STUDY OF PORTFOLIO MANAGEMENT

AND ITS PRACTICES IN IIFL LTD

(INDIA INFOLINE)

BY

MR. ANKIT PAL

ROLL NO-04 BATCH 2018-20

GUIDE BY
PROF: SACHIN KHARE
 OBJECTIVES OF STUDY

 To understand the process of portfolio management and their

implementation.
 To understand the investor need from investment point of view.
 To understand the diversification of portfolio management in
different class of assets.
 To understand the investment pattern and risk taking capacity of
client.
 COMPANY PROFILE

 IIFL (India Infoline Ltd) was founded in 1995 by Mr.

Nirmal Jain (Chairman and managing Director).
 IIFL is one of the leading brokerage firm in the country.
 It is listed on BSE and NSE for securities trading.
 It offers entire range of financial product including stocks,
derivative, commodities, insurance and loans etc.
 Equity/ commodity broking and research is the key offering
of IIFL.
 PRODUCTS OF IIFL
Cash market
• Equity shares trading
platform
• Mutual fund
distribution
• Insurance distribution
• Depository services
• Portfolio management
services (PMS)
• Investment banking
• Bonds
• Initial Public Offer (IPO)
Commodity
market Others
• Commodities Trading • Structured products
platform • Credit finance and
• Derivatives- metallic securities
and agarian products • Research reports
• Loans and Mortgages • Asset management
- gold loans , home loans • Wealth management
and other loans • Offshore Investments
• Real Estate Advisory
• Capital Market
advisory
 RESEARCH METHODOLOGY
Data Collection
 Both Primary and Secondary data were collected.

Primary Data
 Online survey was conducted by preparing the questionnaire using
survey planet and it was emailed to different customers for their
feedback.

Sample size
No. of Respondents: 60

Secondary Data
 Secondary Data were collected from books, journals, magazines,
reports and websites. For this purpose the library and internet were
used.
 INTRODUCTION OF PORTFOLIO

 Portfolio is an investment into instruments like equities,

derivatives, debts, bullion or combination of few or all of them.

 Managing portfolio is a full-time task & requires expertise of

identifying, evaluating, comprehending and foreseeing
significant growth in revenues & profits of companies.

 The art and science of following markets successfully require

formal education, years of experience, deep understanding of
fundamental and technical analysis tools, up-to date market
intelligence and more.
STEPS IN CREATING APORTFOLIO

Security
analysis

Portfolio Portfolio
Evaluation analysis

Portfolio Portfolio
revision selection
 WHICH SECURITIES TO INVEST

• Trustworthy
SIZE • Growing company
management • Good
• Market liquidity • Minimum
defined revenue fundamentals
• Increased trading • Prospects and
activity • Minimum defined
market industry trend
capitalization
QUALITY GROWTH
 Risk management
Interest rate risk
Occurs mainly in the debt security market because
SYSTEMATIC RISK debt securities carry a fixe interest rate.

Systematic risk occurs Market rate risk

because of the impact Occurs because of a rise and fall in the prices of
of economical, social shares in the market.
and political changes on
the stock market Purchasing power risk
Occurs because of inflation which adversely affects the
purchasing power of investor

Examples:
Changes in the interest rate policy by the government.
Declaration of restrictive credit policy by RBI.
Resorting to massive deficit financing by the government.
Relaxation of foreign exchange controls by the government.
 Risk management

UNSYSTEMATIC RISK
It is result of specific
microeconomics factor
that impact return from
securities.
Business risk
Occurs during the day to day business activities
because of changes in business environment,
technology and other similar aspects
Financial risk
Occurs as a result of changes in the capital structure
of a company

Examples:
Declaration of strike by company workers.
Entry of formidable competitor in market.
Losing a big contract in a bid
 Investment avenue

 Fixed income
 Equity
 Commodities
 Cash and cash equivalents
 Derivatives
 FINDINGS
 During the survey it was observed that majority of 50% target clients
belonged to the age group of 20 - 30 years.
 49% of people belonging Income group between 1lakh to 3 lakh.
 From the analysis it was found that, mentioned below are six
investments out of witch after saving account and fixed deposit, people
mostly preferred mutual fund and share for their investment purpose.
 Safety and high return were the most preferential factor for
investment.
 The risk taking capacity was around 30% from the total respondents.
 15 to 25% return was expected by most of respondents from the
returns.
 SUGGESTIONS

It is suggested to the investor that instead of keeping long term

investment time horizon, their time horizon should depends on their
objective and type of investment venue.

 Instead of making wrong decisions regarding investment it is

advisable that investor should take help of portfolio manager.

 Now a day the return on various investments are based on market

scenario, so it is advisable to the investors that they should keep on
upgrading themselves with new guideline and change in terms and
condition. Not only were the investment avenues they have invested
but overall investment avenues.
 SUGGESTIONS

 It is to the inventor that at-least the equity portion of their

portfolio must be reviewed regularly so that if stock is not
performing then necessary diversification can made.

 It is suggested to the investor that irrespective of their awareness

regarding investment Avenue they should select appropriate
investment avenue which is suitable for them.

 It is advisable to the investor that they should keep some part of

their savings in terms of cash and remaining should be invested.
 CONCLUSION

 Lastly I would like to conclude that it was an excellent experience

in making this project, it was indeed a great opportunity by doing
this project. During this project I have acquire a lot of knowledge
regarding portfolio like share, debenture, bonds, mutual funds,
and many more.
 Also I got insight how to invest in portfolio management, which
scheme provides better return. The following conclusions may be
worth considering in the respect. Portfolio management reduce
the risk.
Thank you