This article is based upon a MBA Project – Risk and Return Of alternative Investment Opportunities available to High Net worth Individuals. In the following article some of the contents are written down below. This will be helpful to you if you are a management student. You can download the entire project as well which is attached with this article.
Portfolio Management has been an integral part for any investor. Each Investor, whether small or big is trying to maximize his/ her returns by making a diversified investment. To diversify the investment the risk and return trade off of each investment avenue has to be studied. Therefore the study of portfolio management and risk and return is very important of an investor.
Now days there are professional investment advisors who study the risk and return portfolio of each investor and design the most well suited portfolio from him/ her. Banks also provide professional investment advice. This has opened up a huge market for the advisors and has become very competitive.
ING Vysya Bank also provides professional advise to its clients. A common problem faced by the bank’s advisors is that they have a low conversion rate on the advice given by them.
Therefore a study and analysis has been conducted on a sample of 10 HNI’s of the bank to analyze their investment portfolio and risk appetite. An analysis of the bank’s products is also conducted to understand them in detail. Then the required suggestions are made to the investment advisors to improve the conversion rate and retain HNI’s.
Finance is an area of study which is namely concerned with two distinct areas i.e. financing and investing. We will be dealing with financial management relating to investment activities. This area of finance deals with finding out the best combination or portfolio of financial assets and thus focuses attention on the allocation of funds once they are acquired. This area focuses attention whether an investor should put all his money in one financial asset or in a combination of different financial assets.
It studies and addresses the ways in which individuals raise, allocate and use monetary resources over time, taking into account the risks entailed in their projects. It is the application of a set of techniques that individuals use to manage their financial affairs, particularly the differences between income and expenditure and the risks of their investments.
An entity whose income exceeds its expenditure can lend or invest the excess income. On the other hand, an entity whose income is less than its expenditure can raise capital by borrowing or selling equity claims, decreasing its expenses, or increasing its income. We will be focusing on those entities who have surplus income and are looking for avenues of investment.
Therefore we will further go into portfolio management of individuals and risk and return analysis of each investment avenue.