PADMASHREE DR. D.Y.

PATIL UNIVERSITY DEPARTMENT OF BUSINESS MANAGEMENT

ASSIGNMENT ON EMOTIONAL MARKETING ,PORTFOLIO MANAGEMENT & BETA

SUBJECT: SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

SUBMITTED TO: MISS. NEETU SHARMA

SUBMITTED BY: PUSHKAR KARANDIKAR FINANCE CLASS-I ROLL NO. 10124.

INTRODUCTION Gone are the days when producers were regarded as king of the market, they use to decide which products were to be produced, size, color, features were decided by the producers as customers were concerned about the availability of the product due to nonexistence of alternatives, that era was producers era. Slowly scenario changed many producers came into the market and competition entered in the market, customers started getting choice and era of marketing started. Customers became the king of the market. Now producers started manufacturing product as per customers' desire. Market was bombarded with n number of products. Each and every marketer started providing products with numerous features and gradually all the marketer continuing providing same type of product with similar features and same price. Marketer realized for survival they will have to change their marketing strategies. Marketer realized that human beings are quite emotional in nature and they take their purchase decision emotionally, and if customers' emotions are hit in right manner, they can get more loyal customers. There came a new model in marketing and that is emotional marketing.

NEED OF EMOTIONAL MARKETING ARISES This concept has been followed by big corporate' from decades. To achieve higher success in marketing basic understanding of human psychology is required which has been realized by marketer. This has helped marketer in understanding what attributes is to be added in their product and how it is to be communicated to the prospects. Customers buy products either to satisfy their needs or their desires. Marketers are inquisitive in knowing what motivates customer to purchase a product. For instance, customers aren't buying Shampoo just to clean their hair but they are buying a now look for their hair. Car is not purchased only for transportation but for maintaining status. But if customers are considered as bundle of emotions that is completely imprudent thought and if well thought-out as only calculating machine that is also a failure. Marketers add emotions in their appeal to entice their prospects. Just think about the last purchase you have made, for any product. What was concealed force that has compelled you to purchase that product, to check your purse, bank balance; it was emotion, was not it? You believe it or not but for making
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purchase decision some percentage of emotions are always involved. Emotion act as fuel in the engine of purchase decision process. Customers always put in logic behind every purchase and try to prove that he/she has made rational decision and emotion has not played any role, but the ultimate driver is the emotion which has played major role in final purchase decision, whether believed or not. Rationality is required but it just only generates interest in product, its emotion which ultimately leads customers to purchase. Customers are not much interested in attributes of the product; they want to know how that product suits their personality. It is not in the case of single customer, all customers behaves in same manner that's why marketers always make their customers feel about product and services they provide. Customers purchases products emotionally and then rationalize their choice intellectually.

Marketers mostly follow concept of emotional marketing, they endeavor to include more emotions as emotional marketing is more profitable than rational marketing in many cases as emotional marketing is all about winning mind of customers, it is about getting share in customers heart more than share in customers wallet. Emotional marketing if strategically deployed can remove the rational questions which can take prospects to some other products. Some marketers believe that if they provide value added products to the customers they will be able to close the deal but they fail miserably, as it does not ensue every time. Marketer should communicate their product as value driven emotions and utility oriented motive to obtain attention of customers. Customers do not always behave as calculating machine. They breathe, weep, enjoy and having a heart which drives with emotions, they always get attracted with the products which makes them feel and they get attached with the product emotionally. Now question is how customers take decision for purchasing product? How do they evaluate the product? What are different criteria they consider at the time of making decision?

The Value Star Method Hallmark's Value Star system is a model for applying emotion marketing to your company. It's based on a five-pointed star, with each of the points representing a vital element in the marketing equation.
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The first two elements are familiar from traditional marketing: Money: Is the product affordable and offered at a competitive price? Are any promotions or discounts compelling? Product: Is the product or service desirable? Does it have the proper features and does it get the job done? As we now know, if customers are buying a product or a service based on price alone, the brand is at risk - unless it's a low-cost provider and that price advantage can be sustained over the long term. Even competition based on a product is becoming less practical. New features get duplicated very quickly today by "fast-following" competitors. Competitive pricing and quality products are the cost of entry to today's market. Even the considerable power of emotion can't overcome an obviously inferior or unreasonably priced product. But in the end, price and product are too easy to copy. You need other value drivers - the emotional E's in the Value Star model: Equity: This is the combination of the trust a brand earns and an identity that allows consumers to feel emotionally connected to it. A company makes a promise, consistently delivers, and over time its customers come to rely on it. Simply seeing the logo or hearing the name tells them the product or service is worth the investment. "Emotionally loyal customers relate to the brand as they might to other human beings feelings of affection, a common history, possibly a sense of trust and two-way commitment, which goes well beyond the satisfaction of a specific need," note Horacio Rozanski, Allen Baum and Bradley Wolfsen in Strategy & Business. Experience: This deals with customers' interactions with a brand. Customer attitudes are affected by visits to a store or web site, employee contacts, communications, loyalty programs and, of course, use of the product or service itself. In every encounter there's an opportunity to meet a need and make an emotional connection. Energy: This is the investment of time and effort a customer makes in a product or service. Is it easy? Accessible? Worthwhile? These days, with so many people feeling pressed for time, companies must pay attention to whether they are offering convenience and saving time for their customers. Equity, experience and energy are the emotional components of the Value Star.
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Money and product are the rational elements. Together, they offer a path for appealing to both the emotional and rational impulses that drive consumer buying decisions. EVALUATION CRITERIA OF CUSTOMERS Consumers consciously or unconsciously evaluate products on several criteria, some of them are: Economical: Customers are interested in purchasing those products which are economical i.e. fits in their budget and make them to feel. For instance Bajaj Platina, Bajaj XCD always highlights that they are economical as well as stylish too, by these kinds of appeals they pull those customers whose psychological cost of paying for product reduces their excitement in that product. But there are some customers who are interested in paying high prices if it is worth paying and helps in maintaining their status. Technological: Customers are well informed nowadays. Customers are interested in product which possess additional features, can perform various functions and must be easier to deal with. They bargain on technological aspects while purchasing. These reasons compel marketers to fight in the battle field with extra features and ease of use. Pleasure: Consumers are interested in the products which can offer them pleasure after possessing it. Companies' adjoin pleasure against the features and benefits of their products and at last deal gets closed with gladness. For instance Raymond's suiting in their appeal shows that owners feel pleasure while dressing themselves with Raymond suiting. Achievement: Human beings in this world desire for some or other achievements in their life and even they expect these achievements from the products which they purchase. Now question arises that how products can fulfill their desire of achievements? Marketer frames and communicates their message in such a manner that it encompasses the idea of achievement. Advertisement of Maruti 800 which showed that middle class customers get sense of achievement in their life after getting possession of Maruti 800. Status: Different income levels of customers' shows different purchasing patterns to maintain their standard of living. Higher income group customers' go
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for diamond, platinum, Mercedes to maintain their status. For them silver and gold are inferior goods but for middle class customers these are superior items. Perception of customers behind purchasing any product that it should contribute to status even if customers spend small percentage of their income for that product. Detergent like Wheel which targets middle class customers communicates their message in very effective manner by using punch line "Manhgi wali dhuali budget mein samai" Style: Younger generations of today are much more inclined towards products which suit their style and to their looks, are preferred mostly. Celebrities are endorsed so that stylish look. Pulsar, Karizma, Glamour, Enticer are first choice of youngsters who believes in lavish and stylish life and these products themselves explain importance of style in the life of customers with respect to product. Security: Insurance products are best example of this criterion. Marketers appeal customers through fear in their messages. "Papa please yeh rakh lo" a father thinks about his future where his daughter is giving money for his fulfillment of his daily requirements and then he realizes importance of Insurance in life. This is the most important factor as customers are always interested in securing themselves. Belongingness: Human beings live in social groups. They want to confirm to their society, they feel humiliated if they don't match. So they constantly try to stride for those products which balance their self esteem and membership in society. So products which raise their self-esteem and satisfy them emotionally are favored. Business people endeavor to fit their products with potential customer's social group or personal identity. This can be elucidating with the instance of college students, they go for Laptops not only to get connected with the world but to make them selves fit in their friend circle. Self improvement: Human being shows their interest which can improve their personality and social status. For that they captivated them to books, internet and many other sources and due to all this major portion of population are heavily inclined towards internet. Even now customers ask for the website address of the companies, they evaluate companies authenticity on the basis of their website address. Big corporate and website designers are realizing importance of internet and taking it as a platform to communicate their message effectively. For more effective and efficient communication of message they
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have taken emotions as most important ingredient. Many websites designers are keeping these criteria in mind and working hard for emotion addition as many websites have seen big face of failure due to non inclusion of this factor in their websites. Conformity - Does your product/service fall into a conformity niche? People do not want to be alone. They flock together in groups. You have seen them throughout school, and surely have seen them in your adult life. Does your product or service command a group following? How would your product/service help to fulfill the need of community? Does peer pressure play a role in your product/service? Ambition - How does your product/service help people to get more out of life? More out of life is a broad term and can be applied to money, love, security, power, or just about anything else you can think of. What is it that people want more of that your product or service can help them get more of? Power - In what ways does your product/service offer a person more power? Power can be over something as simple as their own lives, time, or any number of other things. What ways can you come up with that will help people gain more control over things that they want more control over? Love - This one is the grand daddy of them all. As mentioned earlier in this article where the person was looking for ways to expand their financial stability and offer more to their children. That would be an example of a feeling of love.

STRATEGIC OPPORTUNITES FOR INCREASING MARKET SHARE Business people are interested in adding more spices in their dish (message) to provide more flavors in their messages. Marketer can get more shares in customers' heart as well as in wallet if they work hard on the following factors: Catching the attention of customers' Countless strategic opportunities for drawing customers' attention are there, some of them are: Benefits: Customers purchase products for benefits; it can be direct or indirect benefit. Direct benefit are very simple in nature, it is all about cause and effect. A lady joins English speaking classes to make herself comfortable to converse
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in English, this is direct benefit. Indirect benefits are that she will be able to make herself updated, to get herself fit in the society, she can help her kids also and many more. Marketers should give much more concern to the indirect benefits as it possesses strong emotional appeal. Features: Consumers purchases product not because of the feature but because of benefits. Features can attract customer attention towards product but it is benefit which finally closes the deal. Marketer offer different features in their product but finally those who can associate benefit with feature through impressive emotional appeal, becomes champion of the market. Affection: It a very powerful tool to build relationship with customers. This concept can be very well explained with the case of Cadbury's celebration pack, in the advertisement they convey how one can show affection towards their beloved at the time of occasion like Diwali, Rakhabandhan etc. They have got success in changing people's perception towards gifts which they give at the time of occasion to their near and dear ones. Now boys prefer Cadbury celebration pack over any other gift to present their sisters at the time of Rakhi. Free /Gift: This is the one of the most powerful tool for today's marketer. Every one is interested in getting something free with the product they purchase. Nowadays customers ask retailers about the gift offered with the product which they are purchasing as preference is given those products with which gift is attached. Customers feel delighted when they receive product free of cost which they have never dreamed of like DVD player free with TV or while purchasing a refrigerator a trip to Singapore is given by the marketer. Effortless: We all are living in the era where maximum number of task can be performed with a simple click. Customers of today are interested in getting everything without performing anything. They are interested in those products where minimum or less energy is expended for the fulfillment of the task. For this take the example of Banks, previously banks were offering only limited services, customers use to stand in queue for hours for simple transaction, but now all the banks are offering n number of benefits to the customers like 24 hour ATM facility, internet banking, phone banking and many other. Now one can withdraw money very easily there is no need to stand in queue for long hours, funds can be transferred from one account to another, from one city to another country within a fraction of second. ICICI Bank in their promotional strategies highlights all their features of effortlessness (8-8 banking, internet,
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phone banking etc.) with full of emotions, that's why now it is first preference of customers. Punch line: Companies nowadays put lots of efforts for creation of tagline. Punch line is combination of few words which conveys company visions and benefits. It helps in proper positioning of products and helps in informing distinct benefits within fraction of seconds. Few examples are: ICICI Prudential "We cover you at every step in life", TATA Group "improving the quality of life", Bajaj "Distinctly Ahead", DLF "Building India", Nestle "Good Food, Good Life" etc.

Make prospects so much inquisitive so that they take action quickly: Customers generally purchase those products which they enjoy while purchasing so marketers should make efforts to make their customers laugh, they should add excitements in their offerings. Take the instance of shopping mall, nowadays shopping mall is increasing in numbers. Customers are much more fascinated towards malls as wide ranges of products are offered in malls (from pin to durable items) with lots of convenience. If marketer gets success in adding fun, enthusiasm, thrill and pleasure in their appeal they can compel their customers running in to their stores, if they do not get success they will have to wait for the prospect to walk towards their stores for months. Give satisfaction by providing benefits which has been promised: Marketers emotionally appeal customers through love, fear, pride, joy and by many other ways. They always associate their products with customers feeling to make their product sellable in the market as customers are ultimate decider of their destiny. Customers will purchase products till products emotionally and rationally appeals to them but quality and service factors cannot be ignored because for the first time customer can purchase product by getting emotional but repeat purchase is not possible if customers gets dissatisfied with the product.

PITFALLS IN EMOTIONAL MARKETING Emotional marketing provides many opportunities to marketer for facing and
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fighting competition with that there are some pitfalls associated with the opportunities, they are Expectation mismatch: Many a times firms believe that customers buy features alone. If a product is having extraordinary features and offer incomparable value to the customers, it may fail as customers always evaluate products benefits and features associated with others products. Appearance: This pitfall covers every aspect from infrastructure to reputation. If retailer is not having eye-catching location and if the product display is also not tremendous then how much beneficial and value added that product is, it will not be able to attract customers attention. Retailers may not have control over location but he/she can get number of customers through their long year of service and relationship by that they can build reputation in the market. Employee-employer commitment: In today's competitive era, business concern can survive through relationship marketing. Relationship can be developed only through front-line employee's behavior and attitude towards customer. It is very important to understand how much employee is concerned in giving his best service to the customer. Many a time's lack of commitment from both salesperson and employer destroys the rapport. A proper sales plan is required for achievement of goal which includes sales person training and sales target both in terms of quality and quantity. Every stakeholder should be emotionally committed to their plan then only ultimate objective i.e. winning heart of customers can be achieved.

Summary Emotional marketing is the act of taking into consideration the feelings and needs of the visitors coming to your site, and finding ways to capitalize on those feelings and needs to bring them back, and create higher volume sales through meeting their needs. By getting to know the visitor and their needs you are better equipped to add value to your website, offerings, and the ability to chose affiliate programs that also satisfy your visitor's needs. Choosing the right affiliate program to match your visitors' needs will help generate better revenue from the affiliate programs you make available on your site.
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Most new webmasters/website designers fail to consider such things when they design their website. Although it isn't really their fault, they have failed to educate themselves about the added possibility emotion can add to their site. When they fail to generate the needed emotions to convert visitors, they usually get frustrated and give up. Many times, they simply run out of finances to keep the site going which ultimately causes website failure. By learning more about your visitors and what emotional buttons you need to push, you can tailor your site to fit visitor needs, increase both your product/service sales, and affiliate program revenue. Learning what your visitors need also expands your ability to offer other products/services you do not offer through affiliate programs that do. I can not stress enough the importance of knowing your visitors. It is the key to a successful marketing campaign and continued revenue and growth. There are at least ten emotions that you can capitalize on to increase your sales volume. The more of those that you can incorporate into your content and design, the better results you will get from your design and promotional efforts. You must be careful though because failure to deliver on promises will only have a negative effect on your site. Make sure that the emotions you are incorporating and the claims that you make about your products/services are truthful. Word of mouth advertising also plays a part in marketing. The old saying goes that even one happy customer will complain to at least 10 other people about their plight, and those 10 will complain to 10 more, and it all snowballs. There are words in the english language that generates an emotional response when read. The more of those words you can incorporate into your content and offerings, the higher your potential for sales. You also need to keep in mind industry specific information that applies to your products/services, and make sure that your offerings fall in line with your industry. Failure to do that will destroy your credibility and reduce the trust you are trying to build. It's that trust and rapport that will fuel study growth. As with all of my articles, this one is also based on knowledge, experience, surfer experience, and common sense. I do not want my readers to simply take my word for things. I invite you to think about my words. Apply them and see if they sound true. I am sure that when you apply common sense and think about the article that you will wonder why you had to read the article in the first place. You already had the answers. All you needed was some guidance and questions to help direct your thought process. Example
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of

You strive to provide comfort, happiness and security to your family. Even if something unfortunate were to happen to you, you would want your familys future to be secured at all times. With ICICI Pru iCare, protect your familys future and ensure that they lead their lives comfortably without any financial worries, even in your absence. Also, get the advantage of instant life insurance cover at the click of a button Today, ICICI Prudential, one of Indias largest private sector life insurance companies announced the launch of its new online pure term insurance plan iCare. iCare will succeed the flagship online term plan of ICICI Pru - iProtect. The new online plan iCare carries some best-selling features of iProtect such as the Option 2 which has an inbuilt Accidental Death Benefit rider. Key Features of iCare Term Plan: - Instant Life Cover through simple online application process - Flexibility to choose protection cover from two options: - Option I - Death benefit equal to Sum Assured - Option II - Additional death benefit in case of death due to accident ICICI Pru iCare term plan provides the option of attaching an accidental death benefit rider for a small addition in the premium amount. In Option II, the accidental death benefit paid is equal to Sum Assured, subject to a maximum of
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Rs 50 lakhs. A policyholder can opt for a policy term of minimum 5 years up to a maximum of 30 years, but the maximum age at maturity cannot exceed 75 years. The maximum Sum Assured that a person can opt for is between 18 50 years is Rs 1.5 crores and the Sum Assured is capped at Rs 70 lakhs for persons between 51 65 years of age. The policy can be also purchased by making a Single premium in addition to the regular mode of Yearly Premiums can be paid either yearly or one-shot payment can be made at the start of the policy; and are eligible for tax benefits under section 80C of the Income Tax Act 1961. A Quick Look You strive to provide comfort, happiness, and security to your family. Even if something unfortunate were to happen to you, you would want your familys future to be secured at all times. With ICICI Pru iCare, protect your familys future and ensure that they lead their lives comfortably without any financial worries, even in your absence. Also, get the advantage of instant life insurance cover at the click of a button.

Key benefits Flexibility to choose protection cover based on your needs from: Option I: Death benefit equal to Sum Assured Option II: An additional death benefit equal to Sum Assured or Rs. 50 lakhs, whichever is lower, payable only in case of death due to accident
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Instant life insurance cover1 through a simple online application process Insurance cover at extremely affordable premiums Option of regular pay and one pay Tax benefits on the premiums paid2

1. The life insurance cover will begin immediately on acceptance of proposal. After submission of the application form, if it is found that the customer has existing policies which have not been disclosed and due to which, there is a change in the underwriting decision of the Company, the Company will withdraw the cover subject to Section 45 of the Insurance Act, 1938 and below mentioned clause 1a. 1a. The maximum benefit payable on death, excluding the Accidental Death Benefit under ICICI Pru iCare Option II, in respect of all policies issued on the same Life Assured will be limited to the maximum Sum Assured applicable for this product. The additional Accidental Death Benefit payable under ICICI Pru iCare Option II in respect of all policies issued on the same Life Assured will be limited to Rs. 50 lakhs. 2. Tax benefits under the policy are subject to conditions u/s 80C of the Income Tax Act, 1961. Service tax and education cess will be charged extra, as per applicable rates. The tax laws are subject to amendments from time to time. How does this term insurance plan work? Choose between two options available under ICICI Pru iCare, based on your protection needs. Fill in your personal details and answer some simple questions related to your health. Pay the premium through your internet banking account or through your credit/debit card. You will have to pay the premium as per the premium payment option chosen. Life insurance cover on your policy begins immediately on acceptance of proposal1 How can I buy this plan? Buy Online Meet an advisor
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Visit your nearest branch

PORTFOLIO MANAGEMENT

A Portfolio Management refers to the science of analyzing the strengths, weaknesses, opportunities and threats for performing wide range of activities related to the ones portfolio for maximizing the return at a given risk. It helps in making selection of Debt Vs Equity, Growth Vs Safety, and various other tradeoffs.

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Managing investments in equities requires time, knowledge, experience and constant monitoring of stock market. Those who need an expert to help to manage their investments, Major tasks involved with Portfolio Management are as follows. Taking decisions about investment mix and policy Matching investments to objectives Asset allocation for individuals and institution Balancing risk against performance

Securities Portfolio Management Professional securities portfolio management gives Investors benefits resulting from the specialization and know-how of the managing company. We have created a large team of specialists whose sole objective is to conduct analyses and make investment decisions. Trade Ways experience and results have positioned the brokerage house among the leading asset management institutions. Securities portfolio management consists in the investment and management of a Client's assets by the brokerage house on behalf and account of the Client, in accordance with the selected investment strategy and under the Management Agreement and Regulations. The Client at all times Remains the Sole Owner of the assets entrusted to the House Brokerage, Investment Decisions Are whereas made by Investment Advisers employed by Trade Ways LTD The Portfolio Management Agreement is concluded for a Period of 12 months. The required Minimum initial Investment is USD 10.000. The portfolios are customised to Individual Client's Needs. Each one reflects other Client preferences and requirements as regards acceptable risk while using the opportunity to invest funds within a precisely defined investment strategy. Offering comprises the Standard Three types of Portfolio: Portfolio Risk-Free "3 # 3" balanced Portfolio Stock "6 # 3" Portfolio Risk-Free Portfolio Securities in Foreign currencies Dividend Portfolio and upon consultation with an investment advisor, it is also possible to create an individually customised portfolio, in the value of at least USD 100,000. Treasury debt securities portfolio Composition of the Portfolio This type of Portfolio consists solely of State Treasury Debt Instruments (bonds and Treasury Bills), bank Deposits and Cash. 16

Portfolio Profile this is an Extremely Secure type of Portfolio, designed to offset the Effects of Inflation on the value of assets, and generate Higher Than Treasury Bills yield bonds That Are Not quoted on the Exchange Are excluded from Risk-Free portfolios generated by the Returns portfolio are credited to the Client's portfolio and used in accordance with re-invested in accordance with the adopted investment strategy. Dividend portfolio Composition of the Portfolio The Portfolio includes: Publicly traded shares of companies (Not less Than 75% of the portfolio value), debt securities and cash (up to 25% of the portfolio value). Portfolio profile The portfolio may comprise only shares of companies paying out dividend and the WIG 20 index companies, in the CASE Whose Payment of the Current-Year dividend is HIGHLY probable. None of the Share of the companies exceed 20% May of the Portfolio value. IT is possible to purchase and subscribe for shares within an Initial Public Offering and the first offering. " 3 # 3 "balanced portfolio Composition of the portfolio 40% to 60% of the portfolio - shares of companies from the 9 Sectors of Economy Considered to Have the Strongest Growth Potential; and the Remaining 40% to 60% of the portfolio value is invested in bonds, Treasury bills, bank deposits and cash. Portfolio Profile of a Share None of the Sectors May exceed 25% of the Portfolio value of a Share None of the companies exceed 10% May of the Portfolio value the Investment Strategy precludes Purchase and subscription for shares in a Primary Offering and an initial Public Offering IT is Possible to Purchase shares on the market within the Primary exercise of pre-emptive rights Returns generated by the Portfolio Are credited to the Client's Portfolio and in accordance with Used Adopted the Investment Strategy. Stock "6 # 3" portfolio Portfolio profile

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a share of none of the sectors may exceed 50% of the Portfolio value of a Share None of the companies exceed 15% May of the Portfolio value this Investment Strategy precludes the Purchase and subscription for shares in a Primary Offering and an initial Public Offering IT is Possible to Purchase shares on the market within the Primary exercise of pre-emptive rights Returns generated by the Portfolio Are credited to the Client's Portfolio and in accordance with Used Adopted the Investment Strategy. Treasury debt securities portfolio in foreign currencies Portfolio profile Minimum value of the Portfolio: 100.000 USD or EUR Expected return on Investment Interest Earned exceeds Standard on Foreign Currency Deposits bank (After Portfolio Management Costs - about 04.05% per annum) Investments in high Instruments That Meet Profitability and Security Standards supplementing Other Investments Professional placements with in the segment of Debt Instruments denominated in Foreign currencies medium Portfolio assets Liquidity Risk Investment low.

Advantages of professional securities portfolio management Costs minimization Management of assets by an Investment Company involves much Lower Transaction Costs and fees Than Those Charged to Individual Investors. Security Depending on the type of Portfolio, all the Funds or the Greater Part thereof, Are Invested in State Treasury Debt Instruments or shares of the Best companies representing leading Sectors of the Economy. 100% allocation of Funds The Funds entrusted Are Invested continually and thus all profits Earned Are reinvested in accordance with the Investment Strategy Adopted.

Tax-Free income On the Portfolio Returns Are Exempt from income Tax. Reports and information Investors receive monthly Current Reports about the value of Their Portfolio. Statements are delivered within 14 days after the end of every month. 18

Example of a Portfolio Management of a client is as follows.

Value: Rs. 16,497.50 -14.48%

TODAY: Rs. -197.50 -1.18%

Stocks Mutual Funds

16,497.50 100.00 % 0.00 0.00 %

Value: Rs. 16,497.50 TODAY: Rs.-160.00 -2.61%

Stocks

Company

Qty

Avg. Buy Value at Avg. Price Buy Price

Last Traded Value at Last Price (+/-) Traded Price

Gain in Rs.

Gain in %

Tata Teleservices (M

400

23.14

9,256.00

14.90 (-0.40) 42.15 (0.00)

5,960.00 -3,296.00 -35.61 10,537.50 +502.50 5.01

Reliance Natural Res

250

40.14

10,035.00

Beta:
Beta is a measure of a stock's volatility in relation to the market. By definition, the market has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the market. A stock that swings more than the market over time has a beta above 1.0. If a stock moves less than the market, the stock's beta is less than 1.0. High-beta stocks are supposed to be riskier but provide a potential for higher returns; low-beta stocks pose less risk but also lower returns. Beta is a key component for the capital asset pricing model (CAPM), which is used to calculate cost of equity. Recall that the cost of capital represents the discount rate used to arrive at the present value of a company's future cash flows. All things being equal, the higher a company's beta is, the higher its cost of capital discount rate. The higher the discount rate, the lower the
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present value placed on the company's future cash flows. In short, beta can impact a company's share valuation.
Following are the Beta values of Companies:

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