Post on 19-Nov-2014
description
transcript
INVESTMENT PATTERN & PORTFOLIO MANAGEMENT OF
INVESTORS IN DELHI
Presented By:Sambhav Jain
MBA - 2A
Under the Guidance of :Ms. Chitwan BhutaniFaculty Member, PCTE.
Insurance
How it works ?
Types:1. Life Insurance2. General Insurance
Life Insurance Companies Operating In India
Life insurance Companies in India
1. Bajaj Allianz Life Insurance Co. Ltd. 12.Shriram Life Insurance Co. Ltd.
2. Birla Insurance Co. Ltd. 13.Star Union Dai-ichi Life.
3. HDFC Standard Life Insurance Co. Ltd. 14.SBI Life Insurance Co. Ltd
4.ICICI Prudential Life Insurance Co. Ltd. 15.DLF Pramerica Life Insurance Co. Ltd.
5.Life Insurance Corporation of India. 16.Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
6.Reliance Life Insurance Co. Ltd. 17.IDBI Fortis Life Insurance Co. Ltd.
7.Sahara India Life Insurance Co. Ltd. 18.Future Generali India Life Insurance Co. Ltd.
8.Tata AIG Life Insurance Co. Ltd. 19.Bharti AXA Life Insurance Co. Ltd.
9.Max New York Life Insurance Co. Ltd. 20.Kotak Mahindra Old Mutual Life Insurance Ltd.
10.AEGON Religare Life Insurance Co. Ltd. 21.Met Life India Insurance Co. Ltd.
11.ING Vysya Life Insurance Co. Ltd. 22.Aviva Life Insurance Co. India Ltd.
Kal Par Control
Life Insurance
Corporate Background
1. Aviva is UK’s largest and amongst the biggest insurance companies worldwide.
2. Aviva has a 53 million-customer base with presence in 27 countries.
3. In India, Aviva has a joint venture with Dabur, 26 : 74.
4. Aviva has 195 Branches (including rural branches).
5. Aviva has more than 30,000 Financial Planning Advisers.
Main business operations:
1. UK (Life, General Insurance and Health)2. Europe3. Asia Pacific4. North America5. Aviva Investors
Channels Of Aviva
BSA Channel DSF Channel
Agency Channel
Vision“One Aviva, twice the value”.
Core PurposeTo provide prosperity and peace of mind for
our customers .
Objectives
1. Manage composite portfolio2. Build global asset management3. Increase customer reach
Management Team:T R Ramachandaran
(Managing Director & Chief Executive Officer)
Rajeev Arora(Director, Finance & Actuarial)
Monica Agrawal(Director,Corporate
Initiatives)
Vishal GuptaDirector, Marketing
Sumit BehlDirector, Business Risk & Internal AuditMunish Sharda
Director, Direct Sales Force
Key Products
1. Aviva New LifeSaver Plus 2. Aviva New Pension Plus3. Aviva New Young Scholar
SWOT Analysis Of Aviva’s BSA Channel
Strengths1
. Product Range2. Experience
Weaknesses 1. Inadequate Promotion Strategies2. Low retention Rate
Opportunities1
. Growing Awareness2. Untapped market
Threats1. High Competition2. Changing Norms of IRDA3. Lack of Interest of People
SWOT Analysis of BSA Channel
Aviva’s Bancassurance Partners
PUNJAB & SIND BANK
INDUSIND
ABN AMRO
LAKSHMI VILAS BANK LTD
Corporate Social Responsibility
It is our belief in the power of education that has fueled our endeavors to guarantee it, most importantly to those who cannot afford it. Through our Corporate Responsibility initiatives we wish to empower as many children as we can.
FINANCIAL ANALYSISLiquidity Ratios
2009 2008 2007
Current Ratio 1.90 2.30 2.20
Quick Ratio 1.10 1.10 1.00
Return Related
2009 2008 2007
Return on Total Assets (%)
9.90 12.00 12.50
Return on Net Worth (%)
20.60 13.50 14.40
Profitability
2009 2008 2007
Gross Margin (%)
30.20 30.80 31.50
Net Profit Margin (%)
6.60 5.50 6.10
Leverage
2009 2008 2007
Debt/ Equity Ratio
2.59 1.42 1.44
Total Debt/ Total Assets
0.69 0.55 0.54
Trend Analysis of Net SalesYEARS SALES PERCENTAGE
2006-07 4777.64 100
2007-08 5208.38 109.02
2008-09 6106.43 127.81
Trend analysis of ExpensesYEARS EXPENSES PERCENTAGE
2006-07 720.32 100
2007-08 792.62 110.04
2008-09 809.6 112.40
Trend analysis of Net ProfitYEARS NET PROFIT PERCENTAGE
2006-07 291.12 100
2007-08 286.50 98.41
2008-09 401.52 137.92
What is an investment?
Types of Investments:1. Economic 2. Financial3. General
Characterstics of Investment
1. Return2. Risk3. Safety4. Liquidity
Importance Of Investment
1. Retirement planning2. Increasing rates of taxation3. Rates of interest4. Inflation5. Investment channels
Investment AvenuesEquity Shares:a) Ordinaryb) Preference
Debt Market Instruments:c) Certificate of Depositd) Commercial Papere) Corporate Debenturesf) Floating Rate Bonds (FRB)g) Government Securities
f) Treasury Billsg) Bank/FI Bondsh) PSU Bondsi) Mutual Fund Schemes
DepositsLife InsuranceReal EstateTax-sheltered saving schemesPrecious Objects
What is Risk?Types Of Risks:
Systematic risk:a) Market riskb) Interest rate risk c) Purchasing Power risk
Unsystematic Risk:d) Business risk e) Financial risk
Risk-Return Comparison Of Various Investment Alternatives
ManagementDecision Required
InvestmentMarket
RiskBusiness
RiskInterest
Risk
PurchasingPower
Risk
H Growth stock H H L L
H Speculative common stock H H L L
M Blue chips M M L L
M Convertible referred stock M M L L
L Convertible debentures M M L L
L Corporate bonds L L H H
L Government bonds L L H H
L Short-term bonds L L L H
L Money market funds L L L H
Portfolio
A combination of securities with different risk & return characteristics will constitute the portfolio
of the investor.
Portfolio Design
Portfolio - Age Relationship
Types of portfolio:
1. Random Portfolio2. Sector Portfolio
P/E Ratio & Beta factor as a guide to investment decisions
P/E Ratio:Earnings per share alone mean absolutely nothing. In order to get a sense of how expensive or cheap a stock is, you have to look at earnings relative to the stock price and hence employ the P/E ratio.
P/E = Current Market Price Earning Per Share
Beta Factor
“Beta” indicates the proportion of the yield of a portfolio to the yield of the
entire market (as indicated by some index). If there is an increase in the yield of the
market, the yield of the individual portfolio may also go up.
Interpretation Of Beta
When B = 1 means that the scrip has same volatility as compared to Index. Suitable for moderate investor. When B>1 means that scrip is more volatile as compared to market suitable for aggressive investors. When B<1 then scrip is less volatile as compared to market and suitable for defensive investors.
PORTFOLIO
AGGRESSIVE MODERATE DEFENSIVE
Title
Investment Pattern & Portfolio Management of Investors in Delhi
Objectives of the study
1. To know about the investment motive of an investor of Delhi.
2. To provide knowledge to investor about risk associated with various investment instruments.
3. To know which is the most preferred investment option among the mid-aged investors of Delhi.
4. To know the factors which influence the choice of investors.
Research MethodologyIntroduction:Research is an academic activity and as such the term should be used in technical sense.
Research Design:Descriptive research design is used for collecting primary data.
Sampling Design SAMPLING TECHNIQUE: Non Probability technique. Under Non Probability technique, Place Convenience Sampling was used.
UNIVERSE:Universe in this study constitutes both males and females,Above 25, in the whole world.
POPULATION:Investors, above 25 years in Delhi city.
SAMPLING SIZE: 75 respondents.
SAMPLE UNIT: Any investor above 25 years in Delhi .
Methods of Data Collection
Method Of Primary Data Collection:The method followed in obtaining the primary data was through the structured schedules.
Method of Secondary Data Collection:1. Journals and Magazines2. Internet
Limitations of the Project
1. The research has been conducted with a small sample size hence it does not provide for generalization of the results.
2. Some of the respondents can hide the real information.
3. Scarcity of time for completion of project.
Data Analysis & Interpretation
Figure 4.1 Profession (N=75)
Business Retired Student Service0
5
10
15
20
25
30
35
40
45
31
1 1
42
No. of respondents
4.2 Annual Income (N=75)
Below Rs. 1.6 lakh Rs. 1.6-3.0 lakh Rs. 3.0-5.0 lakh Above Rs. 5 lakh0
5
10
15
20
25
30
35
3
12
30 30
No. of respondents
4.3 Proportion Of Annual Income Invested (N=75)
5-15% 15-25% 25-35% 35% Above0
5
10
15
20
25
30
35
40
15
35
17
8
No. of respondents
4.4 Investment Motive (N=75)
Some Current Income High Current Income Growth Of Asset Substantial Growth Of Asset
0
5
10
15
20
25
30
11
28
15
21
No. of respondents
4.5 Investments they feel comfortable owning (N=75)
Gold Stocks of established companies
Stocks of growing companies
Govt. Securities Real Estate0
2
4
6
8
10
12
14
16
18
20
11
15
19
11
19
No. of respondents
4.6 Most Preferred Investment Option (N=75)
Stocks Govt. Securities Gold Real Estate FD/Savings Life Insurance Others0
5
10
15
20
25
30
35
30
6
8
19
8
4
0
No. of respondents
4.7 Risk Tolerance (N=75)
Low Medium High0
5
10
15
20
25
30
35
40
45
50
20
44
11
No. of respondents
4.8 Acceptable Degree Of Volatility (N=75)
Minimal Some Moderate Substantial0
5
10
15
20
25
30
35
11
30
25
9
No. of respondents
4.9 Time frame allowed for investment to reach its objective (N=75)
1-5yrs 5-10yrs 10-15yrs 15yrs Above0
5
10
15
20
25
30
35
40
11
34
21
9
No. of respondents
4.10 Criteria for choosing an investment (N=75)
Liquidity Future Income Current Income Capital Growth0
5
10
15
20
25
30
14 14
2423
No. of respondents
4.11 Consideration about inflation and its impact on portfolio (N=75)
Low weightage Moderate weightage High weightage0
5
10
15
20
25
30
35
40
45
50
11
43
21
No. of respondents
4.12 Revision Strategy (N=75)
Conservative Maintaining Portfolio Aggressive0
5
10
15
20
25
30
35
17
32
26
No. of respondents
Suggestions1. Aviva should concentrate on building a more trustworthy
image in the eyes of investors.2. People are willing to invest for a medium to long term to
set off the inflation factor hence products in that category would be a good area for Aviva to concentrate.
3. Aviva should do extensive advertisement through every media whether electronic, print, or hoarding etc.
4. The company should create awareness about the rules and regulations of IRDA and its easy claim settlement procedure.
5. Aviva can benefit if people are made aware about ULIP’s investment in mutual funds and various stocks, as they are likely to invest into stocks anyway.
Conclusion
1. According to my research people are
moderately bullish with regard to their risk appetite.
2. People have moderate knowledge about volatility, inflation and management of their portfolio.
3. People are not interested in buying insurance as an investment option.