Objective: To equip students to create portfolios based on Quantitative

Analysis or Qualitative Analysis or a combination of both.

Task: Creation of following three portfolios and back test the data for the last ten

years

1) Portfolio based only on top ten stocks based on your brand preference

alone from the list of brands you have identified in your home (Call this

portfolio SP)

2) Portfolio based only on top ten stocks based on your family members

brand preference alone from the list of brands you have identified in your

home (Call this portfolio FP)

3) Portfolio of ten stocks based on stock analysis alone from the list of

brands you have identified in your home (Call this portfolio SPA)

Steps: You may follow the following steps:

1) Identify various brands in your home and create a list of the brands

2) Find out the companies that are manufacturing these brand

3) Select only the Indian listed companies

4) Select only those companies that are available during 1st April 2009 to 31st

March 2019.

5) Select top 10 companies based on your highest brand preferences. For

ranking purpose you may use a 10 point scale where 1 means most

preferred and 10 means least preferred. This step will give list of 10 stocks

in portfolio SP

6) Select top 10 companies based on your family members highest brand

preferences. Please ensure that brand preferences of all members in your

family are adequately represented in the portfolio of 10 stocks. For ranking

purpose you may use a 10 point scale where 1 means most preferred and

10 means least preferred. This step will give list of 10 stocks in portfolio

FP

7) After step 4, select a portfolio of 10 stocks only based on financial analysis

alone. There is no need to consider brand preferences here. This step will

give list of 10 stocks in portfolio SPA. Generally, you need to follow a

numbers and narratives based approach for performing the financial

analysis. The following pointers may be helpful:

A) Details to the company(management, products, market share,

business mix, key financials, key competitors)

B) Compare relevant parameters across time(8-10 years) and across

peers

C) Analyse the business model of the company(you may use insights from

strategy courses; for example, SWOT analysis, Porter's analysis etc.)

D) Select only those firms with good future growth prospects of the

company

8) You can download the closing price from the list of 10 stocks in portfolios

SP, FP, and SPA during 1st April 2009 to 31st March 2019 using the

following link:

https://www.bseindia.com/markets/equity/EQReports/StockPrcHistori.aspx

?flag=0

9) Assume that you have Rs 1 Lakh invested in each of the stock on 1st April,

2009 based on closing price on that day. You get the number of stock you

have purchased. Assume that you can own stocks in fractions.

10) Calculate the portfolio value every day during 1st April 2009 to 31st March

2019 for portfolios SP, FP and FPA

11) Compare the performance of portfolios SP, FP and SPA when compared

with benchmark index SENSEX returns during the same time period.

SENSEX closing price can be downloaded from the following link:

https://www.bseindia.com/Indices/IndexArchiveData.html

12) Plot a graph comparing the performance of SP, FP, SPA and SENSEX

during https://www.bseindia.com/Indices/IndexArchiveData.html

Key deliverables:

The report should be a excel file that contain the following information. You can

furnish the information sheet wise. 1 means sheet 1

1) List of brands identified in your home

2) List of companies manufacturing those brands

3) List of Indian companies that are listed in India and available during 1st

April 2009 to 31st March 2019

4) List of 10 stocks in portfolio SP with the ranking given by you to various

brands

5) List of 10 stocks in portfolio FP with the ranking given by your family

members to various brands

6) List of 10 stocks in portfolio SPA based on financial analysis. You can

supplement this sheet with a power point presentation that contains the

selection criteria/elimination criteria used for selection of the 10 stocks.

7) Details of portfolios SP, FP and SPA during 1st April 2009 to 31st March

2019. This should contain daily performance of the portfolio during the

period by assuming that Rs 1 lakh each is invested in each of the 10

stocks for three portfolios on 1st April 2009. Assume that you can own

stocks in fractions.

8) Overall and year wise returns of portfolios SP, FP and SPA benchmarked

with SENSEX during 1st April 2009 to 31st March 2019

In short, two deliverables are there

1) Excel sheet with 8 sheets

2) Power point presentation that supplements sheet no.6