom and flexibility to improve your portfolio to meet personal preferences and financial goals. Although a portfolio manager can monitor hundreds of portfolios, your account can be unique. The Portfolio management solution can help in following ways. i.

Discretionary

ii.

Non Discretionary

iii.

Advisory

Discretionary: Under these services, the choice as well as the timing of the investment decision depends solely on the portfolio manager. Non Discretionary: Under these services, portfolio managers only present investment ideas. The choice as well as the timing of the investment decision depends only on the investor. However, the execution of the trade is done by the portfolio manager. Advisory: Under these services, portfolio manager is just an investment idea. The choice, as well as the execution of an investment decision, depends solely on the investor.

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INTRODUCTION TO STOCK EXCHANGE The emergence of the stock market can be traced back to the 1830s. In Bombay, businesses have acquired shares of banks such as commercial banks, feature banks, feature banks, queuing banks and old banks of Mumbai and stocks of cotton press. . In Calcutta, the British reported the extraction of loans of 4%, 5% and 6% by the East India Company, as well as the Bank of Bengal in 1836. The list was expanded in 1839 when the Calcutta newspaper published quotes from banks such as Union Bank and Agra Bank. It also cites the value of business ventures, such as Bengal bonded warehouse, a docking company and a storm tug company. Between 1840 and 1850, only half of the brokers were available for limited business. But during the 1860-65 stock exchange, the number of brokers increased dramatically. By 1860, the number of brokers was about 60, and during the exciting period of the American Civil War, their numbers increased to about 200 to 250. As a meeting was held in the broker's hall on February 5, 1887, it was decided to carry out the formal agreement of the association and form the first management committee and appoint the first recipient. Accordingly, the Articles of Association of the Exchange and Stocks The exchange was formally established at Bombay on December 3, 1887. This association is known as the "Stock Exchange". The membership fee for new members is Rs.1 and there are 318 members on the list when the change is made. The number of members increased to 333 in 1896, 362 in 1916 and 478 in 1920, and the entry fee increased to 5.5 in 1877, s1000 18 in 1896, .22500. in 1916 and R. 48,000 in 1920. At present, there are 23 recognized stock exchanges with around 6,000 stock brokers. The structure of the stock market varies.

The 14 stock exchanges are organized into a publicly-owned company, six are limited by securities, and three are non-profit voluntary organizations. Of the total 23, only 9 of the stock exchanges are permanently recognized. Others have to seek recognition each year. These changes do not work on their own, instead they are controlled by some people and with the help of some people and institutions. All of these are functions on the stock market. These are:

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i.

Stockbrokers

ii.

Sub-broker

iii.

Market makers

iv.

Portfolio consultants etc.

1. Stockbrokers: Stock brokers are members of the stock exchanges. These are the people who buy, sell or trade securities. A certificate of registration from SBI is required to act as a broker. SEBI may impose certain conditions while granting a registration certificate. It is compulsory for individuals to abide by rules, regulations and purchase rules. Stock brokers are brokers, brokers, brokers, brokers. Etc.

2. Sub-broker: A broker acts as an agent of a stock broker. He is not a member of the stock exchange. He helps investors buy, sell or trade securities through stocks. Brokers and brokers should enter into an agreement where the obligations of both should be stated. The broker must register SEBI for settlement on the securities. For registration with SBI, he / she must meet certain rules and regulations.

3. Market Makers: The market maker is the specialist identified in the specified securities. They make bids and offers at the same time. Market makers must abide by the rules, regulations, and regulations of the relevant stock market. He is exempt from margin requirements. According to the registration requirements of the company, the paid up capital is Rs.3 Crore but not more than Rs.5 Core and with less than 2 years trading experience should appoint a market maker when issuing securities. 4. Portfolio Consultants: A combination of securities, such as securities, securities and money market instruments, is called a portfolio. Whereas a portfolio consultant is a person, company, or company that recommends, implements, or implements management or administration of securities or funds on behalf of clients. Usually, stock trading is done through stock brokers directly or over the phone. 9

CHAPTER- 2 RESEARCH METHODOLOGY RESEARCH DESISGN OF THE STUDY The report is based on primary and secondary data, however, the collection of primary data is given greater importance as it is a neglected factor in behavioral studies. You use one of the most important research methods as it helps to identify the problem, collect, analyze the required information and provide alternative solutions to this problem. It also helps to gather the important information required by management to help them make better decisions, both day to day and important.

This study contains an analysis of investor sentiment about portfolio management services offered by securities companies. For the purpose of the study, 100 clients were randomly selected and their views were asked for different parameters.

The methodology adopted includes  Questionnaire  Customer’s Random sample survey  Consultations with the concerned SOURCES OF DATA  Primary data: customers of local area through Questionnaire 

Secondary data: The materials Published in such as: - securities companies website, periodicals, journals, newspapers etc..

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SAMPLING PLAN Sampling: I chose the portfolio management of the equity investors in my profile to do market research. 100% coverage is difficult for a limited time. Therefore, a sample survey method was applied for the purpose of the study.

Sampling size: One hundred samples were selected for the purpose of the study. The sample consisted of investors based on income and profession, as well as academic background.

Sampling Methods: Probability collections of sampling may require full knowledge of all global samples. Because sampling was not probable, time was chosen for the study.

Sampling procedure: From a large number of clients and most non-clients, I was randomly selected as per customer’s interest in equity investment. OBJECTIVE OF THE PROJECT 

To know the concepts of risk perception and portfolio management of stock investors.



To know about the scheme offered by different insurers, new IPs, mutual funds.



To know in-depth about mutual fund insurance, equities, stocks. Etc.



To know the insights towards stock brokers and stock markets.



Study the need to improve the existing trading system.

SCOPE OF THE STUDY A study of portfolio management services is useful in the following areas. In today's complex financial environment, investors have unique needs that come from financial preferences and goals. But regardless of this, every investor seeks to maximize his / her return on 11

investment without eliminating capital. Portfolio management services recognize this and manage professional investment to achieve specific investment goals and not forget to reassure investors day to day there are issues that investment needs. It is offered to professional management of investors' equity investments in order to provide consistent returns with a focus on risk.

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CHAPTER-3 RISK PRECEPTION AND PORTFOLIO MANAGMENT Portfolio means the concentration of investment held by an institution or a private individual. Portfolio management is often part of an investment strategy and defines the risk, called diversification. By owning multiple assets, certain types of risk can be reduced. There are also portfolios that aim to take a higher risk - these are called concentration portfolios. Investment management is the professional management of various securities such as shares, bonds and other assets such as real estate to meet the investment goals set for the benefit of investors. Investors can be institutions (insurance companies, pension funds, corporations, etc.) or private investors (both directly through investment contracts and more generally through joint ventures, for example mutual funds). Wealth management is often used to refer to the investment management of a joint venture, general fund management can refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in consulting or managing the needs of private investors (usually the rich) often refer to their services as asset management or portfolio management, often in the context of "private banking." " The provision of "investment management services" includes elements of financial analysis, asset selection, stock selection, planning, and investment monitoring. In addition to the financial industry, the term "investment management" is often applied to investments outside of financial instruments. Investments often mean plans, brands, patents and more than stocks and stocks. Even in this case, the term means that a rigorous method of financial and economic analysis is used. Need of Portfolio Management As in the current scenario, the effectiveness of PMS is required. When PMS gives investors a review of their asset allocation across different assets, the portfolio can be suspect for a period of time. This may be due to appreciation / decline in the value of the investment. Because financial goals are diverse, investment options also need to be different to meet those needs. No single investment can meet all the requirements, so you should keep some money in bank deposits and / liquid funds to meet the immediate needs of cash and maintain balance in

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other investment products / schemes that may Profit the most and minimize the risk. . The investment allocation can also change depending on the risk profile.

The main Objective of Portfolio Management The following objectives are fulfilled by the risk perception and portfolio management of equity investors. Funds Safety: The investment should be saved, not lost and should be in a returnable position in cash or kind. Market possibilities: Securities investments should be marketable, which means that securities must be listed and trade in the stock market to avoid the difficulty of investing their capital. Easy Cash: Portfolios need to have such securities that can be created without difficulty or time participation to meet immediate funding needs. Market availability guarantees easy access to the portfolio. Reasonable Return: Investments should have a return on equity to keep the value of the money flowing and match the opportunity cost of money relative to current income in the form of interest or dividends. Commendation in the Capital: The money invested in the portfolio should grow and, as a result, capital. Tax planning: Effective portfolio management involves tax planning, including income taxes, income taxes, property taxes and gift taxes. Risk Reduction: Avoiding risk and minimizing risk are key objectives of portfolio management. Portfolio managers achieve these objectives by effective investment planning and periodic reviews of the market, the situation and the economic environment that affect the financial markets.

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CONSTRUCTION OF PORTFOLIO Reasons for building a portfolio of rational investors want to make the most of their profits for their level of risk. Every investment has different risks. Return on profit is a form of income, such as interest or dividends, or through capital gains (for example, capital gains).

The portfolio construction process can be broadly defined, with the following steps:

1. Setting objectives.

The first step in building a portfolio is to identify the key objectives of a given fund (i.e., tax requirements and liquidity) that are applicable. Each investor has different goals, time horizons and attitudes toward risk. Pension funds have long-term obligations and, as a result, long-term investments. Their goal is to achieve maximum returns above inflation rates. A charity may wish to generate the highest income while maintaining the cost of capital received from the taxi. An individual may have specific debts and would like to match them in the future. Assessing customer patience can be difficult. The concept of effective portfolio and diversification must also be taken into account when setting up investment goals. 2. Defining Policy.

Once the goals have been set, appropriate investment policies are established. The standard procedure is for the money manager to ask the client to choose his or her preferred asset, for example stocks and bonds, to give the desired mix of common sense. The client is then asked to specify the limit or maximum and minimum amount they will allow to invest in different assets. The classifications of major assets are cash, equity, debt / debt securities and other debt instruments, financial instruments, foreign assets and assets. Alternative investments, such as private equity, are also growing in popularity and will be discussed in the next chapter. Getting the best mix of assets over time is one of the key drivers of successful investing.

3. Applying portfolio strategy.

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At the other end of the spectrum of portfolio management are active and passive strateg...