TABLE OF CONTENTS

CONTENTS
PAGE NO
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List of tables6
CHAPTER-1
1. INTRODUCTION7
2. OBJECTIVE OF THE STUDY8
3. METHODOLOGY9
4. LIMITATIONS OF THE STUDY 10
CHAPTER-2
5. INVESTMENT DECISIONS11
CHAPTER-3
6. PORTFOLIO MANAGEMENT16
CHAPTER-4
7. PRACTICAL ANALYSIS OF
PORTFOLIO EVALUATION 74
CHAPTER-5
8. FINDINGS OF THE STUDY 80
9. CONCLUSION 81
10. BIBLIOGRAPHY 82
LIST OF TABLES
TABLE
PAGE NO
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I.PORTFOLIO A 64 - 65
II.PORTFOLIO B 66 - 67
III.PORTFOLIO C 68
INTRODUCTION
This 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.

OBJECTIVE OF THE STUDY
To help the investors to decide the effective portfolio of
securities.
To identify the best portfolio of securities.
To study the role and impact of securities in investment
decisions.
To clearly defining the portfolio selection process.
METHODOLOGY
PRIMARY DATA
Data collected from Newspaper & Magazines.
Data obtained from the internet.
Data collected from brokers.
Data obtained from company journals.
SECONDARY DATA
Data collected from various books and sites.
To select an optimal portfolio.
LIMITATIONS
The data collected is basically confined to secondary sources,
with very little amount of primary data associated with the
project.
There is a constraint with regard to time allocated for the
research study.
The availability of information in the form of annual reports &
price fluctuations of the companies is a big constraint to the
study.
INVESTMENT DECISION MAKING
Investment Management involves correct decision-making. As
referred to earlier any investment is risky and as such investment
decision is difficult to make. Investment decision is based on
availability of money and information on the economy, industry and
company and the share prices ruling and expectations of the market
and of the companies in question.
INVESTMENT MANGEMENT
In the stock market parlance, investment decision refers to
making a decision regarding the buy and sell orders. As referred to
already, these decisions are influenced by availability of money and
flow of information. What to buy and sell will also depend on the fair
value of a share and the extent of over valuation and under
valuation and more important expectation regarding them. For
making such a decision the common investors may have to depend
more upon a study of fundamentals rather than technicians,
although technical are more important. Besides, even genuine
investors have to guard themselves against wrong timing regarding
both buy and sell decisions.
Its is necessary for a common investor to study the Balance
Sheet and Annual Report of the company or analysis the quarterly
and half yearly results of the company and decide on whether to
buy that companys shares or not. This is called fundamental
analysis, and then decision-making becomes scientific and rational.
The likelihood of high-risk scenario will come down to a low risk
scenario and long-term investors will not lose.
Criteria for Investment Decision:
Firstly, the investment decision depends on the mood of the
market. As per the empirical studies, share prices depends on the
fundaments for the company only to the extent of 50% and the rest
is decided the mood of the market and the expectations of the
companys performance and its share price. These expectations
depend on the analysts ability to foresee and forecast the future
performance of the company. For price paid for a share at present
depends on the flow of returns in future, expected from the
company.