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nvestment Portfolio
Investment is a commitment oI Iunds made in the
expectation oI some positive rate oI return.
The Investment needs of an Investor:-
1) Capital Preservation.
2) Wealth Generation.
3) Tax Savings.
4) Income.
5) Future Uncertainty.
6) Retirement Planning.
nvestment Planning
It helps in deciding upon the right Investment
strategy.
It is a balance of three components
1) Liquidity.
2) Risk Tolerance.
3) Return.
%5es of nvestment
Portfolio Management
PortIolio is a collection oI securities that are
grouped together to diversiIy the total Risk.
n Optimal Portfolio provides the highest
possible utility, given the constraints imposed
by the opportunity set and eIIiciency Irontier.
Beta measures the risk associated with
Individual PortIolio in relation to the Market
PortIolio.
Meaning of Portfolio Management
The rt & Science oI making decisions about
Investment mix & policy, matching Investments
to Objectives, asset allocation Ior Individuals &
balancing risk vs. PerIormance.
Portfolio Objectives:-
1) Stability oI Principal.
2) Income.
3) Growth oI Income.
4) Capital ppreciation.
nvestment Pramid
-ectives
1) To study the demographical Iactors aIIected the
choice oI PortIolio oI Investors.
2) To identiIy the purpose oI investment & extent
oI Iinancial literacy oI Investors.
3) To know the most preIerred Investment avenues
oI Investors.
4) To Iind out the Risk Tolerance limit oI Investors.
#esearch Methodolog
Research Problem:
# Comparative nalysis on Investment PortIolio oI
Business & Service Class Investors oI Ranchi
(Lalpur to Kutchahry).
Research Design:
escriptive Research esign.
Data Collection: -
Primary Research "uestionnaires and interview.
Secondary Research
ournals & Magazines.
Sample
The Business & Service class Investors oI
Ranchi (Lalpur to Kutchahry).
Sampling Unit
Those Business & Service class Investors
using PM Services oI Ranchi (Lalpur to
Kutchahry).
Sample Size 100.
50 Business Class Investors
50 Service Class Investors.
Sampling Technique
Simple Random Sampling & Convenience
Sampling Techniques.
ata Analsis &
nter5retation
%he nvestors' emogra5hic Profile {Gender_
Male lemale
8uslness 88 12
Servlce 78 22
88
12
78
22
0
10
20
30
40
30
60
70
80
90
100

e
r
c
e
n
t
a
g
e

C
f

I
n
v
e
s
t
o
r
s
Demoghraph|c rof||e of Investors
%he Age Grou5 of nvestors
8elow 33 3330 3160 Above 60
8uslness 30 36 10 4
Servlce 78 20 2 0
30
36
10
4
78
20
2
0
0
10
20
30
40
30
60
70
80
90

e
r
c
e
n
t
a
g
e

C
f

I
n
v
e
s
t
o
r
s
Age Group of Investors
%he Marital 8tatus of nvestors
unmarrled Marrled
8uslness 20 80
Servlce 32 48
20
80
32
48
0
10
20
30
40
30
60
70
80
90

e
r
c
e
n
t
a
g
e

o
f

I
n
v
e
s
t
o
r
s
Mar|ta| Status of Investors
4:- The Investors are having Dependents
0 Lo 1 2 Lo 3 More Lhan 3
8uslness 24 38 38
Servlce 34 38 8
24
38 38
34
38
8
0
10
20
30
40
30
60

e
r
c
e
n
t
a
g
e

o
f

D
e
p
e
n
d
e
n
t
s

Dependents on the Investors
5:- Monthly Flow of Income of Investors.
under
8s10000
8s10001 Lo
8s20000
8s20001 Lo
8s30000
Above
8s30000
8uslness 12 20 22 46
Servlce 4 22 44 30
12
20
22
46
4
22
44
30
0
3
10
13
20
23
30
33
40
43
30

e
r
c
e
n
t
a
g
e

o
f

I
n
v
e
s
t
o
r
s
Month|y Inf|ow of Income
6:- Awareness among Business class Investors regarding various
Investment Plans.
8ank C
llxed
ueposlLs
lnsurance
Schemes
LqulLles
CommodlLles
/uerlvaLlves
8eal LsLaLe
?es 100 92 92 48 86
no 0 8 8 32 14
100
92 92
48
86
0
8 8
32
14
0
20
40
60
80
100
120

e
r
c
e
n
t
a
g
e

C
f

8
u
s
|
n
e
s
s

C
|
a
s
s

I
n
v
e
s
t
o
r
s
7:- Awareness among Service Class Investors
regarding various Investment Plans.
8ank C
llxed
ueposlLs
lnsurance
Schemes
LqulLles
CommodlLles/
uerlvaLlves
8eal LsLaLe
?es 100 98 88 66 80
no 0 2 12 34 20
100
98
88
66
80
0
2
12
34
20
0
20
40
60
80
100
120

e
r
c
e
n
t
a
g
e

o
f

S
e
r
v
|
c
e

C
|
a
s
s

I
n
v
e
s
t
o
r
s
Awareness regard|ng var|ous Investment |ans
The Purpose oI Investors behind their
Investments.
CaplLal AppreclaLlon 8alance of CaplLal App CurrenL lncome SupplemenL Lo CurrenL lncome
8uslness 30 62 8
Servlce 46 38 16
30
62
8
46
38
16
0
10
20
30
40
30
60
70
P
e
r
c
e
n
t
a
g
e

o
f

I
n
v
e
s
t
o
r
s
Purpose of Investors behind their Investments
9:- The Basis which initiates the Investors to invest in
any Financial Security
lundamenLal Analysls llnanclal Advlsor orLfollo Servlces
8uslness 0277 0349 0374
Servlce 0342 0237 0421
0277
0349
0374
0342
0237
0421
0
003
01
013
02
023
03
033
04
043
M
e
a
n
/
A
v
e
r
a
g
e
Basis of Investments
10:- Important Features required in Investors` Portfolio
Plan.
CrowLh lncome SafeLy 1ax Lfflclency
8uslness 248 184 334 234
Servlce 262 19 326 222
248
184
334
234
262
19
326
222
0
03
1
13
2
23
3
33
4
M
e
a
n
/
A
v
e
r
a
g
e
Features required in Investors' Portfolio Plan
3
3
1
1
4
4
2
2
11:- Most Preferred Investment Avenues by the Investors.
8ank C llxed
ueposlLs
lnsurance Schemes MuLual lund Schemes LqulLles
CommodlLles/uerlvaLlv
es
8eal LsLaLe
8uslness 36 418 272 238 442 338
Servlce 314 33 288 296 482 392
36
418
272
238
442
338
314
33
288
296
482
392
0
1
2
3
4
3
6
M
e
a
n
/
A
v
e
r
a
g
e
Most Preferred Investment Avenues
4
3
5
4
2
1
1
2
6
6
3
5
12:- Type of Investments which are covered under their
Current Portfolio.
Malnly Cash/8ank ueposlLs wlLh
small porLlon ln Low rlsk 8onds
Malnly uebL lnsLrumenLs some
orLlon ln 8lue Chlp SLocks
A mlx of uebL lnsLrumenL 8lue
Chlp Aggresslve SLocks
MosLly SpeculaLlve or Plgh 8lsk
lnvesLmenLs
8uslness 18 14 32 16
Servlce 36 28 30 6
18
14
32
16
36
28
30
6
0
10
20
30
40
30
60
P
e
r
c
e
n
t
a
g
e

O
f

I
n
v
e
s
t
m
e
n
t
s
Current Portfolio of Investors
13:- Important sources of Information which influence the
Investors` decision regarding their Investments.
newspaper/ Magazlnes LlecLronlc Medla (1v) eer Croup/ lrlends
8roker/ llnanclal
Advlsor
lnLerneL
8uslness 026 04 038 07 076
Servlce 08 034 088 038 064
026
04
038
07
076
08
034
088
038
064
1
08
06
04
02
0
02
04
06
08
1
M
e
a
n
Sources Of Information
14:- The Time Period for which Investors prefer to keep
their Investments.
Less Lhan 1 monLh 1 monLh 6 monLhs 6 monLhs 12 monLhs More Lhan 12 monLhs
8uslness 2 20 38 40
Servlce 0 16 34 30
2
20
38
40
0
16
34
30
0
10
20
30
40
30
60
P
e
r
c
e
n
t
a
g
e

o
f

I
n
v
e
s
t
o
r
s
Time Period of keeping Investment
15:- The Decision of the Investors at the time of
Fluctuation in the Market.
JlLhdraw your Money JalL JaLch lnvesL more ln lL
8uslness 10 32 38
Servlce 34 36 30
10
32
38
34
36
30
0
10
20
30
40
30
60
P
e
r
c
e
n
t
a
g
e

o
f

I
n
v
e
s
t
o
r
s
Investors' Decision
16:- The Investors belong to Risk Category.
Aggresslve CaplLal reservaLlon 8alanced orLfollo Aggresslve CaplLal AppreclaLlon orLfollo
8uslness 14 36 30
Servlce 20 34 26
14
36
30
20
34
26
0
10
20
30
40
30
60
P
e
r
c
e
n
t
a
g
e

o
f

I
n
v
e
s
t
o
r
s
The Investors' Risk Categories
indings & Conclusion
Conclusion of 1
st
Objective
Majority oI Business class Investors are adults and they have
the Iamily size oI more than 3 because 0 oI them are
married and they have monthly Income oI above Rs. 30,000.
It means high incomes Business Investors are doing more
Investments.
Whereas majority oI Service class Investors is Young and
they have less number oI dependents (01) because majority
(0) is unmarried and they start doing Investments with
the Salary Package oI Rs.20,001 to Rs.30,000 because as
they have less number oI dependents so they are using more
oI their money into Investments.
Conclusion of
nd
-ective
The Business Investors have the awareness oI all Investment
avenues especially Equities & Real estate, Iew oI them don`t
know about Commodities/erivatives & that`s why they do
Investments with the purpose oI appreciation in their Capital as
well as a source oI their current Income & whenever they do
Investment in any security, they do so because their PortIolio
Management Services & Financial dvisor initiate them to do
so.
Whereas Service class Investors have the awareness oI all
Investment avenues especially Insurance schemes and Equities
and very Iew oI them don`t know about erivatives. They do
Investments with the purpose oI Capital ppreciation & they do
Investments by having PortIolio Services Initiation as well as
Fundamental analysis oI that particular Scrip/Company.
Conclusion of
rd
-ective
Business class Investors have given the highest
preIerence means Rank 1 to Equities.
Whereas Service class Investors have given the
highest preIerence to Mutual Funds.
Conclusion of 4
th
-ective
The most preIerred Investment venue Ior Business Investors is Equity
& Real Estate and they keep it with themselves Ior more than 12 months
because Equity is a long term Investment.
They wait & watch or they invest more whenever they noticed any
Iluctuation in the market .
That`s why they come under ggressive Capital ppreciation Category
which reIers to higher risk & higher returns.
Whereas the Service class Investors have most preIerred Investment
venue is Mutual Fund so they keep it Ior long period and most oI them
withdraw their Investment or they wait & watch when any Iluctuation is
noticed in the market.
That`s why; they have a Balanced PortIolio which reIers to moderate
risk & moderate return.
Conclusion
Business Class Investors are more Risk taking. They preIer to
invest in High risk Investments such as Equity & hold their
securities Ior a longer period oI time.
They come under the ggressive Capital ppreciation PortIolio.
Whereas; the Service Class Investors are less Risk taking.
Whenever they noticed any Iluctuation in the market they try to
withdraw their money.
They do SaIer Investments such as Mutual Fund and preIer to take
moderate risk & moderate return. So, they come under a Balanced
PortIolio.
#eferences
W Investment & PortIolio Management by
Prasanna Chandra, Tata McGraw Hill
Publication.
W wwwmoneyobservercom/portfo||os
W www.investopedia.com
THANK YOU