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To Recommend to Divers ify into PORTFOLIO
MANAGEMENT SERVICES
To highlight various investment options available
for investment.
To Suggest the way this proposal would be
implemented.
To Increase the employability of Employees.
OBJECTIVES
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Primary Data Collected by conducting telephonic survey
from existing clients ofHavmore Insurance Brokers Pvt
Ltd. Telephonic Survey was conducted with 15 clients and
replies have been used to make this report effective.
RESEARCH METHODOLOGY
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ANALYSIS AND INTREPRETATION
AIMS 3
Following questions were asked during telephonic survey:-
1.What Risk are you willing to take in your investment portfolio?
Less-8
Moderate-6
High-1
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AIMS 4
If you are given amount of Rs.50,00,000 where would you invest?
Equity securities of Blue chip Companies.2
Fixed Deposit and Government Bonds.8
Real Estate.3Gold.2
Derivative Instruments.1
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AIMS 5
Whom do you consult for investment purpose?
Friends, Relatives etc-4
Hereditary-9
Financial Consultants-2
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Lack of Awareness
Lack of Guidance
INTERPRETATION
AIMS 6
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The Art and Science of Investment Mix and Policy.
Matching Investment to Objectives.
Done by Asset Allocation for Individuals and
Institution.
Includes Balancing Risk against Performance.
MEANING OF PORTFOLIO
MANAGEMENT
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8AIMS
INVESTMENT
PYRAMID
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AIMS 9
Speculation(Options,Futures,Spread Betting)
Growth(Small CapStock,Large Cap Stock,
Equity MF)
Income(Properties,Bonds)
Security(Cash deposit,MMFS,T.Bills)
Foundation(Gold Bullion)
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99.5% Gold hence
durable.
Low RiskHighly Liquid
Inflationary Hedge
No Brokerage
However prone to
Theft.
AIMS 10
GOLD BULLION
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Current Account
Savings Account
Time Deposit
AIMS 11
CASH DEPOSIT
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MF that invest
solely in Money
Market instruments.
Debt that mature in
less than one year.
AIMS 12
MONEY MARKET MUTUAL FUNDS
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Safest Instrument
Opportunity to invest in
money market
instrumentsRating
AIMS 13
FEATURES OF MMMF
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Institutional
Marketed to
Corporations,Government, and
fiduciaries
High minimum
investment
Retail
Individuals
33% of total MMFassets
AIMS 14
TYPES OF MMFS
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Short termborrowing by thestate/central govt.
Can be purchasedby any one (excl.state government)
Min. value Rs.1
Lac.Rate of Interest
based on marketdemand
AIMS 15
TREASURY BILLS
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Huge FDI
Higher Returns
Multiplicity ofSectors
AIMS 16
REAL ESTATE
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Government bonds
Bonds issued by
government in homecurrency.
Risk-free.
Used to determine
risk-free rate ofreturn.
Corporate bonds
Issued by
CorporationHigher risk than
government bonds
hence higher
interest.
AIMS 17
BONDS
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Small market
capitalization
Ideal forsmall/Amateur
investor as they are
priced low but have
huge potential.Very risky
AIMS 18
SMALL CAP STOCK
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LARGE CAP STOCK
Market Capitalization of
more than $10 billion
Market Capitalization=
No of Shares x marketPrice of Shares
Examples:- Microsoft,
Wal-Mart, General
Electric.
AIMS 19
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EQUITY MUTUAL FUNDS
Funds which invest
primarily in Stocks.
Higher returns with
Relatively higherdegree of risk.
AIMS 20
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EQUITY MUTUAL FUNDS
ADVANTAGES
Liquidity
Professional
Management
Diversification
Affordability
Record-Keeping
DISADVANTAGES
Tax Consequences
Daily Share Pricing
AIMS 21
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OPTIONS
Financial Instrument
Creates a Contract
Underlying asset to be
bought at a price fixedtoday (house to be
bought @Rs 1 Crore)
CALL
PUT
AIMS 22
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FUTURES
Contract
Deliver @specified date, Specified Quantity of
Specified Quality
Traded on Future Exchange
Future Exchange- To minimize the Risk of Default
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SO WHATS THE DIFFERENCE DUDE?
Options Create A
RIGHT to fulfill the
terms of the Contract
Futures create AOBLIGATION to fulfill
the terms of the
Contract.
AIMS 24
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SPREAD-BETTING
BET on the price
movement of the
Security.
Spread-BettingCompany offer 2
prices- BID & OFFER
price.
Investor concernedDoes Not Own the
Security
They just Speculate on
the price movement.AIMS 25
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Services to be
provided only to clientswho have exhausted
their insurance quota.
Proper Training.
Free of cost
Proper performance
appraisal.
RECOMMENDATION
AIMS 26
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AIMS 28
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