PROJECT REPORT

ON

“STUDY ON PORTFOLIO MANAGEMENT AND ITS IMPACT ON

PROFITABILITY LEVEL WITH RESPECT TO PL SECURITIES”

BY

VENKATESH P.G

USN

1NH20BA166

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES NEW HORIZON COLLEGE OF

ENGINEERING,OUTER RING ROAD, MARATHALLI, BENGALURU

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Mrs. JAYASHREE N

ASSISTANT PROFESSOR

2020- 2022
 CERTIFICATE

This is to certify that VENKATESH P.G bearing USN - 1NH20BA166, is a

bonafide student of Master of Business Administration course of the Institute
2020-22, autonomous program, affiliated to Visvesvaraya Technological
University, Belgaum. The project report on “A STUDY ON PORTFOLIO
MANAGEMENT AND ITS IMPACT ON PROFITABILITY LEVEL
WITH RESPECT TO PL SECURITIES” is prepared by her under the
guidance of Mrs. Jayashree N Assistant Professor, in partial fulfilment of
requirements for the award of the degree of Master of Business Administration of
Visvesvaraya Technological University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Signature of principal

Name of the Examiners with affiliation Signature with date

1. External Examiner

2. Internal Examiner
 DECLARATION

I, VENKATESH P.G hereby declare that the project report on “A STUDY ON

PORTFOLLIO MANAGEMENT AND ITS IMPACT ON

PROFITABILITY LEVEL WITH RESPECT TO PL SECURITIES” is
prepared by me under the guidance of Asst Prof. JAYASHREE N, faculty of
M.B.A Department, New Horizon College of Engineering.

I also declare that this project report is towards the partial fulfilment of the
university regulations for the award of the degree of Master of Business
Administration by Visvesvaraya Technological University, Belgaum.

I have undergone an industry project for a period of Eight weeks. I further

declare that this report is based on the original study undertaken by me and has
not been submitted for the award of a degree/diploma from any other University
/ Institution.

Signature of Student

Place:
Date:
 ACKNOWLEDGEMENT

The successful completion of the project would not have been possible
without the guidance and support of many people.

I am thankful to my internal guide Asst prof. JAYASHREE N, for his/her

constant support and inspiration throughout the project and invaluable
suggestions, guidance and also for providing valuable information.

Finally, I express my gratitude towards my parents and family for their

continuous support during the study.

VENKATESH P.G
1NH20BA166

TABLE OF CONTENT
P a g e 5 | 66
SL. NUMBER CONTENTS PAGE NUMBERS

1 Executive summary

Chapter 1- Theoretical Background of The 9-18

2
Study

19-21
3 Chapter 2- Industry Profile &
Company Profile
22-37
4 Chapter 3- Research Methodology

38-44
5 Chapter 4- Data Analysis and Interpretation

45-60

6 Chapter 5 - Summary of Findings,

Suggestion and Conclusion

61-64
7 Bibliography

65-67
8 Annexure

P a g e 6 | 66
 CHAPTER- 1
INTRODUCTION

1.1 INTRODUCTION
Individual assets or securities are associated with the characteristics of risk and
return depending on their own portfolio. Portfolio means union or combination of
securities which may or may not take the characteristics of their individualities.
Analysis of portfolio depends upon the measurement of risk involved in holding
different securities. So it is important for any investor to have an optimal return
with risk involved and a proper blend of securities.

The company in which internship carried out was PL Securities

Ltd. located inBangalore which is a stock broking company with its Main branch
in Mumbai The services provided by the firm involves Equity Broking in cash and
derivatives, online based trading. De- mat services, Debt money market broking
currency, life insurance merchant broking, distribution of other services and
commodity trading.

1.2 PORTFOLIO MANAGEMENT

A portfolio is a combination of investment avenues. An investor usually maintains
a portfolio. The aim of managing a portfolio is to diversify and reduce risk and
take full advantage of return. Portfolio analysis considers the determination of
future risk and return in holding various blend of individuals securities.
A portfolio is a combination of investment avenues. An investor usually maintains
a portfolio. The aim of managing a portfolio is to diversify and reduce risk and
take full advantage of return, which is also otherwise known as „not placing all
your eggs in a single basket‟.

1.1.1 MEANING

Is the process practices and specific activities to perform continuously and

P a g e 7 | 66
 consistent evaluation, prioritization, budgeting, and to conclude selection of
investments that provide the greatest value and influence to the strategic notice of
the investor.

Figure1.1 Portfolio Management

The portfolio of few High Network Individual (HNI) has been evaluated and on
the basis of that various investment options open for these customers through the
securities has been suggested. Each customer has a limit of risk he she can
undertake. This is also been observed into and under the limitations, which are the
best options available has been advised.

1.2 RISK

Risk is a concept that denotes a potential negative impact to an asset or some

characteristics of value that may arise from some present process or future event.
In everyday usage, risk is often used synonymously with the probability of a
known loss. Risk is uncertainty of the income capital appreciation or loss of the
both.

The total risk of an individual security comprises two components, the market
related risk called Systematic Risk also known as diversifiable risk and the unique
risk of that particular security called Unsystematic Risk or diversifiable risk.

P a g e 8 | 66
1.2 TYPES OF RISK
Modern portfolio theory looks at risk of a different perspective. It divides Total
risk as follows, Total Risk-Unique Risk-Market Risk.

Figure 1.2 Relationship between diversification and Risk

Risk of a security represents that portion of is total risk which stems from firm
specific factors like the development of a new product, a labor strike, or the
emergence of a new competitor, Events of this nature primarily affect the specific
firm and not all firms in general. Hence, the unique risk of a stock can be washed
away by combining it with other stocks. In a diversified portfolio, unique risks of
different stocks tend to cancel each other a favorable development in one firm
may offset an adverse happening in another and vice versa. Hence, unique is also
referred to as diversifiable risk or unsystematic risk.

The Market Risk of a security represents that portion of its risk which is
attributable to economy-wide factors like the growth rate of GDP, the level of
government spending, money supply, interest rate structure, and inflation rate.

P a g e 9 | 66
1.3 INVESTMENT
Investment may be defined as an activity that commits funds in any financial form
in the present with an expectation of receiving additional return in the future. The
expectations bring with it a probability that the quantum of return may vary from a
minimum to a maximum. This possibility of variation in the actual return is known
as investment risk. Thus every investment involves a return and risk.

The three important characteristics of any financial assets are: Return the potential
return possible from an asset
• Return the potential return possible from an asset
• Risk - the variability in returns of the asset from the chances of its value going
down/up.
• Liquidity - the case with which an asset can be converted into cash.

1.4 ELEMENTS OF INVESTMENTS

The Elements of Investments are as follows:

Retur
n

Tax Ris
avi
s
n k

liquidit Tim
y e

Figure 1.3 The Elements of Investment

P a g e 10 | 66
a) Risk:
Risk is the chance of loss due to variability of returns on an investment. In case of
every investment, there is a chance of loss. It may be loss of interest, dividend or
principal amount of investment. However, risk and return are inseparable.

b) Time:

Time is an important factor in investment. It offers several different courses of

action. Time period depends on the attitude of the investor who follows a „buy
and hold‟ policy. As time moves on, analysis believes that conditions may change
and investors may revaluate expected returns and risk for each investment.

c) Liquidity:
Liquidity is also important factor to be considered while making an investment.
Liquidity refers to the ability of an investment to be converted into cash as and
when required. The investor wants his money back any time. Therefore, the
investment should provide liquidity to the investor.
d) Tax Saving:
The investors should get the benefit of tax exemption from the investments. There
are certain investments which provide tax exemption to the investor. The tax
saving investments increases the return on investment. Therefore, the investors
should also think of saving income tax and invest money in order to maximize the
return on investment.

1.4 DEFINITION OF PORTFOLIO

Rule 2, clause (d) of the SEBI (portfolio managers) Rules, 1993 defines the term
“Portfolio” as “total holding of securities belonging to any person

1.4 MEANING OF PORTFOLIO

Portfolio is the collection of securities may be financial or real assets such as
equity shares. Debentures, Bonds. Treasury bills and property etc. Portfolio is a
combination of assets or it consists of collection of securities.
1.5 TYPES OF PORTFOLIO

When it comes to investing there are many options available to individuals. A

person can invest in stocks, bonds, mutual funds, etc. Once a person invests in
multiple products their performance needs to be tracked and strategies made to
ensure the investor reaps the most profit possible. This is where the investment
portfolio comes into play.

AGGRESSIVE
INVESTMENT
PORTFOLIO

BALANCED OR
INVESTMENT
PORTFOLIO

CONSERVATIVE
INVESTMENT
PORTFOLIO

Figure 1.4 Types of Portfolio

Aggressive Investment Portfolio

In general, aggressive investment strategies - those that shoot for the highest
possible return - are most appropriate for investors who, for the sake of this
Aggressive portfolios generally have a higher investment in equities. Aggressive
investment portfolios are for investors not afraid of high risk.

Balanced or Moderate Investment Portfolio

A moderately aggressive portfolio is meant for individuals with a longer time
horizon and an average risk tolerance. Investors who find these types of portfolios
attractive are seeking to balance the amount of risk and return contained within
the fund.
 Conservative Investment Portfolio
The conservative investment strategies, which put safety at a high priority, are
most appropriate for investors who are risk averse and have a shorter time horizon.
Conservative portfolios will generally consist mainly of cash and cash
equivalents, or high-quality fixed-income instruments.

1.6 OBJECTIVES OF PORTFOLIO MANAGEMENT

The basic objective of Portfolio Management is to
maximize yield and minimize risk. The other objectives are as follows:

a) Stability of Income: All investor considers stability of income from his

investment. He also considers the stability of purchasing power of income.
b) Capital : Capital appreciation has become an important investment principle.
Investors seek growth stocks which provide a very Large capital appreciation
by way of rights, bonus and appreciation in the market price of a share.
c) Liquidity: An investment is a liquid asset. It can be converted into cash with
the help stock exchange. Investment should be Liquid as well as marketable
.The portfolio should contain a planned proportion of high-grade and readily
saleable investment.
d) Safety: safety means protection for investment against loss under reasonably
variations. In order to provide safety.

e) Tax Incentives: Investors try to minimize their tax liabilities from the
investments. The portfolio manager has to keep a list of such investment
avenues along with the return risk profile tax implications yields and other
returns.

1.7 PROCESS OF PORTFOLIO MANAGEMENT

The Portfolio Program and Asset Management Program both follow a disciplined
process to establish and monitor an optimal investment mix. This six-stage
process helps ensure that the investments match investor’s unique needs, both now
and in the future.

 Identify goals and objectives: When will you need the money from your
 investments? What are you saving your money for? With the assistance of
financial advisor, the Investment Profile Questionnaire will guide through a
series of questions to help identify the goals and objectives for the
investments.
 Determine optimal investment mix: Once the Investment Profile
Questionnaire is completed, investor’s optimal investment mix or asset
allocation will be determined. An asset allocation represents the mix of
investments (cash, fixed income and equities) that match individual risk and
return needs.

 Create a customized investment policy statement: When the optimal

investment mix is determined, the next step is to formalize our goals and
objectives in order to utilize them as a benchmark to monitor progress and
future updates.
 Select investments: The customized portfolio is created using an allocation
of select QFM Funds. Each QFM Fund is designed to satisfy the requirements
of a specific asset class, and is selected in the necessary proportion to match
the optimal investment mix.
 Monitor progress: Building an optimal investment mix is only part of the
process. It is equally important to maintain the optimal mix when varying
market conditions cause investment mix to drift away from its target. 
 Reassess needs and goals: Just as markets shift, so do the goals and objectives
of investors. With the flexibility of the Portfolio Program and Asset
Management Program, when the investor’s needs or other life circumstances
change, the portfolio has the flexibility to accommodate such changes

1.8 GOALS OF PORTFOLIO MANAGEMENT
There are three goals of portfolio Management:
 Maximize the value of the portfolio
 Seek balance in the portfolio
 Keep portfolio projects strategically aligned.


1.9 QUALITIES FOR SUCCESSFUL INVESTING
The game of investment requires certain qualities and virtues on the part of the
investors, to be successful in the long run. The following qualities which are
mostly found are

• Contrary thinking

• Patience

• Composure

• Flexibility and openness

PROFIT MODEL
A profit model refers to a company’s plan that aims to make the business profitable
and viable. It lays out what the company plans to manufacture or provide, how
sales will be generated, and all the expenses that the business will incur in a bid
to make the model viable. Without a concrete profit model, the business will be
operating blindly and will be much less likely to become profitable.

Figure 1.5 Profit Models

1.10 TYPES OF PROFIT MODELS
There are various types of profit models, depending on the activities the company
performs and how it charges for such activities. The different profit models
include:

a) Production model
The production model involves the creation of a product or service for sale to
consumers. The company purchases raw materials for use in the production
process, then adds value to the product in order to obtain a finished product.

b) Rental/Leasing model
The rental/leasing model involves such things as renting or leasing of motor
vehicles, buildings, machinery and equipment, land, office furniture, and
computers.
c) Advertising model
The advertising model involves providing an advertising space that businesses can
use to promote their service and product offerings. An advertising model is mainly
used by media companies that provide free information to the public and rely on
advertisements to generate revenue.
d) Commission model
The commission model generates revenues by charging a fee when it offers a
service to another party. An example is a brokerage or an auctioneer that acts as
an intermediary between two parties. The intermediary then charges a commission
depending on the value of the transaction.
 CHAPTER 2

RESEARCH DESIGN

2.1 TITLE OF THE STUDY

“A STUDY ON PORTFOLIO MANAGEMENT WITH RESPECT TO PL
SECURITIES”

2.2 STATEMENT OF PROBLEM

PL securities, in its pursuit to establish itself as a leading securities in India, Is
conscious of the fact that other competitive stock brokers are very aggressive and
focused in offering structured portfolio management/ investment advisory services to
their clients as well as (High net worth individual) HNI clients:
The research conducted to determine the optimum portfolio level and it generally
gives an idea to the investor where to invest and which securities are better to gain
good returns at the best. Investor's decisions merely depends upon return as they
can't depend on random investment in order to avoid risk i.e. Investor's can
achieve less risk affiliated securities or a portfolio.

2.3 OBJECTIVES OF THE STUDY

• To do a detailed analysis of the characteristics of portfolio related to

profitability ofdifferent investors
• To help the investors to decide the effective portfolio of securities.
• To identify the best Portfolio of security.

2.4 SCOPE OF THE STUDY

The study will give a brief information about portfolios and portfolio management.
It helps in Monitoring the performance of portfolio by incorporating the latest market
conditions and identification of the investors objective,

3
constraints and preferences. Making an evaluation of portfolio income and
revision in the portfolio.

2.4 HYPOTHESIS
Ho: Investments decisions does not have significant impact on profitability levels

H1 : Investments decisions have significant impact on profitability levels.

• Independent variable: portfolio management

• Dependent variable: profitability levels

2.5 OPERATIONAL DEFINITION OF CONCEPT

Portfolio management can be defined and used in many a way, because the
basic meaning of the word is “combination of the various things keeping intact”.
Portfolio management is the selection, prioritization and control of an
organization’s programmers and projects, in line with its strategic objectives and
capacity to deliver. The goal is to balance the implementation of change
initiatives and the maintenance of business- as-usual, while optimizing return on
investment.

Many successful organizations today attest to the idea that the management of
multiple projects increases efficiency and effectiveness thereby improving
organizational performance. Essentially, portfolio management invests in the
different components in a way that leads to the actualization of the objectives of
profit maximization. The efficiency of the investment is measured in terms of the
returns from the investment made on the projects. The return from the different
portfolios thus has an impact on the profitability levels.

2.6 SAMPLING
The sampling method was adopted in this project is Convenient sampling.
Samples are collected from the Reports with PL securities.

4
2.7 METHODOLOGY
In depth analysis of all investment opportunities (instruments) that PL security offers
to Their Individual clients. Also a sample study has been conducted on Individuals
of the securities to understand their individual risk appetite and investment
preferences. A comparison study of investment instruments offered by PL
securities with that of other competitive stock broking firms.

2.8 DATA COLLECTION METHODS

Both primary and secondary sources are used in this research.

• Primary sources: This include observations, interviews and discussions

with theManager and the employees
• Secondary sources: This data include data from journals, articles, the official
websiteand other concerned websites

2.9 PLAN OF ANALYSIS

The data analysis was done by the use of primary sources like observation and
direct interviews. It used secondary data from websites and journal articles.

The data collected was compiled and analysed using MS Excel tools and the
conclusion was drawn after interpreting the data in tabular and graphical form.

2.10 LIMITATIONS
• The data is collected only on questionnaire method
• Time perspective to complete the project is another constraint of the
study
Study is confined furthermore especially organizations from NSE are chosen and
not just others like BSE SENSEX and so forth.

5
 CHAPTER 3
COMPANY PROFILE

3.1 INTRODUCTION
PL Securities (ISO 9002 guaranteed) is a multi-dimensional cash related
organizations group in the field of qualities markets, commitment markets,
corporate record, theory keeping cash, merchant sparing cash, wealth organization
and things, k started as one of India's first securities agent houses in 1948.It is a
non-keeping cash reserve association selected with RBI and a recorded open
confined association having a net worth of Rs 142 crore as on FY 10.

Figure 3.1 Logo of PL securities

It is recorded on the BSE (Bombay Stock Exchange), the association has its home
office in Mumbai. Mr. Mahendra V. Doshi is the official director and is a promoter
of the association. The association has an arrangement of 414 outlets in 147 urban
groups in India with 67,500 customers enrolled in retail. It has tied up Bajaj-
Allianz one of the primary protection offices in India for dissemination of their
insurance things. In a 200 crore deal, PL Forex and Thomas Cook India joined for
the outside exchange space in India. The present business division capitalization
stays at Rs 90.75 crore The association has reported a set offers of Rs 20.04 crore
and a Net Profit of Rs 181 crore for the quarter completed June 2014.
PL securities started as one of India's first security brokerage house in 1948, today
it is one of the country's largest multi-dimensional financial services group. PL
Finance Limited is a Non-Banking Finance Company (NBFC) registered with
Reserve Bank of India (RBI) and a listed public limited company having a net -
worth of Rs. 160 crores as on FY IS.
They are India's first financial group to be awarded the prestigious ISO 9002
certified KPMG Quality Registrar, USA, for certain business Since 1948, PL
continues to provide clients with a single source capable of meeting all their needs
-be in Equity markets. Debt markets, Corporate Finance, Investment Banking.
Merchant Banking, Wealth Management or Commodities

PL Securities Limited and its associates enjoy the following

registrations &memberships:
• Category I Merchant Bankers with SEBI
• Membership of NSE & BSE (Capital & Debt Market)
• AMFI registered all India Mutual Fund Distributors
• Member of Commodity exchange MCX, NCDEX and DGCX (Dubai)
• Member of NSE for Interest Rate Futures
• Member of MCX Sensex and NSE currency

3.2 HISTORY
❖ Seven decades of powering financial growth
In 1944, Mr. Prabhudas Lilladher Sheth registered a stock broking company In
India with a vision of rising up to become India's leading financial services
provider. It has been a long journey since. A journey of success, based on strong
adherence to ethics, uncompromising dedication to quality and an attitude of
excellence. Imbibed in our corporate culture, these founding principles have
guided us to reach the pinnacle that we are at today. Over the years, PL has
evolved from a standalone brokerage firm to a one-stop shop to companies for all
financial services.

financial advisory services in the Institutional and Retail domain. Our range of
services includes Equity & Derivative Broking, Investment Banking, Corporate
Advisory, PMS, Online Trading, Loan against Shares, Mutual Funds, IPO's, Real
Estate, Home Loan & Loan Against property.

3.3 FOUNDATIONS & MILESTONES

In 71 years PL has seen a growth of 800 folds in terms of gross revenue and 35
folds in terms of man power.

1944 – 1970
• Registered as a partnership Stock Broking Firm in 1944
• Introduced Equities Arbitrage Business services
• Introduced Equity Stock Broking services

1970 – 1980
• Started first branch in Pune
• Became first to offer door step service
• Distribution of Initial Public Offering (IPO)
• Underwriting
• Team size increases to 25

1981 – 1990
• First Broker to be corporatized as a BSE Member
• First brokerage firm in India to computerize back office operations
• One of the leaders in Badla Finance for retail segment
• Institutional equities
• Badla Finance
• Team size increases to 60
 2001 – 2014
• Corporate Advisory business grew manifold within 3 years
• PMS - Corpus size grew multifold
• Rated amongst the best for our research by Institutional Investors
• Consistently rated amongst the best brokerage houses for its research by
Asiamoney Brokers Poll
• Corporate Advisory
• Investment Banking
• Margin Funding through NBFC
• Portfolio Management Services (PMS)
• Online Trading
• Currency
• Commodity
• Team size: 350+

3.4 VISION
“To be India's leading and most preferred financial services organisation built on
ethical practices and integrity’.

3.5 VALUES

Figure 3.2 values

It is with our years of experience and knowledge about the category that we have
been able to distinguish what will work and what may not. It is this ability and our
perspective that our clients value us for. We believe our wealth is in the people,
the knowledge and the experience. What we share is our wisdom to ‘power our
clients financial growth’
• Expertise
The level of involvement in financials decisions is very high across the board. The
dependability factor becomes the crucial differentiator. At PL we continuously
invest in building people competencies by enhancing their knowledge and the skill
sets. We invest in research to enable us to offer the experts advice to our clients.

• Integrity

At PL Group, integrity is the key to the way we work, interact and deliver.
Adherence to ethical practices and integrity takes precedence over all other
considerations. This has enabled us to earn trust and commitment from our clients
and employees alike.

• Responsiveness

Being responsive to client needs and changing market dynamics is at the core of
all we do at PL. Being responsive means that we are sensitive to needs, flexible
and agile in transforming and adapting to any evolving challenge or scenario. This
value is critical to keeping our clients and us ahead and abreast in the financial
market.

• Enterprising

At PL, we are driven by an entreprenuerial spirit that's focussed on growth and

advancement. Our enterprising attitude translates into adaptation of new
technologies, methodologies and newer ways to reach our clients or enhance their
experience. Entrepreneurial spirit is at the heart of our progress.

• Ambitious

Ambition drives growth and urges to set higher goals every time. It is the
cornerstone of building a progressive futuristic organisation built on the pride of
delivering perfection and aiming excellence in all endeavours. Ambition drives
people to give their best and also builds pride of association in clients.
3.6 CORPORATE STRUCTURE
With its various Group Companies, the PL Group is committed to offering
products and services that drive growth and help meet various financial objectives
of institutions and individuals based on a deep understanding of their unique
potential and aptitude. In its endeavor of making progress and taking ahead, PL
abides by the principle of inclusiveness and mutual growth.

Corporate Structure:

Prabhudas Lilladher Advisory Services Pvt. Ltd. (Holding Co & Corporate

Advisory Services)
Prabhudas Lilladher Pvt. Ltd. (Broking;DP, PMS & Third Party Product
Distribution)
PL Capital Markets Pvt. Ltd. (Investment Banking)
Prabhudas Lilladher Financial Services Pvt. Ltd. (Margin Funding)
PL Fund Advisors Pvt. Ltd. (Debt Syndication):
PL Distribution Company Pvt. Ltd. (distribution of third party financial
products and channel partner for real estate)
PL Commodity Markets Pvt. Ltd. (Commodity Broking)
PL Insurance Broking Services Pvt. Ltd.

Business Verticals
• Equity Trading
• Derivative Trading
• Commodity Broking
• Currency Trading
• Corporate Advisory
• Investment Banking
• Portfolio Management Services
• Online Trading
• NRI Services
• Investment in IPOs
• Margin Funding
3.7 THE PL EDGE
Research Desk
PL's research is known to be the best in the Indian financial industry. The
Research Desk is comprised of dedicated teams for technical and fundamental
research, conducting painstaking research to beat the market time and again. The
lab has internally developed analytical tools and models that have consistently
provided clients an edge over the market. The findings of the research team take
shape in the form of our various daily, monthly and quarterly; fundamental &
technical research reports.

Customer Connect Cell

The PL Customer Connect Cell is a 24x7, one stop place for clients to address all
operational issues. It has been set up with the aim of streamlining all our processes
and to ensure that we satisfy all the requirements of our clients.

Multiple Trading Modes

• Offline Trading: PL offers trading through its widespread network of
franchisees and partners across the length and breadth of the country. A
dedicated advisory desk is constantly involved in addressing clients' queries
pertaining to the entire gamut products and solutions that we offer. This is
backed by state-of-the-art technological infrastructure at all our branches.

• Online Trading: A complete platform offering online trading in Equity,

Derivatives,Commodity,Currency,Mutual Fund's & IPO's, ready with various
tools that empower you to closely monitor your financial growth.
• Mobile Trading: PL offers its customers the convenience of mobile trading
which allows you to take decisions on buying and selling of your equity on the
move. It offers a host of other features like instant access to Net Position
report, Live Advice and Top Gainers/Losers. You can also synchronise your
transactions with other media like Web, Desktop, CNT, etc.
 1

Industry Experts
All of PL's offerings are initiated, conceptualized and executed by an experienced
and dedicated team of experts. This team is comprised of professionals that come
from diverse financial backgrounds and are continuously striving to power the
clients' financial growth.

Cutting Edge Technology

All of PL's offerings and operations are backed by its excellent technical
infrastructure which is the best in the industry - ensuring speed, accuracy, security
and 24x7 service and support to clients.

3.8 KEY ACHIEVEMENTS

➢ Ranked No. 2 Arranger by Prime League Tables for the placement of short
term debts, Commercial Paper (CP) and Ranked No. 11 for placements of
Long term Debts.
➢ One of the top two intermediaries for secondary market trades on Wholesale
Debt Market segment of NSE & BSE
➢ On Panel list is decorated with almost all the prominent Banks, Institutions,
Primary Dealers, Mutual Funds, PSU, Insurance Companies, PF/ Pension
Trusts and Corporates.
➢ In the year 2008 09 PL achieved tremendous success with the completion of
primary placement of CP's, NCD's and CD's of about Rs. 480 Billion and of
Rs. 980 Billion in Financial Year 2009 - 10 and achieved a turnoverof about
Rs. 800 Billion in secondary debt market during FY 2008-09 and Rs. 1748
Billion in FY 2009-10
➢ FY 2008-09 is marked with Fertilizer Bonds worth Rs. 55 Billion being
placed for various fertilizer companies
➢ In the FY 2008-09 acted as an Arranger for private placement for longterm
bond issues aggregating to Rs. 123 Billion and of Rs. 236 Billion during FY
2009 10.
3.9 STRUCTURED PRODUCTS
Prabhudas Lilladher offers services in distribution of a variety of structured
products with unique risk to rewards equations that help meet financial objectives.
These offerings are customized to suit individual investment objectives and risk
appetite.
Strengths
• Professional team to advise clients on the best structure based on their risk
profile
• Recommendations made to clients' only after detailed analysis of the product
• Access to all major Structured Products available in market

Advantages
• Principal protection
• Return linked to Equity without risk on principal
• Flexible structure customized to suit the tenure and risk-reward profile

3.10 PROVIDENT FUNDS ADVISORY & INVESTMENTS

The market is as complex and difficult as it is tempting. They do believe every
investor has a right to make most of his money. As a result:

• PL's PF desk provides yeoman services by extending profitable opportunities

and carefully executing trades for Provident Funds. Pension Funds, Gratuity
Fund, Retirement benefit of corporates, PSUs and State Undertakings.
• They are on the panel of almost 200 PF/ Pension Trust across India.
• Our PAN India footprint with 450 branches in 147 cities facilitates effectively
servicing this set of clients who spread across India.
• Our Solid foundation and our strong balance sheet provide just added degree
of security and stability to these clients
3.10.1 LOAN SYNDICATION & SECURITIZATION
• Loan Syndication and Securitization markets have traditionally been the core
sectors of the Investment Bankers in India.
• PL has ventured into this and is determined to make a mark in this sector.
• PL will leverage its deep rooted experience and vast presence in debt market
to become most cost effective service provider in this segment.
• Our PAN India footprint with 450 branches in 147 cities facilitates effectively
servicing this set of clients who spread across India.

EQUITY & DERIVATIVES

Shares are the most common and well known form of investment in the world. In
simple terms, buying stocks (or Equity) gives you part ownership or a share' in a
business. Investing in shares or the stock market is inarguably the best route to
long term wealth accumulation. However, it can also be a very risky proposition
due to high risk-return trade-off prevalent in the stock market. Hence, it is more
appropriate to take help of an experienced and trustworthy expert who will guide
you as to when, where and how to invest

One of our important goals is to simplify investing for you and providelong term
values to our customers, with suitable trading solutions

• Online Trading
• Online Research
• Real Time Equity and F&O quotes
• Intraday calls & News flash
• Intra-Day & Historical charts with Technical tools
• Wealth tracker

• DP Services
• Electronic Contract
• PL Boss E-Broking & back office software
• Live Stock SMS Alerts
• IPO (New) Distribution
• Life Insurance Distribution
3.10.2 QUALITY RESEARCH

Wide range of Daily, weekly and special Research reports with in-depth
analysis on markets. We have wide array of products including Technical,
Fundamental, Derivatives, Macroeconomic and Mutual Fund research
undertaken by Expert Sector analysis with Professional industry experience.

3.10.3 MUTUAL FUND ADVISORY SERVICES

PL investment Advisory Services offer tailor-made wealth management services
to retail, High Net worth Individuals, Corporate Clients. We strongly believe that
Investment Planning is the stepping stone to achieve one's financial aspirations.
Our In-house research provides unbiased and independent advice.

• Our Services include

• Distribution
• IPO Note
• Recommendations
• Pre- printed Public issue forms
• IPO Financing from other NBFC (High Net worth Segment)
• Subscription figures on a daily basis
• Basis of Allotment
• Listing Date via SMS & E-mails

The success in IPOs has been a result of our vast experience in the primary
market, a wide network of over 8000 sub-brokers across India, strong
distribution capabilities and a dedicated research team that provides clients
with in-depth overviews of forthcoming IPOs as well as tailor-made
investment recommendations: On the other hand PL's retail & non -
institutional procurement strength and strong relationship with all prominent
merchant bankers, enable us to play a leading role in the issues handled by them.
3.10.4 INSURANCE

PL Holdings in its innovative move to provide complete range of financial

planning and investment solutions to its privilege customers has tied up with
various Life and Non-Life insurance companies to provide simple & flexible life
insurance products that not only provide security for family but also investment
and long term wealth creation. Avail all these Insurance Services through our
trained and certified Professional consultants

3.10.5 NON-LIFE INSURANCE

They offer wide range of Non-Life Insurance product (General insurance), which
is designed to protect policy holder from Loss or Damage caused by Specific
event.

KEY GENERAL INSURANCE PRODUCT FOR PL CLIENTS

3.10.6
HEALTH INSURANCE:

A comprehensive health insurance package designed to offer completeprotection

to the insured and his family. MOTOR INSURANCE: A comprehensive motor
car insurance package, designed to cover your car in most adverse situation.

• TRAVEL INSURANCE: It is designed to help you deal with unforeseen

situations which may occur during one's overseas business or leisure travel
• ASSET INSURANCE: provides complete coverage for damage to your
property like Home Shop, Building, etc

3.11 COMMODITIES

ALPHA COMMODITIES

A Sister concern of the renowned and trusted PL group. Alpha commodities

offers a complete bouquet of client-friendly services in the increasing
Commodity futures Market, Globally, trading in Commodity Futures far
exceeds that of equity and Equity Derivatives. Keeping in step with the times,
Alpha Commodities have started providing facilities to clients to deal. Invest,
or hedge in Commodity Futures. Alpha Commodity Exchange Pvt. Ltd. is a
member on both the MCX & NCDEX Futures trading in commodities results
in transparent and fair price discovery on account of large-scale participation
of entities associated with different value chains.

3.12 DEPOSITORY
PL's Depository services offers dematerialization services to individual and
corporate investors as a Depository Participant with the Central Depository
Services (India) Limited (CDSL).
With a highly experienced team of professionals, backed with cultured
technical support, and a national network off franchisees, we ensure quality
and convenience in our service.
PL online depository services offer you a paperless and cost effective way to
bold your investments, not to forget the elimination of handling physical
documents. We understand that security is the utmost importance and
therefore we have invested in various safety measures and protocols that
ensure your De-mat account is secure and every transaction is executed only
after its authenticity is established.
The various services provided by PL securities are:

• Dematerialization of Shares
• Rematerialization of Shares
• Pledging of Shares
• Maintenance of Beneficial Holdings
• Electronic Credit against Corporate Actions
• SMS alert on all Transactions Currency Derivative Segment
3.13 SWOT ANALYSIS
SWOT analysis refers to the strengths, weakness opportunities and threats.

It is generally a compound of two factors namely external and internal factors.

Generally strengths and weaknesses are referred to internal factors and can be
controlled by technical und various departments. Likewise opportunities and
threats are external factors which cannot be controlled by the company such as
political factors, technical factors and other competitors etc.

3.14 STRENGTHS:
• Company gives a predominant client administration,
• PL‟s having a creative scope of budgetary items.
• PL is known for straightforward working,
• Emphasis on building more grounded bond with clients by an organization
• Company with all around broadened portfolio

WEAKNESS:
• PL's having limited sales executives
• Low advertisements from the company

OPPORTUNITIES:
• Growing consumer awareness about equity related product
• Positive outlook of people towards financial products
• Growing rural market is the best opportunity for the company

THREATS:
• Uncertainty of the market volatility and fluctuations in the stock prices
• Threat from new entrants into the field of stock broking
• Stringent economic measures by Government and RBI

3.15 COMPETITORS INFORMATION

✓ Sharekhan Ltd.
✓ ICICI Securities Ltd.
✓ Kotak Securities Ltd.
✓ Indiabulls Financial Services Ltd.
✓ India infoline
✓ Motilal Oswal Securities
✓ Karvy Securities
✓ HDFC Securities

3.16 CSR ACTIVITIES

• Eradicating hunger, poverty and malnutrition, promoting preventive health

care and sanitation including the contribution to Swach Bharat
• Kosh set-up by the Central Government for the promotion of Sanitation” and
making available safe drinking water;
• Promoting education, including special education and employment enhancing
vocation skills especiall y among children, women, elderly, and the differently
abled and livelihood enhancement projects
• Rural development projects
 CHAPTER 4
DATA INTERPRETATION

4.1 MEANING OF DATA ANALYSIS

It is a process of inspecting, cleansing, transforming, and modeling data with

the goal discovering useful information, suggestion conclusion and
supporting decision making.

Once the data has been processed and analysed, the final step required in the
research process is interpretation of the data. The line between analysis and
interpretation is very thin. Through interpretation one understands what the
given research findings really mean and what is the underlying generalization
which is manifested thought the data collected. This can be descriptive or
analytical or theoretical. The data is interpreted from the point of the research
questions and hypothesis is tested. While interpretation is being done,
generalizations are drawn. Thus, interpretation consists of conclusions that the
researcher has reached after the data has been processed and analyzed.

4.2 MEANING OF INTERPRETATION

It refers to the comparison of various component and definite conclusion may
be drawn about the earning capacity, efficiency, profitability. liquidity,
solvency, trend etc. Comparison is very essential for meaningful interpretation

4.3 DATA ANALYSIS & INTERPRETATION

From the primary data collected from the clients of PL securities the following

To do a detailed analysis of the characteristics of portfolio related to

profitability of different investors
TABLE.4.1
SHOWING THE AGE GROUP,QUALIFICATION AND ANNUAL
INCOME

Age Percentage Qualification Percentage Annual Percentage

income
100000 -
18-25 20% Graduate 60% 30%
500000
Post 500000 –
25-40 50% 27% 20%
Graduate 1000000
1000000
40 30% Professional 13% 50%
Above Above

ANALYSIS:

From the above table we can see that 20% of respondents are within the age group
of 18-25 and 50% of the respondents are between 25-40. Above-40 of the
respondents are above 30%. we can see that 60% of respondents Belong to
Graduate group, around 27% of respondents belong to Post Graduate Group. And
13% of respondents belong to Professional group. From the above table we can
see that 30% of respondents Belong to Annual Income of Rs1,00,000- Rs5,00,000
group, around 20% of respondents belong to Rs 5,00,000- Rs 10,00,000 Group.
And 50% of respondents belong to above 1000000 groups.
GRAPH.4.1
SHOWING THE AGE GROUP, QUALIFICATION AND ANNUAL INCOME
OF RESPONDENTS.

Graph Compared with Age, Qualification &

Income

27%, 500000-1000000

INTERPRETATION:
The above graph shows the age group respondents which they belong to 18-25
working class people, 25-40 respondents are in mixed class of people self-
employed, salaried etc., and age group of 40above are mostly retired respondents.
Qualification of respondents is 60% of graduates, and 27% of respondents belong
to post graduate group, finally 13% of the respondents are professional.

The annual income of the respondents, about 30% of respondents belong to

100000 500000 group as they are salaried and working employees, 20% of
respondents belong 500000-1000000 group in which they are self employed,
employers etc., around 50% of respondents are retired and High net worth
individuals. Investing more on their portfolio.
TABLE 4.2
SHOWING THE LOCATION OF CLIENTS PORTFOLIO WITH RESPECT TO
STOCK

Portfolio Allocation Percentage %

SF/FD 26%
Mutual 40%
Fund/Equities/Insurance
Bonds/Debentures 34%

ANALYSIS:
From the above table we can know that 26% of respondents invest in Cash/SB/FD
as one of their portfolio. 40% of respondents invest in Mutual
Fund/Equities/Insurance and 34% of respondents invest in Bonds/Debentures, as
their Portfolio Allocation. From the above table we can see that 53% of
respondents Prefer Return on Portfolio, and 40% of respondents prefer Correlation on
Security Return and 7% OF respondents belong to worldwide market indices

GRAPH 4.2
SHOWING THE LOCATION OF CLIENTS PORTFOLIO WITH RESPECT TO
STOCKS.

PERCENTAGE
INTERPRETATION

The above bar graph shows the investment portfolio of respondents made with
respect to PL. 26% of respondents like to have their portfolio included with cash
deposits, fixed deposits, saving sect as it would yield good returns with out any
risk. 40% of respondents would prefer investing in mutual fund, equities,
insurance. As it would yield more return and simultaneously have high risk
associated with it, and 34% of respondents would invest in bonds and insurance
which is good for return and associated with low risk.

TABLE 4.3
SHOWING THE FACTOR ASSOCIATED BEFORE INVESTING IN
PORTFOLIO

Portfolio Allocation Percentage %

Return on portfolio 53%

Correlation on security return 40%

Market indices 7%

ANALYSIS

From the above table we can see that 53% of respondents Prefer Return on
Portfolio, and 40% of respondents prefer Correlation on Security Return and 7%
OF respondents belong to Market indices Such as Nifty, Sensex etc.
GRAPH 4.3
SHOWING THE FACTOR ASSOCIATED BEFORE INVESTING IN
PORTFOLIO

GRAPH SHOWING THE FACTOR ASSOCIATED

BEFORE INVETSING IN PORTFOLIO

INTERPRETATION:

The purpose of formulating a portfolio is to high return, safety and security. In the
above bar graph 53% of respondents preferring return on their portfolio which
would a good decision for their investment. 40% are agreeing on security on their
return so that a backed up security for their future, 7% of the respondents prefer
world market indices as their investment information.

OBJECTIVE 2
To help the investors to decide the effective portfolio of securities
TABLE 4.4
SHOWING THE “Professional Portfolio managers manage risk more effectively
than others”
Professional Manager
Sl. No. Percentage
Manages Risk

1. Strongly Agree 17%

2. Agree 23%

3. Natural 10%

4. Disagree 30%

5. Strongly Disagree 20%

ANALYSIS:

From the above table we can see that 17% of respondents Strongly Agree,
23% of respondents Agree, 10% of respondents prefer Neutral, 30% OF
respondents Prefer Disagree, and 20% of respondents prefer Strongly
Disagree.
GRAPH 4.4
SHOWING THE "Professional Portfolio managers manage risk more effectively
than others"

Risk managed by Portfolio Manger

INTERPRETATION:

The above graph describes the risk managing ability by portfolio manager with
respondents point of view are, 17% of them do strongly agree and 23% do agree
to the point, 10% are at neutral stage. 30% of them disagree the point cause
portfolio managers concentrate on high return causing it taking high risk, 20% do
strongly disagree to the statement.
TABLE 4.5
SHOWING THE COMPRESSION OF PORTFOLIO GOALS PERIOD OF
RETURN RISK CAPACITY.

Goals of % Period of % Risk %

Portfolio Return Capacity
Minimization 50% Monthly 30% High 43%
of risk
Minimization 17% Half 40% Medium 30%
of loss Yearly
Stability in 33% Yearly 30% High 27%
returns

ANALYSIS:

From the above table we can see that 50% of respondents prefer Minimization of
Risk, around 17% of respondents choose Minimization of loss. And 33% of
respondents prefer stability in returns, From the above table we can see that 37%
of respondents prefer monthly Returns, around 13% of respondents choose Half
yearly Returns, And 50% of respondents prefer yearly Returns.
GRAPH 4.5
SHOWING THE COMPRESSION OF PORTFOLIO GOALS PERIOD OF
RETURN RISK CAPACITY.

Goals, Return & Risk Comparison Graph

INTERPRETATION:

The following graph shows the portfolio goals with respect maintaining the risk,
about 50% of respondents prefer minimization of risk and yield good return, 17%
of them prefer minimization of loss on their portfolio, 33% of respondents
considered stability in returns. For a particular period, we can see that 43% of
respondents prefer High Risk, around 30% of respondents choose Medium Risk,
And 27% of respondents prefer Low Risk cause of various factors associated with
it.
Gives a view on the return on investment of the respondents over a period of time.
About 37% of them prefer daily return as they indulge in day to day trading of
stock market, 13% respondents like to have return by avoiding the loss and risk
for monthly wise, 50% of it prefer yearly so that reduces risk yield more return.
OBJECTIVE 3
To identify the best Portfolio of security

TABLE 4.6
SHOWING THE MUTUAL FUND PORTFOLIO GOALS WHO INVEST THE
MOST IN?

Sl. No. Investment in Mutual Percentage

Fund

1 Equity Diversified 33%

2. Equity Tax Saving Scheme 40%

3. Industry Specific 27%

ANALYSIS:

From the above table we can see that 33% of respondents prefer Equity
diversified, around 40% of respondents choose Equity tax saving scheme, And
27% of respondents prefer industry specific

GRAPH 4.6
SHOWING SHOWING THE MUTUAL FUND PORTFOLIO GOALS WHO
INVEST THE MOST IN?
 Investments in mutual funds

INTERPRETATION:

The above bar graph shows the investment selection of mutual fund in
creating portfolio, order to have security out of which 33% in equity
diversified so that various stocks are invested, 40% of equity tax saving are
invested to avoid tax deduction at the time of their of filing IT returns, 27% of
them prefer industry specific for investment, their various scheme like SIP,
Growth Fund, Franklin mutual fund etc which yield constant return over a
period of time yearly.
TABLE 4.7
SHOWING THE PORTFOLIO SECTORS OF RESPONDENTS INVEST

Sl.No Sector Percentage

1. Small Cap 20%

2. Mid Cap 34%

3. Large Cap 23%

4. IPO 10%

5. Others 13%

ANALYSIS:

From the above table we can see that 20% of respondents prefer Small cap
companies, 34% of respondents choose Mid cap companies, And 23% of
respondents prefer Large cap companies, PL as a broker act on behalf of the clients
in investing in IPO through Banks is 10%, remaining respondents choose 13% for
others.
GRAPH 4.7
SHOWING THE PORTFOLIO GOALS OF RESPONDENTS IN
INVESTMENTS

PORTFOLIO GOALS

INTERPRETATION:

The above graph we can see that 20% of respondents prefer Small cap companies,
27% of respondents choose Mid cap companies, And 23% of respondents prefer
Large cap companies, remaining respondents choose 13% for others. Finally the
investment made by different respondents in order to obtain return on investment
as per there income and standard.
TABLE 4.8
SHOWING THE RESPONDENTS AWARENESS OF TRADING IN
COMMODITY MARKET?

Sl. No. Aware of Commodity Market Percentage

1. Total Awareness 53%

2. Awareness to some extent 33%

3. Unaware 14%

ANALYSIS:

From the above table we can see that 53% of respondents are total awareness,
33% of respondents are aware to some extent, And 14% of respondents are in
aware of trading in commodity market
GRAPH 4.8
SHOWING THE RESPONDENTS AWARENESS OF TRADING IN
COMMODITY MARKET?

AWARE OF COMMODITY MARKET

INTERPRETATION:

From the above graph revels that respondents are aware and unaware of trading in
commodity market we can see that 53% of respondents are total awareness, 33%
of respondents are aware to some extent. And 14% of respondents are in aware of
trading in commodity. Continuous check to be made in order to trade in
commodity market as it changes frequently and risk return are highly associated
TABLE 4.9
SHOWING THE INVESTMENT IN COMMODITIES CAN BE
CLASSED AS AN ASSET?

Sl. No. Commodity as in Asset Percentage

1. Strongly Agree 30%

2. Agree 27%

3. Natural 17%

4. Disagree 20%

5. Strongly Disagree 6%

ANALYSIS:

From the above table we can see that 30% of respondents strongly agree 27% of
respondents agree. And 17% of respondents are neutral, 20% of respondents
disagree and 6% of respondents strongly disagree.
GRAPH 4.9

SHOWING THE INVESTMENT IN COMMODITIES CAN BE CLASSED

AS AN ASSET?

COMMODITY AS IN ASSET

INTERPRETATION:

From the above graph investment in commodities made by respondents canbe

classed as an asset, we can see that 30% of respondents strongly agree 27% of
respondents agree. And 17% of respondents are neutral, 20% of respondents
disagree and 6% of respondents strongly disagree. As a result trading in
commodities requires more information regarded to, thus clients of PL
diversify their portfolio in various stocks
TABLE 4.10
When you are faced with a major financial decision, are you more concerned
about the possible losses or the possible gains?

Sl. No. Major financial decision Percentage

1. Always the possible losses 30%

2. Usually the possible losses 20%

3. Usually the possible gains 30%

4. Always the possible gains 20%

ANALYSIS:

From the above table we can see that 30% of respondents prefer that portfolio Is
always possible loss and 20% of respondents agree for possible losses. And 30%
of respondents are usually the possible gains, 20% of respondents are always
possible gains.
GRAPH 4.10
When you are faced with a major financial decision, are you more concerned
about the possible losses or the possible gains

Major financial decision

INTERPRETATION

From the above graph it is clear that we can see that 30% of respondents prefer
that portfolio Is always possible loss and 20% of respondents agree for possible
losses. And 30% of respondents are usually the possible gains, 20% of
respondents are always possible gains. However diversifying risk plays the major
role while investing.
TABLE 4.11
Investor Profiles and Asset Allocation based on conservative income
Sl. No. Conservation Income Percentage

1. Fixed income 75%

2. Equities 25%

Total 100%

ANALYSIS

From the above table we can analyse that 75% of respondents prefer fixed income
than equities because of a low tolerance for risk and potential loss of capital or a
short investment time horizon.

GRAPH 4.11
Investor Profiles and Asset Allocation based on conservative income
Conservation Income
INTERPRETATION
From the above graph we can see that respondents are willing to accept some short
term fluctuations and small losses in your investment portfolio in exchange for
modest returns. The primary objective of investment portfolio will be to provide
income by investing primarily in funds that invest in fixed-income securities.
While capital appreciation is not a priority, a small portion of the portfolio may
be invested in equity funds to provide the potential for some growthto offset the
impact of inflation.

TABLE 4.12
Investor Profiles and Asset Allocation based on Growth
Sl. No. Conservation Income Percentage

1. Fixed income 20%

2. Equities 80%

Total 100%

ANALYSIS

From the above table we can analyse that 20% of respondents prefer a high
tolerance for risk and loss of capital. 80% are willing to tolerate large fluctuations
in your investment returns and moderate to large losses of capital in exchange for
potential long-term capital appreciation.
GRAPH 4.12
Investor Profiles and Asset Allocation based on Growth

percentage

INTERPRETATION
From the above graph we can see that respondents are willing to accept the
equities when compared to fixed income which shows it does not have any
significant income requirements from your investments and have at least a
medium term investment time horizon
 CHAPTER – 5
SUMMARY OF FINDINGS, SUGGESTIONS AND
CONCLUSION FINDINGS

5.1 FINDINGS
The study was conducted with respect to respondents of PL securities, which was
collected from the respondents in a form of a Questionnaire. The detailed data
analysis was made and the findings were drawn in the tabular format. The
following are the main Findings

OBJECTIVE 1:
To do a detailed analysis of the characteristics of portfolio related to
profitability of different investors
➢ It was found that most of the investors in PL securities are quiet fond of
stock market in finance so it which helps them to maintain their portfolio
➢ It was found that on an average investors in PL securities invests around
60% of their various portfolio
➢ It was found that 53 investors on average are long term investors and
remaining investors are medium term and short term investors

OBJECTIVES 2:
To help the investors to decide the effective portfolio of securities.

It was found that 33 on average investors plan their investments by knowing the
company stability, return, risk associated factors followed by P/E ratio and world
market indices etc.

➢ It was found that the investors were satisfied with their investment but not
very satisfied if portfolio managers are involved in investment of clients
portfolio.
➢ It was found that on an average 40% of investor's portfolio belong to
moderate risk takers minimization of loss and risk in order to car stability
returns

OBJECTIVE 3:
To identify the best Portfolio of security.
➢ It was found that on an average of investor's portfolio in PL securities had
exposure to equity market investments.
➢ It was found that around 56% of the investors considered Regular returns as
most important factor before selecting any investment avenues for creating
their investment portfolio followed by factors like safety of principle and
steady growth.
➢ It is concluded that large portion of investor's portfolio belongs to safe
investment avenues by bearing risk.

5.2 SUGGESTIONS

The study's findings will have some ramifications. The study has a direct
impact on the financial markets for shares, debentures, mutual funds, life
insurance, post office savings plans, fixed deposits, real estate, and gold/silver.
As a result, policymakers and regulatory bodies associated with financial
markets are particularly interested in it. The regulatory bodies can interest of
the new investors on the basis of the pattern of investing. The following
suggestions may be worth considering in this respect:

➢ It is suggested to the investors that instead of keeping long term investment

time horizon, their time horizon should depends on their objectives and type
of Investment Avenue.
➢ Instead of making wrong decisions regarding investment it is advisable that
investors should take help of financial planner.
➢ The volatility or the fluctuations in the stock keep changing in the stocks along
with their value and variance. So eventually the investors have to observe
constantly about the market.
➢ The optimal portfolio is a subject to change, because the proportion of
investment changes in each security from time to time.
➢ Regular analysis or changes in the market has to be done as it would benefit
and also minimize the consequences of incurring losses.
➢ Continuous evaluation of stock is necessary and the portfolio has to be
updated periodically to overcome the changes.
➢ The awareness of the utility of securities screening the optimal portfolio
construction must be made use of the investor.

5.3 CONCLUSION
The study of portfolio management is based on the fact that there is a considerable
disparity in investors' investment portfolios in PL securities. The portfolio is
evaluated based on the investors' gender, age, education, occupation, and income
level. Investors in PL securities, regardless of gender, invest in their portfolios,
according to the report. Age and education are two factors to consider. However
the investment portfolio of investors in PL securities, differs on the basis of their
occupation and level of income.

➢ It can be concluded that most of the investors are not regular traders and they
follow simply the buy and hold strategy.

➢ It is concluded that investors prefer safe and secured investment avenues to

save tax and also they give preference to investment avenues which will help
them to get dual benefit like Real estate buying a house against lo
 BIBLIOGRAPHY

Edited Volume

• Investment Analysis and Portfolio Management (with Thomson ONE – Business School
Edition) by Frank K.
• Portfolio Management by Mr. S. Kevin

Reports and Gazettes

• PL securities internal Books

• Business Magazines Bank Journal

Websites

• www.PLsecurities.com
• www.iloveindia.com/finance/stackerchangebrokers
• www.alphacommodities.com
• www.nscindia.com
• www.bseindia.com
• www.sebi.gov.in
 ANNEXURE

QUESTIONNAIRE

Dear Sir/ Madam My name is Venkatesh P.G I am studying MBA in New Horizon College of
Engineering . I am conducting a research as part of my final year project titled- “A Study on
Portfolio Management and Its Impact on Profitability Level with Respect to PL Securities”

I would be grateful if you could spare some time to answer the following questions. There is
no right or wrong answers. Your response is at most important to me. The information you
provide will be used for academic purposes only and your responses will be maintained with
confidentiality.

A. DEMOGRAPHIC PROFILE

1. Name:

2. Age
□ 18-25
□ 25-40
□ Above 40

3. What is the highest level of education you have completed?

□ Under Graduate
□ Post Graduate
□ Professional
4. Income level

□ 100000 -500000

□ 500000 –1000000
□ 1000000 Above

5. Location of clients portfolio with respect to stock

□ SF/FD
□ Mutual
□ Fund/Equities/Insurance
□ Bonds/Debentures
6. Factor associated before investing in portfolio
□ Return on portfolio
□ Correlation on security return
□ Market indices

7. Professional Portfolio managers manage risk more effectively than others

□ Strongly Agree
□ Agree
□ Natural
□ Disagree
□ Strongly Disagree

8. Compression of portfolio goals period of return risk capacity.

□ Minimization of risk
□ Minimization of loss
□ Stability in returns
9. Mutual fund portfolio goals who invest the most in
□ Equity Diversified
□ Equity Tax Saving Scheme
□ Industry Specific
10. Portfolio sectors of respondents invest
□ Small Cap
□ Mid Cap
□ Large Cap
□ IPO
□ Others
11. Respondents awareness of trading in commodity market
□ Total Awareness
□ Awareness to some extent
□ Unaware
12. Investment in commodities can be classed as an asset
□ Strongly Agree
□ Agree
□ Natural
□ Disagree
□ Strongly Disagree
13. When you are faced with a major financial decision, are you more concerned about
the possible losses or the possible gains?

□ Usually the possible losses

□ Usually the possible gains
□ Always the possible gains
14. Investor Profiles and Asset Allocation based on conservative income
□ Fixed income
□ Equities
15. Investor Profiles and Asset Allocation based on Growth

□ Fixed income
□ Equities