Portfolios Management of Mr

7/31/2019 Portfolios Management of Mr

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PORTFOLIOS MANAGEMENT OF MR. A

There are different investment avenues are available for Mr. A such as fixeddeposits, post offices schemes, pension plans, life insurance policies, gold ETFs

etc. as Mr. As age is 59 and is on the verge of retirement.Therefore he will not be

able to take more risk.so I could him to invest more of his money in fixed plans

which are risk free which could generate fixed income in his olden days in future.

There are many income plans are available to generate income after retirement

such as pension plans of insurance companies i.e LICs pension plans, HDFCs

pension plans, etc.

The following are the divisions of MR.A for 25 Lakhs.

1.)Fixed deposits of banks.

2.)Post offices schemes.

3.)Pension plans.

4.)Life insurance policy

Fixed deposits.A Fixed Deposit (also known as FD) is a financial instrument provided by

Indian banks which provides investors with a higher rate of interest than a

regular savings account, until the given maturity date. It may or may not

require the creation of a separate account. The account which is opened for

a particular fixed period by depositing particular amount of money is

known as fixed deposits.

Benefits of FDs

1.)A fixed deposit encourages savings habit for a longer period of time.

2.)FDs enables the depositors to earn a high interest rate.

3.) On maturity the amount can be used to make purchases of assets.

4.) The depositor can get loan easily against the deposits.


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Foreign Banks in India

BANK NAME / DURATION 1 - 2yrs 2 - 3yrs 3 - 5yrs

Barclays 8.75 9.25 9.00

Citibank 9.00 8.75 8.75

DBS 8.75 9.00 9.00

Deutsche Bank 7.25 7.50 7.50

HSBC 9.00 8.10 7.50

Scotia Bank 8.25 8.25 8.25

Standard Charted 8.00 8.25 8.25

The Royal Bank of Scotland 8.25 7.75 7.75

Indian Banks - Public Sector

BANK NAME / DURATION 1 - 2yrs 2 - 3yrs 3 - 5yrs

Allahabad Bank 9.00 9.00 8.75

Andhra Bank 9.40 9.40 9.00

Bank of Baroda 9.00 9.00 8.50

Bank of India 9.00 9.00 8.50

Bank of Maharashtra 9.30 9.30 9.00

Canara Bank 9.50 9.25 9.00

Central Bank of India 9.25 9.00 9.05

Corporation Bank 9.50 9.50 9.25

Dena Bank 9.60 9.25 9.25

IDBI Bank 9.50 9.50 9.50

Indian Bank 9.25 9.25 9.00

Indian Overseas Bank 9.25 9.25 9.25

Oriental Bank of Commerce 9.60 9.25 9.25


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Punjab & Sind Bank 9.60 9.25 9.50

Punjab National Bank 9.25 9.25 9.25

State Bank of Bikaner&Jaipur 9.25 9.25 9.50

State Bank of Hyderabad 9.40 9.25 9.25State Bank of India 9.25 9.25 9.25

State Bank of Mysore 9.50 9.25 9.25

State Bank of Patiala 9.50 9.25 9.25

State Bank of Travancore 9.50 9.50 9.50

Syndicate Bank 9.55 9.50 9.25

UCO Bank 9.50 9.25 9.25

Union Bank of India 9.25 9.25 9.25

United Bank of India 9.25 9.25 9.35

Vijaya Bank 9.25 9.35 9.00

Indian Banks - Private Sector

BANK NAME / DURATION 1 year < 2 years2 years < 3 years3 years < 5 years

Axis Bank 9.25 8.50 8.50

City Union Bank 10.00 9.75 9.75

Development Credit Bank 8.00 8.25 8.50HDFC Bank 9.00 9.25 8.25

ICICI Bank 8.25 8.50 8.75

IndusInd Bank 9.00 8.75 8.75

ING Vysya Bank 9.50 9.25 9.00

Karnataka Bank 9.75 9.50 9.50

Kotak Bank 9.25 9.25 9.25

Tamilnad Mercantile Bank 10.25 9.75 9.75

The Catholic Syrian Bank 9.50 9.75 9.50

The Dhanalakshmi Bank 9.00 9.00 8.75

The Federal Bank 9.80 9.50 9.25

The J & K Bank 9.25 9.50 9.00

The Karur Vysya Bank 10.00 9.75 9.50

The Lakshmi Vilas Bank 10.50 9.75 9.50

The South Indian Bank 9.75 9.25 9.25

Yes Bank 9.25 8.75 8.75


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So, I could recommend him to invest the money in FDs for short

term as well as for long terms. The amount that the investor

should invest in FDs is 8, 00,000

A.) 6,00,000 for short term (1-2 yrs.)B.) 2, 00,000 for long term (3-5yrs).

The bank in which MR.A has to invest is Lakshmi vilas bank

(private bank), Dena bank (public bank), or Citi bank(foreign

bank) for short term (1-2 yrs.).Because it gives the highest

returns.and for long terms (3-5 yrs.) that is city union bank,

IDBI bank and Barclays.

Post offices

The post office operates as financial institutions. It collects small savings of the

people through savings bank accounts facility. Postal savings bank schemes were

popular in India for a long period as banking facilited were limited. Postal schemes

provide the individual with stable return, security and safety of money.

Indian post office fixed deposit interest rates

The interest rate for a fixed deposit of one year is 7.5% per year at Indian

post office.

The interest rate for a fixed deposit of two year is 8% per year at Indian

post office.

Minimum and maximum deposit

The minimum amount should be rs.200 in order to open a fixed deposit

account.

There is no limit for maximum amount.

But note that the amount deposited should be multiple of 200.

So, I could recommend him to invest 5, 00,000 in pot offices schemes.


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Pension plans.

Pension plans are those plans which provide regular income after the

retirement to the individual .There are different companies which

provides the pension plan such as LIC, SBI life insurance, MAX

New YORK Life insurance etc.

SBI Life - Lifelong Pension Plus

Key features

You have complete freedom to avail of a Pure Pension option or get the added

advantage of insurance protection.

Choice ofAdd on Covers ,thus meeting your additional requirements at a nominal

cost

Term cover

Total Permanent Disability(TPD) cover due to

Accident OR

Accident and Sickness

Complete Transparency: You will know how your premiums are growingeach step of the way. At the end of each financial year, the fund will be

credited with investment income based on the investment return earned.

Guaranteed Additions of 10% of Annual Premium on 15th policy anniversary

& 10% of Annual Premium on every 5th policy anniversary thereafter in case

of Regular Premium policy whereas for Single Premium policy, 1% of Single

Premium on 15th policy anniversary & 1% of Single Premium on every 5th

policy anniversary thereafter.

Choose Single or Regular payment, as per your need.

Option to Prepone or Postpone the Vesting Age


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Age at Entry* Min: 18 years Max: 65 years

Age at Maturity/Vesting Minimum: 40 years Maximum: 70 years

Policy Term Minimum : 5 years Maximum : 40 years

Premium Modes Yearly / Half-yearly / Quarterly / Monthly/Single

Annualized Premium

Amounts (X 100)

Min

Regular Premium Rs

7,500

Single Premium Rs

50,000

Max

No limit

No limit

Additional Contribution

Amount (in x100)

Min Rs. 2,000

Max: No Limit

Guaranteed Additions** Regular Premium:

10% of the Annual Premium on 15th policy anniversary

and

10% of Annual Premium on every 5th policy anniversary

thereafter.

For Single Premium:

1% of the single premium on 15th policy anniversary and

1% of single premium on every 5th policy anniversary

thereafter.

Benefits

Maturity Benefit: The fund value payable on maturity/vesting

can be utilized as follows:

Purchase Annuity Plan for the entire amount.

Commute up to one third of Fund Value as lump sum and the

balance can be used for the purchase of annuity.

Death Benefit: In the unfortunate event of death, the

accumulated fund value will be paid to the nominee or legal heir.

Term cover sum assured if opted for is also payable and the policy

terminates thereafter.

Add-on Cover Benefits:

Term Cover:

In the event of death when this benefit is in force (before the life

assured completes 65 years of age or during the benefit term if

there is no unpaid premium), the nominee would be paid an


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amount equal to benefit Sum Assured.

Total Permanent Disability Cover (Accident):

If the policyholder has taken this cover and during the tenure of

Policy in the event the insured becomes incapacitated and as aresult not able to earn an income from any work, occupation or

profession for the rest of his/her life, then the sum assured will be

paid,

Total Permanent Disability Cover (Accident & Sickness):

This cover option benefit is payable when. If the policyholder has

taken this cover, then in case of a state of total, permanent and

irreversible disability exists as a result of an accident or disease and

the life insured is rendered permanently incapable of earning anincome from any occupation whatsoever, the sum assured will be

paid.

Please Note: Either of the Total Permanent Disability (TPD) covers

can only be availed if Term Cover has been opted.

The amount that MR.A should invest is Rs.10,00,000 in pension plans of SBI life-

life long pension plans

Life insurance policy

Life insurance is a contract between aninsurance policy holderand aninsurer,

where the insurer promises to pay a designatedbeneficiarysum of money (the

"benefits") upon the death of the insured person. Depending on the contract,

other events such asterminal illnessorcritical illnessmay also trigger payment.

The policy holder typically pays a premium, either regularly or as a lump sum.

Other expenses (such as funeral expenses) are also sometimes included in the

premium.

The advantage for the policy owner is "peace of mind", in knowing that the death

of the insured person will not result in financial hardship for loved ones.

Life policies are legal contracts and the terms of the contract describe the

limitations of the insured events. Specific exclusions are often written into the
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contract to limit the liability of the insurer; common examples are claims relating

to suicide, fraud, war, riot and civil commotion.

Life-based contracts tend to fall into two major categories:

Protectionpolicies designed to provide a benefit in the event of specifiedevent, typically a lump sum payment. A common form of this design is term

insurance.

Investmentpolicies where the main objective is to facilitate the growth of

capital by regular or single premiums. Common forms (in the US) arewhole

life,universal lifeandvariable lifepolicies.

SBI Life - Shubh Nivesh

Introduction:

SBI Life - Shubh Nivesh is an Endowment product with an option of

Whole Life coverage. The basic purpose is to provide Savings, Income

and Insurance Cover to you and your family. Not only you can save

regularly for your future but you also have the flexibility to receive the

maturity amount as a lump sum or as a regular income for a chosen

period, depending upon your needs.

Key Features:

A unique Savings cum Insurance Plan with the flexibility of WholeLife option as an add-on

Triple benefits of Wealth Creation, Regular Income and InsuranceCover under a single plan

Convenience of premium payment options - Single Premium and
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Regular Premium

Comprehensive risk coverage through 3 Riders: SBI Life - Preferred Term Rider (UIN:111B014V01) SBI Life - Accidental Death Benefit Rider (UIN:111B015V01) SBI Life - Accidental Total & Permanent Disability Rider

(UIN:111B016V01)

Option to receive the Basic Sum Assured at regular interval over astipulated time period of 5/10/15/20 years.

Tax benefits as per prevailing norms under the Income Tax Act,1961

How does it work?SBI Life Shubh Nivesh has two options:

Endowment Assurance: The base plan is a traditional endowmentplan with simple reversionary bonuses which accrue till the end of theendowment term. The sum assured with all accrued bonuses will bepaid on death during the endowment term or survival till the end of theendowment term.

Whole Life Endowment: The policyholder has to opt for the WholeLife Endowment option at the proposal stage itself, wherein the sumassured along with the accrued bonus till the end of the endowmentterm will be paid to the policyholder, and an amount equal to the basicsum assured will be paid on the life assured attaining 100 years of ageor on the death of the life assured, if earlier.

Benefits:

Maturity Benefit: Depending upon the plan option chosen:Endowment Assurance (i.e. if Whole Life option is not taken):

After completion of endowment term, the Basic Sum Assured +

vested Simple Reversionary Bonus is paid

If Deferred Maturity Payment option has been chosen, the accrued

bonus will be paid on the date of maturity and the policyholder


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may choose to receive the sum assured in regular installments

over the next 5/10/15/20 years.

Whole Life Endowment (i.e. Whole Life option is taken):

After completion of endowment term the Basic Sum Assured +vested Simple Reversionary Bonus is paid.

If, Deferred Maturity Payment option has been chosen, the

accrued bonus will be paid on the date of maturity and the

policyholder may choose to receive the sum assured in regular

installments over the next 5/10/15/20 years.

An amount equal to the basic sum assured will be paid on the life

assured attaining 100 years of age.

Death Benefit: In the unfortunate death of the Life Assured, depending

upon the plan option chosen:

Endowment Assurance (i.e. if Whole Life option is not taken):

Death before the completion of Endowment term: Sum Assured +

Simple Reversionary Bonus (if any) is paid to the nominee

Deferred Maturity Payment Option has been availed and death

happens after the completion of Endowment term: The Balanceamount of the Deferred Maturity Payment Option, if any would

continue to be paid to the legal heirs till the end of the stipulated

period as chosen

Whole Life Endowment (i.e. if Whole Life option is taken) :

Death before the completion of Endowment term:

Sum Assured + Simple Reversionary Bonus (if any) is paid

to the nominee

Death after the completion of the endowment term up to 100

years of age:

Sum Assured under the Whole Life coverage is paid to the

nominee.

If deferred Maturity Payment Option has been availed and death


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happens after the completion of Endowment term but before the

receipt of the final installment under the deferred payment

option, the basic sum assured under the Whole Life coverage is

paid to the nominee and the balance amount of the Deferred

Maturity Payment Option, if any would continue to be paid to thenominee till the end of the stipulated period as chosen

Other Benefits

Deferred Maturity Payment Option: You have the option to avail the

sum assured as regular payouts over a stipulated period of 5/10/15/20

years. The amount of regular income payable will be quoted based on

the rates available at that time

Shubh Nivesh at a Glance:

Minimum Maximum

Entry Age 18 years 60 years

Maturity Age 23 years 65 years

Policy Term 5 years 30 years

Sum Assured Rs.75,000 No limit


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MR.As portfolios (25,00,000)

Particular Amount % of assets

Fixed depositsof banks

8,00,000 32%

Post office

schemes

5,00,000 20%

Pension plans 10,00,000 40%

Life insurance

policy

2,00,000 8%

PORTFOLIOS MANAGEMENT OF MR. B

Mr.B has the wide scope to maximum returns from 25 lakhs. There are different

investments avenues are available such as shares, mutual funds, NCDs etc. As he

is younger and has the ability to take more risk because he has 25 years forretirement and to make profits from investment compared to Mr. A

The following are the division of investment for MR.B

1.) Shares

2.) Mutual fund

3.) Real estates

4.) NCDs

Shares


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Joint stock companies collect their long term/fixed capital by issuing shares

(equity& preference).This is called stock financing. Shares constitute the

ownership securities and are popular among the investing class. Investment in

shares is risky as well as profitable. Public invest in blue chips shares which are

financially sound companies shares. They get returns in the form of dividend,

capital appreciation etc.

1.)LIC housing finance

(LICHF) is one of the largest housing finance companies in India promoted by LIC. Themain objective of the company is to provide long-term finance to individuals forpurchase/reconstruction of new/existing flats. We are positive on the company owing to the

fundamental improvement in earnings from FY13E onwards benefiting from re-pricing andhigher developer loan build up. The companys net profit is likely to grow at 29.9% CAGRover FY12-14E.

Valuations

LIC Housing operates in the mortgage financing business where growth and asset qualityhave proven to be healthy in the last few years. LIC Housing is one of the top players in thismortgage market with a 10% market share.Driven by strong disbursement and focus onasset quality, LIC Housing is well positioned to deliver sustainable and profitable growth.Moreover, the company has already proved its worth by reporting an excellent track recordof profitability and building up a healthy balance sheet.Healthy asset quality and prudentprovisioning policy makes LIC Housing better placed compared to its peers in the housingfinancing space. Going forward with improvement in the companys operating performance,the return ratios are set to improve. We believe that the current valuations of 2.06x FY13Eand 1.72x FY14E P/BV are attractive.MARKET CAP (RS CR) 12,578.73

P/E 14.20

BOOK VALUE (RS) 112.59

DIV (%) 180.00

INDUSTRY P/E 21.04 %

EPS 17.55DIV YIELD.(%) 1.44

FACE VALUE (RS) 2.00


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Current price = 249

Target price = 310

Shares = 200

Amount invested = 49800

2.) ITC

ITC's 1QFY13 results were in line with Adj PAT growth of 20.2% at INR16b. ITC has posted

12th consecutive quarter of 20%+ PAT growth. Cigarette volume growth at ~1.5%. Margins

expanded 260bp YoY on account of price increase, reduction in staff costs and other

expenditure. FMCG losses declined to INR388m; margin improved despite increased pace

of new launches. Revenue traction was strong at 23% led by healthy volume growth and off

take across categories. We note that despite series of tax hikes, ITC's performance in

cigarettes remains robust and displays pricing power.The company has again delivered

20%+ EBIT growth in cigarettes with 260bp EBIT margin expansion. We remain positive on

the long term opportunity in ITC due to sustainable volume growth and strong pricing power

in cigarette business - ITC has posted 15% cigarette EBIT CAGR since 2004 despite

several tax shocks during the period. We are factoring 2% volume growth in cigarettes for

FY13; we estimate 15.3% EBIT CAGR and 17% PAT CAGR over FY12-14. The stock

trades at 26.9x FY13E and 22.8x FY14E EPS.We remain positive on the long term

opportunity in ITC due to sustainable volume growth and strong pricing power in cigarette

business - ITC has posted 15% cigarette EBIT CAGR since 2004 despite several tax

shocks during the period. We are factoring 2% volume growth in cigarettes for FY13; we

estimate 15.3% EBIT CAGR and 17% PAT CAGR over FY12-14. The stock trades at 26.9x

FY13E and 22.8x FY14E EPS.

MARKET CAP (RS CR) 199,273.12

P/E 30.99

BOOK VALUE (RS) 23.92

DIV (%) 450.00%

INDUSTRY P/E 31.63

EPS 8.21

PRICE/BOOK 10.64

DIV YIELD.1.77%FACE VALUE (RS) 1.00

Current price = 254.40

Target price =300

Shares = 200

Total invested = 50880


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3.) AMBUJA CEMENT

Ambuja Cements' 2QCY12 performance is above estimates with EBITDA of

INR7.2b driven by above estimated realizations and in-line cost. Key highlights:

Volumes grew 6.5% YoY (-9% QoQ) to 5.63MT clinker. Realization improved by 7%QoQ (10.7% YoY) to INR4, 556/ton (v/s est. INR4, 380/ton). Net sales improved by

18% YoY (-3% QoQ) to INR25.7b (v/s est INR25.5b). EBITDA/ton improved by

~INR80 QoQ to INR1,283 in 1QCY12 (v/s est INR1,138). Costs were largely in-line

with estimates, as higher than freight and other expenses were offset by lower

than estimated fuel cost. EBITDA grew 23% YoY (-3% QoQ) to INR7.2b (v/s est

INR6.6b) and margins were flat QoQ (+30bp YoY) at 28.2% (v/s est 26%). Adj PAT

grew 35% YoY (-8% QoQ) to INR4.7b (v/s est INR4.3b). The board has announced

interim dividend of INR1.4/sh (v/s INR3.2/sh for CY11)."

We are upgrading our EPS for CY12 by 8% to INR11.7 and CY13 EPS by 5% toINR13.3, to factor in higher than estimated realizations. We are factoring in

volume CAGR of 9.2% (v/s 11% earlier) in CY12-13. We are modeling in realization

improvement of ~INR21/bag in CY12 (~INR7/bag lower than 2QCY12 level) and

INR10/bag in CY13. The stock trades at 13.5x CY13E EPS, 7.5x EV/EBITDA and

USD150/ton.


P/E 30.99

BOOK VALUE (RS) 23.92DIV 450.00%

INDUSTRY P/E 31.63

EPS 8.21

P/C 27.96

PRICE/BOOK 10.64

DIV YIELD 1.77%


Current price = 180.50Target price = 210

Shares = 200

Invested = 36,100


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4.)HDFC BankHDFC Banks advances have once again grown steadily by 21.6% yoy to

Rs.2,13,300 crore with retail loans growing 33% yoy to Rs. 1,11,900 crore, while

corporate loans grew by 10.7% yoy (15% qoq) to Rs 1,01,500 crore. The corporate

loan book has looked up after many quarters of muted growth and the revenueshare of this segment has increased by 240 bps to 47.6%. Growth in the deposits

was exemplary at 22% (with deposits rising to Rs 2, 57, 500 crore) with strong

growth in term deposits (29% yoy to Rs 1, 39,200 crore) leading to a 244 bps dip

in CASA to 46.0% (although CASA was up 14.2% incrementally). The sharp growth

in term deposits has been due to strong NRE flows. The bank added 430 new

branches and this has enabled it to withstand competition from peers who have

been offering higher savings rates post de-regulation.NII at Rs 3,484.1 crore (+ 22.3% yoy) was driven by strong loan growth, stable

NIMs of 4.3% (+10 bps) and high CD ratio. Yield on assets were up 35 bps qoq to ahealthy 11.9%. The big surprise was the sharp spurt in other income by 37% yoy

to Rs 15,295 crore with fee income growing by a strong 24% yoy driven largely by

the retail segment. Compared to last years loss of Rs 41.3 crore, trading gains

stood at a healthy Rs 66.5 crore while currency gains were higher at Rs 320

crore. Cost to income ratio was flat at 48.5%. We expect the cost to income ratio

to be higher in the near term as full operational costs of new branches are

recognised. Asset quality continues to remain comfortable with both Gross and

net NPLs at 1.0 and 0.2% respectively. Restructured loans constitute 0.3% of gross

advances. Without inclusion of Q1FY13 PAT, HDFC Bank remains adequatelycapitalized at 15.5% (100 bps qoq) with Tier I CAR is at 10.9%.

HDFC Bank has reported a strong performance which was marked by strong credit

and deposit growth, stable NIMs, aggressive network expansion and steady asset

quality and margin accretion. The strong growth in advances seems to suggest

that the bank should be able to grow its loan book at a healthy +22% over FY13-

14.


P/E 25.03BOOK VALUE (RS) 127.03

DIV (%) 215.00%

INDUSTRY P/E 10.17

EPS 23.34

P/C 22.78


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PRICE/BOOK 4.60

DIV YIELD.(%) 0.74%


Current price = 584.25Target price = 610

Shares = 200

Invested = RS. 116,850

5.) Infosys

Infosys reported one of the sharpest declines in realization, since the Lehman

crisis. The realization dip in Q1FY13 was attributed to cross-currency (0.7%),

revenue writeback (0.9%) and portfolio shift (~0.4%). On a like-to-like basis,pricing declined by ~1.7% QoQ compared to TCS 1.06% QoQ. We expect

weakness in pricing to persist due to: 1) Aggressive marketing to grab the market

share 2) Commoditized businesses have no nuances to offer to clients. However,

the pricing cut may or may not always be accompanied by volume growth.

Attributing realization dip to one particular reason is tough as there are multiple

moving parts to its calculation. However, different reasons for pricing decline

could impact volume growth differently.

Infosys management highlighted vendor consolidation as one of the key trends in

the market. The process of vendor consolidation is generally accompanied bypricing discount to grab market share from competition. The vendor consolidation

process impacts the overall portfolio pricing; however, it is also accompanied by

volume growth.

We see this as one of the possible outcomes of Infosys current pricing discount.

Infosys portfolio is geared towards a discretionary spend, which is currently

witnessing weakness. As low-realization services like IMS, BPO and ADM

contribute to growth, the shift in portfolio results in lower blended realization.

This may not result in any change in volume expectation as the growth from

different services follow different cycles. Any change in strategy for Infosys to

grab market share away from peers at lower realization would be disruptive to

the competitive landscape. Infosys management highlighted the opportunistic

exploitation by clients to lower the rates. We expect this to put structural

pressure on realization and disrupt the competitive landscape. However, this


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could result in volume growth with a lag. Infosys is currently trading at 11.3x

FY14E earnings estimate, a trough valuation at which it traded post Lehman crisis.


P/E 25.03

BOOK VALUE (RS) 127.03DIV (%) 215.00%

INDUSTRY P/E 10.17

EPS 23.34

P/C 22.78

PRICE/BOOK 4.60

DIV YIELD.(%) 0.74%


Current price = 2148.85

Target price = 2800Shares = 100

Invested = 214,885

Shares porfolios (5,00,000)

particulars amount % of assets

LIC housing finance 49800 9.96

ITC 50880 10.176

Ambuja cement 36100 7.22

HDFC Bank 116850 23.37

Infosys 214885 42.977

MUTUAL FUNDS

A mutual fund is a type of professionally-managedcollective investment

schemethat pools money from many investors to purchase securities. While there is

no legal definition of mutual fund, the term is most commonly applied only to

those collective investment schemes that are regulated, available to the general

public and open-ended in nature.Hedge fundsare not considered a type of

mutual fund.

The term mutual fund is less widely used outside of the United States. For

collective investment schemes outside of the United States, see articles on

specific types of funds includingopen-ended investment
http://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Open-ended_investment_companyhttp://en.wikipedia.org/wiki/Open-ended_investment_companyhttp://en.wikipedia.org/wiki/Open-ended_investment_companyhttp://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Collective_investment_scheme


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companies,SICAVs,unitized insurance funds,unit trustsandUndertakings for

Collective Investment in Transferable Securities.

.DSPBR Top 100 equity Reg

NAV = 97.44

Fund size = 3,241.88

3 years = 11.97 %

5 years = 7.57 %

Franklin India Bluechips

NAV = 209.63


3 years = 13.94 %

5 years = 7.09 %

10years = 24.77%

HDFC Equity

Nav = 258.89


3 years = 17.04 %

5 years = 8.52%

10 years = 27.58%

HDFC TOP 200

NAV = 199.34

3 years = 13.61 %

5 years = 9.79 %

10 years = 28.07 %

Fund size = 11,189.82
http://en.wikipedia.org/wiki/Open-ended_investment_companyhttp://en.wikipedia.org/wiki/Open-ended_investment_companyhttp://en.wikipedia.org/wiki/SICAVhttp://en.wikipedia.org/wiki/SICAVhttp://en.wikipedia.org/wiki/SICAVhttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/Undertakings_for_Collective_Investment_in_Transferable_Securitieshttp://en.wikipedia.org/wiki/Undertakings_for_Collective_Investment_in_Transferable_Securitieshttp://en.wikipedia.org/wiki/Undertakings_for_Collective_Investment_in_Transferable_Securitieshttp://en.wikipedia.org/wiki/Undertakings_for_Collective_Investment_in_Transferable_Securitieshttp://en.wikipedia.org/wiki/Undertakings_for_Collective_Investment_in_Transferable_Securitieshttp://en.wikipedia.org/wiki/Undertakings_for_Collective_Investment_in_Transferable_Securitieshttp://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/SICAVhttp://en.wikipedia.org/wiki/Open-ended_investment_company


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Mutual fund portfolio(500,000)

Schemes Nav * units Amount invested

DSPBR Top equity reg 97.44*1000 97,440Franklin India 209.63*500 104,815

HDFC Equity 258.89*750 194,197.5

HDFC TOP 200 199.34*500 99,670

Investment in gold and silver (2,00,000)

In India, there is attraction for gold and silver since the early historical period.They are used for making ornaments and also for investment of surplus funds

over a long period. There is also a general tendency to purchase gold or silver

ornaments as and when surplus money is available.

The gold prices are in increasing rapidly so there is an capital appreciation for the

gold and silver.

Advantages of investment in gold and silver

Gold & silver are useful as a store of wealth.

Both the metal are highly liquid.

Its provides immediate liquidity.

Its provides capital appreciation.

MCX GOLD

Current price of gold = RS.29, 793/10 gms

Weight = 30 grams

Amount invested = 89,379


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MCX silver

Current price = RS. 53231/kg

Weight = 2 kgs

Amount invested = 106,462

REAL Estates (12,00,000)

Real estate is "Property consisting of land and the buildings on it, along with its

natural resources such as crops, minerals, or water; immovable property of this

nature; an interest vested in this; (also) an item of real property; (more generally)

buildings or housing in general. Also: the business of real estate; the profession of

buying, selling, or renting land, buildings or housing.

Investing in mumbais suburbs

Kalyan is a satellite town of Mumbai, lying 54 km to the south. Kalyan is

characterised by hills and green areas. Kalyan comes under the governance of

Kalyan Dombivili Municipal Corporation.

Kalyan has been developing fast in both residential and commercial sectors.

Kalyan owes its growth to its proximity to Mumbai and location at the junction ofsouth, and east bound railway lines. Another reason for Kalyans growth is the

industrial areas such as Dombivili, Murbad, Badlapur and Tarapur. Also a number

of car spare part manufacturing factories and rice mills are here. Kalyan is mostly

populated by middle class people.

Kalyan has quality infrastructure facilities. Local train running on Mumbai-Karjat

and Mumbai-Kasara tracks pass through Kalyan. Educational facilities are very

good. Many major convent schools are here.

KDMC (Kalyan Dombivili Municipal Corporation) is doing a lot to improve the

infrastructure. KDMC has computerized its operations and created citizenfacilitation centres for providing better services to the public. It is one of the few

IT enabled municipal corporations in India.

People, mainly from Dadar, Girgaon and nearby suburbs are shifting to Kalyan and

Dombivili. Although Kalyan is more known as residential area, many commercial

projects are also coming up. Mumbai builders are concentrating on Kalyan and


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developing several residential and commercial projects. Plenty of land is available

here, since factories in these areas have been shifted to other industrial areas.

Residential: Kalyan is ideal residential area for middle class people. The residential

property rates are in the range of Rs 900 to Rs 1200 sq.ft, while rental rates are in

the range of Rs 2.5 to Rs 6 per sq.ft pm, approximately. These affordable prices,educational and medical facilities are attracting to buyers to stay here. With all

the advantages, Kalyan is also ahead in entertainment. More than 12 cinema halls

and drama theatres are here. Residential projects like Godrej Hills by Godrej, Lok

Surbhi, Lok Udyan, Lok Vatika by Lok Group, Yogi Dham by Ajmera are in the

progress in Kalyan. Also Deshmukh Brothers, D.S.K Group, Mantri Group, Ravi

Constructions are also involved in developmental activities.

Commercial:

The commercial market in Kalyan is also picking up. The areas adjacent to the

roads near Kalyan railway station are the important commercial area. MahavirShopping complex, Jojwala complex and Sreedevi complex are some of the

famous shopping centres. Besides, several small and medium size shops and

hotels are also present. The commercial property rates are in the range of Rs 1500

to Rs 3500 per sq.ft., whereas the rental rates are in the range of Rs 12 to Rs 35

per sq.ft pm.

NON CONVERTIBLE DEBENTURES (100,000)

Nirmal Bang has come out with its report onShriram Transport Finance

CompanyNCD with a subscribe recommendation.Shriram Transport Finance

Company Ltd (STFC) is one of the largest asset financing NBFCs in India

incorporated in 1979. Primarily engaged in financing Commercial Vehicles

purchases of small truck owners and first time users, STFC commands 8-10%

market share in new CV finance and ~25% share in the pre-owned CV space. STFC

is a part of the "SHRIRAM" conglomerate which has significant presence in

financial services like commercial vehicle financing business, consumer finance,

life and general insurance, distribution of financial products such as life and

general insurance products and units of mutual funds. In addition to this, the STFC

is also present in non-financial services business such as property development,

engineering projects and information technology. As on March 31, 2011 STFC has

488 branches and 16,919 employees. The assets under management have grown
http://www.moneycontrol.com/india/stockpricequote/finance-leasinghire-purchase/shriram-transport-finance-corporation/STFhttp://www.moneycontrol.com/india/stockpricequote/finance-leasinghire-purchase/shriram-transport-finance-corporation/STFhttp://www.moneycontrol.com/india/stockpricequote/finance-leasinghire-purchase/shriram-transport-finance-corporation/STFhttp://www.moneycontrol.com/india/stockpricequote/finance-leasinghire-purchase/shriram-transport-finance-corporation/STFhttp://www.moneycontrol.com/india/stockpricequote/finance-leasinghire-purchase/shriram-transport-finance-corporation/STFhttp://www.moneycontrol.com/india/stockpricequote/finance-leasinghire-purchase/shriram-transport-finance-corporation/STF


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at a CAGR of 31.5% from Rs. 12,092.8 crs in FY07 to Rs. 36182.6 crs in FY11. The

company enjoys one of the best NIMs (10.6% in FY11) in the financial services

space due to its presence in lesspenetrated and therefore higher-yielding

segments. With robust credit appraisal mechanisms and effective monitoring of

collections, STFC has historically maintained its loan loss below 2% of its asset

base. Consequently, ROE has been maintained at 25-30%.

Objects of the Issue

The funds raised will be used for various financing activities including lending and

investments, to repay existing loans and for business operations and working

capital requirement.

CARE and CRISIL Rating

The long term debt instruments of the company enjoy ratings of CARE AA+ from

CARE, AA/Stable from CRISIL and AA from Fitch. Short term debt instruments

have ratings of F1+ from FITCH and P1+ from CRISIL. The proposed NCD issues

have been rated AA/Stable by CRISIL which indicates high safety for timely

payment of interest and principal on the NCDs. CARE has given rating of AA+

which indicates high safety for timely servicing of debt obligations.

Capital Adequacy

The capital adequacy ratio of STFC in FY11 is 24.85% as compared to RBI

requirements of 12% indicating a healthy liquidity position. Tier I ratio stood at

16.65% in FY11.

Asset quality

STFC has maintained robust asset quality across several business cycles, marked

by average credit losses of less than 2%. Gross NPAs stood at 2.4% and Net NPAs

stood at 0.4% in FY11.

Debt to equity ratio

The debt-equity ratio prior to this Issue is 4.16 times which is based on a total

outstanding consolidated debt of Rs 20181.7 crs and consolidated shareholder

funds amounting to Rs 4856.41 crs as on March 31, 2011. The debt equity ratio


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post the Issue, (assuming subscription of NCDs aggregating to Rs 1000 crs) would

be 4.36 times.

Recommendation:

We believe that the NCD from Shriram Transport Finance Company Limited(STFC), which is one of the largest NBFCs in India, is a good investment

opportunity for investors as the returns are higher as compared to bank fixed

deposits. The interest rate of 11%-11.6%, offered by this issue is higher than the

rates offered by the commercial banks on their fixed deposits. The CARE AA+

rated issue along with the creditworthiness of the issue and liquidity provided are

some of the advantages which come with the issue. Moreover, as compared to

the recently listed NCDs of SBI Capital and Tata Capital Yield to Maturity (YTM) on

STFC NCDs is much higher.

LIFE INSURANCE (1,00,000)

LICs single premium policy- Jeevan Nischay

Life Insurance Corporation of India has always been sensitive to the needs of the

customers. At LIC, innovation and the restructuring of the product portfolio are

done regularly with a view to match peoples changing preferences and risingaspirations. Our policy holders are of utmost importance to us. We launch Jeevan

Nischay, a single premium policy with guaranteed maturity benefits exclusively

for our existing policy holders. The policy is an extension of the relationship our

policyholders enjoy with us and is aimed at reassuring them that we care for our

customers.

Jeevan Nischay is a close

ended plan wherein a person

can take policy on his/ herown life by paying single

premium only once at the

start of the policy. Assured

maturity benefits equal to the

Maturity Sum Assured are

pre-defined. The specimen

Policy Term

5 years 7 years 10 years


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Maturity Sum Assured per Rs.

1000/- single premium is

given below for some ages

and terms: Age at entry

30 1256 1409 171540 1249 1400 1699

50 1226 1369 1645

In addition to the assured maturity benefits, there is provision for the loyalty

additions. Depending upon the Corporations experience, the policy will be

eligible for Loyalty Addition on death during the last policy year or on the Life

Assured surviving the stipulated date of maturity at such rate and on such terms

as may be declared by the Corporation.

Death benefit under the policy is equal to five times the single premium if deathis within first year of taking the policy. In case of the death in subsequent years,

the death benefit is equal to the maturity sum assured. In case of the death in last

year of the policy, death benefit is equal to the maturity sum assured with

declared loyalty additions, if any.

Basic eligibility conditions for taking Jeevan Nischay are as follows:

Minimum age at entry : 18 years (completed)

Maximum age at entry : 50 years (nearest birthday)

Policy term: 5, 7 and 10 yearsMinimum Single Premium : Rs. 10,000/-

Maximum Single Premium : Rs. 10, 00,000/- (Premium shall be in multiples of

Rs.1, 000/-)

Maximum Basic Sum Assured (First Year Death Benefit) :

Lower of- Rs. 50, 00,000, and 50% of total Sum Assured (total death

benefit) under all existing in force policies If premium amount is Rs. 25,000

or more, the policyholder will receive higher maturity sum assured due to

available incentive. Loan is available under this policy. Policyholder can

surrender the policy after one year of commencement of the policy. Also, if

the policyholder is not satisfied with the terms and conditions of the policy,

he/ she has the option of taking refund within 15 days.

The distinct advantages ofJeevan Nischay are:

Single Premium policy.

Guaranteed Maturity benefits with provision of loyalty additions.


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Plan is exclusively for LIC policyholders.

Wide range of policy terms options.

As such Jeevan Nischay is the exclusive plan for LIC policy holders looking for

lump sum investment with guaranteed returns.

MR.Bs portfolios (25,00,000)

Particulars Amounts % of assets

Shares 05,00,000 20%

Mutual fund 05,00,000 20%

Gold and silver 02,00,000 08%

Real estates 11,00,000 44%

NCDS 01,00,000 04%

Life insurance policy 01,00,000 04%

CONCULSION

From these two clients we get know to that investment in early helps the

individual to take more risk and these helps to get better returns for the

investment. To use more investment venues we should have to invest the money

as early as possible to get maximum returns from our investment.

Portfolios Management of Mr

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