MERCHANT BANKINGportfolio MGT
MERCHANT BANKINGportfolio MGT
MERCHANT BANKINGportfolio MGT
PRESENTED BY
MONIKA
M.COM(E. COM)
III SEM
CONTENTS
Introduction
Activities in portfolio management
Objectives of portfolio management
Basic principles of portfolio management
Functions of portfolio manager
Process of portfolio management
Obligations of portfolio manager
Success of portfolio management
Bibliography
Introduction
“Portfolio management refers to
managing efficiently the investment in
the securities held by the professionals
for others”
Activities in portfolio
management
Assets or securities allocation and
identifying asset class
Weighing shifts across major asset class
Security selection within asset class
Objectives of portfolio
management
Safety of investment of funds
Marketability
Reasonable return
Appreciation in capital
Tax planning
Risk avoidance
BASIC PRINCIPLES OF PORTFOLIO
MANAGEMENT
Growth
stability
Various constraints are:
Liquidity
Taxes
Time horizon
Fundamental analysis
Random selection
Portfolio rebalancing
Buy and hold policy
constant mix policy
constant proportion portfolio insurance
policy
Performance evaluation
Key dimensions are:
Rate of return
Risk
Variability
Beta
Obligations of portfolio
manager
A portfolio manager while investing clients
funds as specified in the agreement shall not
deploy the funds for other purposes.
A portfolio manager should not indulge in
speculative activities with the clients funds.
A portfolio manager may sell or purchase
securities for different clients in aggregate
looking into his transaction convenience and
economies of scale
He shall submit half yearly unaudited financial
results to SEBI as and when required.
he shall furnish periodical reports to the clients
as per regulations.
He shall rectify the deficiencies made out in the
auditors report within two months from the
date of audit reports.
He shall maintain the books of accounts,
records etc. as specified in the SEBI portfolio
manager regulation,1993
He shall make full disclosures of the portfolio to
SEBI as and when required by it.
Success in portfolio
management
For managing successfully the securities
portfolio the merchant bankers should follow a
well planned program covering:
Return on portfolio
Selection of balanced mix of securities covering
fixed rate as well as fluctuating rate of return
securities
Diversification of portfolio
Review and revision of portfolio and investment
timings keeping in view the market situations.
Bibliography
Verma .J.C.(4ed) Manual of merchant
banking. Bharat law house. New Delhi
Vashist.A.K.,Gupta.R.K.(2005) Investment
management and stock market. Deep and
Deep publications. New Delhi.
Chandra.P.(2007) The investment game. Tata
Mc Graw hill. New Delhi.
en.wikipedia.org/wiki/Portfolio_manageme
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