SUBMITTED BY:

PARAKH MALHOTRA
A3179019005
B.COM(F&IA)
 PORTFOLIO
A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and
cash equivalents, as well as their fund counterparts.
Stocks and bonds are generally considered a portfolio's core building blocks, though you may
grow a portfolio with many different types of assets—including real estate, gold, paintings,
and other art collectibles.
Diversification is a key concept in
portfolio management. This simply
means not to put all your eggs in one
basket. Diversification tries to
reduce risk by allocating investments
among various financial instruments,
industries, and other categories.
It aims to maximize returns by
investing in different areas that
would each react differently to the
same event. There are many ways to diversify. How you choose to do it is up to you. Your
goals for the future, your appetite for risk, and your personality are all factors in deciding
how to build your portfolio.
A person's tolerance for risk, investment objectives, and time horizon are all critical factors
when assembling and adjusting an investment portfolio.

PORTFOLIO BETA
Portfolio beta is a measure of the overall systematic risk of a portfolio of investments. It
equals the weighted-average of the beta coefficient of all the individual stocks in a portfolio.
FORMULA:

PORTFOLIO BETA = Ʃ WN* β N

Where:

WN = weight of the nth investment

β N = beta coefficient of nth investment

If Beta is less than 1, then its less risky and a good portfolio
If Beta is equals to 1, then its moderately risky
If Beta is more than 1, then its highly risky
PORTFOLIO RISK
Portfolio risk is a chance that the combination of assets or units, within the investments that
you own, fail to meet financial objectives. Each investment within a portfolio carries its
own risk, with higher potential return typically meaning higher risk.
In theory, portfolio risk can be eliminated by successful diversification: holding combinations
of investments that do not depend on the same circumstances to return a profit. In reality,
though, it is more probable that risks will be minimised and not eliminated entirely
FORMULA:

√ 2 2
PORTFOLIO RISK = ( W 1× σ 1 ) + (W 2 × σ 2 ) +(2× r 12× W 1 ×W 2 × σ 1 × σ 2)

Where:

W1 = weight of the 1st investment

W2 = weight of the 2nd investment

σ1 = S.D. of 1st investment

σ2 = S.D. of 2nd investment

r12 = Correlation b/w 1st & 2nd investment

PORTFOLIO RETURN
Portfolio return refers to the gain or loss realized by an investment
portfolio containing several types of investments. Portfolios aim to
deliver returns based on the stated objectives of the investment
strategy, as well as the risk tolerance of the type of investors
targeted by the portfolio.

PORTFOLIO RETURN = ƩRn×Wn

Where:

WN = weight of the nth investment

R N = Return of nth investment
 WEBSITE USED FOR VIRTUAL TRADING: - MONEYBHAI.COM
Moneybhai is a powerful, modern stock simulator which can give players, an opportunity to
learn trading by experiencing markets in real time with real data using virtual currency. It will
inculcate the habit of investing early in the ‘newly turned investors. Moneybhai will help the
players to understand the markets without involving real money. It will give a sort of
practical training to the players which will generate extra risk-taking capacity to know the
consequences of their market led decisions.

HOW DOES THIS WORK?

The player has ₹ 1 crore cash in their portfolio account & ₹ 1 crore intraday trading limit.
With this virtual money the player can invest across asset classes like shares, commodities,
mutual funds and fixed deposits. The player can reset their portfolio back to the original
corpus of ₹1 crore. Moneybhai uses real data from stock markets in order to reproduce the
experience of using a real online brokerage account. On a whole, the player will experience
and get the feeling of placing trade and orders.
With this virtual money you can invest across asset classes like shares, mutual funds and
fixed deposits.
 COMPANIES CHOSEN FOR ANALYSIS
Dabur India - World’s Leading Ayurveda Company
It is an Indian multinational Fast-Moving Consumer Goods (FMCG) company founded by S.
K. Burman and headquartered in Ghaziabad, Uttar Pradesh. It
manufactures Ayurvedic medicine and natural consumer
products, and is one of the largest fast-moving consumer goods
companies in India.
It is the fourth largest FMCG Company in India with Revenues of
over Rs. 9,500 Crore & Market Capitalization of over Rs 100,000
Crore.
Dabur today operates in key consumer product categories
like Hair Care, Oral Care, Health Care, Skin Care, Home Care
and Foods. The ayurvedic company has a wide distribution network, covering 6.7 million
retail outlets with a high penetration in both urban and rural markets.
Building on a legacy of quality and experience of over 137 years, Dabur is today India’s
most trusted name and the world’s largest Ayurvedic and Natural Health Care Company with
a portfolio of over 250 Herbal/Ayurvedic products.
Sector: FMCG
Stock price (as on 11th August): Rs. 575.1
Stock price (as on 27th August): Rs. 608.75
Volume (as on 11th August): 2320928
Volume (as on 27th August): 1477611
As the population continuously rises and our states urbanize at a high rate, there is no doubt
that the FMCG sector will rise in market capitalization.

BAJAJ AUTO – The World’s Favourite Indian

The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest three and
two-wheeler manufacturer and the
Bajaj brand is well-known across
several countries in Latin America,
Africa, Middle East, South and South
East Asia.
Founded in 1926, at the height of
India's movement for independence
from the British, the group has an illustrious history.
The integrity, dedication, resourcefulness and determination to succeed which are
characteristic of the group today, are often traced back to its birth during those days of
relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close
confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son.
Bajaj Auto has also led the pioneering introduction of India’s first ever Quadricycle – Qute.
Bajaj Auto exports to 70+ countries and a significant share of revenues come from Exports.
This stands as a testament to the new brand image – The World’s Favourite Indian.
Sector: Automobile
Stock price (as on 11th August): Rs.3727.15
Stock price (as on 27th August): Rs.3699.45
Volume (as on 11th August): 497724
Volume (as on 27th August): 274822

Havells India Limited – Making it in India, Taking it to the World.

Havells India Limited is a leading Fast Moving Electrical Goods (FMEG) Company and a
major power distribution equipment manufacturer with a strong global presence. Havells
enjoys enviable market dominance across a wide spectrum of products, including Industrial
& Domestic Circuit Protection Devices, Cables & Wires,
Motors, Fans, etc.

The company pioneered the concept of exclusive brand

showroom in the electrical industry with ‘Havells Galaxy’.
Today over 500 plus Havells Galaxies across the country are
helping customers, both domestic and commercial.
VISION: To be a globally recognised corporation for
excellence, governance, consumer delight and fairness to each
stakeholder including the society and environment we operate
in.
MISSION: To achieve our vision through business ethics, global reach, technological
expertise, building long-term relationships with all our associates, customers, partners and
employees.
Sector: Electrical
Stock price (as on 11th August): Rs.1236.75
Stock price (as on 27th August): Rs. 1235
Volume (as on 11th August): 1973876
Volume (as on 27th August): 1169963
HCL TECHNOLOGIES
HCL Technologies is an Indian multinational information
technology (IT) services and consulting company, headquartered in Noida, Uttar Pradesh,
India. It is a subsidiary of HCL Enterprise.
Originally a research and development division of HCL, it emerged as an independent
company in 1991 when HCL entered into the software services business. 
It is a next-generation global
technology company that helps
enterprises reimagine their
businesses for the digital age. Our technology products and services are built on four decades
of innovation, with a world-renowned management philosophy, a strong culture of invention
and risk-taking, and a relentless focus on customer relationships. 
The company has offices in 50 countries including United Kingdom, United States, France,
and Germany with a worldwide network of R&D, "innovation labs" and "delivery centers",
over 168,000 employees and its customers include 250 of the Fortune 500 and 650 of the
Global 2,000 companies.
Sector: Information Technology (IT)
Stock price (as on 11th August): Rs.1066.95
Stock price (as on 27th August): Rs.1162.95
Volume (as on 11th August): 5011239
Volume (as on 27th August): 3050466

ICICI BANK
ICICI Bank, a leading private sector bank in India, offers a wide range of banking products
and financial services for corporate and retail
customers through a variety of delivery channels and
specialized subsidiaries in the areas of investment
banking, life, non-life insurance, venture capital and asset
management.
Sector: Banking
Stock price (as on 11th August): Rs. 693.55
Stock price (as on 27th August): Rs. 699.75
Volume (as on 11th August): 9748084
Volume (as on 27th August): 9135827
 DATA METHODOLOGY

Time period taken for analysis: 11th August 2021 to 27th August 2021
Tool used: Excel 2019
Computation done for the following:

 Standard Deviation: The standard deviation is a measure of the amount of variation

or dispersion of a set of values. A low standard deviation indicates that the values
tend to be close to the mean (also called the expected value) of the set, while a high
standard deviation indicates that the values are spread out over a wider range.
√ Ʃ ( Xi− Xmean ) ÷ N
 Correlation: correlation is any statistical association, though it commonly refers to
the degree to which a pair of variables are linearly related. They are useful because
they can indicate a predictive relationship that can be exploited in practice.

 Market Beta: The beta (β) is a measure of how an individual asset moves (on

average) when the overall stock market increases or decreases. Thus, beta is a useful
measure of the contribution of an individual asset to the risk of the market portfolio
when it is added in small quantity.
(SDi×SDm×rim)/SDm2

 Portfolio Risk: Portfolio risk is a chance that the combination of assets or units,

within the investments that you own, fail to meet financial objectives. Each
investment within a portfolio carries its own risk, with higher potential return
typically meaning higher risk.
ƩRn×Wn
 Portfolio Return: Portfolio return refers to the gain or loss realized by an investment
portfolio containing several types of investments. Portfolio aim to deliver returns
based on the stated objectives of the investment strategy, as well as the risk
tolerance of the type of investors targeted by the portfolio.

√ ( W 1× σ 1 ) + (W 2 × σ 2 ) +(2× r 12× W 1 ×W 2 × σ 1 × σ 2)
2 2

 Portfolio Beta: Portfolio beta is a measure of the overall systematic risk of a

portfolio of investments. It equals the weighted-average of the beta coefficient of all
the individual stocks in a portfolio.
Ʃ WN×β N
 RESULT AND DISCUSSION

Why I chose Dabur?

 Dabur is the It is the best Ayurveda company in the world and due to covid people are
more declined to Ayurveda products.
 Exponential growth in Chyawanprash & Honey
 Over the last one year, DABUR share price has moved up around 14.5%.
 Fresh record high on robust growth outlook.
 Outperformed Nifty FMCG in the past one month, by rallying nearly 9 per cent.

Why I chose Bajaj Auto?

 The company is building its EV capability which makes them a very good stock for
long term investment.
 Their total volumes to rise at a strong 16% CAGR in FY21-23E
 They have Second highest exports in India (~Rs40bn)
 BAL continues to play by its strength in exports market while improving margins
through levers of product mix and pricing.
 Recent reason to fall: facing supply-side issues due to semiconductor shortages.

Why I chose HCL Technologies?

 HCL is third largest IT Company in India.
 It is a fundamentally strong stock, with an outstanding track record and excellent
dividend paying record.
 HCL expects to grow in double digits in constant currency for FY22.
 The acceleration in digital technologies will drive revenue growth of IT companies.
 The company won 19 transformational deals across industry verticals.
Why I chose Havells?
 Increased penetration in the smaller towns and rural India help drive demand of
consumer goods.
 The unorganized players have had significant hit due to supply chain disruption
(import restrictions from China). This has helped company to gain market share.
 Strong recovery in the real estate segment help drive demand of industrial and
consumer.

Why I chose ICICI Bank?

 One of the leading private banks in India.
 Strong bullish momentum
 Core operating profit grew by 16.9% in fiscal 2021
 Biggest holding for domestic mutual funds.
 ICICI Bank has also decisively moved ahead of HDFC Bank in terms of percentage of
equity assets under management.

NET PORTFOLIO RETURNS

The highest return I got is from HCL (9%) then from DABUR (5.85%) followed by ICICI
BANK (0.89%) and got the lowest returns from BAJAJ AUTO (-0.74%) and HAVELLS
(-0.14%).
 CALCULATIONS & ANALYSIS

The Standard Deviation of BAJAJ AUTO is highest which depicts the high volatility of this
stock whereas ICICI bank having the lowest Standard Deviation among these depict that it
has low volatility.

Three stocks i.e. (HCL, DABUR, ICICI) have positive correlation with market which
depict that both the variables move in the same direction. An increase in market leads to an
increase in the stocks respectively and vice versa.

Two stocks i.e. (HAVELLS, BAJAJ AUTO) have negative correlation with market which
depict that both the variables move in opposite directions. An increase in market leads to a

decrease in the stocks respectively and vice versa.

Its always better to have stocks with both positive and negative correlation in the portfolio to
hedge our risk.

Portfolio beta is 0.07 which is less than 1 means it is less risky investment indicates this
portfolio has lower volatility. Low-beta stocks pose less risk but also lower returns.

Portfolio risk is 12.81% which clearly predict it as less risky investment but also lower level
of returns.

Portfolio return is highest for HCL and lowest for BAJAJ AUTO giving an overall expected
return of 3.98% which is a good return with low amount of risk.
 CONCLUSION

HCL got highest return (3%) in the portfolio

 Reason: Due to corona there is an acceleration in digital technologies which will

drive the revenue growth of IT companies.
BAJAJ AUTO contributed the lowest return (-0.12%) in the portfolio

 Reason: There is recent fall in their stock price as they are facing supply-side issues
due to semiconductor shortages because of import restriction from China.

LEARNINGS

I haven’t done trading before so for me it’s a very informative and good project as I got the
opportunity to monitor the market from very closely.

Since the virtual platform is connected to the markets in real time so we get the first-hand
experience of how the market functions at different stages. As I was trading, I got to see the
complete analysis of my investments as I would get to see in real-time.
 BIBLOGRAPHY

https://finance.yahoo.com/quote/HAVELLS.NS/history?p=HAVELLS.NS

https://finance.yahoo.com/quote/HCLTECH.NS/history/

https://finance.yahoo.com/quote/DABUR.NS/history/

https://finance.yahoo.com/quote/BAJAJ-AUTO.NS/history/

https://finance.yahoo.com/quote/ICICIBANK.NS/history/