Without all, I could not have successfully completed my project properly in time with adequate data and relevant substance in it. Thanking you, Mehak Mehta CUN120550046 3 Executive Summary This project is about creating a portfolio product that would help Angel Broking. We all know that stock market is a risky investment alternative for all but it is good if investor can make money out of it. The regulatory body for the stock market is SEBI who controls all the activities of the market on daily basis and try to do transaction in a legal way so as to avoid the scams and to protect the interest of the investors.
Now days there are many Portfolio managers and Fund managers who invest on the behalf of the investors and they assured them fixed rate of return on their investment in a particular period of time. They all applied various kinds of model to measure the risk available in the market and the tools to manage that risk. There are various kinds of risk which is mainly categorize in two parts 1. Macro level risk 2. Micro level risk I. Macro level risk :- It consist of Systematic and Unsystematic Risk. Systematic risk is that which cannot be reduced but Unsystematic risk can be controlled.
It consist of various kinds of risk which are prevailing in the market like Business risk, Market risk, Liquidity risk, Exchange rate risk, Financial risk, Currency risk and Country risk The above are the broad categories of the risk in the market. As we can see from the recession that the global markets also have their impact on the Indian market because now a days companies are doing business at global level so the market of one country can affect the market of other countries also. So we cannot avoid the risk but we can manage the risk and minimize it.
In my project I have done the same thing by applying the various models or tools which are helpful to manage the risk while doing an investment. Purpose/Objective of the study:? ? The purpose of the study is to give a portfolio product to Angel Broking as per the needs of the population of Ludhiana region. Endeavour to create wealth over the medium to longer term through investments in equities, across market capitalization by focusing solely on the following:? To measure the risk available in the market, taking into consideration the Nifty 50 stocks.
To look deep into the fundamentals of the companies as well as the concerned industry. ? To calculate the expected return from the shortlisted stocks as well as from their concerned industry. ? To measure the risk/reward value of investors’ assets class choices 4 Research Methodology Used in the Project:Type of research project is Descriptive and Exploratory. To make a research project we need to see that whether there would be scope of this study or not, because if our study is not having scope then the whole work done will not be effective.
The scope of this study is there in the market because in today scenario everyone looks for the safe and risk free return but they don’t know how to manage the risk which is there in the market so by the help of this study and after seeing the relevance, the Financial managers or the investment companies can take benefit out of it. Because by this they will come to know about the tools to manage the risk and they will be able to sell more investment products because by using it they will be able to give safe return to the investors which will lead to an increase in their goodwill in the market.
Methodology used to making of this project is Descriptive research design. Once we decide with the type of research design we need also to know about the collection of data. I have used the secondary method to collect the data from the market. For this purpose different websites are being search out for the relevant information for making the project and various research paper and articles were also studied so as to get reference from those articles. Once I am done with the data collection and fundamental analysis, I then need to apply the tools.
In my project I have used mainly four tools BETA, CAPITAL ASSET PRICING MODEL (CAPM), STANDARD DEVIATION and SHARPE INDEX. Sharpe Index tells us the excess return we can generate from the investment. Beta tells about the volatility of the risk. CAPM tells us about the Expected return on the stock, and Sortino ratio tells us that out of the stocks which are giving negative return which will be the stock that will give positive return in near future. Thus by applying all these models we come to know that we can also minimize our risk but for that analysis should be done so as to enjoy the safe return on the investment.
Findings:- After applying all the above models I have come to know the Beta of my portfolio, expected return that my portfolio will generate. CAPM help us to know that how much would be expected return on the stock and then we can compare the actual return with the expected return and invest accordingly. Beta helps us to know the volatility of risk in the market and then we can do risk return tradeoff so as to invest in best stock as per our analysis. And Result of Sharpe ratio helps us to compare with the expected return and then do the Sortino ratio if required. 5 Table of Contents I.
Business carried on by parent company and group companies along with brief history, promoters & vision Introduction to the parent firm Main competitors Number of employees Organization Structure Study of functioning of all the departments of the company SWOT Analysis Financial Statement Analysis Trend Analysis Strategies adopted Profitability Analysis Review of Literature ? ? ? Review of articles Need of the study Objectives of the study III. Research Methodology adopted IV. Details of actual work undertaken V. Interpretation & Analysis VI. Conclusion and Suggestions ? ? VII. Findings of the study
Recommendations of the study Glossary VIII. Bibliography 6 Chapter-1 Introduction to the corporation and company 7 Business carried on by the parent company 8 Angel Broking Registered Office Corporate Office G-1, Ackruti Trade Center, Road No -7, 6th Floor, Ackruti Star, Central Road – MIDC, MIDC, Andheri (E), Mumbai – 400 093. Andheri (E), Mumbai – 400 093. Tel: (022) 2835 8800 / 3083 7700 Tel: (022) 3935 7600 9 About the company Angel Broking’s tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India.
With its unique retail-focused stock trading business model, Angel is committed to providing ‘Real Value for Money’ to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL. Vision To provide best value for money to investors through innovative products, trading/investments strategies, state of the art technology and personalized service. Motto To have complete harmony between quality-in-process and continuous mprovement to deliver exceptional service that will delight our Customers and Clients. 10 CRM Policy.
“A Customer is the most Important Visitor on our premises. He is not dependent on us, but we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so. ” – Mahatma Gandhi Business Philosophy ? ? ? ? Ethical practices & transparency in all our dealings Customers interest above our own Always deliver what we promise Effective cost management.