Anda di halaman 1dari 10

SHREE CHANAKYA EDUCATION SOCIETY’S

INDIRA INSTITUTE OF MANAGEMENT, PUNE


Post Graduate Diploma
in Management
SIP REPORT FORMAT- FINANCE – LIVE PROJECT
EXECUTIVE SUMMARY

- Title of the project: Study of portfolio management


- Importance:
- Best investment strategy,
- risk minimization,
- customization

- Objectives:
- capital growth,
- liquidity,
- marketability of securities invested in
- diversification of risk
- consistent return
tax planning,

- Methodology: client interaction with mentors


- Learning’s:
- understanding the meaning of PM
- , got various tips for convince people
- and knew how to build good relationship with client

- Conclusion: nice experience

1
INTRODUCTION AND RATIONALE OF THE STUDY
- Introduction:
Portfolio management is the art and science of making decisions about investment
mix and policy, matching investments to objectives, asset allocation for individuals
and institutions, and balancing risk against performance. Portfolio management is
all about determining strengths, weaknesses, opportunities and threats in the choice
of debt vs. equity, domestic vs. international, growth vs. safety, and many other
trade-offs encountered in the attempt to maximize return at a given appetite for
risk. finance of the study

 Portfolio management is the act of building and maintaining an appropriate


investment mix for a given risk tolerance.

 The key factors for any portfolio management strategy involve asset
allocation, diversification, and rebalancing rules.

 Active portfolio management seeks to 'beat the market' through identifying


undervalued assets, often through short-term trades and market timing.

 Passive (indexed) portfolio management seeks to replicate the broader


market while keeping costs and fees to a minimum

2
INDUSTRY/ SECTOR PROFILE

Overview of the industry/ sector: - Financial Sector


Financial services are the economic services provided by the finance industry, which
encompasses a broad range of businesses that manage money, including credit
unions, banks, credit card companies, insurance companies, accountancy companies,
consume r-finance companies, stock brokerages, investment funds, individual
managers and some government-sponsored enterprises. Companies in the financial
services industry are in the business of managing money. Globally, the financial
services industry leads the world in terms of earnings and equity market
capitalization. Large conglomerates dominate this sector, but it also includes a
diverse range of smaller companies. According to the Finance and Development
department of the International Monetary Fund (IMF), a financial service is best
described as the process by which a consumer or business acquires a financial good.
For example, a payment system provider is providing a financial service when it is
able to accept and transfer funds from a payer to a recipient. This includes accounts
that are settled through credit and debit cards, checks and electronic funds transfers.
Consider a financial advisor. The advisor manages assets and offers advice on behalf
of a client. The advisor does not directly provide investments or any other product.
Instead, the advisor facilitates the movement of funds between savers and the issuers
of securities and other instruments. This service is a temporary task rather than a
tangible asset. Financial goods, on the other hand, are not tasks; they are things. A
mortgage loan may seem like a service, but it's actually a product that lasts beyond
the initial provision. Stocks, bonds, loans, commodity assets, real estate and
insurance policies are examples of financial goods.

3
Contribution towards GDP:

India has a diversified financial sector undergoing rapid expansion, both in terms of
strong growth of existing financial services firms and new entities entering the
market. The sector comprises commercial banks, insurance companies, non-banking
financial companies, co-operatives, pension funds, mutual funds and other smaller
financial entities. The banking regulator has allowed new entities such as payments
banks to be created recently thereby adding to the types of entities operating in the
sector. However, the financial sector in India is predominantly a banking sector with
commercial banks accounting for more than 64 per cent of the total assets held by
the financial system

Market Size

 The Mutual Fund (MF) industry in India has seen rapid growth in Assets
Under Management (AUM). Total AUM of the industry stood at Rs 23.16
trillion (US$ 321.00 billion) as of February 2019. At the same time the
number of Mutual fund (MF) equity portfolios reached a high of 74.6
million as of June 2018.

 Another crucial component of India’s financial industry is the insurance


industry. The insurance industry has been expanding at a fast pace. The total
first year premium of life insurance companies reached Rs 159,004 crore
(US$ 22.04 billion) as of Jan 2019.

4
Players in financial service sectors

1. Financial service sector comes under the tertiary sector in which banks play a
major role. For the growth of financial services industry, banks are led by
the central bank of the country followed by commercial banks, co-operative banks,
development banks, foreign banks, etc.
2. Hire purchase financier is also a player in the financial service sector as he
enables the consumer to buy the product on credit basis.
3. Leasing companies through financial and operating lease ensure the acquiring of
assets by producers on a long-term basis at a reasonable charge.
4. Factoring enables the seller to obtain 80% value of sales from the financial
companies undertaking factoring services.

Underwriters and merchant bankers are additional players who promote not only
companies but also ensure dynamic activity in the capital market.
6. Book-builders help companies in allotting shares to different categories of
investors.
7. Mutual funds ensure investment by the public and also ensure tax relief to the
investor.
8. Credit cards, another important player in the financial services, ensure the
circulation of plastic money and enable purchase on credit by the consumer.

9. Credit rating companies play an important role by giving different credit ratings
to companies to mobilize public deposits.

10. Housing finance companies and insurance companies also promote investment
in the economy as they also form a part of the players in the financial services.

11. Asset liability management company enables mutual funds to undertake


proper investment in different types of companies.

12. Finance companies in general and also as a part of non-banking finance


companies provide additional funds to the above players .

Recent closure of financial sector :

After many false hopes over the past few years, there appears to be a new dawn for
the banking industry in the year 2019. The pitch is somewhat ready for a long
innings, although there could be occasional bouncers either from the government in
an election year to win votes, or a financial calamity from shores far away.
5
COMPANY PROFILE

- Mission and Vision of the company:


We aim to outsource all your Tax worries by providing timely tax advice
& the way it's meant to be: i.e. Fast, secure & accurate and yet the most
cost-effective. Our aim is to strive towards making your dealing with
Taxes a smooth and efficient experience

- Registered Address/ Number of branches:

Address: Row House no. 15, Ujwal Regalia Society, Veerbhadra Nagar
Rd, Baner, Pune, Maharashtra 411045
Branches: Money Plant Consultancy is a firm based out of Pune with
operations in Thane, Vashi & Navi Mumbai

Major customers/ clients: -

Our clientele includes the best of the Corporates from the IT, ITES, BFSI
and Manufacturing fields.

6
THEORETICAL/CONCEPTUAL FRAMEWORK (LIVE PROJECT)

The theory of portfolio management describes the resulting risk and return of a
combination of individual assets. A primary objective of the theory is to identify
asset combinations that are efficient. Here, efficiency means the highest expected
rate of return on an investment for a specific level of risk. The primary starting point
for portfolio theory requires an assumption that investors are risk averse. This simply
means that they will not consider a portfolio with more risk unless it is accompanied
by a higher expected rate of return.
Modern portfolio theory was largely defined by the work of Harry
Markowitz (1927-) in a series of articles published in the late 1950s. This theory was
extended and refined by William Sharpe (1934-), John Lintner (1916 1983), James
Tobin (1918-), and others in the subsequent decades. Portfolio theory integrates the
process of efficient portfolio formation to the pricing of individual assets. It explains
that some sources of risk associated with individual assets can be eliminated, or
diversified away, by holding a proper combination of assets.

7
OBJECTIVES AND SCOPE OF PROJECT

Objective:

1. To ensure adequate returns to the shareholders which will depend upon the
earning capacity, market price of the share, expectations of the shareholders.
2. To ensure optimum funds utilization. Once the funds are procured, they
should be utilized in maximum possible way at least cost.
3. To ensure safety on investment, i.e, funds should be invested in safe ventures
so that adequate rate of return can be achieved.
4. To plan a sound capital Structure-There should be sound and fair composition
of capital so that a balance is maintained between debt and equity capital.

Scope:

1. investment decisions include investment in fixed assets (called as capital


budgeting). Investment in current assets are also a part of investment decisions
called as working capital decisions.
2. Financial decisions - They relate to the raising of finance from various
resources which will depend upon decision on type of source, period of
financing, cost of financing and the returns thereby.
3. Dividend decision - The finance manager has to take decision with regards to
the net profit distribution. Net profits are generally divided into two:
a. Dividend for shareholders- Dividend and the rate of it has to be decided.
b. Retained profits- Amount of retained profits has to be finalized which
will depend upon expansion and diversification plans of the enterprise.

8
METHODOLOGY or ACTION PLAN (LIVE PROJECT)

. Project Portfolio Management is the centralized management of one or


more portfolios, and involves identifying, prioritizing, authorizing, managing, and
controlling projects, programs, and other related work, to achieve specific strategic
business objectives.

9
KEY LEARNINGS:

I. Professional communications
II. Networking is important
III. Work hard no matter what you’re doing
IV. Independence
V. Making connections
VI. You’re more important than you think

Reference:
 https://www.google.com/search?q=portfolio+management&oq=portfolio+m&aqs=chrome.1.69
i57j0l2j69i60l3.10371j0j7&sourceid=chrome&ie=UTF-8
 https://www.google.com/search?q=mutual+funds&oq=mutu&aqs=chrome.2.69i57j35i39l2j69i6
1l3.3777j0j7&sourceid=chrome&ie=UTF-8

 www.moneycontrol.com

10

Anda mungkin juga menyukai