Definition of 'Portfolio Management'

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 strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk. How do you benefit with PMS? Transparency: At most times the rationale behind your investments is a matter of concern. With PMS our Portfolio Managers will always keep you apprised of the reason behind investment decisions, plus you are always kept up-to-date on the allocation and distribution of your funds. Scientific Investment Decisions: PMS provides a scientific and disciplined basis for investing. Besides you have the flexibility of making investment decisions after speaking to our Research Team. Expertise: Traditional investment options do not provide a team of dedicated investment consultants. PMS will provide you exclusive access to the Research Desk and their Proprietary Research Reports. Learn while your earn: The Consultative Investment Approach of PMS gives you an opportunity to learn the nuances, understand the rationale and details behind every investment decision.

Objectives of Portfolio Management:-

The objective of portfolio management is to invest in securities is securities in such a way that one maximizes ones returns and minimizes risks in order to achieve ones investment objective. A good portfolio should have multiple objectives and achieve a sound balance among them. Any one objective should not be given undue importance at the cost of others. Presented below are some important objectives of portfolio management. 1. Stable Current Return: Once investment safety is guaranteed, the portfolio should yield a steady current income. The current returns should at least match the opportunity cost of the funds of the investor. What we are referring to here current income by way of interest of dividends, not capital gains. 2. Marketability: A good portfolio consists of investment, which can be marketed without difficulty. If there are too many unlisted or inactive shares in your portfolio, you will face problems in encasing them, and switching from one investment to another. It is desirable to invest in companies listed on major stock exchanges, which are actively traded. 3. Tax Planning: Since taxation is an important variable in total planning, a good portfolio should enable its owner to enjoy a favorable tax shelter. The portfolio should be developed considering not only income tax, but capital gains tax, and gift tax, as well. What a good portfolio aims at is tax planning, not tax evasion or tax avoidance. 4. Appreciation in the value of capital: A good portfolio should appreciate in value in order to protect the investor from any erosion in purchasing power due to inflation. In other words, a balanced portfolio must consist of certain investments, which tend to appreciate in real value after adjusting for inflation. 5. Liquidity: The portfolio should ensure that there are enough funds available at short notice to take care of the investors liquidity requirements. It is desirable to keep a line of credit from a bank for use in case it becomes necessary to participate in right issues, or for any other personal needs. 6. Safety of the investment:

The first important objective of a portfolio, no matter who owns it, is to ensure that the investment is absolutely safe. Other considerations like income, growth, etc., only come into the picture after the safety of your investment is ensured. Investment safety or minimization of risks is one of the important objectives of portfolio management. There are many types of risks, which are associated with investment in equity stocks, including super stocks. Bear in mind that there is no such thing as a zero risk investment. More over, relatively low risk investment give correspondingly lower returns. You can try and minimize the overall risk or bring it to an acceptable level by developing a balanced and efficient portfolio. A good portfolio of growth stocks satisfies the entire objectives outline above.

Scope of Portfolio Management:Portfolio management is a continuous process. It is a dynamic activity. The following are the basic operations of a portfolio management. a) Monitoring the performance of portfolio by incorporating the latest market Identification of the investors objective, constraints and preferences. Making an evaluation of portfolio income (comparison with targets and

conditions. b) c)

achievement). d) e) Making revision in the portfolio. Implementation of the strategies in tune with investment objectives.

1. NESTLE.....Good food,good life

Nestl is the world's leading Nutrition, Health and Wellness company. Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. Brands

Milk Products and Nutrition Beverages

Prepared Dishes and Cooking Aids Chocolates and Confectionery Vending and Food Services Beverage Solutions Beverage Systems Food Service Products Touch Points

A SWOT analysis
o Strengths Parent support - Nestle India has a strong support from its parent company, which is the world's largest processed food and beverage company, with a presence in almost every country. The company has access to the parent's hugely successful global folio of products and brands. Brand strength - In India, Nestle has some very strong brands like Nescafe, Maggi and Cerelac. These brands are almost generic to their product categories. Product innovation - The company has been continuously introducing new products for its Indian patrons on a frequent basis, thus expanding its product offerings. Weakness Exports The company's exports stood at Rs 2,571 m at the end of 2003 (11% of revenues) and continue to grow at a decent pace. But a major portion of this comprises of Coffee (around 67% of the exports were that of Nescafe instant to Russia). This constitutes a big chunk of the total exports to a single location. Historically, Russia has been a very volatile market for Nestle, and its overall performance takes a hit often due to this factor. o Opportunities Expansion - The company has the potential to expand to smaller towns and other geographies. Existing markets are not fully tapped and the company can increase

presence by penetrating further. With India's demographic profile changing in favour of the consuming class, the per capita consumption of most FMCG products is likely to grow. Nestle will have the inherent advantage of this trend. Product offerings - The company has the option to expand its product folio by introducing more brands which its parents are famed for like breakfast cereals, Smarties Chocolates, Carnation, etc. Global hub - Since manufacturing of some products is cheaper in India than in other South East Asian countries, Nestle India could become an export hub for the parent in certain product categories. o Threat Competition - The company faces immense competition from the organised as well as the unorganised sectors. Off late, to liberalise its trade and investment policies to enable the country to better function in the globalised economy, the Indian Government has reduced the import duty of food segments thus intensifying the battle. Changing consumer trends - Trend of increased consumer spends on consumer durables resulting in lower spending on FMCG products. In the past 2-3 years, the performance of the FMCG sector has been lackluster, despite the economy growing at a decent pace. Although, off late the situation has been improving, the dependence on monsoon is very high. Sectoral woes - Rising prices of raw materials and fuels, and inturn, increasing packaging and manufacturing costs. But the companies' may not be able to pass on the full burden of these onto the customers.

2, Britannia
Britannia manufactures diary products from its plants located in Kolkata, Delhi, Chennai, Mumbai, and Rudrapur. The company has a total installed capacity of 163,500 MT of biscuits and protein foodstuffs. Key brands include Tiger, Good Day, Milk Bikis, Treat, and Marie. In FY07 the company launched new brands; 50:50

Chutkule, Treat Fruit, Rollz, NutriChoice Digestive, and renovated Milk Bikis, Chota Tiger, and Chocolate Cream in the Tiger range. Further in 2008, the company launched iron fortified Tiger' biscuits,'Good Day Classic Cookies', Low Fat Dahi and renovated 'MarieGold'.

SWOT Analysis
Strengths

Britannia is the 2nd most trusted brand Provides good quality of biscuits cakes Products range from Re1 to Rs 500 Easily available in various forms Excellent supply of products whenever required Widely accepted in all generations

Weakness

Quantity of biscuits is less compare to its competitors, as they concentrate more on quality.

Similar kind of Britannia product available in the market made by its competitors

Opportunity

With the opening of new offices in the different areas scope of sale of products will increase.

Generate employment opportunity

Threat

Companies like Biskfirm, Parle , Sunfeast entering into this segment of market Providing products to the offices at lesser rates by offering heavy discounting

3. Bharti Airtel
bharti airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. bharti airtel has been ranked among the six best performing technology companies in the

world by business week. bharti airtel had 200 million customers across its operations.

SWOT Analysis
Strengths

Cost advantage Effective communication Online growth Loyal customers Market share leadership Strong management team Strong brand equity Strong financial position Supply chain Reputation management Weaknesses

Bad communication Low R&D Not innovative Not diversified Opportunities

Acquisitions Financial markets (raise money through debt, etc) Emerging markets and expansion abroad Innovation Takeovers Threats

Competition Economic slowdown External changes (government, politics, taxes, etc)

Maturing categories, products, or services Price wars

4. Apple Finance Ltd.

Apple Finance (APPLEFIN) is engaged mainly in the areas of financial services and information technology. It was incorporated as a public limited company in 1985. The Company is presently engaged in diversified business activities such as computer education, software development, consultancy, leasing, hire purchase, financial services and merchant banking.