INTRODUCTION Portfolio (finance) means a collection of investments held by an institution or a private individual.

Holding a portfolio is often part of an investment and risk-limiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. There are also portfolios which are aimed at taking high risks these are called concentrated portfolios. Investment management is the professional management of various securities (shares, bonds etc) and other assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds). The term asset management is often used to refer to the investment management of collective investments, whilst the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as wealth management or portfolio management often within the context of so-called "private banking". The provision of 'investment management services' includes elements of financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Outside of the financial industry, the term "investment management" is often applied to investments other than financial instruments. Investments are often meant to include projects, brands, patents and many things other than stocks and bonds. Even in this case, the term implies that rigorous financial and economic analysis methods are used. The aim of portfolio management is to achieve the maximum return from a portfolio which has been delegated to be managed by an individual manager or financial institution. The manager has to balance the parameters which define a good investment i.e. security, liquidity, and return. The goal is to obtain the highest return for the client of the managed portfolio. While doing the portfolio management of customers it is ensured that the portfolio has objectives and achieves a sound balance between the competing objectives, which are:-

 Safety of investment Stable current return Appreciation in capital value Liquidity Tax planning Minimizing the risk Diversification CREATING PORTFOLIO Making a portfolio is depends on the risk measurement of the investment and the time horizon he/she prefer to invest. But from the point of view of the portfolio manager, choosing a investment or a fund is more difficult than to measure the risk tolerance and time horizon. For the portfolio managers calculating the risk and return is the main area where they focused. As an investors before investing always watch for the risk and return for his/her investment. So before creating the portfolio, risk and return calculation is mandatory. To understand the risk of a specified fund, there are some statistical instruments that helps to measure the volatility in respect to the market, industry, and peers. Measuring volatility and risk depicts the fluctuation of return investors receive. For this creation of portfolio I have choose Mutual Funds as investment instrument because, it has a diversified investment options from equity market, money market, to debt instrument. To diversified investment investor can investment as he/she wanted to. Anyone can invest in mutual funds as variation in investment instrument is greater than any other investment instrument.

IMPORTANCE AND NEED OF THE STUDY Portfolio management has emerged as a separate academic discipline in India. Portfolio theory that deals with the rational investment decision-making process has now become an integral part of financial literature. Investing in securities such as shares, debentures & bonds is profitable Well as exciting. It is indeed rewarding but involves a great deal of risk & need artistic skill. Investing in financial securities is now considered to be one of the most risky avenues of investment. It is rare to find investors investing their entire savings in a single security. Instead they tend to invest in a group of securities. Such group of securities is called as PORTFOLIO. Creation of portfolio helps to reduce risk without sacrificing returns. Portfolio management deals with the analysis of individual securities as well as with the theory & practice of optimally combining securities into portfolios. The modern theory is of the view that by diversification risk can be reduced. The investor can make diversification either by having a large number of shares of companies in different regions. In different industries or those producing different types of product lines Modern theory believes in the perspective of combinations of securities under constraints of risk and return. OBJECTIVES OF THE STUDY To Study the investment pattern and its related risk & returns. To find optimal portfolio, which gives optimal return at a minimize risk to the investor. To see whether the portfolio risk is less than individual risk on whose basis the portfolios are constituted. To see whether the portfolio is yielding a satisfactory and constant return to the investor. To understand, analyze and select the best portfolio.

SCOPE OF THE STUDY The study covers the calculation of correlations between the different securities in order to find out at what percentage funds should be invested among the companies in the portfolio. Also the study includes the calculation of individual Standard Deviation of securities and ends at the calculation of weights of individual securities involved in the portfolio. These percentages help in allocating the funds available for investment based on risky portfolios. METHODOLOGY Data was also gathered from Primary and Secondary sources like the books and internet sites of the various companies. The data from the internet sites was collected in the month of May 2012 so there might be some modification of the data presently.

COMPANY PROFILE

OVERVIEW:

KARVY, is a premier integrated financial services provider , and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 392 corporate, comprising the who is who of Corporate India

KARVY covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products like mutual funds, bonds, fixed deposit, Merchant Banking & Corporate Finance, Insurance Broking, Commodities Broking, Personal Finance Advisory Services, placement of equity, IPOs, among others. Karvy has a professional management team and ranks among the best in technology, operations, and more importantly, in research of various industrial segments.

KARVY ALLIANCES:

Karvy Computer share Private Limited is a 50:50 joint venture of Karvy Consultants Limited and Computer share Limited, Australia. Computer share Limited is world's largest -- and only global -- share registry, and a leading financial market services provider to the global securities industry.

The joint venture with Computer share, reckoned as the largest registrar in the world, servicing over 60 million shareholder accounts for over 7,000 corporations across eleven countries spread across five continents. Computer share manages more than 70 million shareholder accounts for over 13,000 corporations around the world.
Karvy Computer share Private Limited, today, is India's largest Registrar and Share Transfer Agent servicing over 300 corporate and mutual funds and 16 million investors.

BOARD OF DIRECTORS:

1. C. Parthasarathy 2. M. Yugandhar 3. M. S. Ramakrishna

Chairman & Managing Director Managing Director Executive Director

MANAGEMENT TEAM:
1. K. Sridhar 2. V. Mahesh 3. V. Ganesh 4. S. Gopichand 5. J. Ramaswamy 6. M. S. Manohar 7. S. Ganapathy Subramanian

ACHIEVEMENTS:

Among the top 5 stock brokers in India (4% of NSE volumes) India's No. 1 Registrar & Securities Transfer Agents Among the top 3 Depository Participants Largest Network of Branches & Business Associates ISO 9002 certified operations by DNV Among top 10 Investment bankers Largest Distributor of Financial Products Adjudged as one of the top 50 IT uses in India by MIS Asia Full Fledged IT driven operations

QUALITY POLICY:
To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial services. In the process, Karvy will strive to exceed Customer's expectations.

QUALITY OBJECTIVES: As Per the Quality Policy, Karvy will:

Build in-house processes that will ensure transparent and harmonious relationships with its

clients and investors to provide high quality of services.

Establish a partner relationship with its investor service agents and vendors that will help in

keeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them with adequate

knowledge & skills so as to respond to customer's needs.

Continue to uphold the values of honesty & integrity and strive to establish unparalleled

standards in business ethics.

Use state-of-the art information technology in developing new and innovative financial

products and services to meet the changing needs of investors and clients.

Strive to be a reliable source of value-added financial products and services and constantly

guide the individuals and institutions in making a judicious choice of same. Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfied.