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SHRI RAMSWAROOP MEMORIAL
GROUP OF PROFESSIONAL COLLEGES
LUCKNOW
RESEARCH REPORT
ON
““PORTFOLIO CONSTRUCTION USING
FUNDAMENTAL ANALYSIS””SUBMITED IN PARTIAL FULFILLMENT OF REQUIRMENT FOR THE
AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
TO
GAUTAM BUDDHA TECHNICAL UNIVERSITY, LUCKNOW
FOR THE SESSION
2013-14
UNDER GUIDANCE OF: SUBMITTED BY:
Department of Management Roll no.:
SRMGPC, LUCKNOW M.B.A. 4th Semester
CERTIFICATE
ii
DECLARATION
iii
ACKNOWLEDGEMENT
We think if any of us honestly reflects on who we are, how we got here, what we think
we might do well, and so forth, we discover a debt to others that spans written history.
The work of some unknown person makes our lives easier everyday. We believe it's
appropriate to acknowledge all of these unknown persons; but it is also necessary to
acknowledge those people we know have directly shaped our lives and our work.
First of all we would like to thank my guide Mr. S. NIYAZI, Faculty of Management
Department, SRI RAMSWAROOP MEMORIAL GROUP OF PROFESSIONAL
COLLEGES, Lucknow for his guidance throughout the semester.
Finally, I would like to thank My God, My Parents and my friends for all the support and
blessings that was required for completion of this project.
_______________________
Roll No.: _________________
MBA (IV Sem.)
iv
PREFACE
The Portfolio Management deals with the process of selection securities from the number
of opportunities available with different expected returns and carrying different levels of
risk and the selection of securities is made with a view to provide the investors the
maximum yield for a given level of risk or ensure minimum risk for a level of return.
Portfolio Management is a process encompassing many activities of investment in assets
and securities. It is a dynamics and flexible concept and involves regular and systematic
analysis, judgment and actions. The objectives of this service are to help the unknown
investors with the expertise of professionals in investment Portfolio Management.
It involves construction of a portfolio based upon the investor’s objectives, constrains,
preferences for risk and return and liability. The portfolio is reviewed and adjusted from
time to time with the market conditions. The evaluation of portfolio is to be done in terms
of targets set for risk and return. The changes in portfolio are to be effected to meet the
changing conditions.
The modern theory is the view that by diversification, risk can be reduced. The investor
can make diversification either by having a large number of shares of companies in
different regions, in different industries or those producing different types of product
lines. Modern theory believes in the perspectives of combination of securities under
constraints of risk and return.
v
ABSTRACT
vi
TABLE OF CONTENTS
Certificate ii
Declaration iii
Acknowledgement iv
Preface v
Abstract vi
1. Introduction 1
Investment Pattern 5
Risk Tolerance 14
Factors Associated with Risk Tolerance 20
2. Literature Review 23
The Age Effect on Risk Tolerance 24
Social Effect on Risk Tolerance 27
Period Effect on Risk Tolerance 28
Attitudinal Self Assessment 29
Overconfidence and Estimation Bias 32
Gender Differences in Risk Preferences 35
Risk Preferences and Education 37
Risk Preferences and Income/wealth 38
Risk Assessment 39
3. Research Methodology 47
Research Design 48
Data Collection 49
Sampling 49
4. Objective of the Study 50
vii
5. Importance Of The Study 51
6. Data Analysis 52
7. Findings 63
8. Recommendations 67
9. Conclusion 69
10.Limitations 71
11.Bibliography 73
12.Annexure 75
Questionnaire 76
viii
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