Script For Sip Final Evaluation
Script For Sip Final Evaluation
Script For Sip Final Evaluation
I would like to share my work done on the topic “ Risk Perception and Portfolio Management of
Equity Investors” for my 14-week SIP done at Sharekhan LTD.
Slide 2: AGENDA
The following are the sequence of my presentation. Starting with company profile, followed by
Introduction to Financial Markets, and lastly I have findings, conclusion and future prospects.
1st I have is the Background of Sharekhan LTD. which is Founded by Mumbai-based entrepreneur
Shripal Morakhira in 2000
In this, I would like to tell u first about Strengths of Sharekhan that it has developed quite strong
infrastructure in IT
Next its weakness, that Sharekhan is unable to penetrate its services in rural cities
Third, Opportunities, nowadays youth are more inclined towards financial markets/equity
investments
Lastly, Threat, for sharekhan is its competitors coming up with Tough brokerage and service as
compared to other full service brokers
-Top 3 brokers:
Zerodha
ICICI Securities
Kotak Securities
What I have learnt so far from my past two semesters during the course of PGPM was about markets
such as equity, debt, primary and secondary markets, but as and when I started my Internship with
sharekhan, I was introduced with other forms of market as well as mentioned on the screen like
Commodity, Currency, Exchange traded, and F&O.
Slide 5: Brief Analysis: Risk Perception and Portfolio Management of Equity Investors
My topic explains about the risk taking abilities of investor in equity markets.
i) Low Risk: investors here are more concerned with fixed returns
ii) Moderate Risk: invest into well diversified asset class with little risk
iii) Traditional: investors herein tend to invest huge capital into various projects, plans, or into asset
class
iv) High: Herein investors are more concerned about taking high risk with high reward
v) Emerging: These are investors who are more inclined towards trying out new ways of investment
and growth with known risk
-PMS(facility offered by AMC for HNI’S for investment purpose into stocks, debt, and other securities
which is then managed by a professional manager) etc.
-Hedge fund( part of asset management strategy adopted by an individual which is based on 220
principle; 2% fees, 20% profit)
-Cryptocurrency(is a digital currency that can be used to buy goods and services, but uses an online
ledger with strong cryptography to secure online transactions. Much of the interest in these
unregulated currencies is to trade for profit, with speculators at times driving prices skyward)
After understanding the risk taking capability, we need to look at other factors as well, like
demography(which place they belong to), experience( time invested) ; knowledge( information and
facts well read about); and awareness( alertness with currents news and updates)
When all this is clear, next step is to differentiate between mutual fund and PMS; because investors,
and new players, tend to get puzzled between the two, because of number of similarities, but they
are certain differences too to be taken care of which are mentioned here.
As far as activities are concerned, we were given task to analyse company’s performance of our own
choice, do regular trades in our own DEMAT account, and also attend Sharekhan classroom sessions
available on its website.
Further, we were told to cross-sell DEMAT account to other people, later were exposed to learn
about derivatives and trade into it and also were supposed to trade on intra-day as well as delivery
basis.
Slide 8&9: SIP Learnings
From my 14 week SIP, I have learnt about how brokerage is generated for intra-day and delivery
trades; we also learnt about how different accounts are activated on Sharekhan, why mutual fund is
important; live example and trading into derivatives and currency, and learning about Trade Tiger
software, a better and smooth way to carry out trades, i.e., directly from desktop site.
Firstly, I conducted a survey about perception of risk with people residing in Delhi NCR through the
questionnaire designed by me, as presented here.
Further, I back-tested the strategies introduced to us for trading into derivatives on Opstra website.
1st graph is a long futures graph, in which the green part shows the profit and red part shows loss as
futures have unltd. Profit and loss potential.
When we sell a futures contract, price starts falling, so we make profit, as shown by green part, on
the other hand, when price starts rising, we incur loss as shown by red part.
I have done descriptive analysis using SPSS Software based on responses from the respondents.
The major factors are capital appreciation, annual income, financial advisor, risk-reward, and age.
26%-young
18% - are respondents who high influence from financial advisors such as stock brokers, analysts,
etc.
18% - are respondents that majorly regard capital appreciation .i.e., return on investment with
respect to time value
20% - respondents majorly invest into well diversified asset class between low to high risk, as they
are better aware of new strategies, techniques, and have less capital to loose.
Conclusion
Thus, I can summarise my analysis as per my report that, youth are more inclined towards equity
investment into financial markets and thereby take calculated risk with respect to calculated profit
they tend to earn on their investment.
Slide 13: Future Prospects
• Margin Exposure
• Position Sizing
At the end, I would like to end my presentation with a famous quote by Paul Tudor Jones:
“The secret to being successful from a trading perspective is to have an indefatigable and an undying
and unquenchable thirst for information and knowledge”.
Thankyou