PORTFOLIO MANAGEMENT

SURVEY REPORT

SHAREN MIRACLE R (21/UCOA/107)

19C0/MC/BF34  [BANKING AND FINANCIAL SERVICES]
MS. Reema R Varghese
 SURVEY REPORT

PORTFOLIO MANAGEMENT

INTRODUCTION

Portfolio management is the art and science of selecting and overseeing a group of
investments that meet the long-term financial objectives and risk tolerance of a client, a
company, or an institution.

 Portfolio management involves building and overseeing a selection of investments

that will meet the long-term financial goals and risk tolerance of an investor.
 Professional licensed portfolio managers  work on behalf of clients, while individuals
may choose to build and manage their own portfolios. In either case, the portfolio
manager's goal is to maximize the investments' expected return within an appropriate
level of risk exposure.
 Portfolio management requires the ability to weigh strengths and weaknesses,
opportunities, and threats across the full spectrum of investments. The choices
involve trade-offs, from debt versus equity to domestic versus international and
growth versus safety.

OBJECTIVES OF THIS RESEARCH

 To find out whether the target audience (students) are aware of portfolio
management.
 To find out whether they have sufficient knowledge to opt for portfolio management
(if needed)
 To find out the ways to spread awareness on portfolio management (for those who
are unaware about this service)
REVIEW OF LITERATURE

1. Portfolio Management - Meaning and Important Concept. [ARTICLE]

“Prachi Juneja” and Reviewed by Management Study Guide Content Team. MSG Content Team
comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are an ISO
2001:2015 Certified Education Provider.

The article gives a small introduction on portfolio ‘A portfolio refers to a collection of investment
tools’ and then explains about portfolio management as ‘The art of selecting the right
investment policy for the individuals in terms of minimum risk and maximum return is called
as portfolio management.’ The article also explains about need for portfolio management
‘best investment plan, minimizes the risks, provide customized investment solutions.’ The
article explains also explains the types of portfolio management and who a portfolio manager
is. However, the article fails to explain the merits, demerits, parties involved and risk
involved in portfolio management.

2. Investment portfolio management based on the study of the competitiveness

of joint-stock companies. [CONFERENCE PAPER]

Wielki, Janusz & Stopochkin, Artem & Sytnik, Inessa. (2018). Investment portfolio
management based on the study of the competitiveness of joint-stock companies.

The article explains and introduces a way of analysing and assessing the competitiveness of
joint stock companies scientifically so that these companies can opt for more efficient
methods of managing their portfolio in order to withstand the tough competitions prevailing
in the market. ‘The method of analysis of companies’ competitiveness presented in the study
may become an effective tool for long term investment on the securities market. This method
is based on three basic indicators: total turnover on the stock exchange of selected companies,
the company's market share and the price per share. Practical application of the described
method may increase the attractiveness of investing in securities markets.’ Explains the
article. However, the article fails to explain or confirm the certainty of the method.
DATA INTREPRETATION

INTREPRETATION: Out of 35 people who have taken part in the survey 18 (51.4%) are
aware about portfolio management

INTREPRETATION: Maximum of the people who have attended the survey do have an
idea on portfolio management.
INTREPRETATION: Only 25.7% of the participants have invested in different
investments

INTREPRETATION: Even though 25.7% of the participants have invested in different

investments only 11.4% that is 4 out of 9 people have opted for portfolio manager
INTREPRETATION: 60% of the participants are not sure about the profits and advantages
of portfolio management, their idea is not sure.

INTREPRETATION: Most of the participants have no idea that portfolio management

works on long term basis.
INTREPRETATION: 27 out of 35 responses (77.1%) prefer active portfolio management
as it involves active buying and selling of investments which would earn more profits

INTREPRETATION: Almost all participants think COMPANIES need portfolio

management the most.
INTREPRETATION: The participants are aware that portfolio management reduces risk
level which makes the whole investment process to be not too high risk exposed.

INTREPRETATION: Nearly all the participants are ready to opt for portfolio management
if they are provided with sufficient knowledge.
INTREPRETATION: Majority of the participants prefer online mode for spreading
awareness on portfolio management.

INTREPRETATION: Approximately 66% of the participants are not opting for portfolio
management due to lack of sufficient knowledge.
PARTICIPANTS CATEGORISATION:

CATEGORIES PERCENTAGE
Students 94.6
Employed 6
Aware of portfolio management 73
Not aware of portfolio management 27
Opted for portfolio management 11
Not opted for portfolio management 89
Interested in portfolio management 94
No interest in portfolio management 6

FINDINGS

 Majority of the target audience (students) are aware of the service

 However, they do not have sufficient knowledge so they can opt for a professional.
 Or they have not invested in different investments which needs the help of a
professional, their investments can be managed by themselves.
 Nearly all the participants are cautious about risk and fee payment for professionals.

MY SUGGESTIONS:

 If suitable awareness is provided people would opt for professional help or at least it
would help them remove their doubts on the service so that they could go for it
without fear of loss.
 This survey also inquiries about ways to spread awareness on portfolio management,
for which almost all the participants requested awareness through online mode.
 Increase in proper usage of available cash/resources through proper investment with
the help of portfolio managers will increase the percapita of the population of India
 as well as increase the GDP and other indicators which will eventually increase the
standard of living of the people at large
 In short run proper usage of resources and increase in investment will increase
aggregate demand which will increase GDP
 In long run investments add to stock capital which will increase productivity
eventually increasing the supply curve.
 Thus, portfolio management is not only profitable for the one opting it, but also for
the economy at large.