A

Report on

“PORTFOLIO MANAGEMENT SERVICES”

By
Saksham Khandelwal (23BSPJP01C473)

At
Nuvama Wealth And Investment Limited, Jaipur

1
 A
Report On

“PORTFOLIO MANAGEMENT SERVICES”

By
Saksham Khandelwal (23BSPJP01C473)
IBS Jaipur
At
Nuvama Wealth And Investment Limited Jaipur

A report submitted in partial fulfilment of the

requirements of an MBA Program at IBS Jaipur

Faculty Guide Company guide

CA Sukriti Khatri Mr. Dharmendra Kumar Gupta
Assistant Professor Senior Branch Manager
IBS Jaipur Nuvama Wealth & Investment Limited

2
 AUTHORIZATION

I, Saksham Khandelwal, hereby state that this project work entitled “Portfolio
Management Services of Nuvama Wealth” is an original piece of work that has been prepared
under the guidance of Company Guide Mr. Dharmendra Gupta, Senior Branch Manager,
Nuvama Wealth, Jaipur and Assistant Professor CA Sukriti Khatri, ICFAI Business School, Jaipur
and submitted by me towards partial fulfilment of the requirement of MBA program of IBS
Jaipur. The findings and conclusions expressed in this report are genuine and for academic
purposes. It is our own and it has neither been submitted nor published anywhere before any
resemblance to earlier project or research work and is purely coincidental. It is totally based on
our hard work and creativity.

Saksham Khandelwal
23BSPJP01C473

Batch (2023 - 2025) IBS Jaipur

3
 ACKNOWLEGEMENT

First and foremost, I want to express my gratitude to Almighty God. My warmest gratitude and
appreciation go to my parents and relatives, who taught me how to tread a well-trodden route in
my pursuit of knowledge. I would like to convey my heartfelt appreciation to everyone who helped
with the preparation of my final report.

To begin, I would like to thank the Nuvama Family for giving me the opportunity to pursue this
internship study and explore the field of Marketing and Finance.

No job is a single man's task since several variables, conditions, and individuals come together
to provide the background for the completion of any activity.

I honestly express my profound gratitude to my company guide Mr. Dharmendra Gupta,

Senior Branch Manager Nuvama Wealth Management Limited, Jaipur who played a vital role in
the learning and experience during my internship. His supervision, guidance, and excellent
marketing skills aided me in expanding my knowledge and view on the business world.

This endeavor would not have been feasible without his direction, assistance, and support. His
critical insights for my studies, particularly the investigation and analysis of the distribution
reach of Nuvama goods, will go a long way toward determining my future.

I would like to sincerely thank my faculty guide, Assistant Professor CA Sukriti Khatri
Ma’am for providing guidance and support for my project.

I also thank all the other employees in Nuvama Wealth, Jaipur, for their cooperation and support.
Special Thanks to Mr. Harsh Bhutani Sir who help me in each and every thing throughout the
internship.

Date: 15th May 2024

Place: Jaipur (Saksham Khandelwal)

4
 CONTENTS

Serial No Topic Page No.

1. Authorization 3

2. Acknowledgement 4

3. Executive Summary 6

4. Introduction 7-8

5. Industry Analysis 9-14

6. About Company 15-17

7. Parties Involved in Mutual Funds 18

8. SWOT Analysis 19

9. Theoretical Framework 20-21

10. Research Methodology 22-23

11. Data Analysis & Interpretation 24-30

12. Findings of the Study 31

13. Key Learnings 32

14. Conclusion 33

15. Suggestions 34

16. Reference 35

5
 EXECUTIVE SUMMARY

I, Saksham Khandelwal, a 2023-2025 batch student of IBS Jaipur bearing Enrollment number
22BSPJP01C473 doing my summer internship (SIP) at Nuvama Wealth & Investment
Limited.

During the first half period I was assigned with certain tasks like reading about the company
and about all the products that company offers. Later training was given by the employees as
well as company guide on the financial products of Nuvama Wealth & Investment Limited
and the sales methods were also explained.

Then we were provided data for cold calling and talk about the financial products of the
company to the existing as well as new clients. Company promotes their products through
brochures which are shared to us and explained about how to manage portfolios and their
services.

The project required meeting customers by taking their appointments along with the
employees of the company and observe activities like how they behave with customers and
what are the tactics and skills they employ while dealing with different customers. Also, how
the company converts the prospected customers into business as potential customers and what
they expect from a consultant to tell them before customers buy any product. Also, we were
asked to find the corporates so that we can organize an investment awareness session in the
company.

This gave us an overview of how company maintain brand image and customer perception in
the industry. The research study work is also done simultaneously along with the task given by
the company.

6
 INTRODUCTION

PMS offers tailor-made investment solutions for each investor according to their risk tolerance and financial
capability to get the best returns. Choices regarding the solutions are related to debt vs equity investment, the
risk-to-return balance and quite importantly, the time horizon of the investor, i.e. how long they are willing to
invest.

Types of portfolio management services:

There are three types of portfolio management services:

• Discretionary
Investors don't have to make any financial decisions. All financial decisions and actions are taken by the
portfolio manager.

• Non-discretionary
The portfolio manager suggests possible courses of action and works according to the directions given by
the client.

• Advisory
Portfolio managers advise investors and help them make informed investment decisions. The investor
executes the trade.

Once you opt for a PMS, a separate bank account and a Demat account (short for Dematerialized Account-
an account that holds all the securities that you own in digital form) may be opened in your name. All
investments must be made in your name, and the shares are held in your name in your Demat account. The
bank account is also credited with any gains or dividend payouts from the investments.

Your portfolio manager is given the power of attorney over this bank account and Demat account.
However, you can access these accounts to check the status of your investments at any time.

Unlike mutual funds where fund managers have the right to invest the fund however they want, provided
they can meet the client's demand at the time of maturity, portfolio managers either offer suggestions or
can be entirely responsible for the investments. Also, your portfolio manager has to give you a
performance report at least every six months as per the guidelines of SEBI (Securities and Exchange Board
of India).

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Benefits:

• Stocks/ funds/ asset class hand-picked by experts

• Active Management
• Continuous Monitoring
• Transparent Reporting

Objectives of Portfolio Management Services:

• Capital Growth:
This is one of the main responsibilities of a portfolio manager. A portfolio manager always looks for
thebest investment opportunity that appreciates the capital of the investor.

• Diversification of Risk:
This is done to effectively meet the goal of the investor while maintaining a healthy risk-return
ratio.Diversification can happen in two ways-

➢ Debt Vs Equity:
While equity investments are known for their high-risk and high return potential, debt
instruments can lower the risk of a portfolio and add liquidity.

➢ Domestic Vs International:
A portfolio manager seeks to diversify risk by evaluating investment opportunities in
domestic as well as international markets. This helps the investor diversify risk between
various economies.

• Tax Planning:
There are various tax liabilities that an investor must adhere to while making investments.
Moreover, multiple tax provisions can help investors reduce their tax liability. Professionals
managing your portfolio ensure that all your investments comply with the tax implications while
helping you save tax wherever possible.

• Rebalancing Portfolio:
This means reverting to the original mix of securities after fluctuations or movements in the market till
the balance towards a particular form of security, and it is usually done annually.

8
 INDUSTRY ANALYSIS

Portfolio management services (PMS) play a crucial role in the financial industry, catering to the
investment needs of high-net-worth individuals (HNIs) and institutional investors. An industry analysis of
PMS involves understanding various aspects such as market trends, regulatory environment, competitive
landscape, and the impact of technological advancements. Here's an overview:

Market Trends:
• Growing Demand: The demand for PMS is on the rise due to increasing wealth accumulation,
particularly among HNIs and institutional investors.
• Customization: Clients are increasingly seeking personalized investment solutions tailored to their
risk appetite, financial goals, and preferences.
• Focus on Performance: Investors are becoming more discerning and are closely scrutinizing the
performance track record of PMS providers before allocating their funds.
• Shift towards Alternatives: There's a growing preference for alternative investments such as private
equity, real estate, and hedge funds within PMS offerings, driven by the pursuit of higher returns
and portfolio diversification.

Regulatory Environment:
• Compliance Requirements: PMS providers are subject to regulatory oversight by financial
authorities to ensure transparency, investor protection, and adherence to investment guidelines.
• Evolving Regulations: Regulatory frameworks governing PMS are subject to constant evolution,
with regulators imposing stricter norms to safeguard investor interests and enhance market
integrity.

Competitive Landscape:
• Market Consolidation: The PMS industry is witnessing consolidation, with larger players acquiring
smaller firms to expand their client base, geographic reach, and service offerings.
• Differentiated Offerings: PMS providers are differentiating themselves through specialized
expertise, investment strategies, technology integration, and client servicing capabilities.
• Fee Compression: Intense competition is exerting pressure on fee structures, compelling PMS
providers to justify their fees through superior performance and value-added services.

9
Technological Advancements:
• Data Analytics: PMS providers are leveraging advanced data analytics tools to gain insights into
market trends, portfolio performance, and client preferences, enabling data-driven decision-making.
• Robo-Advisory: The integration of robe-advisory platforms within PMS offerings is gaining traction,
offering cost-effective portfolio management solutions and enhancing client engagement.
• AI and Machine Learning: AI and machine learning algorithms are being deployed to optimize
portfolio construction, risk management, and asset allocation, enhancing efficiency and investment
outcomes.

Risk Management:
• Focus on Risk Mitigation: PMS providers are placing greater emphasis on risk management practices
to safeguard client portfolios against market volatility, geopolitical uncertainties, and systemic risks.
• Stress Testing: Rigorous stress testing and scenario analysis are being employed to assess the
resilience of portfolios under adverse market conditions and to enhance risk-adjusted returns.

Client Servicing:
• Enhanced Transparency: PMS providers are enhancing transparency by providing clients with real-
time access to their portfolios, investment decisions, and performance metrics through digital
platforms.
• Client Education: There's a growing emphasis on investor education to foster greater awareness of
investment risks, opportunities, and market dynamics, empowering clients to make informed
decisions.

Overall, the PMS industry is evolving rapidly in response to shifting investor preferences, regulatory
developments, and technological advancements. Success in this competitive landscape hinges on the
ability of PMS providers to deliver superior investment performance, personalized client experiences,
and robust risk management practices.

10
Portfolio Management Services (PMS) are specialized investment services offered by financial
institutions, wealth management firms, and investment advisors to cater to the unique investment needs
of high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs), and institutional
investors. PMS providers manage investment portfolios on behalf of their clients with the aim of
achieving their financial objectives while considering their risk tolerance, investment horizon, and return
expectations.

Features of PMS:

Portfolio Management Services (PMS) offer a range of features designed to meet the diverse investment
needs of high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs), and institutional
investors. These features contribute to the effectiveness, efficiency, and customization of PMS offerings.
Here are some key features:

Customized Investment Portfolios:

PMS provides personalized investment solutions tailored to the client's financial goals, risk tolerance,
investment horizon, and preferences.
Portfolios are constructed and managed according to the client's unique requirements, incorporating a
mix of asset classes, sectors, geographies, and investment styles.

Professional Management:
PMS is managed by experienced portfolio managers who possess in-depth market knowledge, analytical
skills, and expertise in investment management.
Portfolio managers actively monitor market trends, economic indicators, and company fundamentals to
identify investment opportunities and risks.

Diversification Strategies:
PMS emphasizes portfolio diversification to spread risk across various asset classes, such as equities,
fixed income securities, commodities, and alternative investments.
Diversification helps mitigate the impact of market volatility and enhances the potential for long-term
returns by reducing concentration risk.
Active Monitoring and Rebalancing:
Portfolio managers conduct ongoing monitoring of portfolio performance, asset allocation, and market
conditions to ensure alignment with the client's investment objectives.
Portfolios are periodically rebalanced to maintain the desired asset allocation and risk-return profile,
11
taking into account changes in market valuations and investment outlook.

Transparency and Reporting:

PMS providers offer transparent communication and regular reporting to keep clients informed about
portfolio performance, investment decisions, transaction details, and fees.
Clients have access to comprehensive reports, statements, and online portals for tracking their
investments and assessing portfolio progress.

Classification of PMS:

Portfolio Management Services (PMS) can be classified based on various factors such as the investment
approach, client engagement model, regulatory framework, and fee structure. Here's a classification
based on these factors:

Based on Investment Approach:

a. Discretionary Portfolio Management:

- In discretionary PMS, the portfolio manager has the authority to make investment decisions on
behalf of the client without requiring their approval for each transaction. The manager has the discretion
to buy, sell, or hold securities based on the client's investment objectives, risk tolerance, and guidelines.

b. Non-Discretionary Portfolio Management:

- In non-discretionary PMS, the portfolio manager provides investment advice to the client, but the final
decision regarding buying or selling securities rests with the client. The manager recommends investment
opportunities and strategies, and the client executes the transactions after their approval.

Based on Client Engagement Model:

a. Individual PMS:
- Individual PMS caters to the investment needs of individual clients, typically high-net-worth
individuals (HNIs) and ultra-high-net-worth individuals (UHNIs). Portfolios are customized according to
the client's preferences, risk profile, and financial goals.

b. Institutional PMS:
- Institutional PMS serves institutional clients such as corporate entities, pension funds, endowments, and
family offices. These clients have unique investment mandates, liquidity requirements, and regulatory
considerations, necessitating specialized portfolio management solutions.

Based on Regulatory Framework:

12
a. Regulated PMS:
- Regulated PMS operates within a regulatory framework governed by financial authorities such as
securities regulators or central banks. Providers must adhere to registration, licensing, disclosure, and
compliance requirements to ensure investor protection and market integrity.

b. Unregulated PMS:
- Unregulated PMS operates outside the purview of financial regulators, potentially offering greater
flexibility and autonomy to portfolio managers. However, clients should exercise caution as unregulated
PMS may entail higher risks and lack investor safeguards.

Based on Fee Structure:

a. Fixed Fee PMS:

- Fixed fee PMS charges clients a flat fee based on the assets under management (AUM) or a fixed
percentage of the portfolio value. The fee structure remains consistent regardless of portfolio
performance or transaction activity.

b. Performance Fee PMS:

- Performance fee PMS charges clients a fee based on the investment performance of the portfolio,
typically calculated as a percentage of the portfolio's profits or outperformance relative to a benchmark
index. Performance fees incentivize portfolio managers to deliver superior returns but may increase costs
during periods of strong performance.

Based on Investment Strategy:

a. Active Management PMS:

- Active management PMS involves actively selecting and managing individual securities with the aim of
outperforming the market or a specific benchmark index. Portfolio managers conduct in-depth research,
analysis, and trading to capitalize on market inefficiencies and investment opportunities.

b. Passive Management PMS:

- Passive management PMS, also known as index or passive investing, aims to replicate the performance
of a benchmark index by investing in a diversified portfolio of securities that mirror the index
constituents. The portfolio is rebalanced periodically to maintain alignment with the index weights.

Important keywords related to Portfolio Management Services:

Some important keywords related to portfolio management services along with their meanings:

13
Asset Allocation:
Asset allocation refers to the strategic distribution of investment capital across different asset classes such
as stocks, bonds, real estate, and cash equivalents. It aims to optimize risk-adjusted returns by
diversifying investments based on their correlation and expected returns.

Diversification:
Diversification is the practice of spreading investment capital across a variety of assets within and across
asset classes to reduce the overall risk of the portfolio. It helps mitigate the impact of volatility in any
single investment and improves the likelihood of achieving consistent returns over time.

Risk Management:
Risk management involves identifying, assessing, and mitigating various types of risks that may affect
the performance of an investment portfolio. It includes measures to control market risk, credit risk,
liquidity risk, and operational risk, among others, to preserve capital and achieve financial objectives.

Benchmark Index:
A benchmark index is a standardized measure used to evaluate the performance of an investment
portfolio relative to a specific market or asset class. Common benchmark indices include the S&P 500 for
U.S. stocks, the FTSE 100 for UK stocks, and the MSCI World Index for global equities.

Alpha:
Alpha is a measure of the excess return generated by an investment portfolio relative to its benchmark
index, after adjusting for systematic risk (beta). Positive alpha indicates outperformance, while negative
alpha indicates underperformance. It reflects the skill of the portfolio manager in generating returns
above the market average.

Beta:
Beta measures the sensitivity of an investment portfolio's returns to movements in the overall market or
benchmark index. A beta of 1 indicates that the portfolio moves in line with the market, while a beta
greater than 1 implies higher volatility, and a beta less than 1 indicates lower volatility.

Sharpe Ratio:
The Sharpe Ratio is a risk-adjusted performance measure that evaluates the excess return of an
investment portfolio per unit of risk (usually standard deviation). A higher Sharpe Ratio indicates better
risk-adjusted returns, reflecting the efficiency of the portfolio in generating returns relative to its risk
exposure.

Treynor Ratio:
The Treynor Ratio is a risk-adjusted performance measure similar to the Sharpe Ratio, but it evaluates the
excess return of an investment portfolio per unit of systematic risk (beta). It assesses the efficiency of the
portfolio in generating returns relative to its market risk exposure.

ABOUT COMPANY

Nuvama Wealth and Investment Limited (Formerly Edelweiss Broking Limited) is a

14
technology driven securities company in India that offers a wide range of financial services
including broking services, depository services, distribution of financial products, short term
funding for employee stock option schemes and margin trading facility. We are one of the
leading Stock broker and distributor in India. We offer our broking services through our
proprietary state of the art Website, Mobile Application, Terminal, and API based trading
platforms. Our Company has over 0.3 million of active client base and ₹1.5 trillion of client
assets spread across wide number of active broking accounts as of March 31, 2022.

Broking services offered by Nuvama Wealth and Investment Limited (NWIL), formerly
known as Edelweiss Broking Limited, is a 100% subsidiary of Nuvama Wealth Management
Limited (formerly known as Edelweiss Securities Limited). Registered office of NWIL is at
201 to 203, Zodiac Plaza, Xavier College Road, Off C G Road, Ahmedabad, Gujarat - 380009.
Corporate Office address is Eight Floor 801 to 804, Inspire BKC G Block, BKC Main Road,
Bandra Kurla Complex, Bandra East, Mumbai- 400051. It is a Member of National Stock
Exchange of India Ltd, BSE Ltd, Multi Commodity Exchange of India Limited, Metropolitan
Stock Exchange and National Commodity and Derivatives Exchange Limited.

Products offered by Nuvama: -

1. EQUITY

-Primary Market
• IPOs/OFS
• Unlisted

-Secondary Market

• Margin Trading Facility (MTF)

• Equity ETFs
• F&O
• PMS
• Equity Mutual Funds

-Special Situations

• Open Offers, Buyback, Spilt

• Delisting, Mergers
15
2. Fixed Income & Gold
• Corporate/PSU Bonds
• Perpetual Bonds – Banks & Corp
• NCDs on tap
• Capital Gain 54EC Bonds
• Tax-Free Bonds
• Debt Mutual Funds
• Corporate FDs
• ReITS / InvITS
• SGB (Sovereign Gold Bond)
• Gold ETFs

3. Insurance
• Premier Guaranteed Star
• Premier Guaranteed Income
• ETLI Cashflow
• ETLI AIP
• HDFC Sanchay Plus
• HDFC Sanchay Par
• ETLI G-Cap

- Term Plan
• Total Protect Plus

- ULIP Plans
• Wealth Ultima
• Wealth Plus

- Non-Life Insurance
• Health Insurance Plans
• Sr Citizen Health Plan

4. Alternates
- Private Equity
• Mid-stage
16
 • Late-Stage / Pre-IPO

- Private Debt
• Infrastructure Yield+
• Special Assets
• Venture Debt

- Hege Fund
• Edelweiss EDGE Fund
• Structured Products

17
 PARTIES INVOLVED IN PORTFOLIO MANAGEMENT SERVICES

Portfolio Manager:
The portfolio manager is responsible for overseeing the investment portfolio
and making investment decisions on behalf of the client. They design and
manage portfolios according to the client's investment objectives, risk
tolerance, and preferences.

The client is the individual or entity seeking portfolio management services.

Clients entrust their investment capital to portfolio managers with the
Client: expectation of achieving their financial goals, preserving capital, and
generating returns in line with their risk appetite and investment horizon.

The portfolio management firm is the entity that provides portfolio

management services to clients. Portfolio management firms employ
Portfolio Management Firm: portfolio managers, research analysts, and support staff to manage client
portfolios effectively.

An investment advisor or consultant may be engaged by the client to provide

investment advice, guidance, and recommendations regarding portfolio
management decisions. Advisors assist clients in defining their investment
Investment objectives, developing an investment strategy, and selecting suitable
Advisor/Consultant: portfolio managers or investment products.

Custodian:
The custodian is a financial institution responsible for safekeeping and
administering the client's investment assets, including securities, cash, and
other financial instruments. Custodians hold assets in custody on behalf of
clients, facilitate securities transactions, process settlements, and provide
reporting services.

The administrator supports the operational and administrative functions of

portfolio management services. This may include trade processing,
Administrator: performance reporting, client billing, compliance monitoring, and regulatory
reporting. Administrators help ensure the efficient and compliant operation
of PMS offerings.
Regulatory Authorities:
Regulatory authorities, such as securities regulators or central banks, oversee
the activities of portfolio management firms and ensure compliance with
relevant laws, regulations, and industry standards. Regulatory oversight aims
to protect investors, maintain market integrity, and promote transparency in
the financial services industry.

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 SWOT ANALYSIS

• Customization
• Professional Expertise
Strengths • Diversification
• Transparency

Weakness • Concentration Risk

• Market Volatility

• Technological Advancements
Opportunities • Growing Demand
• Regulatory Changes

• Competition
• Regulatory Risks
Threats • Economic Uncertainty

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 THEORETICAL FRAMEWORK

The theoretical framework of portfolio management services encompasses various principles, models, and
concepts that guide the design, implementation, and evaluation of investment strategies aimed at achieving
optimal risk-adjusted returns for clients. Here's an overview of the theoretical framework:

1. Modern Portfolio Theory (MPT):

- Developed by Harry Markowitz in the 1950s, MPT is a foundational theory in portfolio management
that emphasizes the importance of diversification and the relationship between risk and return. Key
concepts of MPT include:
- Efficient Frontier: The efficient frontier represents the set of portfolios that offer the highest expected
return for a given level of risk, or the lowest level of risk for a given expected return.
- Risk-Return Tradeoff: MPT asserts that investors seek to maximize returns while minimizing risk.
Portfolios on the efficient frontier strike a balance between risk and return.
- Asset Allocation: MPT advocates for diversifying investments across multiple asset classes to reduce
portfolio risk. Asset allocation is a primary driver of portfolio returns and risk management.
- Capital Asset Pricing Model (CAPM): CAPM is a component of MPT that provides a framework for
pricing assets and estimating expected returns based on systematic risk (beta) and the risk-free rate.

2. Arbitrage Pricing Theory (APT):

- APT, proposed by Stephen Ross, extends the principles of MPT by suggesting that asset prices are
determined by multiple factors or sources of risk, rather than just the market risk captured by CAPM.
APT emphasizes the role of arbitrage in ensuring that asset prices reflect their underlying risk factors.

3. Behavioral Finance:
- Behavioral finance integrates insights from psychology and economics to understand how cognitive
biases and emotions influence investor behavior and decision-making. Behavioral finance challenges the
assumptions of rationality and efficiency underlying traditional financial models, highlighting the
importance of psychological factors in shaping market dynamics and investor outcomes.

4. Factor-Based Investing:
- Factor-based investing builds on the principles of MPT and APT by focusing on specific factors or
characteristics that drive asset returns, such as value, size, momentum, and quality. Factor-based
strategies aim to systematically capture sources of risk premia that have historically generated excess
returns over the long term.
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5. Portfolio Construction Techniques:
- Portfolio construction techniques involve combining individual assets or securities into a
diversified portfolio using quantitative methods, optimization algorithms, and risk management tools.
Modern portfolio construction techniques aim to enhance efficiency, robustness, and alignment with
client objectives.

6. Dynamic Asset Allocation:

- Dynamic asset allocation strategies involve periodically adjusting portfolio allocations based on
changing market conditions, economic outlook, and investment opportunities. Dynamic asset allocation
aims to exploit market inefficiencies, manage risk dynamically, and enhance portfolio resilience.

7. Regulatory Framework:
- The regulatory framework governing portfolio management services encompasses laws, regulations,
and industry standards designed to protect investors, ensure market integrity, and promote transparency.
Regulatory compliance is a key consideration for portfolio managers and firms operating in the financial
services industry.

8. Ethical Considerations:
- Ethical considerations in portfolio management include fiduciary duties, stewardship principles, and
responsible investing practices aimed at aligning investment decisions with environmental, social, and
governance (ESG) criteria. Ethical considerations are increasingly important for investors and portfolio
managers seeking to integrate sustainability and social impact into investment strategies.

This theoretical framework provides a comprehensive understanding of portfolio management

principles, models, and concepts, guiding practitioners in the design and implementation of effective
investment strategies to meet client objectives and navigate dynamic market conditions.

21
 RESEARCH METHODOLOGY

Sources of data collection:

➢ Primary Data:

Primary data was collected through questionnaire refer to the appendix for the data.

➢ Secondary Data:

➢ Secondary Sources Through

➢ Internet
➢ Company Website
➢ Articles
➢ Newspapers
➢ Books

Sample design
Sample size – 150 samples
The sample size consists of clients of Nuvama Wealth Management Limited.

➢ Clients having PMS account

NEED OF THE STUDY

➢ To know the best investments plans for investors through PMS according to their age, income
and risk appetite.

➢ To know about the various role and functions of a portfolio manager.

➢ To identify the tax benefits through good portfolio management services.

➢ To know why diversification of securities is essential in portfolio management services.

22
OBJECTIVES OF THE STUDY

➢ To make a detailed study on the overall concepts of the portfolio management.

➢ To identify the services at Nuvama Wealth Management Limited.

➢ To identify the risk taking capacity of individuals

➢ To understand how investment decisions and asset allocation is done according to type of
investor.

➢ To understand the occupational class of investors that are more inclined towards PMS.

SCOPE OF THE STUDY

➢ To understand the clients / investors’ objective, constraints and preferences.

➢ To make revisions in the portfolios in accordance to market situations, investors goals, etc.

➢ To offer complete transparency to investors with the transactions and profitsmade through
investments at Nuvama PMS.

➢ To provide the best of the portfolio and financial services to the clients of Nuvama.

LIMITATIONS OF THE STUDY

➢ The data collected is basically confined to secondary sources, with little amount of primary data
associated with the project.

➢ 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.

23
 DATA ANALYSIS & INTERPRETATION

In this section, I have observed the findings related to the data which was collected and
analyzed.

1. Risk taking capacity of individuals starting their portfolio accounts:

SR NO. RISK LEVEL INVESTORS

1. Moderate 60%
2. High 30%
3. Low 10%

INVESTORS
LOW
10%

HIGH
30%

MODERATE
60%

MODERATE HIGH LOW

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.

24
2. Percentage of asset allocation according to the type of investor:

SR NO. AGGRESSIVE INVESTOR’S SECURITIES

1. Equities 70%
2. Fixed income 20%
3. Gold 10%

AGGRESSIVE INVESTORS

GOLD
10%

FIXED
INCOME
20%

EQUITY
70%

EQUITY FIXED INCOME GOLD

Interpretation:

According to the above graph, aggressive investors are more inclined towards investment in equities
that is 70% compared with fixed income and gold that is 20% and 10%.

25
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%

EQUITY DEBT GOLD ALTERNATE ASSET CLASS

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%.

26
 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%

LARGE CAP EQUITIES

30%

FIXED INCOME LARGE CAP EQUITIES GOLD ALTERNATE ASSET CLASS

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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3. Maximum allocation in investors portfolio pertains to the following:

SR NO. INVESTMENTS PERCENT

1. Saving & fixed deposits 5%
2. Bonds 15%
3. Equities 45%
4. Mutual funds 25%

SAVING &
INVESTMENTS FIXED
DEPOSITS
5%

MUTUAL
FUNDS BONDS
28% 17%

EQUITIES
50%

SAVING & FIXED DEPOSITS BONDS EQUITIES MUTUAL FUNDS

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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4. Occupation of investor opting for portfolio management services:

SR NO. OCCUPATION PERCENT

1. Salaried employee 50%
2. Business 16%
3. Self employed 14%
4. Other occupation 20%

OCCUPATION
OTHER OCCUPATION
20%

SALARIED EMPLOYEE
SELF EMPLOYED 50%
14%

BUSINESS
16%

SALARIED EMPLOYEE BUSINESS SELF EMPLOYED OTHER OCCUPATION

Interpretation:
According to the above graph, salaried employee is opting more for PMS which is 50% in
comparison with other occupations that includes business self-employed, and other occupation
with 16%, 14%, 20% respectively.

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5. Satisfaction Level of The Clients Of Nuvama Financial Services:

SR NO. RATING PERCENT

1. Excellent 18%
2. Very good 70%
3. Very poor 0%
4. Average 6%
5. Poor 2%
6. Good 4%

RATING
POORGOOD
AVERAGE 2% 4% EXCELLENT
VERY PO6O%R 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 andminimum only 2%
clients are dissatisfied with the services.

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 FINDINGS OF THE STUDY

➢ The Investor, maintains the portfolio of diversified sector stocks rather than investing in a
single sector of different stocks.

➢ Majority of the investors select a certain portfolio management firm depending upon the word
of mouth, self-decision makers, financial advisors, brokers.

➢ Nuvama Wealth Management Limited also deals in services like mutual fund investment,
management of equities, management of money market investment, advisory and consultancy
services.

➢ 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.

➢ The minimum investment requirement to avail PMS scheme is about 50lacs as per SEBI
guidelines.

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 CONCLUSION

As I have completed 14 weeks tenure of my internship, I have made a good progress about the research
and project related work. I have done a research-based study as mentioned in the title of the project. After
a detailed training and literature study and concepts related to the study are being analyzed, keeping in
view of the objectives of the project, I have defined certain criteria and factors to measure the consumers
perception on Nuvama Wealth and Investment Limited.

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.

➢ Portfolio is a collection of financial investments like bonds, stocks, commodities, cash and cash
equivalents. Investors generally believe that stocks, bonds and cash comprise the core of a
portfolio.
➢ Nuvama Wealth Management Limited offers a range of financial product and services like
Retail Broking & Distribution, Mutual Funds, Wealth Management, Private Equity, and
Investment.
➢ Opting for PMS provides investors with financial growth and a range of benefits, including
maximum returns, protection from financial risk, enhanced portfolio performance.
➢ Portfolio Management Services are managed by highly qualified and experienced professionals
and they are backed by a research team, they provide necessary insights for managers.
➢ In a PMS, benefit of concessional tax rate on the long term or short term capital gains is
enjoyed. A good portfolio offers an individual with benefit on income tax, gift tax and capital
gains.
➢ The investor who bears high risk will be getting high returns.
➢ The investors, who holds their investments for medium terms will fetch attractive returns.

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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

➢ The Portfolio manager should suggest clients about different combinations of securities to invest
in and also about the advantages of diversifications of securities to avoid risk that would occur
due to investment in only one security i.e., portfolio must include equity shares and other major
categories of investments like debentures, mutual funds, gold and silver.

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 REFERENCE
➢ www.economictimes.com

➢ www.wikipedia.com

➢ www.sebi.com

➢ www.managementparadise.com

➢ www.scribd.com

➢ www.jpmorgan.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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