11 Gargi Sharma
11 Gargi Sharma
11 Gargi Sharma
Submitted to:
DMSR
G.S. College of Commerce and Economics, Nagpur
(An Autonomous Institution)
Submitted by:
GARGI SHARMA
CERTIFICATE
This is to certify that GARGI SHARMA has submitted the project report titled,
“A STUDY OF PORTFOLIO MANAGEMENT SERVICES OF MOTILAL
OSWAL FINANCIAL SERVICES LTD.” towards the partial fulfillment of
MASTER OF BUSINESS ADMINISTRATION degree Examination. This has
not been submitted for any other examination and does not form part of any other
course under gone by the candidate.
It is further certified that she has ingeniously completed her project as prescribed
by DMSR, G. S. College of Commerce and Economics, Nagpur, (NAAC
Reaccredited "A" Grade Autonomous Institution) affiliated to Rashtrasant
Tukadoji Maharaj Nagpur University, Nagpur.
Place: Nagpur
Date: 25/06/2023
Department of Management Sciences and Research,
G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution
DECLARATION
ACKNOWLEDGEMENT
With immense pride and sense of gratitude, I take this golden opportunity to express
my sincere regards to Dr. Swati Kathaley, Principal, G.S. College of Commerce&
Economics, Nagpur.
I am extremely thankful to my Project Guide Dr. Afsar Sheikh for her guidance
throughout the project. I tender my sincere regards to the Coordinator, Dr. Sonali
Gadekar for giving me guidance, suggestions and invaluable encouragement
which helped me in the completion of the project.
I will fail in my duty if I do not thank the non-Teaching staff of the college for their
Co-operation.
I would like to thank all those who helped me in making this project complete and
successful.
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TYPES OF PORTFOLIO MANAGEMENT
The portfolio manager actively manages the investment portfolio, and the
research team picks the requisite securities.
Investors who have a higher risk appetite and seek higher capital gains opt for
Active Portfolio Management. The portfolio manager selects undervalued stocks
and sells them at a higher price when they realize their true potential.
The fund manager tracks and replicates the stock market index portfolio to give
investors returns in line with the index it tracks.
Passive Portfolio Management focuses on index funds which are mutual funds
that mimic market index portfolios.
Investment Decisions are entirely at the portfolio manager’s discretion, and the
clients don’t have much of a say in investment decisions.
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OBJECTIVES OF PORTFOLIO MANAGEMENT
➢ Capital appreciation
➢ Improving portfolio flexibility and proficiency
➢ Maximizing return on investment
➢ Optimal resource allocation
➢ Protecting earnings from market hazards
➢ Risk management
➢ Securing future
➢ Long-term financial planning
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Need for Portfolio Management
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PROCESS OF INVESTMENT PORTFOLIO MANAGEMENT
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WAYS OF PORTFOLIO MANAGEMENT
Asset allocation
Essentially, it is the process wherein investors put money in both volatile and non-
volatile assets in such a way that helps generate substantial returns at minimum risk.
Financial experts suggest that asset allocation must be aligned as per investor’s
financial goals and risk appetite.
Diversification
The said method ensures that an investors’ portfolio is well-balanced and diversified
across different investment avenues. On doing so, investors can revamp their
collection significantly by achieving a perfect blend of risk and reward. This, in turn,
helps to cushion risks and generates risk-adjusted returns over time.
Rebalancing
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PORTFOLIO MANAGEMENT STRATEGIES
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1.2 PORTFOLIO MANAGEMENT SERVICES
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REASONS TO OPT FOR PORTFOLIO MANAGEMENT SERVICES
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INTRODUCTION
2.1 COMPANY
Motilal Oswal Financial Services Limited is an Indian financial services company
offering a range of financial products and services. The company was founded
by Motilal Oswal and Ramdeo Agrawal in 1987.
Motilal Oswal Financial Services Ltd (MOFSL) was set up by Motilal Oswal and
Ramdeo Agrawal as a broking house in 1987.
The company entered into investment banking in 2005, followed by private equity
fund in 2006.
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VISION
To achieve excellence in all our endeavors while delivering superior value to
stakeholders & delighting them.
MISSION
Invest all resources and energies in delivering high quality Products and services
through Innovation, capability, Enhancement & people Initiatives, based on the
foundation of our core values.
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2.2 SERVICES OFFERED BY COMPANY
Motilal Oswal, strives hard to connect with customers beyond transactions and help them achieve
their personal goals. What makes this approach possible is a set of robust technologies through
which customers can not only transact conveniently from various platforms, but also have easy
access to all our products & services.
• Broking & Distribution. Our Broking and Distribution business helps retail customers take
informed investment decisions with a strong. ...
• Asset Management. India’s only 100% equity fund house with a defined investing philosophy. ...
• Private Wealth. ...
• Home Finance. ...
• Institutional Equities. ...
• Private Equity. ...
• Investment Banking.
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RESEARCH METHODOLOGY
Primary Data:
Primary Data Was Collected Through Questionnaire Refer to The Appendix for
The Data
Secondary Data:
Sample design
Sample size – 150 samples
The sample size consists of clients of Motilal Oswal financial services limited.
➢ Clients having PMS account
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3.3 NEED OF THE STUDY
➢ To know the best investments plans for investors through PMS according to
their age, income and risk appetite.
➢ To know the feedbacks and thoughts of investors with regard to the portfolio
management services.
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3.4 OBJECTIVES OF THE STUDY
towards PMS.
HYPOTHESIS
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3.5 SCOPE OF THE STUDY
➢ To provide the best of the portfolio and financial services to the clients of
Motilal Oswal.
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LIMITATIONS OF THE STUDY
➢ The information collected may not be fully trustworthy or relevant, since the
data collected is secondary.
➢ The data/ information collected for the project is in reference to only one
Portfolio Management Financial Services.
➢ There is constraint with regard to time allocated for the project study.
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LITERATURE REVIEW
Jamadar Lal (1992) presents a profile of Indian investors and evaluates their
investment decisions. He made an effort to study their familiarity with, and
comprehension of financial information, and the extent to which this is put to use.
The information that the companies provide generally fails to meet the needs of a
variety of individual investors and there is a general impression that the company's
Annual Report and other statements are not well received by them.
Jack Clark Francis (1986) revealed the importance of the rate of return in
investments and reviewed the possibility of default and bankruptcy risk. He opined
that in an uncertain world, investors cannot predict exactly what rate of return an
investment will yield. However, he suggested that the investors can formulate a
probability distribution of the possible rates of return.
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John H. Cochrane
Economic Perspectives, Federal Reserve Bank of Chicago, vol. 23, no. 3 (Third
Quarter 1999):59-78
here are numerous methods for valuing equity securities; including methods more
heavily employed before the advent of quantitative equity portfolio construction and
management. These theories include the arbitrage pricing theory (apt), capital asset
pricing model. and discounted cash flow (def). Although modern portfolio
management still employs these models, they have been replaced with newer, more
effective models such as quantitative equity portfolio management.
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DATA ANALYSIS AND INTERPRETATION
INVESTORS
LOW
10%
HIGH
30%
MODERATE
60%
Interpretation: -
According to the above graph we can interpret that more than 60% of
investors are ready to take moderate level of risk and 30% of investors are
ready to take high level of risk and only 10% are taking low risk while
taking investment decisions.
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PERCENTAGE OF ASSET ALLOCATION ACCORDING TO THE
TYPE OF INVESTOR
AGGRESSIVE INVESTORS
GOLD
10%
FIXED
INCOME
20%
EQUITY
70%
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SR.NO MODERATE INVESTOR’S SECURITIES
1. EQUITIES 50%
2. DEBT 30%
3. GOLD 10%
4. ALTERNATE ASSET CLASS 10%
ALTERNATE ASSET
CLASS
MODERATE INVESTORS
10%
GOLD
10%
EQUITY
50%
DEBT
30%
Interpretation
According to the above graph, moderate investors are also more inclined towards
investment in equity that is 50% in comparison with all other securities that is debt,
gold and alternative asset class that is 30% ,10% and 10%.
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SR.NO CONSERVATIVE INVESTOR’S SECURITIES
1. FIXED INCOME 50%
2. LARGE CAP EQUITIES 30%
3. GOLD 10%
4. ALTERNATE ASSET CLASS 10%
ALTERNATE
ASSET CLASS CONSERVATIVE INVESTORS
10%
GOLD
10%
FIXED
INCOME
50%
INTERPRETATION: -
According to the above graph, conservative investor is inclined towards investment
in fixed income securities that is 50% and invest less in large cap equities, gold,
alternate asset class.
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MAXIMUM ALLOCATION IN INVESTORS PORTFOLIO
PERTAINS TO THE FOLLWING
SAVING &
INVESTMENTS FIXED
DEPOSITS
5%
MUTUAL
FUNDS BONDS
28% 17%
EQUITIES
50%
Interpretation: -
According to the above graph, investors invest more in equites that is 45% in
comparison with others securities that is savings and fixed deposits, bonds and
mutual funds that is 5%, 15%, 25%.
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OCCUPATION OF INVESTOR OPTING FOR PORTFOLIO
MANAGEMENT SERVICES
OCCUPATION
OTHER OCCUPATION
20%
SALARIED EMPLOYEE
SELF EMPLOYED 50%
14%
BUSINESS
16%
Interpretation: -
According to the above graph, salaried employee is opting more for PMS that is 50%
in comparison with other occupations that is business self-employed, and other
occupation that is 16%, 14%, 20%.
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Satisfaction Level of The Clients Of Motilal Oswal Financial Services
RATING
POORGOOD
AVERAGE 2% 4% EXCELLENT
VERY POOR
6% 18%
0%
VERY GOOD
70%
EXCELLENT VERY GOOD VERY POOR AVERAGE POOR GOOD
Interpretation: -
According to the above graph, 70% of the clients have satisfied with the services and
minimum only 2% clients are dissatisfied with the services.
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FINDINGS OF THE STUDY
➢ Among All the Services Offered Advisory and Consultancy Services Are the
Services That the Individual Investors Are Most Aware Of.
➢ Most Of the Clients Are Not Aware of the Vision and Mission Statements of
the Company they deal in.
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CONCLUSION
With the help of given project, I got an in-depth knowledge about the working of
portfolio management. Also I got an insight as to how to select the portfolio
management service provider, which scheme provides better return as compared to
other and who are the portfolio management players in the INDIAN market.
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SUGGESTIONS
➢ The Portfolio Manager or experts must consider both risk and return before
investing in any company for investor’s sake.
➢ The Company in advance must inform the clients about their terms and
conditions, fees structure and Company’s profile
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BIBLIOGRAPHY
www.economictimes.com
www.wikipedia.com
www.sebi.com
www.managementparadise.com
www.scribd.com
www.jpmorgan.com
www.wallstreetprep.com/knowledge/about-investment-banking
www.investopedia.com
Books Referred
Investment Banking
By Pratap Subramany
Management Accounting & Financial Analysis
BY Ravi M. Kishore.
Business of Investment Banking
→ Financial Markets & Services
By E.Gordon and Dr. Natrajan
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QUESTIONNAIRE: -
Portfolio management survey of Motilal Oswal financial services ltd.
1. Do you know about the investment options available?
Yes No
6. What is your satisfaction level from the PMS of Motilal Oswal financial
services?
Excellent very good average poor
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