Sunday, June 19, 2011
MBA PROJECT ON EQUITIES AND PORTFOLIO MANAGEMENT
NEED FOR THE STUDY:
• The purpose of the study is to know the fluctuations in the share price of sample companies.
• The purpose of the study is to help the unknown investors for investing in securities.
• To update the portfolio reviewed and adjusted from time to time in tune with market condition.
• To analyse the risk and return on securities.
• To test portfolio strategies before taking decisions.
OBJECTIVES OF THE STUDY
The objectives of Equities and investment /portfolio management can be categorised as follows:
• To observe the rate of fluctuations of selected companies.
• The amount of risk involved in the securities of the sample companies.
• To make comparative study of risk and return of the sample companies.
SCOPE OF THE STUDY
The study covers all the information related to the Equity fund and the Portfolio management it also covers the investor risk in the investment in various securities.
• Identification of the investor’s objectives, constraints and preferences.
• Strategies are to be developed and implemented in tune with investment policy formulated.
• To reduce the future risk in advance.
• To earn maximum profit in the securities.
• Review and monitoring of the performance of the portfolio.
• Finally the evaluation of the portfolio.
METHODOLOGY OF THE STUDY
Primary Data:
The data provided by the firm was been analyzes by using Markowitz model determines an efficient asset of portfolio return i.e.,
1. Return
2. Standard deviation
3. Coefficient of correlation
Secondary Data:
The data that is used in this project is of secondary nature. The data is to be collected from secondary sources such as various websites, journals, newspapers, books, etc., the analysis used in this project has been done using selective technical tools. In Equity market, risk is analyzed and trading decisions are taken on basis of technical analysis.It is collecting share prices of selected companies for a period of five years.
PERIOD OF THE STUDY:
The study of Equity value and portfolio management for a period of five years (2003-2007).
LIMITATIONS:
• The companies are selected on the basis of the performance
• Expand or contract the size of the portfolio reflect the changes in investor risk disposition.
SOURCE :
NCE, The standards set by NSE in terms of market practices and technologies have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. It's that force which is guiding the industry towards new horizons and greater opportunities.
TOOLS & TECHNIQUES:
The following statistical techniques were used for measuring the performance of the company’s funds.
1. Rate of Return (ROR)
N2-N1
ROR =
N1
Where, N1 is Close period at period1 N2 is Close period at period
2. Standard Deviation (SD)
Σ [R-AVG(R)]
SD =
N
Where, R is rate of return
N is total number of months
3. Beta
n Σxy – Σx * Σy
Beta =
n Σx2 – (Σx)2
4. Alpha
Alpha = Avg (y) – (beta*Avg (x))
5. Coefficient of Correlation
n Σxy – Σx * Σy
Coefficient of Correlation =
[(n Σy2 – (Σy) 2) (n Σx2 – (Σx) 2)] ½
6. Coefficient of Correlation
Coefficient of determination = (Coefficient of Correlation) 2
• The purpose of the study is to know the fluctuations in the share price of sample companies.
• The purpose of the study is to help the unknown investors for investing in securities.
• To update the portfolio reviewed and adjusted from time to time in tune with market condition.
• To analyse the risk and return on securities.
• To test portfolio strategies before taking decisions.
OBJECTIVES OF THE STUDY
The objectives of Equities and investment /portfolio management can be categorised as follows:
• To observe the rate of fluctuations of selected companies.
• The amount of risk involved in the securities of the sample companies.
• To make comparative study of risk and return of the sample companies.
SCOPE OF THE STUDY
The study covers all the information related to the Equity fund and the Portfolio management it also covers the investor risk in the investment in various securities.
• Identification of the investor’s objectives, constraints and preferences.
• Strategies are to be developed and implemented in tune with investment policy formulated.
• To reduce the future risk in advance.
• To earn maximum profit in the securities.
• Review and monitoring of the performance of the portfolio.
• Finally the evaluation of the portfolio.
METHODOLOGY OF THE STUDY
Primary Data:
The data provided by the firm was been analyzes by using Markowitz model determines an efficient asset of portfolio return i.e.,
1. Return
2. Standard deviation
3. Coefficient of correlation
Secondary Data:
The data that is used in this project is of secondary nature. The data is to be collected from secondary sources such as various websites, journals, newspapers, books, etc., the analysis used in this project has been done using selective technical tools. In Equity market, risk is analyzed and trading decisions are taken on basis of technical analysis.It is collecting share prices of selected companies for a period of five years.
PERIOD OF THE STUDY:
The study of Equity value and portfolio management for a period of five years (2003-2007).
LIMITATIONS:
• The companies are selected on the basis of the performance
• Expand or contract the size of the portfolio reflect the changes in investor risk disposition.
SOURCE :
NCE, The standards set by NSE in terms of market practices and technologies have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. It's that force which is guiding the industry towards new horizons and greater opportunities.
TOOLS & TECHNIQUES:
The following statistical techniques were used for measuring the performance of the company’s funds.
1. Rate of Return (ROR)
N2-N1
ROR =
N1
Where, N1 is Close period at period1 N2 is Close period at period
2. Standard Deviation (SD)
Σ [R-AVG(R)]
SD =
N
Where, R is rate of return
N is total number of months
3. Beta
n Σxy – Σx * Σy
Beta =
n Σx2 – (Σx)2
4. Alpha
Alpha = Avg (y) – (beta*Avg (x))
5. Coefficient of Correlation
n Σxy – Σx * Σy
Coefficient of Correlation =
[(n Σy2 – (Σy) 2) (n Σx2 – (Σx) 2)] ½
6. Coefficient of Correlation
Coefficient of determination = (Coefficient of Correlation) 2
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Author: Mohammad
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