A STUDY ON THE INVESTORS SHARE’S

PREFERENCES

A S IM U
BUILDI L ATED P
NG M O ORTFO
DEL AP LIO
PROAC
H
 A COLLECTION OF
PORTFOLIO INVESTMENTS

PORTFOLIO BUILDING UP A PORTFOLIO WHICH FETCHES

MANAGEMENT AN INVESTOR A GOOD AMOUNT OF
RETURNS WITH MINIMAL OR LOW RISK
 OBJECTIVE
OBJECTIVE

SECONDARY
SECONDARY
PRIMARY
PRIMARY

SCOPE
 ESSENTIAL CONCEPTS
ESSENTIAL CONCEPTS

INVESTORS

BETA RISK

RETURNS
 RESEARCH METHODOLOGIES

PRIMARY SOURCE SECONDARY SOURCE

 PORTFOLIO
BUILDING

CONCLUSI
INTERPRET ON
ATION
ANALYSIS

CALCULA
TIONS

DATA
COLLE
CTION
 SECTOR AND STOCK SELECTION
SECTOR AND STOCK SELECTION
DATA
DATA
COLLECTION
COLLECTION

RISK FREE RATES AND STOCK PRICES

RISK FREE RATES AND STOCK PRICES


BSE
BSE Auto
Auto Index 
Index 

BSE
BSE Bankex 
Bankex 

BSE
BSE Capital
Capital goods
goods Index
Index   

BSE
BSE FMCG
FMCG Index 
Index 

BSE
BSE Health
Health Care
Care Index
Index

BSE
BSE IT
IT Index 
Index 

BSE
BSE Metal
Metal Index 
Index 

BSE
BSE Oil
Oil and
and Gas
Gas Index 
Index 

BSE
BSE Power
Power Sector 
Sector 

BSE
BSE PSU
PSU Index
Index
 CALCULATIONS

EXPECTED RETURNS = AVARAGE OF

RETURNS

BETA FOR STOCKS = COV/VAR

 Bankex
Return Beta

1.55
2.14
0.98

39.33
35.13
43.68

Axis bank
ICICI
PNB
 FUNDAM
ENTAL
ANALYSIS

TECHNIC
AL
ANALYSIS
Axis Bank ICICI PNB

PE of the Sector 15.31 15.31 15.31

PE 18.99 23.89 08.55

EPS 65.78 36.14 123.86

Dividends Rs. 12.00 12.00 10.00

ANALYSIS
Net profit margin % 21.61 15.66 18.19

β – Value for
15 days 1.00 1.67 0.91

3months 1.46 1.93 1.90

6 months 1.55 2.14 0.98

 S.NO SECTORS STOCKS

FOLIO
BETA FOR PORT
1 BANKEX PNB

2 OIL AND GAS BPCL

3 AUTO HERO HONDA

4 IT INFOSYS

CATEGORY D 5 FMCG ITC

6 POWER BHEL

7 METAL JSW STEEL

CATEGORY C BHARAT
8 PSU ELECTRONICS
CATEGORY A
LAXMI
9 CG MACHINES

CATEGORY B 10 HC CADILA
 CATEGORY A
 
% WEIGHTED WEIGHTED
S.NO SECTORS STOCKS RETURNS BETA
WEIGHTS RET BETA

1 BANKEX PNB 10 43.6800 4.3680 0.9800 0.0980

2 OIL AND GAS BPCL 10 25.0800 2.5080 0.7000 0.0700
3 AUTO HERO HONDA 10 21.1400 2.1140 0.7100 0.0710
4 IT INFOSYS 10 37.5100 3.7510 0.7100 0.0710
5 FMCG ITC 10 4.7700 0.4770 0.2100 0.0210
6 POWER BHEL 10 15.5200 1.5520 0.9600 0.0960
7 METAL JSW STEEL 10 69.9300 6.9930 1.2400 0.1240
BHARAT
8 PSU ELECTRONICS 10 45.5000 4.5500 0.4700 0.0470
LAXMI
9 CG MACHINES 10 88.5300 8.8530 1.1700 0.1170
10 HC CADILA 10 73.6700 7.3670 0.3400 0.0340
               
          42.5330   0.7490

CATEGORY B
 
% WEIGHTED WEIGHTED
S.NO SECTORS STOCKS RETURNS BETA
WEIGHTS RET BETA

1 BANKEX PNB 10.00 43.6800 4.3680 0.9800 0.0980

2 OIL AND GAS BPCL 8.42 25.0800 2.1117 0.7000 0.0589
3 AUTO HERO HONDA 6.93 21.1400 1.4650 0.7100 0.0492
4 IT INFOSYS 10.43 37.5100 3.9123 0.7100 0.0741
5 FMCG ITC 5.13 4.7700 0.2447 0.2100 0.0108
6 POWER BHEL 5.96 15.5200 0.9250 0.9600 0.0572
7 METAL JSW STEEL 12.50 69.9300 8.7413 1.2400 0.1550
BHARAT
8 PSU ELECTRONICS 11.11 45.5000 5.0551 0.4700 0.0522
LAXMI
9 CG MACHINES 15.21 88.5300 13.4654 1.1700 0.1780
10 HC CADILA 14.31 73.6700 10.5422 0.3400 0.0487
               
          50.8306   0.7820
 CATEGORY C
 
% WEIGHTED WEIGHTED
 S.NO SECTORS STOCKS RETURNS BETA
WEIGHTS RET BETA

1 BANKEX PNB 6.99 43.6800 3.0532 0.9800 0.0685

2 OIL AND GAS BPCL 11.74 25.0800 2.9444 0.7000 0.0822
3 AUTO HERO HONDA 7.85 21.1400 1.6595 0.7100 0.0557
4 IT INFOSYS 7.85 37.5100 2.9445 0.7100 0.0557
5 FMCG ITC 18.57 4.7700 0.8858 0.2100 0.0390
6 POWER BHEL 7.11 15.5200 1.1035 0.9600 0.0683
7 METAL JSW STEEL 4.80 69.9300 3.3566 1.2400 0.0595
BHARAT
8 PSU ELECTRONICS 14.43 45.5000 6.5657 0.4700 0.0678
LAXMI
9 CG MACHINES 4.43 88.5300 3.9219 1.1700 0.0518
10 HC CADILA 16.23 73.6700 11.9566 0.3400 0.0552
               
          38.3917   0.6038

CATEGORY D
 
% WEIGHTED WEIGHTED
S.NO SECTORS STOCKS RETURNS BETA
WEIGHTS RET BETA
1 BANKEX PNB 11.53 43.6800 5.0363 0.9800 0.1130
2 OIL AND GAS BPCL 3.67 25.0800 0.9204 0.7000 0.0257
3 AUTO HERO HONDA 6.34 21.1400 1.3403 0.7100 0.0450
4 IT INFOSYS 7.89 37.5100 2.9595 0.7100 0.0560
5 FMCG ITC 4.70 4.7700 0.2242 0.2100 0.0099
6 POWER BHEL 4.86 15.5200 0.7543 0.9600 0.0467
7 METAL JSW STEEL 12.00 69.9300 8.3916 1.2400 0.1488
BHARAT
8 PSU ELECTRONICS 16.19 45.5000 7.3665 0.4700 0.0761
LAXMI
9 CG MACHINES 13.69 88.5300 12.1198 1.1700 0.1602
10 HC CADILA 19.13 73.6700 14.0931 0.3400 0.0650
               
          53.2059   0.7464
 INTERPRETATION AND CONCLUSION

THE CATEGORY WHICH GIVES THE INVESTOR MORE

RETURNS FOR LESS RISK IS THE REQUIRED
PORTFOLIO

0.02
0.98 0.02
0.98 0.02
0.98 0.01
0.99

Category A
Category B
Category C
Category D
Weighted Return Weighted Beta
 SUGGESTIONS

 Research prior investing

 Research prior investing
 Analytical capabilities
 Analytical capabilities
 Keep track of market behavior and stock movements
 Keep track of market behavior and stock movements
 Both Fundamental and Technical analyses are important
 Both Fundamental and Technical analyses are important
 For more accuracy go for more past data
 For more accuracy go for more past data
 Returns are directly proportional to risk
 Returns are directly proportional to risk
 Investor has to fix his/her objective prior investing
 Investor has to fix his/her objective prior investing
 CONCLUSION

Money is like manure.  You have to

spread it around or it smells.
THANK YOU
BY,
SWAPNIKA .V (30)