Investment Management: Portfolio Management Essay Example
Investment Management: Portfolio Management Essay Example

Investment Management: Portfolio Management Essay Example

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  • Pages: 4 (1085 words)
  • Published: May 2, 2018
  • Type: Paper
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The study is conducted to understand the construction process of portfolio and to know how a portfolio will help for an investor to maximize his returns rather than investing the money in a single company. I created a diversified portfolio in order to maximize returns by minimizing the risk. Firstly, I understand the concept of beta which explains the correlation between the market and a particular company stock. Based on the beta nature I have taken 40 stocks from national stock exchange, from which 20 company stocks are shortlisted to create a balanced nature of portfolio.

I have taken the past one year stock prices of all 20 company stocks and calculated the daily returns. I calculated the correlations for 20 stocks to know the degree of relationship between all 20 company stocks. To know the risk patt

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ern between 20 stocks I have calculated the variance and standard deviation. Thereafter, I calculated the total variance of the portfolio which contains 20 stocks. In this project I came across with an excellent tool solver, solver is mainly used for linear programming, it is much like regression analysis it will try to optimize a solution.

In this project solver is used to derive the percentages of investment in all 20 stocks by optimizing the variance with some defined constraints. The virtual money taken for the investment in the portfolio is 100 crores. I calculated the weekly and monthly returns for the constructed portfolio. I evaluated the performance of the created portfolio with the existed different types of funds in the market. The portfolio is giving 2. 24 percentage returns for a month whereas Tata balanced fun

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is giving 0. 7 percentage return and reliance regular savings balanced fund is giving 0. 5 percentage return.

Journey of Indian stock market Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87).

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business.

In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as

"The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Growth pattern of Indian stock market: Company profile

ndiabulls Group is one of the top business houses in the country with business interests in Real Estate, Infrastructure, Financial Services, Retail, Multiplex and Power sectors. Indiabulls Group companies are listed in Indian and overseas financial markets. The Networth of the Group exceeds USD 3 billion.

  • Indiabulls has been conferred the status of a “Business Superbrand” by The Brand Council, Superbrands India. Indiabulls Securities Limited is India’s leading capital markets company with All-India Presence and an extensive client base.
  • Indiabulls Securities possesses state of the art trading platform, best broking practices and is the pioneer in trading product innovations. Power Indiabulls, in-house trading platform, is one of the fastest and most efficient trading platforms in the country.
  • Indiabulls Securities Limited is the first brokerage house to be assigned the highest rating BQ – 1 by CRISIL. Indiabulls Financial Services is an integrated financial services powerhouse providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services.
  • Indiabulls Financial Services Ltd is amongst 68 companies constituting MSCI - Morgan Stanley India Index. Indiabulls Financial is also part of CLSA’s model portfolio of 30 Best Companies in Asia. Indiabulls Financial Services in partnership with MMTC Limited, the largest commodity trading company in India, has set up India’s 4th Multi-Commodities Exchange.
  • Indiabulls Real Estate Limited is India’s third largest property company with development projects spread across residential projects, commercial offices, hotels, malls, and Special Economic Zones (SEZs)

infrastructure development.

  • Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate. Indiabulls Real Estate is transforming 14 million sqft in 16 cities into premium quality, high-end commercial, residential and retail spaces. Indiabulls Real Estate has diversified significantly in the following business verticals within the real estate space: Real Estate Development, Project Advisory & Facilities Management: Residential, Commercial (Office and Malls) and SEZ Development.
  • Profile of India bulls securities limited Indiabulls Securities Ltd is India's leading capital markets company with All-India Presence and an extensive client base. The company is engaged in the securities brokerage industry. They provide range of services to their clients in securities brokerage, including equities, commodities, wholesale debt, futures and options, depositary services, research services, insurance, initial public offering (IPO), and mutual fund distribution.

    Indiabulls Securities Ltd is the first and only brokerage house in India to be assigned the highest rating BQ-1 by CRISIL. The company acts as financial consultant and manages the funds of investors. They also provide investment planning, tax planning and portfolio investment services. Power Indiabulls is an online trading system designed for the high-volume trader, which provides trade information and order execution on an integrated software-based trading platform.

    Indiabulls Securities Ltd was incorporated as GPF Securities Pvt Ltd on June 9, 1995. The name of the company was changed to Orbis Securities Pvt Ltd on December 15, 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company, the name was further changed to Orbis Securities Ltd on January 5, 2004. The name of the company was

    again changed to Indiabulls Securities Ltd on February 16, 2004 so as to capitalise on the brand image of the term 'Indiabulls' in the company name.

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