Portfolio Management: A Case Study Of Internship In Portfolio Management

Chapter – 1

INTRODUCTION

INTRODUCTION ABOUT THE INTERNSHIP

Internship is an ingeniousness to bridge the gap between facts and its application through a series of intervention Chance to apply theoretical concepts at the work place. To familiarize with corporate code of behavior. To enable us to manage work under deadlines.

A Portfolio is a collection of investment held by an institution or a private individual person. In building up an investment portfolio a financial institution will typically conduct its own investment analysis while 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 a part of an investment and risk

Choices include determining what assets to be buying, how many to be buying, when to buying them, and what assets to divest. These decision always involve some sort of performance measurement, most typically expected return (I,e the standard deviation of the return ). Typically the expected returns from portfolios comprises of different assets bundles are compared.

The unique goals and circumstances of the investor must also be considered. Some investor are more risk averse than others. Equity stocks have develop particulars techniques to optimize their portfolio holdings. Thus, portfolio management is all about strengths, weakness, opportunity and threats in the select of domestic vs. international, growth vs. safety, debt vs. equity and several other trade-offs come across in the attempt to maximize return at a given appetite for risk.

1.1 Aspects of portfolio

In India, the role of securities market in organizing & channel sing private capital for the economic development of the country has incremented over the year and securities market itself has undergone structural transformation with the exordium of computerized online trading & interconnected market structure. From past many years as investment in securities accumulated momentum, the investment decision were more often made by the whims & fancies of the investor & rumors auricular discerned rather than by balanced analysis. Only current security analysis & Portfolio management has emerged as a separate academic self-control in India. Portfolio concept that deals with the balanced investment decision-making process has now become an integral part of financial Literature. Investing in securities such as shares, debenture & bonds is remuneratively lucrative well asserting. It is indeed rewarding but involves a great risk if perilous & need artistic adeptness. Investing in financial securities is now considered to be one of the most perilous avenues of investment. It is recherché to find investors investing their entire savings in a single security instead. They incline to invest in a group of securities; such collection of securities is called a portfolio. Engenderment of a portfolio avails to reduce risk without losing returns.