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INTRODUCTION:

The project deals with the different investment decisions made by different people
and focuses on element of risk in detail while investing in securities. It also explains how
portfolio hedges the risk in investment and giving optimum return to a given amount of
risk. It also gives an in depth analysis of portfolio creation, selection, revision and
evaluation. The report also shows different ways of analysis of securities, different
theories of portfolio management for effective and efficient portfolio construction. It also
gives a brief analysis of how to evaluate a portfolio.
The whole reason of the portfolio management service is ensuring that your money goes
that extra mile or earns return, which dramatically improves the returns structure for your
investments.
A portfolio is a collection of investments held by an institution or a private individual. In
building up an investment portfolio a financial institution will typically conduct its own
investment analysis, whilst a private individual may make use of the services of a
financial advisor or a financial institution which offers portfolio management services.
Holding a portfolio is part of an investment and risk-limiting strategy called
diversification. By owning several assets, certain types of risk (in particular specific risk)
can be reduced. The assets in the portfolio could include stocks, bonds, options, warrants,
gold certificates, real estate, futures contracts, production facilities, or any other item that
is expected to retain its value.
Portfolio management involves deciding what assets to include in the portfolio,
given the goals of the portfolio owner and changing economic conditions. Selection
involves deciding what assets to purchase, how many to purchase, when to purchase
them, and what assets to divest. These decisions always involve some sort of
performance measurement, most typically expected returnon the portfolio, and the risk
associated with this return (i.e. the standard deviation of the return). Typically the
expected returns from portfolios, comprised of different asset bundles are compared.
The unique goals and circumstances of the investor must also be considered. Some
investors are more risk averse than others. Mutual funds have developed particular
techniques to optimize their portfolio holdings.
Thus, portfolio management is all about strengths, weaknesses, opportunities and
threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety and
numerous other trade-offs encountered in the attempt to maximize return at a given
appetite for risk.
We all dream of beating the market and being super investors and spend an
inordinate amount of time and resources in this endeavor. Consequently, we are easy prey
for the magic bullets and the secret formulae offered by eager salespeople pushing their
wares. In spite of our best efforts, most of us fail in our attempts to be more than average
investors. Nonetheless, we keep trying, hoping that we can be more like the investing
legends another Warren Buffett or Peter Lynch. We read the words written by and
about successful investors, hoping to find in them the key to their stock-picking abilities,
so that we can replicate them and become wealthy quickly.
In our search, though, we are whipsawed by contradictions and anomalies. In one
corner of the investment town square, stands one advisor, yelling to us to buy businesses
with solid cash flows and liquid assets because thats what worked for Buffett. In another
corner, another investment expert cautions us that this approach worked only in the old
world, and that in the new world of technology, we have to bet on companies with solid
growth prospects. In yet another corner, stands a silver tongued salesperson with vivid
charts and presents you with evidence of his capacity to get you in and out of markets at
exactly the right times. It is not surprising that facing this cacophony of claims and
counterclaims that we end up more confused than ever.
In this introduction, we present the argument that to be successful with any
investment strategy, you have to begin with an investment philosophy that is consistent at
its core and which matches not only the markets you choose to invest in but your
individual characteristics. In other words, the key to success in investing may lie not in
knowing what makes Peter Lynch successful but in finding out more about yourself.
What is an investment philosophy?
An investment philosophy is a coherent way of thinking about markets, how they
work (and sometimes do not) and the types of mistakes that you believe consistently
underlie investor behavior. Why do we need to make assumptions about investor
mistakes? As we will argue, most investment strategies are designed to take advantage of
errors made by some or all investors in pricing stocks. Those mistakes themselves are
driven by far more basic assumptionsabout human behavior. To provide an illustration,
the rational or irrational tendency of human beings to join crowds can result in price
momentum stocks that have gone up the most in the recent past are more likely to go up
in the near future. Let us consider, therefore, the ingredients of an investment philosophy.
Human Frailty
Underlying all investment philosophies is a view about human behavior. In fact,
one weakness of conventional finance and valuation has been the short shrift given to
human behavior. It is not that we (in conventional finance) assume that all investors are
rational, but that we assume that irrationalities are random and cancel out. Thus, for every
investor who tends to follow the crowd too much (a momentum investor), we assume an
investor who goes in the opposite direction (a contrarian), and that their push and pull in
prices will ultimately result in a rational price. While this may, in fact, be a reasonable
assumption for the very long term, it may not be a realistic one for the short term.
Academics and practitioners in finance who have long viewed the rational
investor assumption with skepticism have developed a new branch of finance called
behavioral finance which draws on psychology, sociology and finance to try to explain
both why investors behave the way they do and the consequences for investment
strategies. As we go through this section, examining different investment philosophies,
we will try at the outset of each philosophy to explore the assumptions about human
behavior that represent its base.
Market Efficiency
A closely related second ingredient of an investment philosophy is the view of
market efficiency or its absence that you need for the philosophy to be a successful one.
While all active investment philosophies make the assumption that markets are
inefficient, they differ in their views on what parts of the market the inefficiencies are
most likely to show up and how long they will last. Some investment philosophies
assume that markets are correct most of the time but that they overreact when new and
large pieces of information are released about individual firms they go up too much on
good news and down too much on bad news. Other investment strategies are founded on
the belief that markets can make mistakes in the aggregate the entire market can be
under or overvalued and that some investors (mutual fund managers, for example) are
more likely to make these mistakes than others. Still other investment strategies may be
based on the assumption that while markets do a good job of pricing stocks where there is
a substantial amount of information financial statements, analyst reports and financial
press coverage they systematically misprice stocks on which such information is not
available.
Tactics and Strategies
Once you have an investment philosophy in place, you develop investment
strategies that build on the core philosophy. Consider, for instance, the views on market
efficiency expounded in the last section. The first investor, who believes that markets
over react to news, may develop a strategy of buying stocks after large negative earnings
surprises (where the announced earnings come in well below expectations) and selling
stocks after positive earnings surprises. The second investor who believes that markets
make mistakes in the aggregate may look at technical indicators (such as mutual fund
cash positions and short sales ratios) to find out whether the market is over bought or
oversold and take a contrary position. The third investor who believes that market
mistakes are more likely when information is absent may look for stocks that are not
followed by analysts or owned by institutional investors.
It is worth noting that the same investment philosophy can spawn multiple
investment strategies. Thus, a belief that investors consistently overestimate the value of
growth and under estimate the value of existing assets can manifest itself in a number of
different strategies ranging from a passive one of buying low PE ratio stocks to a more
active one of buying such companies and attempting to liquidate them for their assets. In
other words, the number of investment strategies will vastly outnumber the number of
investment philosophies.





INDUSTRY PROFILE
INDUSTRY OVERVIEW;
The securities market achieves one of the most important functions of channeling idle
resources to productive resources or from less productive resources to more productive
resources. Hence in the broader context the people who save and investors who invest
focus more towards the economys abilities to invest and save respectively. This
enhances savings and investments in the economy, the two pillars for economic growth.
The Indian Capital Market has come a long way in this process and with a strong
regulator it has been able to usher an era of a modern capital market regime. The past
decade in many ways has been remarkable for securities market in India. It has grown
exponentially as measured in terms of amount raised from the market, the number of
listed stocks, market capitalization, trading volumes and turnover on stock exchanges,
and investor population. The market has witnessed fundamental institutional changes
resulting in drastic reduction in transaction costs and significant improvements in
efficiency, transparency and safety.
Stock market:
When investors think of the stock market, they Nov imagine a specific place -
such as a stock exchange. In fact, the stock market is the abstract idea of stock trading
and stock exchange. All selling of stocks - at stock exchanges and in other ways - affects
the market overall. Following stock market information in the news can help you make
the right decisions about stock market investing.
Need of stock market:
The stock market is simply a term for the overall market or industry that is
concerned with buying and selling company stock, both private and publicly traded
securities. The stock market does many things. It helps to set prices of stocks. The more a
stock is traded on the market and the more in demand the stock, the higher is its value.
Having a stock market that is interconnected with stock markets around the world helps
traders and investors to see how Specific stocks are doing.
Of course, the stock market is mainly present to create money. Through the
market, investors - both companies and individuals - can buy stocks, which effectively
make them own a small part of a company. If the company prospers, investors are
rewarded with dividends and profits. Companies, by becoming public and offering stocks
to the public, can raise money and improve their profile through business expansions
which can help them make great profit.
STOCK MARKETS IN INDIA:
Stock exchanges are the perfect type of market for securities whether of
government and semi-govt bodies or other public bodies as also for shares and debentures
issued by the joint-stock companies. In the stock market, purchases and sales of shares
are affected in conditions of free competition. Government securities are traded outside
the trading ring in the form of over the counter sales or purchase. The bargains that are
struck in the trading ring by the members of the stock exchanges are at the fairest prices
determined by the basic laws of supply and demand.
Definition of a stock exchange:
Stock exchange means anybody or individuals whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of buying,
selling or dealing in securities. The securities include:
Shares of public company.
Government securities.
Bonds
History of Stock Exchanges:
The only stock exchanges operating in the 19
th
century were those of Mumbai
setup in 1875 and Ahmadabad set up in 1894. These were organized as voluntary non-
profit-making associations of brokers to regulate and protect their interests. Before the
control on securities under the constitution in 1950, it was a state subject and the Bombay
securities contracts (control) act of 1925 used to regulate trading in securities. Under this
act, the Mumbai stock exchange was recognized in 1927 and Ahmadabad in 1937.
During the war boom, a number of stock exchanges were organized. Soon after it became
a central subject, central legislation was proposed and a committee headed by
A.D.Gorwala went into the bill for securities regulation. On the basis of the committees
recommendations and public discussion, the securities contract (regulation) act became
law in 1956.

Functions of Stock Exchanges:
Stock exchanges provide liquidity to the listed companies. By giving quotations
to the listed companies, they help trading and raise funds from the market. Over the
hundred and twenty years during which the stock exchanges have existed in this country
and through their medium, the central and state government have raised crores of rupees
by floating public loans. Municipal corporations, trust and local bodies have obtained
from the public their financial requirements, and industry, trade and commerce- the
backbone of the countrys economy-have secured capital of crores or rupees through the
issue of stocks, shares and debentures for financing their day-to-day activities, organizing
new ventures and completing projects of expansion, diversification and modernization.
By obtaining the listing and trading facilities, public investment is increased and
companies were able to raise more funds. The quoted companies with wide public
interest have enjoyed some benefits and assets valuation has become easier for tax and
other purposes.
THE MAJOR STOCK EXCHANGES IN INDIA:
NSE:
NSE's mission is setting the agenda for change in the securities markets in India.
The NSE was set-up with the main objectives of:
Establishing a nation-wide trading facility for equities and debt instruments.
Ensuring equal access to investors all over the country through an appropriate
communication network.
Providing a fair, efficient and transparent securities market to investors using
electronic trading systems.
Enabling shorter settlement cycles and book entry settlements system.
Meeting the current international standards of securities markets.
The standards set by NSE in terms of market practices and technology, have become
industry benchmarks and are being emulated by other market participants

BSE:
The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as
"The Native Share and Stock Brokers Association". It is the oldest one in Asia, even
older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary
non-profit making Association of Persons (AOP) and is currently engaged in the process
of converting itself into demutualized and corporate entity. It has evolved over the years
into its present status as the premier Stock Exchange in the country. It is the first Stock
Exchange in the Country to have obtained permanent recognition in 1956 from the Govt.
of India under the Securities Contracts (Regulation) Act 1956.The Exchange, while
providing an efficient and transparent market for trading in securities, debt and
derivatives upholds the interests of the investors and ensures redresses of their grievances
whether against the companies or its own member-brokers. It also strives to educate and
enlighten the investors by conducting investor education programmers and making
available to them necessary informative inputs.
A Governing Board having 20 directors is the apex body, which decides the policies and
regulates the affairs of the Exchange. The Governing Board consists of 9 elected
directors, who are from the broking community (one third of them retire ever year by
rotation), three SEBI nominees, six public representatives and an Executive Director &
Chief Executive Officer and a Chief-Operating-Officer.
The Executive Director as the Chief Executive Officer is responsible for the
day-to-day administration of the Exchange and the Chief Operating Officer and other
Heads of Department assist him. The Exchange has inserted new Rule No.126 A in its
Rules, Byelaws pertaining to constitution of the Executive Committee of the Exchange.
Accordingly, an Executive Committee, consisting of three elected directors, three SEBI
nominees or public representatives, Executive Director & CEO and Chief Operating
Officer has been constituted. The Committee considers judicial & quasi matters in which
the Governing Board has powers as an Appellate Authority, matters regarding annulment
of transactions, admission, continuance and suspension of member-brokers, declaration
of a member-broker as defaulter, norms, procedures and other matters relating to
arbitration, fees, deposits, margins and other monies payable by the member-brokers to
the Exchange, etc.
REGULATORY FRAME WORK OF STOCK EXCHANGE:
A comprehensive legal framework was provided by the Securities
Contract Regulation Act, 1956 and Securities Exchange Board of India 1952. Three
tier regulatory structure comprising
Ministry of finance
The Securities And Exchange Board of India
Governing body
Members of the stock exchange:
The securities contract regulation act 1956 has provided uniform regulation for
the admission of members in the stock exchanges. The qualifications for becoming a
member of a recognized stock exchange are given below:
The minimum age prescribed for the members is 21 years.
He should be an Indian citizen.
He should be neither a bankrupt nor compound with the creditors.
He should not be convicted for fraud or dishonesty.
He should not be engaged in any other business connected with a company.
He should not be a defaulter of any other stock exchange.
The minimum required education is a pass in 12
th
standard examination.
SEBI (Securities and exchange board of India) :
The securities and exchange board of India was constituted in 1988 under a resolution of
government of India. It was later made statutory body by the SEBI act 1992.according to
this act, the SEBI shall With the coming into effect of the securities and exchange board
of India act, 1992 some of the powers and functions exercised by the central government,
in respect of the regulation of stock exchange were transferred to the SEBIconstitute of a
chairman and four other members appointed by the central government..



DEPENDENCE OF SECURITIES MARKET:
Three main sets of entities depend on securities market- the corporate, the
government & households. While the corporate and governments raise resources from the
securities market to meet their obligations, the households invest their savings in
securities.
Primary market & secondary market:
The securities market comprises two segments- primary market (new
issues, offer for sale) & secondary market (trading of stocks). There are two major types
of issuers who issue securities. The corporate entities issue mainly debt and equity
instruments (shares, debentures, etc.), while the governments (central and state
governments) issue debt securities (dated Securities, treasury bills). The two major
exchanges, namely the NSE and the BSE provide trading of securities.
Laws governing capital market:
The four main legislations governing the securities market are:
(a) The SEBI Act, 1992 which establishes SEBI to protect investors and develop and
regulate securities market.
(b) The Companies Act, 1956, which sets out the code of conduct for the corporate
sector in relation to issue, allotment and transfer of securities, and disclosures to be made
in public issues.
(c) The Securities Contracts (Regulation) Act, 1956, read with the Securities Contracts
(Regulation) Rules, 1957 which provide for regulation of transactions in securities
through control over stock exchanges; and
(d) The Depositories Act, 1996 which provides for electronic maintenance
And transfers of ownership of d-mat securities.
Regulators:
SEBI is the primary regulator of the Securities Market and the entities operating
therein. The SEBI Act and the Depositories Act are mostly administered by SEBI.
Government and regulations by SEBI frame the rules under the securities laws. All these
are administered by SEBI. The powers under the Companies Act relating to issue and
transfer of securities and non-payment of dividend are administered by SEBI in case of
listed public companies and public companies proposing to get their securities listed.
STOCK MARKET DEFINITIONS:
1. A place where stocks, bonds, or other securities are bought and sold.
2. An association of stockbrokers who meet to buy and sell stocks and bonds according
to fixed regulations.
3. Stock exchange: an exchange where professional stockbrokers conduct security
trading.
4. A stock market is a market for the trading of company stock, and derivatives of it;
both of these are securities listed on a stock exchange as well as those only traded
privately.
5. The organized trading of stocks, bonds, or other securities, or the place where such
trading occurs.
6. Where stocks (shares) are bought and sold. A share is a portion of the total ownership
of a corporation. The more shares you own in a corporation, the more ownership you
have in that corporation.
7. The set of institutions that facilitate the exchange of stocks between buyers and
sellers. A stock market can be an actual place, but with the growth of electronic
transactions a large fraction of stock market transactions are not centrally located in a
particular location.
8. Stock market Nov is a physical place, sometimes known as a stock exchange, where
brokers gather to buy and sell stocks and other securities. The term is also used more
broadly to include electronic trading that takes place over computer and telephone
lines.
9. Is a market for the trading of publicly held company stocks or shares and associated
financial instruments (including stock options, convertibles and stock index futures).
10. Where stocks (shares) are bought and sold. A share is a portion of the total ownership
of a corporation. The more shares you own in a corporation, the more ownership you
have in that corporation

COMPANY PROFILE


Introduction
India bulls are Indias leading Financial, Real Estate and Power Company with a wide
presence throughout India. They ensure convenience and reliability in all their products
and services. India bulls have over 640 branches all over India. The customers of
Indiabulls are more than 4,50,000 which covers from a wide range of financial services
and products from securities, derivatives trading, depositary services, research &
advisory services, consumer secured & unsecured credit, loan against shares and
mortgage & housing finance. The company employs around 4000 Relationship managers
who help the clients to satisfy their customized financial goals. Indiabulls entered the
Real Estate business in the year 2005 with its group of companies. Large scale projects
worth several hundred million dollars are evaluated by them.
India bulls Financial Services Ltd is listed on the National Stock Exchange (NSE),
Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The market
capitalization of India bulls is around USD 2500 million (29
th
December, 2006).
Consolidated net worth of the group is around USD 700 million. India bulls and its
group companies have attracted USD 500 million of equity capital in Foreign Direct
Investment (FDI) since March 2000. Some of the large shareholders of India bulls are the
largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill
Lynch, Morgan Stanley and Carillon Capital.
Growth of India bulls
Year 2000-01:
One of Indias first trading platforms was set up by India bulls Financial Services Ltd.
with the development of an in-house team.


Year 2001-03:
The service offered by India bulls was increased to include Equity, F&O, Wholesale
Debt, Mutual fund, IPO Financing/Distribution and Equity Research.
Year 2003-04:
In this particular year India bulls ventured into Distribution and Commodities Trading
business.
Year 2004-05:
This was one of the most important years in the history of India bulls. In this year:
India bulls came out with its initial public offer (IPO) in September 2004.
India bulls started its Consumer Finance business.
India bulls entered the Indian Real Estate market and became the first company to
bring FDI in Indian Real Estate.
India bulls won bids for landmark properties in Mumbai.
Year 2005-06:
In this year the company acquired over 115 acres of land in Sonepat for
residential home site development. The world renowned investment banks like Merrill
Lynch and Goldman Sachs increased their shareholding in India bulls. It also became a
market leader in securities brokerage industry, with around 31% share in Online Trading.
The worlds largest hedge fund, Farallon Capital and its affiliates committed Rs. 2000
million for India bulls subsidiaries Viz. India bulls Credit Services Ltd. and India bulls
Housing Finance Ltd. In the same year, the Steel Tycoon Mr. L N Mittal promoted LNM
India Internet venture Ltd. acquired 8.2% stake in India bulls Credit Services Ltd.
Year 2006-07:
In this year, India bulls Financial Services Ltd. was included in the prestigious
Morgan Stanley Capital International Index (MSCI). India bulls Financial Services Ltd.
was benefited with the Farallon Capital agreeing to invest Rs. 6,440 million in it. The
company also received an in principle approval from Government of India for
development of multi product SEZ in the state of Maharashtra. India bulls Financial
Services Ltd acquired 100% of the equity share capital of Noble Realtors Pvt. Ltd. Noble
Realtors is a Company engaged in the business of construction and development of real
estate projects. India bulls Real Estate Business was demerged to become a separate
entity called India bulls Real Estate Ltd. The Board of India bulls Financial Services Ltd.,
Resolved to Amalgamate Indiabulls Credit Services Ltd and demerge India bulls
Securities Limited.
India bulls Financial Services Ltd: In Year 2008-09Several developments across its
group companies have propelled India bulls forward and are expected to continue to
power the rise of this conglomerate. India bulls financial services limited has recently
signed a joint venture agreement with sogecap, the insurance arm of Society General
(SocGen) for its upcoming life insurance venture. At the same time it has also signed a
Memorandum of understanding with MMTC.On the asset management front, the
company has received formal approval uhby7hbfrom SEBI and is expected to shortly
launch its first NFO. India bulls enter in to Public issue for his India bulls power Ltd.
Promoters for Indiabulls :
Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal are the promoters of India bulls
Financial Services Limited WhileSameer Gehlaut will have a 23.0% stake in the
company post the IPORajiv Rattan and Saurabh Mittal will have a post issue holding of
11.5% and 10.1% respectively. All the three promoters of the company are engineering
graduates while Saurabh Mittal is a management graduate as well
The Team:
India bulls Securities Ltd, main strength lies in its formidable team. This team
comprising highly qualified and experienced personnel has been responsible for the
overall management of the company and has provided direction in diverse areas of
business strategy, operating management, regulatory reporting, human resources
development and product development.
Vision statement: To become the preferred long term financial partner to a wide base of
customers whilst optimizing stake holders value
Mission statement: To establish a base of 1 million satisfied customers by 2010. We will
create this by being a responsible and trustworthy partner
Corporate action: An Approach to Business that reflects Responsibility, Transparency
and Ethical Behavior. Respect for Employees, Clients & Stakeholder groups


Indiabulls Group entities in India
India bulls Capital Services Ltd.
India bulls Commodities Pvt. Ltd.
India bulls Credit Services Ltd.
India bulls Finance Co. Pvt. Ltd
India bulls Housing Finance Ltd.
India bulls Insurance Advisors Pvt. Ltd.
India bulls Resources Ltd.
India bulls Securities Ltd.
India bulls Power Ltd.
India bulls Securities Ltd is listed on the National Stock Exchange (NSE) and the
Bombay Stock Exchange (BSE) and its global depository shares are listed on the
Luxembourg Stock Exchange
Reasons to choose India bulls Securities Ltd:
The India bulls Financial Services stock is the best performing stock in the MSCI Index
the global benchmark for equity investments

A person who bought India bulls shares in the IPO at Rs. 19 (US$ 0.48) in September
2004 has been rewarded almost 100 times in three and a half years a feat unparalleled
in the history of Indian capital markets

India bulls Real Estate Limited partnered Farallon Capital Management LLC of the US to
bring the first Foreign Direct Investment into real estate
Seven Reasons why investing with India bulls Securities Limited is smarter
1) Customization: Formulates investment plans based on customer individual
requirements
2) Expertise: Brings within customer reach, about institutional expertise and companies
valuable understanding of the financial markets
3) One-stop shop: Caters to all customers investment needs under one roof.
4) Trust: Enjoys the pedigree of India bulls Securities Ltd and share its expertise in
financial services.
5) Personalized service: Helps customer through the entire investment process, step by
step, with innovative and efficient services.
6) Unbiased & Objective advice: We partner you in your investment process, with our
team of expert investment advisors
Online trading potential is huge: Online trading accounted for 5% of overall market in
FY04 as compared to an estimated 3% in FY03. India bulls currently has almost 20%
market share of volumes in the Internet trading space. The table below indicates the
growth in volumes of the Internet trading segment on the NSE over the last few years.
The growth is indicative of the potential of this segment, which we believe is likely to be
robust going forward as well.
This is primarily driven by increasing penetration of computers, significant
decline in Internet charges, convenience of usage and cost advantage. To put things in
perspective, the offline brokerage on equities is around 1.0% as compared to 0.5% in the
online trading space
Advisory services:
An India bull is also into mutual fund and insurance advisory businesses. Though
this field is extremely competitive and requires significant research skills, these are
highly profitable business segments. Though these businesses currently account for an
insignificant portion of overall revenues, considering the penetration levels of mutual
funds and insurance in the country, prospects are promising.
Aggressive growth plans:
India bulls have set aggressive targets to expand its business in the offline space.
This includes investments in up gradation of branch network and opening another 75
branches by the end of calendar year 2009 (150 in total). The company has also indicated
its intent to acquire strategic stake in other companies towards growing the business
inorganically
Products provided Power India bulls: An online trading system designed for the high-
volume trader. The platform provides enhanced trade information and executes orders on
an integrated software based trading platform.
India bulls financial service offers:
? SME finance
? Mortgage loans
? Commercial vehicle loans
? Farm equipment loans
? Commercial credit loans
? Loan against shares and
? Third part distribution of insurance products.
Broking: Equity, Derivatives, Commodities, Currency Derivatives.
Distribution: Mutual funds, IPOs, Home loans, Insurance.
Divisions:
Investment Advisory and Broking? Division
Project Syndication Division? Institutional Equity Broking? Division
Institutional Debt Broking? Division
Retail Offerings:
? Wealth Management Services
? Portfolio Management Services
? Securities Broking-Equities and derivatives
? Depository & Custodial Service & Distribution of financial products. .
Services:
Indiabulls securities provide a wide range of services that include Power Indiabulls:
An online trading system designed for the high-volume trader. The platform provides
enhanced trade information and executes orders on an integrated software based trading
platform.
1) Equities
2) Commodities
3) Wholesale debts
4) Futures and options
5) Depository services
6) Equity research services
7) Post Trade -Custodial,
8) Depository Services
9) Payment Gateway
10) Other back office support
Online Banks Tie-ups for trading: Company having online transaction tie-ups with
banks like.
HDFC BANK,
ICICI BANK,
IDBI BANK,
CITI BANK.
Company Achievements:
The Indiabulls Group is one of the top fifteen conglomerates in the country with
businesses in several significant sectors.
The India bulls Financial Services stock is the best performing stock in the MSCI Index
the global benchmark for equity investments.
Indiabulls Real Estate Limited partnered Carillon Capital Management LLC of the US to
bring the first Foreign Direct Investment into real estate.

Indiabulls Financial Services Limited was accorded the highest rating P1+ for short term
debt and the highest rating of AAA (SO) by CRISIL for loan receivables securitization
while Indiabulls Securities Limited is the only broker in India to be assigned CRISILs
highest broker quality grading of BQ1.
In December 2007, Indiabulls acquired Pyramid Retail including Pyramid Megastores
and Trumart, their chain of lifestyle and convenience outlets
Company competitors
Kotak Securities Ltd,
ICICI Securities Ltd,
HDFC Securities Ltd,
Religare Securities Ltd,
Birla Money,
Indiainfoline Ltd.
ABOUT INDIABULLS GROUP
The Indiabulls Group is one of the top fifteen conglomerates in the country with
businesses in several significant sectors.

The group companies have a market capitalization of over Rs. 25,000 crore (US$
6.25 billion) while group revenues have grown at a cumulative annual rate of over 100%
to now reach Rs. 3100 crore (US$ 775 million) and the group profit has surged to over
Rs. 1200 crore (US$ 300 million). Its companies, listed in important Indian and overseas
markets, have Distributed over Rs. 700 crore (US$ 175 million) as dividend in the year
2008.

Indiabulls Financial Services Limited was accorded the highest rating P1+ for short term
debt and the highest rating of AAA (SO) by CRISIL for loan receivables securitisation
while India bulls Securities Limited is the only broker in India to be assigned CRISILs
highest broker quality grading of BQ1.

In December 2007, Indiabulls acquired Pyramid Retail including Pyramid Megastores
and Trumart, their chain of lifestyle and convenience outlets
Indiabulls growth has been nothing short of stupendous. In less than eight years since the
company was first registered, it has grown from just five employees to 21,000 and from
one Office to 600 across the country.

The Indiabulls Financial Services stock is the best performing stock in the MSCI Index
the global benchmark for equity investments.

A person who bought Indiabulls shares in the IPO at Rs. 19 (US$ 0.48) in September
2004 has been rewarded almost 100 times in three and a half years a feat unparalleled
in the history of Indian capital markets
Indiabulls Real Estate Limited partnered Farallon Capital Management LLC of the US to
bring the first Foreign Direct Investment into real estate.
Companies History in India
In 1999, three IIT-Delhi alumni Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal
acquired Orbis,a Delhi based stock broking company. Young entrepreneur Sameer
Gehlaut established India bulls in 2000, after acquiring orbis Securities, a stock brokerage
company in Delhi. The group started its operations from a small office near Hauz Khas
bus terminal in Delhi.The office had a tin roof and two computers. The idea of leveraging
technology for trading stocks led to the creation of Indiabulls Incorporated on 10th
January 2000, it was converted into a public limited company on 27th February 2004.
Its original idea of leveraging technology bore fruit when Indiabulls was accorded
permission to conduct online trading on Indian stock exchanges.
The company had achieved the distinction of becoming only the second brokerage firm in
India to be granted this consent. The challenges facing it were immense not least of all
the mind set of investors who were called to make the big leap from traditional stock
trading to a completely online interface. Having overcome this resistance, the company
later expanded its service portfolio to include equity, F&O, wholesale debt, mutual fund
distribution and equity research.
In 2003/04, Indiabulls ventured into insurance distribution and commodity trading. It
successfully floated its IPO in September 2004 and in the same year entered the
consumer finance segment. Real estate, the new sunrise industry, was the next frontier for
Indiabulls. In 2004/05, it entered this sector. But it wasnt just real estate that was
booming.
Opportunities were opening up in retail and infrastructure as well. To cement its position
in the Indian business and industry firmament,
Indiabulls acquired Pyramid Retail In 2007 and marked its presence in the power sector
by launching Indiabulls Power.




Brand Values

Indiabulls is amongst the largest non-banking financial services companies in India and
enjoys strong brand recognition and customer acceptance.
The company attributes its dominant position in the brokerage industry to the preferential
status it enjoys with investors Coupled with its forays into various segments; the Group
believes that the bulk of its brand story is yet to be written.
Indeed, when a case study on Indias youngest brands which have had a profound impact
on the economy is crafted, Indiabulls will feature prominently in it.
Recent Developments

Several developments across its group companies have propelled Indiabulls forward and
are expected to continue to power the rise of this conglomerate.
Indiabulls Financial Services Limited has recently signed a joint venture agreement with
Sogecap, the insurance arm of Society Generale (SocGen) for its upcoming life insurance
venture.
At the same time it has also signed a Memorandum of Understanding with MMTC, the
largest commodity trading house in India, to establish a Commodities Exchange with
26% Ownership held by MMTC.
On the asset management front, the company has received formal approval from SEBI
and is expected to shortly launch its first NFO.
DATA ANALYSIS
The collected data is sorted out an analyses to prepare the final report
the tools and techniques is in the analysis are
Tables
Graphs
Formulas are
Return = (close price-previous close)/previous close*100.
Risk= D
2
/ (n-1).
D
2
= Total Sum of the D
2
.
Return of portfolio=w1 R1+w2 R2
Where: R1= return on the first company
R2= return on the second company
W1, W2= investment on 50%
Risk of portfolio= w1
2
1
2
+ w2
2
2
2
+2w1, w2 1 2, R1&R2.
1= Risk of company 1.
2= Risk of company 2.
R1&R2= Correlation coefficient of companies 1 & 2.
Coefficient of Correlation = R1 & R2.














RESEARCH METHODOLOGY:
Research methodology is a way to find out the result of a given problem on a
specific matter or problem that is also referred as research problem. In methodology uses
different criteria for solving searching the given research problem. Different sources use
different type of methods for solving the problem. If we think about the world
methodology, it is the way of searching or solving the research problem. (Industrial
research institute 2010)
According to Goddard & Melville (2004), answering unanswered questions exploring
which currently not exit is a research. The advanced learners dictionary current English
lays down the meaning of research as careful investigation or inquiry especial through
search for new facts in any branch of knowledge.Redmen &Mory (2009) define research
as a systemized effort to gain new knowledge.
In research methodology, research always tries search the given questions
systematically in our own way and out all the answered tell conclusion. If research does
not work systematically on problem three worlds be less possibility.
METHODOLOGY
The data collected is basically confined to secondary sources,
There is a constraint with regard to time allocated for the research study.
The availability of information about different& price fluctuations of the
companies is a big constraint to the study.
SECONDARY DATA:
Data collected from various books and sites.
Data collected from internet.
The Price of stocks from national stock exchange is totally secondary data
SAMPLE
Different companies from different sector randomly list of company
1: APOLLO TYRES
2: RELIANCE INDUSTRIES LTD
3: MOTILAL OSWAL
4: HDFC
5: HERO MOTORS
6: MRF TYRES
7: KOTAK MAHINDRA
8: ICICI
9: ASIAN PAINTS
10: KINGFISHER AIRLINES
.DATA ANALYSIS FORMULA:
In this study the statistical tools used are risk, return, average, variance,
correlation coefficient etc.
Return calculation: [p1-p0]/p0*100
Average return: [p1-p0]/p0*100/5
Standard deviation: variance
Variance=1/n-1(d2)
NEED FOR THE STUDY
Portfolio management is a process encompassing many activities of investment in
assets and securities .it is a dynamic and flexible concept and involves regular and
systematic analysis judgments and actions .the objectives of the service is to help the un
known investors which the expertise of professionals in investment portfolio management
. it involves construction of a portfolio basis up on the investors objectives , constraints
,preferences for risk and return and tax ability . The portfolio is reviewed and adjusted
from time to time in tune with the market conditions the evaluation of portfolio is to be
done in terms of targets set for a risk and return .the changes in the portfolio or to be
effected to meet the changing conditions.
Portfolio construction refers to the allocation of surplus funds in hand among a
verity of financial assets open for investments .portfolio theory concerns itself with the
principles governing such allocations .the modern view of investments is oriented more
towards the assembly of proper combinations of individuals securities to from investment
portfolios .the combination of individual securities to from investments portfolios .the
combination of securities held together will give a beneficial results if they are grouped
in a manner to secure higher return after taking into policy consideration the risk
elements.
OBJECTIVES OF THE STUDY
To make detailed study on the overall concepts of the portfolio management in india
bulls
To do an analysis of the risk and return characteristics of stocks related to different
companies
To help the investors to decide the effective portfolio of securities in india bulls
To identify the best securities out of which a portfolio can be constructed by the india
bulls
SCOPE OF THE STUDY
This study covers the Markowitz model. the study covers the calculation of
correlation between the different securities in order to find out at what percentage of
funds should be invested among the companies in the portfolio .also the study includes
the calculation of weights of individual securities involve in the portfolio .this percentage
help in allocation of the funds available for investments base d on the risky portfolios.
DATA SOURECES:
Use Data Warehouse Manager to combine your data from SimCorp Dimension
with data from other sources and systems and eliminate the need for costly ETL and
data consolidation tools. Data Warehouse Manager leverages best practice gained from
decades of experience with SimCorp Dimension installations. You get a reporting
database that is constantly developed, maintained, and enhanced by SimCorp. With
highly automated data quality checks and validations, you are confident that your data
warehouse solution is optimized for your reporting and analysis requirements.
Central repository for all data sources
Data Warehouse Manager serves as the central repository for all reporting and analytics
data, whether sourced directly from SimCorp Dimension or alternate sources. Simplify
your reporting process with this single source in place to meet your reporting and analysis
requirement. Whats more, youll have a stable and consistent application over time as
Data Warehouse Manager is updated along with the rest of SemCorp Dimension.

Compatible with any data warehouse environment
Data Warehouse Manager adapts to virtually all existing data warehouse infrastructures.
If you already have a data warehouse solution in place, its easy to read the layout and
map the data of your existing data warehouse into Data Warehouse Manager.
TOOLS FOR PORTFOLIO MANAGEMENT:
Portfolio management (PM) tools assist the portfolio managers in achieving the
optimum balance between attractions and drawbacks, stability and growth, and risks and
returns by making the good use of limited resources available. They provide the
organized and systematic ways for analyzing the set of projects or activities.
Common Aspects of PM tools
There are certain common aspects of various Portfolio management tools.
The results obtained by the assessment of individual projects in a portfolio are balanced
with PM tools.
Portfolio Management can be combined with suitable evaluation techniques of single
project.
PM utilizes the results of the analysis (partially or completely) done for evaluating the
individual projects when used for selecting or assessing the projects.
The projects do not occur during the same period of time when PM tools are applied
therefore there are some discontinuities.
One of the main tasks of PM tools is to balancing the projects on time in terms of costs
and returns over time.
In order to ensure the uniformity and validity of the input data, it is imperative to
examine every project in a similar way. It is necessary for the balancing of the projects.
Popular Portfolio Management tools
There are many project evaluation tools that can be applied to portfolio evaluation
techniques
by making direct comparison of the assessment results of individual projects. In addition
to these, there are certain techniques that are designed specifically for PM.


Others Tools
Others tools are used primarily for project evaluation such as decision tress and others
2D and 3D matrices
The 2D and 3D matrices are used for the analysis and representation of business units,
projects or activities on the basis of 2 or 3 meaningful variables. All these matrices need a
similar process for taking decisions and analyzing the data. They are considered to be
complementary and hence they are grouped together.
The portfolio is analyzed by business and RTD managers by examining each individual
project. It is followed by placing each project within portfolio matrices that incorporates
the strategic elements that are critical to the particular company and its industry.
The2D and 3D matrices techniques are suitable for any company and context and
therefore they are very popular and interesting. They are easy to implement and
compared with other techniques.
These matrices offer a framework for assessment of various parameters, and company
should do some experiments for applying these tools for finding the suitable
combinations. These matrices require the judgment and these judgements are supported
by using these PM tools.
PORTFOLIO MANAGEMENT FORMULAS:
In this study the statistical tools used are risk, return, average, variance, correlation
coefficient etc.
Return calculation: [p1-p0]/p0*100
Average return: [p1-p0]/p0*100/5
Standard deviation: variance
Variance=1/n-1(d2)
Return = (close price-previous close)/previous close*100.
Risk= D
2
/ (n-1).
D
2
= Total Sum of the D
2
.
Return of portfolio=w1 R1+w2 R2
Where: R1= return on the first company
R2= return on the second company
W1, W2= investment on 50%
Risk of portfolio= w1
2
1
2
+ w2
2
2
2
+2w1, w2 1 2, R1&R2.
1= Risk of company 1.
2= Risk of company 2.
R1&R2= Correlation coefficient of companies 1 & 2.
Coefficient of Correlation = R1 & R2
LIMITATIONS OF THE STUDY
Time constraint is major factor.

Construction of portfolio is restricted to assets.

Limited industries are covered in the study.

Constrained to a small number of investors

Large scope for long term investments