Risk and Return Analysis on Equity Shares of Muthoot Finance Limited”

A PROJECT REPORT ON “RISK AND RETURN ANALYSIS ON EQUITY SHARES OF MUTHOOT FINANCE LIMITED”

SUBMITTED IN PARTIAL FULFILLMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION By ANJANA.S.K Reg. no :( 1NH14MBA05)

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Dr.D.Uday Kumar Mrs.Praseena Ajay Asst. Professor Deputy Manager New Horizon College of Engineering Muthoot finance ltd, Outer Ring Road, Marthahalli, Cochin Branch Bangalore-560 103 Banerji road, Cochin-670008

NEW HORIZON COLLEGE OF ENGINEERING MARATHAHALLI BANGALORE -560103 BATCH: 2014-16

ACKNOWLEDGEMENT

The writing of this dissertation has been one of the most significant academic challenges, I have ever had to face. Without the support, patience and guidance of the following people, this study would not have been completed. It is to them I owe my deepest gratitude.

First I would like to thank god for his grace and wisdom, which kept me going, and help me to complete this project successfully.

Secondly I thank the management of New Horizon College of Engineering, Visvesvaraya Technological University, Belgaum for the continuous support.

I am grateful to our Principal Dr. Manjunatha for his constant support, inspiration and suggestion throughout the study. I deem it a great pleasure to express my esteem gratitude with all respect to Dr. Sheelan Mishra, Head of the Department, for her interest and kind help in making necessary arrangement to undertake this study

Thirdly I would like to express my deep sense of gratitude towards my guide Dr.D.Uday Kumar (Dept. of Management Studies).

I am greatly indebted to Mrs.Prseena Ajay (Deputy Manager), Muthoot Finance Ltd, who guided me despite her hectic job commitment. Her wisdom, knowledge, and commitment inspired and motivated me to accomplish this study. Without her initial consideration for me, this project would have been a failure.

Finally I thank my parents for their continuous encouragement and valuable support which helped me to accomplish this project.

Anjana.S.K

TABLE OF CONTENTS

CHAPTER TITLE PAGE NO

INTRODUCTION 1

STATEMENT OF PROBLEM 1

TOPIC CHOSEN FOR THE STUDY 2

NEED FOR THE STUDY 2

OBJECTIVES OF THE STUDY 2

SCOPE OF THE STUDY 2

1 METHODOLOGY ADOPTED 3

LITERATURE REVIEW 4

LIMITATION OF THE STUDY 9

INDUSTRY PROFILE 10

COMPANY PROFILE 17

SERVICES OFFERED 21

2 VISION , MISION & VALUES 27

PROMOTERS 28

SWOT ANALYSIS 28

3 THEORETICAL BACKGROUND OF THE STUDY 32

4 ANALYSIS AND INTERPRETATION OF DATA 39

5 FINDINGS 62

SUGGESTIONS 64

CONCLUSION 65

LIST OF TABLES

Sl.No TABLE Title of the tables Page NO. No. 1 4.1 Table showing the returns of Muthoot 39 finance 2 4.2 Table showing the returns of Bajaj 41 Finserv 3 4.3 Table showing the returns of Bajaj 43 Holdings & investment ltd 4 4.4 Table showing the returns of Reliance 45 capital 5 4.5 Table showing the returns of Larsen & 47 Toubro ltd 6 4.6 Table showing the returns of Prime 49 securities 7 4.7 Table showing the returns of Mahindra & 51 Mahindra financial services 8 4.8 Table showing the risk of Muthoot Finance 53 with BSE 9 4.9 Table showing the risk of Bajaj 54 Finserv with BSE 10 4.10 Table showing the risk of Bajaj Holdings 55 & investment ltd with BSE 11 4.11 Table showing the risk of Reliance capital 56 with BSE 12 4.12 Table showing the risk of Larsen & Toubro 57 ltd with BSE 13 4.13 Table showing the risk of Prime securities 58 with BSE 14 4.14 Table showing the risk of Mahindra & 59 Mahindra financial services with BSE 15 4.15 Table showing the systematic risk 60

16 4.16 Table showing the risk of comparison of all 61 the companies LIST OF GRAPHS

Sl.No TABLE Title of the tables Page NO. No. 1 4.1 Graph showing the returns of Muthoot 39 finance 2 4.2 Graph showing the returns of Bajaj 41 Finserv 3 4.3 Graph showing the returns of Bajaj 43 Holdings & investment ltd 4 4.4 Graph showing the returns of Reliance 45 capital 5 4.5 Graph showing the returns of Larsen & 47 Toubro ltd 6 4.6 Graph showing the returns of Prime 49 securities 7 4.7 Graph showing the returns of Mahindra & 51 Mahindra financial services 8 4.8 Graph showing the risk of Muthoot 53 Finance with BSE 9 4.9 Graph showing the risk of Bajaj 54 Finserv with BSE 10 4.10 Graph showing the risk of Bajaj Holdings 55 & investment ltd with BSE 11 4.11 Graph showing the risk of Reliance capital 56 with BSE 12 4.12 Graph showing the risk of Larsen & 57 Toubro ltd with BSE 13 4.13 Graph showing the risk of Prime securities 58 with BSE 14 4.14 Graph showing the risk of Mahindra & 59 Mahindra financial services with BSE 15 4.15 Graph showing the systematic risk 60

16 4.16 Graph showing the risk of comparison of 61 all the companies

EXECUTIVE SUMMARY

The report “risk & return analysis on equity shares of muthoot finance” is an analysis made to know the risk and returns involved in muthoot finance compared with the market and other non-banking companies. The main aim for the study is to help the investors to invest in the right place in order to earn maximum returns. The study is also made to compare the different companies with the market and how these different companies have been working for the past five years. The secondary data is collected in order to know how each company is being performed.

To analyse the risk involved, the risk and return analysis is made. The tools which have been used in this study is Standard deviation for calculating risk (total risk), Beta (β) used in regression analysis for calculating systematic risk and Expected value for calculating returns. The investors can take high risk in order to get high returns. Therefore, this study helps and suggest the investors to invest in an high return giving company.

EXECUTIVE SUMMARY

CHAPTER 1

INTRODUCTION

1.1 Introduction

The study is based on the risk and return analysis of muthoot finance comparing with theit competitors. Risk management is a steady, foreseeing procedure which is essential portion of trade and investment management movements. Risk analysis and management must record problems which might threaten coming to of risky goals. A nonstop risk management methodology is used to effectively predict and alleviate the risks which have risky effect on the tasks or investment movements.

Effective risk analysis and management incorporates initial and hostile risk recognition over the partnership and contribution of applicable shareholders. Solid control over every related stakeholder is important to frame an atmosphere for the unrestricted and exposed revelation and conversation of risk. Even though technical problems are main concern both initial on and all through all the tasks and investment stages, risk analysis and organisation should reflect both inner and outer reasons for value, system plus technical risk.

Risk management is partitioned in three sections characterizing a risk management technique; recognising and breaking down risks plus taking care of recognised risks, with the usage of risk alleviation ideas once required. Early and forceful acknowledgement of risk is significant because it is actually simpler and fewer unsettling to attempt changes and accurate work efforts through the earlier, moderately than the impending, times of the task.

1.2 Problem statement The importance of risk management is to distinguish the problems before they happen in any business activities, so that the risk avoidance might be scheduled and actualised by way of required as per the lifespan of the product, investments to alleviate adversative effects on accomplishing the business goals.

1.3 Topic chosen for the study

“Risk and return analysis on equity shares of Muthoot finance ltd”

1.4 Need for the study

To understand the equity characteristics in the view of investors. It helps to understand dimension of risk from investment in equity in non-banking sector. This study is done to draw line among the different risks and their suitability in non-banking. This study is made to have a hands on proficiency in understanding and measurement of risk. It also helps to match and familiarise the risk management and measurement tools.

1.5 Objectives of the study  To examine the overall NBFCs in India.  To understand the performance of Muthoot Finance with his peers with respect to risk and return.  To analyse the risk and return of Muthoot Finance stocks with respect to index.  To study the trend of risk and return performance to Muthoot Finance.  To suggest the suitable measures to the investors for their better investment planning.

1.6 Scope of the study

This study analyses bank nifty index and its constituent stock. This would help the investors and the bankers to plan for risk avoidance strategies. It may make an exclusive awareness of the risks and its impact on investment within a portfolio strategy. Investors who are observing to safeguard or take on risk in a portfolio can hire a stratagem of investing in non-banking sector which would have a better scope. Risk analysis and risk management tools to identify the risk engaged in equity investment in non-banking sector.

1.7Methodology Adopted

The study depends on both primary and secondary information collected with individual interaction with the Managers of Muthoot Finance Ltd., and other information will be gathered from the past audited reports.

1.8 Tools for Analysis

 Standard deviation for calculating risk (total risk).  Beta (β) used in regression analysis for calculating systematic risk.  Expected value for calculating returns.

1.9 Sources of Data

1. Primary Data: The primary data will be based on individual interaction with the Manager of Muthoot Finance Ltd., Cochin branch.

2. Secondary Data: The secondary data will be gathered from past Audited Annual reports and Balance sheet and websites like www.bseindia.com, www.nse.com, www.moneycontrol.com and also from company websites, books, newspapers and periodicals.

1.10 Literature Review

Arditti (1967)1 observed that the variables like the second and third moments of the probability distributions were reasonable risk measures and dividend pay-out, the dividend earnings ratio showed a negative significance. The debt-equity ratio resulted in negative sign.

Nerlov (1968)2 observed that sales, retention of earnings and growth in earnings were found to possess relationship with returns. Over long holdings periods both dividend and leverage possessed significant relationship with the rate of return.

Sharma (1989)3 studied the factors affecting the relative prices of equity shares in India and found that dividend pay-out, growth and size of the firm were significant factors.

Rao and Jose (1996)4 found in their study that the CAPM was valid in India.

Ansari (1997)5 investigated the applicability of CAPM in India and found no validity.

Raj and Rakesh (2006)6 analysed the relationship between risk and return, observed a high positive relation between portfolio return and risk.

Sangeeth and Dheeraj (2007)7 studied the risk return relation using market and accounting based information and found that risk calculated on the base of accounting data was not significantly caught by the market but financial risk had significant influence.

Gulnur and Sheeja (2008)8 investigated the impact of a firm‟s leverage on stock yields in the London Stock Exchange and found that leverage had a negative relation with stock yields.

Madhu and Tamini (2010)9 in their study revealed that CAPM held good in Indian stock market in explaining of systematic risk also establishing the trade-off between risk and return. In order to establish the positive risk-return relationship between equity returns and different distributional and financial risk variables.

Surya Narayan (2011)10: A Study on Risk & Return Relationship – An Analysis on Selected Companies in Muscat Securities Market: - The expansive target of this paper is to analyse the profits and the danger connected with chose securities in one of the Gulf Markets viz. Muscat Securities Market (MSM). The Systematic Risk (β) is found out which is of individual securities in comparison of market index. Out of companies which are listed in MSM, a sample of thirty companies were selected, ten each which are representing banking, manufacturing and service sectors. Taken a period of six months starting from 1st September 2008 to 28th February 2012 the study is conducted to find out whether securities with high beta resulted in high returns. For this, it is calculated the average returns of the selected securities along with their market beta on daily basis (using MS Excel function – average and slope respectively). To find out the movement of the share price with comparison to the market price (with the help of Karl Pearson‟s coefficient of correlation) the correlation between the individual securities returns with that of the market returns is proceeded. The outcome of the analysis which done was that, after the global financial crisis overall the globe and Dubai market, the securities which comes under the low risk categories showed better performance during this time immediately. The study report shows all the aspects and insight which is helpful any potential investor, fund managers, academicians etc.

Dr P Vikkraman and P Varadharajan(2004-2007)11: A Study about Risk and Return examination of Indian car industry:- Automobile Industry is an image of mankind‟s specialized wonder. One of the quickest developing areas in any creating and even in a created nation will be Car industry. Because of its profound forward and in reverse linkages with a few key fragments of the economy, the car business is having a solid multiplier impact on the development of a nation and henceforth is fit for being the driver of monetary development. Indeed, even vehicles industry assumes a noteworthy part as an impetus in adding to the vehicle segment in one hand and helps modern segment on the other in this manner even encourages in the development of the economy and

expansions the job opportunities. The danger and return investigation connected with any industry uncovers the intricacies included with the specific business. A nearby watch on these qualities tosses light on an unmistakable comprehension and encourages in choice making about the interest in securities. While settling on the choices with respect to speculation and financing, one looks to accomplish the right harmony in the middle of danger and return, keeping in mind the end goal to improve the estimation of the firm. Hazard and return go together in speculations. Everything a financial specialist (be it the firm or the speculator in the firm) does is attached straightforwardly or in a roundabout way to return and hazard. The goal of any financial specialist is to expand expected comes back from his speculations, subject to different limitations, essential danger. Return is the persuading power, moving the speculator as prizes, for undertaking the venture. The significance of profits in any venture choice can be followed to the components: it empowers speculators to 6nequal elective interests regarding what they bring to the table the financial specialist, it helps in measuring of chronicled returns which empowers the speculators to survey how well they have done, it encourages in measuring of the recorded returns likewise helps in estimation of future returns.

P karthika & Dr. P. Karthikeyan12: A Study on Comparative Analysis of Risk and Return with reference to Selected loads of BSE Sensex file, India:- The study plans to think about supplies of chose organizations from various divisions like Information Technology, Automobiles, Banking, Pharmaceuticals, and Oil Sectors as their danger, return and liquidity. The concentrate additionally making mindfulness about Stocks among the financial specialists to put resources into the specific areas. The danger/return relationship is a principal idea in monetary examination, as well as in each part of life. On the off chance that choices are to prompt advantage boost, it is fundamental that people/organizations consider the consolidated impact on expected return or advantage and additionally on danger/cost. The necessity that normal return/advantage similar with danger/expense is known as the “danger/return exchange off” in account. It talks about the exchange off utilizing beta and standard deviations, coefficient of relationship devices and gives a strategy to measuring hazard.

Bedanta Bora & Anindita Adhikary13: Hazard and Return Relationship – An Empirical Study of BSE Sensex Companies in India:- Investment in securities exchange is subjected to differing dangers. The same is made in desire of return which is in abundance of a danger free rate. The genuine return the financial specialist gets from

stock might change from his normal return and hazard is communicated as far as variability of return. In that capacity, it gets to be key to comprehend extent of the rate of profits and the level of danger included. One paramount measure of methodical danger connected with a venture is Beta. It alludes to the unpredictability of a stock in examination with rest of the business sector. The strength of beta is of awesome noteworthiness as it happens to be an essential device for speculation choice. In these settings, the study has investigated the relationship between returns of securities and business sector returns furthermore the solidness of beta for an assortment of stocks that shaped a piece of BSE Sensex. The technique received here is observational in nature. The required data for experiencing the examination has been collected from optional sources. The specimen size for this study comprises of 30 corporate firms that are recorded on BSE and incorporated into Sensex. Enlightening insights and different relapse model are being utilized to think about the relationship between returns of securities and business sector returns. Solidness of beta is tried too. Discoveries show that there is by all accounts positive relationship between returns of securities and business sector returns and betas are insecure additional time.

Mr.Alpesh Gajera14: Risk and return analysis of BSE small, medium & large capitalization indices:- In the current financial situation loan fees are falling and vacillation in the offer business sector has placed speculators in perplexity. One discovers it challenges to take choice on speculation. This is fundamentally, in view of speculation are unsafe in nature and financial specialists need to consider different variables before putting resources into venture streets. These elements incorporate danger, return, unpredictability of shares and liquidity. The primary goal of our exploration is hazard and returns investigation of various files of BSE(S&P) like vast top, midcap, and little top furthermore to assessment of best records/stock for venture. In our exploration we have taken authentic information for most recent four year for discovering Risk and Return on month to month premise by contrasting substantial top with mid top, vast top to Small top and Midcap to Small top Most of the danger disinclined speculators designate cash in expansive top assets to maintain a strategic distance from colossal unpredictability and vulnerability. This extensive top stocks conveys generally safe and in addition low return and contrasted with mid and little top stocks. While the little and mid top organizations are exceedingly unstable and hazardous yet have potential for higher returns if put resources into in a general sense great organization.

Dr. S. Krishnaprabha and Mr.M.Vijayakumar (2015)15: Study on Risk and Return Analysis of Selected Stocks in India:- Risk and return investigation assumes a key part in most individual choice making process. Each financial specialist needs to keep away from danger and boost return. By and large, hazard and return go hand. In the event that a speculator wishes to gain higher returns than the financial specialist must welcome that this may be accomplished by tolerating a similar increment in danger. In view of danger and return examination, high hazard gives exceptional yields with generally safe provides for low return, in light of this idea in Banking and Automobile segment high hazard gives low return, and in Information innovation, Fast moving customer merchandise, Pharmaceutical division okay gives exceptional yield. Alpha stock is sure and the organizations are autonomous to market return and have a gainful return.

Dr. Sandeep Malu & Dr. Rahul Deo16: A study on relationship in the middle of danger and return of select value connected sparing plans of shared assets in india:- Mutual asset is a pool of speculation normally framed through little funds of financial specialists meaning to part in monetary development through corporate organization with the assistance of professionally oversaw system outlined particularly for the same. In India shared asset is having a long standing and a sound reputation began in the lead of UTI (Unit Trust of India) later on took part by a few local and remote players. It is extremely mainstream section amongst retail and also institutional members. This examination is an 8nequalle to look into the key duty saver fragment, an aid for assessment sparing too riches creation. The example for the study comprises of five shared assets having a place with Equity Tax Saving class reserves chose on the premise of most recent 5 year execution amongst the classification. The execution of chose assets is assessed utilizing normal rate of return of asset, standard deviation, Risk/Return, Sharpe Ratio, Treynor proportion and Jensen proportion. Clever 50 is taken as benchmark for contrasting execution of assessment saver plan. Accordingly every one of the plans beat the benchmark in considered time period so the correlation criteria remains bury plan examination for 8nequalled organizations.

Abu T. Mollik & M. Khokan Bepari (2015)17: Hazard Return Trade-off in Emerging Markets: Evidence from Dhaka Stock Exchange Bangladesh:- This paper endeavors to gauge the danger and return relationship in Dhaka Stock Exchange (DSE). The study

reports a factually critical positive relationship in the middle of danger and return both at the individual security level and at the portfolio level, affirming the hypothetical expectations and exact discoveries on this issue in created markets. In spite of the fact that portfolio hazard and returns are observed to be fundamentally emphatically related when all is said in done, a few irregularities were uncovered with regards to relative danger for high hazard portfolios, recommending the presence of a few inconsistencies or mispricing in high hazard resources. These discoveries have imperative ramifications for venture choices at the DSE in that the financial specialists might have the capacity to make productive speculation systems utilizing the mispricing data.

1.11 Limitations of the study  This study is confined to only five years.  During the limited period of the study, the study may not be a complete, full- fledged and useful one in all aspects.  The conclusion cannot be final as market fluctuations are unpredictable.

CHAPTER 2

INDUSTRY & COMPANY PROFILE

2.1 Industry profile

Economic outline of India

Next to the European Union, the United States and China, India standing in a leading position in the world economy. India‟s GDP has developed to 4.8 percent in the previous year. Among all other countries India has a prime position in the purchase of gold in the whole world. The demand for gold has covered half of the total global purchaser. In 2012 India has done the massive purchase of gold and it shows the maximum record happened in the world before.

Indian Consumer Outline in the Credit Market

The main participants of customer leading sector are in private and public areas together with NBFCs and other private banks.

Commercial Banks Reserved commercial banks together with other rural regional bank were about 151 in 2013. The centres managed by the reserved commercial banks were about 39685 out of which 30637 were centres of solitary office plus 74 centres with 100 and further offices. According to 1934 act of RBI schedule are registered as scheduled commercial banks. It is categorised foreign banks and private and public banks.

Non-Banking Financing Companies All those companies recorded and listed under the companies act of 1956 stands for Non-Banking Finance Company (“NBFC”) which is occupied for trade of credits plus advances, acquirement of share or stocks or bond or debenture or securities given via local or government officials & different securities alike marketable character, hire-purchase, leasing, chit trade, insurance trade will however not contain any institution which have primary trading of agriculture movement, industrialised

movement, selling or buying or building of fixed assets. A Non-Banking institute that is a firm and which has a key trade which accept deposits on the basis of some system or any different method, & giving in some method is similar to a Non-Banking Financial Company. To begin or move on some trade of non-banking financial institute like mentioned in section 45 1 of the RBI Act, 1934 all NBFC needs to be listed in RBI which is their criteria. Free deposits are not taken by NBFCs. Just that NBFC obtaining a relevant Registration Certificate having approval which acknowledge open deposits can acknowledge/maintain open deposits. NBFCs entitled to acknowledge/maintain open deposits different than which have less specified net owned fund must also cop up with the instructions like investing portion of funds in liquid assets, sustain reserves, rating etc. given in terms of Bank. According to the year of 2014 January 31st, in India, there were 238 NBFCs allowed to acknowledge public deposits. In addition, on 2014 January 31, in India there were 11,913 NBFCs which do not acknowledge open deposits.

Gold financing Industry; India According to world gold council, one of the huge gold market is in India. Demand and bats expanded by 11 percent and 16 percent for the gold invest in India in 2013. It attracts more foreign investors to invest in the gold market in India due to the expansion of gold investment in India. It also helps to maintain the economic wealth and expand the GDP of the country.

India and china will be the prime position in gold market in 2025 is anticipated by the world gold council which will have 1 billion first hand metropolitan customers. The international demand of gold coin plus bars are accounted as 24.7 percent in India. Portion of the huge need in Indian jewellery is taken through cultural and sentimental value for gold; this one is considered most important to buy gold during festivals and other occasions. Stone of value have the similar position which refer to the financial gold assets. Investment in gold handed to the generations which is a worthy ownership in India.

Indian clients take a partiality for gold which radiates to various social plus cultural elements. The revolutionary financial inclusion makes the poor also able to purchase gold products which can create a tremendous increase in gold purchasing. The gold

loan industry in India has a great influence especially in the region of southern India that covers the largest proposition of India‟s gold selling-buying scenario. It is common that the people in India pawn gold for meeting their financial requirements in the western and northern regions of India.

Gold Demand in India  Non-stop growth: In spite of numerous import linked checks amid 2013, gold interest remained light, with an entire year over-all of 975 tons contrasted with 864 tonnes in the year 2012. The World Gold Council gauges that casual imports verging on multiplied contrasted through 2012, to reimburse for the reduction in power imports.  South India establishes the greatest business segment for gold: Southern India has been the greatest business segment part representing around 40 percent of gold interest, trailed by western areas at about 25 percent and India‟s gold interest is annually changed at 20 - 25percent in north and in east it‟s about 10 - 15 percent of India‟s interest on gold.  Indian rural areas is considered as the more demand focused which is evaluated to maintain about 64 percent of overall stock of gold as this area of populace considers gold to be protected plus effectively open funds vehicle close by their utilization reason.

Gold loan market development drivers in India

i. Incentives received by financiers: Loan to value is ordered at 74 percent by RBI as of regulation released and commanded cap is 59 percent of LTV on 2014 0f September. Improved LTV of 74 percent which will give a level-play field to NBFCs gold loan contrasted with banks plus cuts down danger of rivalry plus market share loss.

ii. Increased necessity for liquidity: With the help of gold and jewellery as protection, gold loans have been issued only in the premise of, the highest

development rates watched for gold loans as of late would be replicating the ascent of the liquidity intention isolated from ordinary sparing rouse to get gold. The fast development in gold loans as of late demonstrates unleashing the unmoving enthusiasm for liquidity from critical extent of the populace who confronted serious borrowing limitations some time recently. iii. Changing consumer dispositions also inclinations: Indian buyers have shown an adjustment in their customarily unwilling brain research. A peaceful swing in investment funds from money related items to resources, demonstrating penchant for further improvement, is discernible in Indian economy.

Competition

In southern India, the Gold Loans market has been ordered by SCBs order, and NBFCs with pieces of the overall industry of around 47.7% plus 45.6%, separately in budgetary 2012, though the remaining piece of overall industry which is holding by co-operative banks which are small. Although the noteworthiness of banks are being continued with a striking increment which is unabated in the NBFC share totally, gold loans is likewise furthermore recognizable in the late years. At the end of April 2008 till the end of March 2012 ,the share of NBFCs grew from 13 percent to 27 percent. At end of the day, on regular, the share of gold loan NBFCs expanded by around 3 percent points on an yearly premise. NBFCs offer versatility, brisk disbursal & a casual situation to the shoppers in consequently in account with the premium on charges of interest advertised. The interest charges taken into account by the banks contrast from 7 - 10 percent if there should be an occurrence of credits for the purpose of agriculture and roughly 12 – 15 percent on advances for the non-agrarian needs, when NBFCs are taking interest charges someplace about 11 percent and 24 percent. In any case, changes taken place February 2011 in administrative standards have blocked the gold credits from being categorised in the sector of agricultural, along these lines growing the expense of assets of gold advance organizations, including their organization.

Role of NBFCs in Indian competitive scenario of the gold financing sector

A common Gold Loan purchaser anticipates that advances which are high will esteem recommendations, low levels of documentation straightforward access, and traditions, fast endorsement & disbursal of advances, they also give lockers to provide security of the guaranteed gold & a gathering of master values. Specific NBFCs having more years of experience & a lone spotlight on gold advances portion has been added to a profound comprehension of purchasers & business motion & have obtained corner capacities to take into account the necessities of the clients. NBFCs work in gold advances keep on performing unequivocally in the Gold advances marketplace, in financial 2012, the Gold advances business sector went to a great extent focused on 2 classes of moneylenders: south SCBs and NBFCs of southern India represent considerable authority in Gold advances who had around 47.7 percent and 45.6 percent, individually, of aggregate business sector. The left over Gold advances portfolio was taken over by a number of small co-operative banks. Also in January 2014, the RBI‟s regulations commanding 75 percent LTV cap on gold worth, enhance aggressive situating of gold credit NBFCs the other way around tumultuous performers.

The Indian market of gold loan; Overview

In light of the evaluation of the rising flow plus focused scene, Gold Loan business sector is required to create at a normal rate some place about 18 percent and 20 percent over the time of monetary 2012 to financial 2016. In the year 2012 March 22nd, the issued guidelines of RBI that amid other factors defeat the LTV for gold loaning at 59 percent and expanded 1st tier capital need for organizations principally possessed in gold loaning (such credits including half or a greater amount of their money related resources) to 12 percent. A correction of NBFCs to 74 percent was done by RBI nonetheless in the year 2014 January.

Indian Gold Loans Market; NBFCs

Parameters Specialised South Based New NBFC New Bank Cooperative NBFCs Banks Entrants Entrants Banks

STRATEGIC STANCE AND FOCUS

Focus on the segment High Medium Medium Low to Medium Medium

Willingness to expand in Non- High Low High Medium Low South regions ABILITY TO PROVIDE ACCESSIBILITY

Size of existing branch High Medium Medium Medium Low network Flexibility to add branches High Low High Low Low

ABILITY TO PROVIDE FLEXIBILITY

Understanding of target High Medium Medium Low Medium customer segments

Ability to provide a wide Medium Medium Medium Medium Medium range of products – High LTV products

Competitive advantage on High Low Medium Low Low account of flexibility – Long hours, cash disbursals

Also, it will be expected that large banks in south India will keep on being amongst the main loan specialists, yet considering the different operational & administrative procedures, it will be in such a way that the same level of adaptability offered by the bank and like the NBFCs openness to clients. Recent NBFC contestants in business sector are presently in a careful preliminary mode to come to the Gold advances advertise & have tried to place themselves into the specific Gold advance NBFCs & banks as far as the objective clients & operational productivity, for example, degree of adaptability and snappy turnaround. Theories NBFCs have been straightforwardly influenced by the late administrative

standards for specific NBFCs, which might provoke them to take a relook at their inside development gets ready for the portion.

The accompanying components will be essential in adding to the proceeded with development of particular NBFCs:

 Large dissemination system: Expert NBFCs have an extensive conveyance system in the southern India and have a solid group of neighbourhood workers who are knowledgeable with the mind and request qualities of nearby clients for Gold advances.  Fast turnaround: Expert NBFCs regularly renders brisk expenses of advances within – minutes contrasted with banks, in which an ideal opportunity to dispense the credits can go from couple of hours to 2 to 4 days. The procedure is assisted by Specific NBFCs in preparing values at each & every branches. To visit the bank on a normal or as required premise, the banks do have a board of affirmed values,  Minimal documentation: Expert NBFCs check for just essential archives, for example, personality evidence, while banks demand full consistence to KYC standards.  Ability to handle money exchanges: Specialized NBFCs have a grown high money taking care of abilities as greater part of the exchanges are in real money and are not compelled by the standards for banks which limit money dealings.

2.2 COMPANY PROFILE

In India, Muthoot Finance Limited is the biggest gold advance NBFC regarding credit portfolio. The research done by IMaCS and examination industry‟s facts, Indian market of Gold Loans, 2012, they were positioned the biggest gold credit organization in India as far as advance portfolio. Gold gems secured business advances and individual advances are given by them, or Gold Loans, essentially to people who have gold adornments however they are not ready to get to proper credit inside of a sensible period, or for whom credit would not be accessible by any means, to meet unexpected or other transient liquidity prerequisites. As indicated by the IMaCS business report 2012, when gone through 31, 2012 their branch system was biggest amid gold advance in Indian NBFCs. Their Gold advances profile on date December 30, 2014 included around 5.5 million accounts of credit in India which they adjusted over 4,250 branches crosswise over 15 expresses, the national and capital region of Delhi and 5 other regions in India. In the year 2013 December 31st, they had subsequently expanded their branch system to 4,260 branches & they also utilized 25,450 persons in their operations.

Notwithstanding their gold advances business, they give cash exchange administrations through their branches as sub-specialists of different enrolled cash exchange organizations furthermore give gathering office administrations. They additionally work three windmills in the condition of Tamilnadu. In the year 2014 February, they came into the matter of giving money withdrawal administrations over the white name ATMs to clients utilizing cards given to them by business banks. They trust that these administrations will empower them to enhance their perceivability and additionally record expanded client vicinity in their branches.

The organization's clients are normally little representatives, merchants, dealers, agriculturists plus salaried people, who had required comfort, openness or need, benefit of their credit offices through vowing their gold adornments with it as opposed to by receiving advances from the banks and other monetary establishments. It gives retail credit items, basically containing Gold Loans. It is considered that those secured by muthoot gold bonds are additionally dispensed to different credits by the organization. The organization's gold loans includes a most extreme an annual term and its normal dispensed Gold Loan sum remarkable was Rs.26183 for every credit account as of end of march, 2009. In the end of march, 2010 the organization's retail advance portfolio earned, by and large, 1.67percent every month, or 19.32 percent for each year.

2.3 Awards and achievements

 2001 - RBI licence received to work as an NBFC  2004 - From Fitch Rating for short term debt of Rs 20 crore they received highest rating of F1  2005 – Retail loan and debenture portfolio of the company exceeds of Rs 50 crore

 2005 – Merger of Muthoot Enterprise Pvt ltd with the company  2006 – From Fitch Ratings affirmed with an enhanced short term debt of Rs 40 crore obtained F1 rating.

 2007 – The company‟s retail loan portfolio crosses Rs.1000 crores  2007 – Systematically important ND-NBFC status is accorded by RBI  2007 – The company crosses 500 branches of its branch network

 2007 – The company crossed Rs 100 crore of its net owned funds  2008 – Debenture portfolio and retail loan crossed Rs 2000 crore and Rs 1000 crore respectively  2008 – Net owned funds of the company crossed Rs 200 crore

 2008 – F1 rating obtained from Fitch Rating affirmed with an enhanced short term debt of Rs 80 crore  2008 – overall credit limits from lending banks crosses Rs 500  2010crore – Retail loan and debenture portfolio crossed Rs 5000 crore

 2008and Rs– Conversion 2000 crore ofrespectively the company into a public limited company  2010 – Net owned funds of the company crossed Rs 400 crore  2009 – Retail loan and debenture portfolio crossed Rs 3000 crore  and2010 Rs – 1500 Overall crore credit respectively limits from lending banks crosses Rs 2000 crore2009 – Net owned funds of the company crossed Rs 300 crore  2010 – ICRA assigns „A1+‟ rating for

 2010 – CRISIL assigns „P1+‟ rating for short term debt of Rs 400 crore  2010 – Branch network of the company crosses 1000 branches  2010 – Demerger of the FM radio business into Muthoot Broadcasting Private Limited  2010 – Matrix Partners India Investments, LLC and Baring India Private Equity Fund III Limited has an aggregate of Rs 157.55 crore of Private equity investment.  2010 – Kotak India Private Equity Fund and Kotak Investment Advisors Limited has an aggregate of Rs 42.58 crore of Private equity investment  2013 - RBI Obtained License to start operating 9000 White Label ATMs

2.3 The Muthoot group is working under various fields: Retail Gold Banking

Muthoot finance is established in 1939 when M.George Muthoot wandered into budgetary administrations through an association firm with the name of Muthoot M.George and Brothers (MMG). In Kozhencherry MMG was one of the Chit Funds. Later in the year 1971, the firm was Muthoot Bankers which was renamed by them, and had started to fund credits utilizing gold adornments as guarantee.

Muthoot Finance has assumed an active part in arranging & professionalizing gold collateralized advances in India, an idea that underscores activating family unit Gold adornments as an extra way of credit to pledgers. The aggregate gold property among people is evaluated more than 20000 tons.

Equipment Financing

In 1993 they fused, Muthoot Vehicle and Asset Finance is an open organization occupied with giving vehicle advances. The organization works principally in South India. It is characterised as a deposit accepting company of asset finance by RBI.

Information Technology

In Cochin, muthoot systems and technologies pvt Ltd which is working with the help of the brand Emsyne is the arm which is called information innovation arm of the group of Muthoot. The organization has been working for in the course of recent years in the IT division. Their customer rundown incorporates US organizations, for example, ARC bunch, PA, Court Port LLC, SVM, and JAL International. The organization was set up in 1993. It offers Product Engineering Solutions, Information Technology administrations, Consultancy Business plus service Process Outsourcing Services to neighbourhood and in addition Global customers. In US the organization has as of late begun its operations & in Philadelphia district with a backup. Venture into different locales of the UK and the Europe is arranged.

Travel and Hospitality

The travel division of gathering is called as Travel Jango. It was also called as Travel Smart. Presently they overhauled their air using so as to ticket stage most recent galileo worldwide ensured arrangement from Trans cape Technologies - an auxiliary organization of Saturn system wares at techno park, Thiruvananthapuram. The administrations which were offered from this division incorporate worldwide & residential air ticketing, tour, identification, resettlement and visa, travel work area, travel protection, transport ticketing and remote exchange. Presently, Travel jango is the biggest travel administration supplier in India with 4300 & more deals counters crosswise over India through, and its developing through its franchisee Business to Business system.

Media

Muthoot also focus on media productions like Chennai Live 10.8 FM that spotlights in the developing interest for western music.

Healthcare

In 1988, MGM Muthoot Medical Centers got to be operational. The Group works a chain of multi-strength healing facilities & a system of claim to fame centres. It likewise gives various wellbeing administrations round the clock. Wellbeing registration plans, cashless medications and group wellbeing programs additionally come in the medicinal services division of Muthoot Group. This Group additionally works a few Diagnostic and Scan focuses all through Kerala and 2 multi-strength doctor's facilities in Kannur and Kollam.

2.4 The Muthoot finance is under following areas:

Gold loan

The Muthoot Gold advance portfolio is the biggest in India and in addition all around the world. It is humbling to realize that more than 1,26,000 individuals benefit our trusted administrations once a day.

For as far back as 129 years, the organization has been serving the hobbies of clients as its top generally need. Our adventure through hundreds of years combined with the way that we are still a quickly developing organization highlights the trust and duty that our clients worldwide have appeared in us.

With Muthoot Finance Ltd. gold credit administrations, it takes close to a couple of minutes for your gold to produce money. The following are the simple procedure that they follow:

 Quick Loan disbursal  Avail minimum loan amount of Rs.1500 and no maximum limit.  Prepayment alternatives without any penalty.  Minimal documentation.  In-house gold assessment.  Improves client administration in a shorter reaction time.  Providing safety for gold jewels.

Gold coins

Muthoot Finance Ltd. is a trusted name with regards to giving monetary administrations in the most brief conceivable range of time. We at Muthoot Finance offer you some assistance with investing in the most intense resource, which is gold. It is additionally a main Silver and Gold Coins supplier in India. Most importantly, we guarantee quality.

Gold coins

Presently make your buy of gold coin less demanding with the scope of choices that we give. On the following basis the gold coin services are being differentiated:

 Under the kanaka vrishty scheme they provide gold coins under EMI without any interest.

 Return on investment will be greater.

 Investment risk will be minimal.

 The gold is of 999 purity and 2 carat

 There are more than 4200 plus branches of muthoot finance whih are been distributed in India.

Money transfer

Muthoot Money Transfer makes it possible for you to RECEIVE AND SEND money to your dear ones within a blink of an eye. With 2 million transfers being executed annually, the company is recognized as the largest single payout centre in India. Real-time transfer allows quicker delivery of the amount, which takes no more than 10 minutes.

The following associates are carried out by Muthoot finance:

 Western union

 Money gram

 Xpress money

The advantages of using this services are:

 The money transfer are quick and hassle-free.

 There is no service charges to receive.

 It is approved by RBI.

 There is no need of bank account for receiving money up to Rs.50000.

 In India there are over 4200 and more branches for providing services.

Foreign exchange

With improved remote trade administrations, you have the ability to travel anyplace on the planet with little to stress over cash accessibility. Muthoot Exchange brings

you bother free cash trade benefits that are given at focused rates. Since we bargain in the majority of the real monetary standards like the Euro, US Dollar, British Pound and Japanese Yen, our trade administrations are valuable for a wide exhibit of eager voyagers.

Travel cash cards are likewise effortlessly accessible from our system of more than 4,200 or more Muthoot Finance branches crosswise over India. Muthoot Exchange increases the value of its cash trade administrations by permitting clients to send cash to another country for Education, Immigration, Medical Treatment and different administrations.

The services provided by them:

 The exchange rates are more competitive in nature.

 All major currencies can be purchased and sold.

 The travel currency card will be provided with no extra charges.

 There will be no commission for encashment of traveler‟s cheque.

Muthoot insurance brokers private ltd

Overseeing riches is an order and rule at Muthoot Finance Ltd. We order riches administration into a four stage process including hazard assessment, customer assessment, esteem examination, and consultancy.

With the goal of giving greatest advantage answers for our clients we concentrate on breaking down business sectors, customer assessment, choice assessment and master discussion. We offer a progression of arrangements that assistance in securing critical parts of life, for example, the eventual fate of your crew and instruction of children

Their insurance comprises of:

 Money back

 Smart kid

 Health plan

 Pension plan

Muthoot ATM

There has been a whirlwind of changes in the Banking conveyance channels in the course of the most recent 2 centuries in India. ATM (Automated Teller Machine) is one of such activities. The number does not contrast positively and the proportion of number of ATMs to the populace in created nations. The ATMs are prevalently sent in Tier I and Tier II focuses. Muthoot means to grow the quantity of ATMs and its span to Tier III to Tier VI urban communities also, as a feature of money related consideration.

Muthoot Finance has a long-standing responsibility towards money related consideration. Having an overwhelming vicinity crosswise over India with more than 4200 branch system, we are on track to spread our ATM organize broadly. By deliberately setting-up WLAs in urban, semi-urban and rustic regions, we go for empowering Indians to have simple access to money, and in addition stretch out monetary strengthening to them. Muthoot Finance Limited is one among the initial few Non-Banking Finance Companies to dispatch WLAs in India

With 'Muthoot ATM', they expect to give and offer the most recent arrangements and administrations to improve their client's everyday saving money experience.

 They accept cards of all banks.

 The cards of all kinds (visa, master card, maestro,etc) are acceptable.

 The user will not be levied with extra charges.

 The changing of pin number facility is available.

 It is user friendly i.e., it can be managed even by the differently-abled.

2.5 Vision

Touching the lives of millions with our customer-centric approach nourished in a milieu that enables creation and innovation.

2.6 Mission “The main focus of company is to create liquidity with an asset class, namely gold, which has the widest consumer market in India. We see it as one of the preeminent ways of creating wealth in the economy”.

CSR Vision “To create a social impact nationwide by constantly giving back to the community by identifying and facilitating growth in areas which are less privileged”.

CSR Mission “To create change where it is required the most – among India‟s less privileged & to demonstrate our beliefs through a integrated social program that seeks social inclusion”. The Muthoot M George Foundation functions to offer support to the weaker sections of the society, support for medical treatment, marriage and also supports in medical researches and environmental living etc. The Foundation‟s activities are divided into 4 sections:-  Development of Environmental.  Public Interest Projects.  Socio – economic Development of the poor and unprivileged.  Relief & Rehabilitation work during and after natural calamities and disasters.

2.7 Pomoters

 Chairman M G George Muthoot  Managing director George Alexander Muthoot  Company secretary Maxin James  Executive director Alexander M George  Non-executive independent director George Joseph  Non-executive independent director K George John  Non-executive independent director John K Paul  Non-executive independent director K John Mathew  Non-executive independent director Pamela Anna Mathew  Director (Full time) George Thomson Muthoot  Director (Full time) George Jacob Muthoot

2.8 SWOT Analysis Strength • High quality client administration and short reaction time. • Strong capital raising capacity. • Geographic broadening, Brand, senior administration. • Low normal credit residency shields against gold value instability. • In house preparing capacities to meet branch development prerequisites.

Weakness • Any real decrease in gold cost in future can unfavourably affect the organization's income. • In resource quality the key danger to speculation call is Deterioration.

Opportunity • The gold credit in business sector is underpenetrated and is relied upon to keep developing at the rate of 35 to 40 % in future. • To wander into Banking division. • New client fragments.

Threat  Raising interest situation.  Litigation cases about the organization.  Increased rivalry from NBFC's and banks in gold financing organizations.  Major some portion of business gathered in South India. Any interruption in the economy of the area can antagonistically influence the organization's operation.

BALANCE SHEET OF MUTHOOT FINANCE

Parameters March 2015 March 2014 EQUITY AND LIABILITIES Share capital 397.97 371.71 Share warrants & outstanding Total reserves 4664.87 3882.99 Shareholder‟s funds 5083.50 4264.58 Long term borrowings 0.00 0.00 Secured loans 4266.55 4388.97 Unsecured loans 2446.01 2515.63 Deferred tax assets/liabilities -34.84 -21.05 Other long term liabilities 1207.81 897.51 Long term trade payables 0.00 0.00 Long term provisions 0.75 1.87 Total Non-current liabilities 7886.28 7782.94 Current liabilities Trade payables 51.45 41.75 Other current liabilities 5653.73 7201.43 Short term borrowings 7760.65 6064.29 Short term provisions 652.04 624.93 Total current liabilities 14117.87 13932.40 Total liabilities 27087.65 25979.92 ASSETS Non-current assets 0.00 0.00 Loans 0.00 0.00 Gross block 533.08 500.85 Less : accumulated depreciation 275.78 188.27 Less : impairment of assets 0.00 0.00 Net block 257.30 312.58 Lease adjustment a/c 0.00 0.00 Capital work in progress 6.33 8.38 Intangible assets under development 0.53 6.03

Pre-operative expenses pending 0.00 0.00 Assets in transit 0.00 0.00 Non-current investments 38.46 4.68 Long term loans &advances 98.42 101.95 Other non-current assets 0.00 0.00 Total non-current assets 401.08 433.61 Current assets loans & advances Current investments 0.00 30.70 Inventories 0.00 0.00 Sundry debtors 1153.90 1163.97 Cash and bank 1736.62 2048.93 Other current assets 3.92 4.02 Short term loans and advances 23792.14 22298.69 Total current assets 26686.57 25546.31 Net current assets including current 12568.71 11613.91 investments Total current assets excluding current 26686.57 25515.61 investments Miscellaneous expenses not written off 0.00 0.00 Total assets 27087.65 25979.92 Contingent liabilities 520.07 19.75 Total debt 19436.10 19477.57 Book value (in Rs) 127.22 114046 Adjusted book value (in Rs) 127.22 114.46

CHAPTER 3

THEORITICAL BACKGROUND OF THE STUDY

3.1 INTRODUCTION

INVESTMENT

By and large, investment is the utilization of cash for procuring more cash. Investment likewise implies savings funds or reserve funds made through deferred utilization.

In Finance, the buy of a money related item or other thing of worth with a desire of ideal future returns. The act of investment refers to the purchasing of a budgetary item or any esteemed thing with a reckoning that positive returns will be received later on.

According to economics, investment is the use of assets keeping in mind the end goal to expand salary or creation yield later on. A sum saved into a bank or hardware that is bought in reckoning of acquiring salary over the long haul are both cases of investments.

In short, Investment refers to the purchase of assets with the objective of expanding future pay which focuses on wealth gathering and which is appropriate for long-haul objectives.

Two forms of investment can be defined

 Real investment is the purchase of land and building, plant and machinery, etc.

 Financial investment is the purchase of a "paper" contract

Real investments and financial investments are connected to each other

 The share issue of a firm finances the purchase of capital.

 The commitment to a mortgage finances the purchase of property.

Financial investment can give fund for genuine investment decisions. Financial investment can direct genuine investment decisions. The most vital component of financial investments is that they convey high market liquidity. The technique utilized for assessing the estimation of a financial investment is known as valuation.

Classification of Investment

Physical investment

Physical investments are tangible in nature. For further production some will be useful i.e., Capital goods like plant and machinery. Some of them will not be useful like the ornaments.

Financial investment

Financial investment are used for production and consumption of goods and services. For further creation of assets also it can be used e.g. shares and bonds.

Marketable and Non marketable investment

The easily marketable investments are those investments which are listed in stock exchanges

The securities like bank drafts are not traded in market since they are non-marketable securities.

Transferable and Nontransferable investment

Commonly marketable securities are of transferable in nature and non-marketable securities are non-transferable in nature.

3.2 Definition of ‘Risk’

The normal returns will differ from the probabilities of a speculation's genuine return. By computing the standard deviation of the recorded returns & normal returns of a particular business, the diverse sorts of danger can be measured. An exclusive requirement deviation demonstrates a high level of danger. Hazard has the likelihood of losing a few or the majority of the first venture notwithstanding winding up losing more than that was put at first if there should arise an occurrence of subordinate, for example, prospects.

Hazard investigators and danger administration regularly work in standard with estimating specialists to minimize the negative effect on speculations emerge from vulnerability. The investigation of the basic vulnerability brought on because of danger included in a given game-plan, Risk examination alludes to the instability of anticipated future money streams of the undertaking, change of portfolio/stock returns, conceivable future monetary states and measurable examination to decide the likelihood of a task's prosperity or disappointment in reference of danger.

Hazard investigation permits specialists to recognize and moderate danger, yet not stays away from them totally because of the way of danger. Appropriate danger distinguishing proof and examination regularly incorporates numerical and measurable devices. All sorts of huge organizations and enterprise require a base kind of danger investigation. For instance, business bank need to legitimately fence outside trade monetary forms introduction of regulates advances while substantial retail establishments must consider the likelihood of diminished incomes because of worldwide subsidence.

3.3 Risk analysis

There are abundant strategies for performing hazard investigation and danger administration. There is no single strategy or "best practice" that guarantees consistence with the Security Rule and security hazard. In any case, most hazard examination and danger administration forms have basic steps. The accompanying steps are given as cases of steps secured elements could apply to their surroundings.

Risk analysis steps:-

1. Identify the scope of the analysis Risk anlysis is not an idea restrictive to the medicinal services industry or the security guideline. Hazard investigation is performed utilizing diverse techniques and extensions. The danger investigation scope that the Security Rule requires is the potential dangers and vulnerabilities to the secrecy, accessibility and honesty that a secured element makes, gets, keeps up, or transmits.

2. Gather data Once the extent of the danger investigation is distinguished, the secured element ought to assemble significant information. A secured substance could assemble important information by: looking into past and/or existing undertakings; performing interviews; investigating documentation; or utilizing other information gathering methods. The level of exertion and asset duty expected to finish the information gathering steps relies on upon the secured substance's surroundings.

3. Identify and document potential threads and vulnerabilities ID of dangers and vulnerabilities are key to deciding the level of danger. The distinguishing proof of dangers and vulnerabilities could be isolated into two unmistakable steps yet are so firmly related in the danger examination handle that they ought to be recognized in the meantime. Free ID might bring about vast arrangements of dangers and vulnerabilities that, when examined (in consequent strides to recognize hazard), don't give important data.

4. Assess current security measures Both specialized and nontechnical can be taken as efforts to establish safety. Specialized measures are a piece of data frameworks equipment & programming. Cases of specialized measures incorporate survey controls, confirmation, distinguishing proof, programmed logoff, encryption techniques and review controls. Non-specialized measures are operational & administration controls, for example, strategies, systems, benchmarks, rules, responsibility & obligation, & physical & ecological efforts to create safety.

5. Determine the likelihood of threat occurrence. The motivation behind these strides is to help the secured element in deciding the level of danger and organizing hazard alleviation endeavors. "Probability of event" is the likelihood that a risk will trigger or endeavor a particular helplessness. Secured substances ought to consider every potential danger and helplessness blend and rate them by probability (or likelihood) that the mix would happen. Appraisals, for

example, high, medium, and low or numeric representations of likelihood might be utilized to express the probability of event.

6. Determination of level of danger. The level of danger is dictated by breaking down the qualities appointed to the probability of risk event and coming about effect of danger event. The danger level determination might be performed by relegating a danger level taking into account the normal of the alloted probability and effect levels. A danger level grid can be utilized to help with deciding danger levels. A danger level network is made utilizing the qualities for probability of risk event and coming about effect of danger event. The network might be populated utilizing a high, medium, and low appraising framework, or some other rating framework.

3.4 Methods of Risk Analysis

Systematic Risk

Systematic risk is otherwise called “undiversifiable risk”, “volatility” or “market risk”, that influence the general business sector, not only a specific stock or industry. This kind of risk is both erratic and difficult to totally maintain a strategic distance from, systematic risk can‟t be alleviated through expansion, just through supporting system or by utilizing the right resource distribution technique can be minimized.

Formulas to find Systematic risk 2 Systematic risk = β i × Variance of market index 2 2 Systematic risk = β i × standard deviation i

Systematic risk In the Indian economy the substantial and complex association of monetary positions is shown by the risk itself. In some or the other way all the clearing organizations in the economy are at risk plus there will be disappointment of one major player due to the emerging of “Systematic risk”. At the least complex, assume that a record arbitrageur is long the list on one trade and short the prospects on another trade. For example, position creates a system for transmission of disappointment – the disappointment of one of the trades could impact the other. Systematic risk also appears when very large positions are taken on the OTC derivatives market by any one player.in India neither of these scenarios is in the offing. Hence it is difficult to picture how trade exchanged subsidiaries could create systematic risk in India.

3.5 Unsystematic risk

Every organization or industry has some sought of risk that is intrinsic in each investment. Unsystematic risk, otherwise called “specific risk,” “diversifiable risk”, “non-systematic risk,” or “residual risk” can be decreased through diversification. The investors will be less affected by an event or decision that has a strong impact on one company, industry or investment type by owning stocks in different companies and in different industries, as well as by owning other types of securities such as Treasuries and municipal securities. New competitor, regulatory change, management change & product recall are examples of unsystematic risk.

Formula to find un-systematic risk Un-systematic risk = total variance – systematic risk 2 2 e i = standard deviation i – systematic risk 2 2 2 thus, total risk = β i standard deviation m + e i

CHAPTER 4 ANALYSIS AND INTERPRETATION

Table 4.1- Table showing the returns of Muthoot Finance

Year opening Closing Returns BSE returns 2011 176.25 126.45 -28.255 -25.0547

2012 126.9 182.1 43.498 25.0539 2013 179.95 171.65 -4.612 8.497 2014 168.45 209 24.072 29.5786 2015 204.05 180.85 -11.369 -4.9779

Graph – 4.1 Graph showing the returns of Muthoot finance

Muthoot Finance returns

50 40 30 20 returns 10 BSE returns 0 2011 2012 2013 2014 2015 -10 -20 -30

Interpretation:

It is examined that, in 2011 it has given a negative return of -28.255 over a period of 11 months i.e. from 6-may-2011 to 30-march-2012, it is the lowest return given by Muthoot finance in the past five years. In 2012 it has given a positive return of 43.498 over a period of 12 months i.e. from 2-april-2012 to 28-march-2013, it is the highest return given by Muthoot finance in the past five years. In 2013 it has given a negative return of -4.612 over a period of 12 months i.e. from 1-april-2013 to 31-march-2014. In 2014 it has given a positive return of 24.072 over a period of 12 months i.e. from 1- april-2014 to 31-march-2015. In 2015 it has given a negative return of -11.369 over a period of 11 months i.e. from 1-april-2015 to 24-february-2016. In 2011 there was a negative return of -25.05 in BSE index which was recorded as the lowest when compared with the last five years data. In 2012 it gave a positive return of 25.05. In 2013 it again reduced to 8.49 which was a positive return. In 2014 there was a increase in the returns of 29.57 which was the highest return when compared with the last five years data. In 2015 it again reduced to a negative return of -4.97.

Table – 4.2 Table showing the returns of Bajaj Finserv

Year opening Closing Returns BSE returns 2011 515.13 600.71 16.613 -25.0547 2012 625.03 769.2 23.066 25.0539 2013 780.45 790.2 1.249 8.497 2014 782.05 1389.45 77.667 29.5786 2015 1438.6 1609.15 11.855 -4.9779

Graph- 4.2 Graph showing the returns of Bajaj Finserv

Bajaj Finserv returns

returns 20 BSE returns

0 2011 2012 2013 2014 2015

-20

-40

Interpretations: It is analysed that, In 2011 it has given a return of 16.613 over a period of 12 months i.e. from 1-april-2011 to 30-march-2012. In 2012 it has given a return of 23.066 over a period of 12 months i.e. from 2-april-2012 to 28-march-2013 In 2013 it has given a return of 1.249 over a period of 12 months i.e. from 1-april-2013 to 31-march-2014, it is the lowest return given by Bajaj Finserv in the past five years. In 2014 it has given a return of 77.667 over a period of 12 months i.e. from 1-april-2014 to 31-march-2015, it is the highest return given by Bajaj Finserv in the past five years. In 2015 it has given a return of 11.855 over a period of 11 months i.e. from 1-april-2015 to 24- february-2016. In 2011 there was a negative return of -25.05 in BSE index which was recorded as the lowest when compared with the last five years data. In 2012 it gave a positive return of 25.05. In 2013 it again reduced to 8.49 which was a positive return. In 2014 there was a increase in the returns of 29.57 which was the highest return when compared with the last five years data. In 2015 it again reduced to a negative return of -4.97.

Table - 4.3 Table showing the return of Bajaj holdings & investment ltd

Year opening closing Returns BSE returns 2011 806.85 813.35 0.805 -25.0547 2012 828.9 914.55 10.332 25.0539 2013 911.55 1015 11.348 8.497 2014 1005.25 1301.7 29.49 29.5786 2015 1304.75 1392.95 6.759 -4.9779

Graph- 4.3 Graph showing the returns of Bajaj holdings and investment ltd

Bajaj holdings returns

returns 0 BSE returns 2011 2012 2013 2014 2015

-10

-20

-30

Interpretations: In 2011 it has given a return of 0.805 over a period of 12 months i.e. from 1-april- 2011 to 30-march-2012, it is the lowest return given by Bajaj holdings & investment ltd in the past five years. In 2012 it has given a return of 10.332 over a period of 12 months i.e. from 2-april-2012 to 28-march-2013. In 2013 it has given a return of 11.348 over a period of 12 months i.e. from 1-april-2013 to 31-march-2014. In 2014 it has given a return of 29.490 over a period of 12 months i.e. from 1-april-2014 to 31- march-2015, it is the highest return given by Bajaj holdings & investment ltd in the past five years. In 2015 it has given a return of 6.759 over a period of 11 months i.e. from 1-april-2015 to 24-february-2016. In 2011 there was a negative return of -25.05 in BSE index which was recorded as the lowest when compared with the last five years data. In 2012 it gave a positive return of 25.05. In 2013 it again reduced to 8.49 which was a positive return. In 2014 there was a increase in the returns of 29.57 which was the highest return when compared with the last five years data. In 2015 it again reduced to a negative return of -4.97.

Table – 4.4 Table showing the returns of Reliance capital

Year opening closing Returns BSE returns 2011 614.5 391.85 -36.232 -25.0547 2012 398.9 312.7 -21.609 25.0539 2013 322.15 346 7.403 8.497 2014 341.4 424.55 24.355 29.5786 2015 432.3 324.05 -25.04 -4.9779

Graph 4.4 Graph showing the returns of Reliance capital

Reliance capital returns

0 returns 2011 2012 2013 2014 2015 BSE returns -10

-20

-30

-40

Interpretations: In 2011 it has given a negative return of -36.232 over a period of 12 months i.e. from 1-april-2011 to 30-march-2012, it is the lowest return given by Reliance capital in the past five years. In 2012 it has given a negative return of -21.609 over a period of 12 months i.e. from 2-april-2012 to 28-march-2013. In 2013 it has given a return of 7.403 over a period of 12 months i.e. from 1-april-2013 to 31-march-2014. In 2014 it has given a return of 24.355 over a period of 12 months i.e. from 1-april-2014 to 31- march-2015, it is the highest return given by Reliance capital in the past five years. In 2015 it has given a negative return of -25.040 over a period of 11 months i.e. from 1- april-2015 to 24-february-2016. In 2011 there was a negative return of -25.05 in BSE index which was recorded as the lowest when compared with the last five years data. In 2012 it gave a positive return of 25.05. In 2013 it again reduced to 8.49 which was a positive return. In 2014 there was a increase in the returns of 29.57 which was the highest return when compared with the last five years data. In 2015 it again reduced to a negative return of -4.97.

Table – 4.5 Table showing the returns of Larsen & Toubro ltd (L&T ltd)

Year opening closing Returns BSE returns 2011 49.95 48.35 -3.203 -25.0547 2012 47.5 73.95 55.684 25.0539 2013 76.8 73.6 -4.166 8.497 2014 75.3 62.8 -16.6 29.5786 2015 63.65 51.35 19.324 -4.9779

Graph 4.5 Graph showing the returns of L&T ltd

L&T ltdreturns

20 returns BSE returns 10

0 2011 2012 2013 2014 2015 -10

-20

-30

Interpretations: In 2011 it has given a negative return of -3.203 over a period of 12 months i.e. from 1- april-2011 to 30-march-2012. In 2012 it has given a return of 55.684 over a period of 12 months i.e. from 2-april-2012 to 28-march-2013, it is the highest return given by L&T ltd in the past five years. In 2013 it has given a negative return of -4.166 over a period of 12 months i.e. from 1-april-2013 to 31-march-2014. In 2014 it has given a negative return of -16.600 over a period of 12 months i.e. from 1-april-2014 to 31- march-2015. In 2015 it has given a negative return of -19.324 over a period of 11 months i.e. from 1-april-2015 to 24-february-2016, it is the lowest return given by L&T ltd in the past five years. In 2011 there was a negative return of -25.05 in BSE index which was recorded as the lowest when compared with the last five years data. In 2012 it gave a positive return of 25.05. In 2013 it again reduced to 8.49 which was a positive return. In 2014 there was a increase in the returns of 29.57 which was the highest return when compared with the last five years data. In 2015 it again reduced to a negative return of -4.97.

Table – 4.6 Table showing the returns of Prime securities

Year opening closing Returns BSE returns 2011 4.09 4.46 9.046 -25.0547 2012 4.04 3.41 -15.594 25.0539 2013 3.25 4.41 35.692 8.497 2014 4.25 13.24 211.529 29.5786 2015 12.85 27.2 111.673 -4.9779

Graph – 4.6 Graph showing the returns of prime securities

prime securities returns

250

200

150

returns 100 BSE returns

0 2011 2012 2013 2014 2015

-50

Interpretations: In 2011 it has given a return of 9.046 over a period of 12 months i.e. from 1-april- 2011 to 30-march-2012. In 2012 it has given a negative return of -15.594 over a period of 12 months i.e. from 2-april-2012 to 28-march-2013, it is the lowest return given by prime securities in the past five years. In 2013 it has given a return of 35.692 over a period of 12 months i.e. from 1-april-2013 to 31-march-2014. In 2014 it has given a return of 211.529 over a period of 12 months i.e. from 1-april-2014 to 31- march-2015, it is the highest return given by prime securities in the past five years. In 2015 it has given a return of 111.673 over a period of 11 months i.e. from 1-april- 2015 to 24-february-2016. In 2011 there was a negative return of -25.05 in BSE index which was recorded as the lowest when compared with the last five years data. In 2012 it gave a positive return of 25.05. In 2013 it again reduced to 8.49 which was a positive return. In 2014 there was a increase in the returns of 29.57 which was the highest return when compared with the last five years data. In 2015 it again reduced to a negative return of -4.97.

Table - 4.7 Table showing the returns of Mahindra & Mahindra financial services

Year opening Closing Returns BSE returns 2011 203.65 263 29.143 -25.0547 2012 253.75 250.5 -1.28 25.0539 2013 251.9 199.7 -20.722 8.497 2014 194.25 134.16 -30.934 29.5786 2015 133.76 157.13 17.471 -4.9779

Graph – 4.7 Graph showing the returns of Mahindra & Mahindra financial services

mahindra & mahindra financial services returns

0 returns 2011 2012 2013 2014 2015 BSE returns -10

-20

-30

-40

Interpretations: In 2011 it has given a return of 29.143 over a period of 12 months i.e. from 1-april- 2011 to 30-march-2012, it is the highest return given by Mahindra & Mahindra financial services in the past five years. In 2012 it has given a negative return of -1.28 over a period of 12 months i.e. from 2-april-2012 to 28-march-2013. In 2013 it has given a negative return of -20.722 over a period of 12 months i.e. from 1-april-2013 to 31-march-2014. In 2014 it has given a return of -30.934 over a period of 12 months i.e. from 1-april-2014 to 31-march-2015, it is the lowest return given by Mahindra & Mahindra financial services in the past five years. In 2015 it has given a return of 17.471 over a period of 11 months i.e. from 1-april-2015 to 24-february-2016. In 2011 there was a negative return of -25.05 in BSE index which was recorded as the lowest when compared with the last five years data. In 2012 it gave a positive return of 25.05. In 2013 it again reduced to 8.49 which was a positive return. In 2014 there was a increase in the returns of 29.57 which was the highest return when compared with the last five years data. In 2015 it again reduced to a negative return of -4.97.

Table – 4.8 Table showing the risk of muthoot finance with BSE

Years muthoot returns BSE returns `` -28.255 -25.0547 2012 43.498 25.0539 2013 -4.612 8.497 2014 24.072 29.5786 2015 -11.369 -4.9779

Graph – 4.8 Graph showing the risk muthoot finance with BSE

risk of Muthoot and BSE returns

0 muthoot BSE

Interpretation :

The risk of muthoot finance is more at 28.77 when compared to the market (BSE) at 22.40

Table – 4.9 Table showing the risk of bajaj finserv with BSE

year bajaj finserv returns BSE returns

2011 16.613 -25.0547

2012 23.066 25.0539

2013 1.249 8.497

2014 77.667 29.5786

2015 11.855 -4.9779

Graph – 4.8 Graph showing the risk of bajaj finserv with BSE

risk

0 bajaj finserv BSE

Interpretation :

The risk of bajaj finserv is more at 29.91 when compared to the market (BSE) at 22.40

Table – 4.10 Table showing the risk of bajaj holdings & investment ltd with BSE

year bajaj holdings BSE returns

2011 0.805 -25.0547

2012 10.332 25.0539

2013 11.348 8.497

2014 29.49 29.5786

2015 6.759 -4.9779

Graph – 4.10 Graph showing the risk of bajaj holdings & investment ltd with BSE

risk

0 bajaj holdings BSE

Interpretation:

The risk of bajaj holdings is less at 10.74 when compared to the market (BSE) at 22.40

Table – 4.11 Table showing the risk of reliance capital with BSE

Year reliance capital BSE returns 2011 -36.232 -25.0547

2012 -21.609 25.0539

2013 7.403 8.497

2014 24.355 29.5786

2015 -25.04 -4.9779

Graph – 4.11 Graph showing the risk of reliance capital with BSE

risk

25.5 25 24.5 24 23.5 23 22.5 22 21.5 21 reliance capital BSE

Interpretation:

The risk of reliance capital is more at 25.15 when compared to the market (BSE) at 22.40

Table - 4.12 Table showing the risk of Larsen & Toubro ltd with BSE

Year L&T ltd BSE returns 2011 -3.203 -25.0547

2012 55.684 25.0539

2013 -4.166 8.497

2014 -16.6 29.5786

2015 19.324 -4.9779

Graph – 4.12 Graph showing the risk of Larsen & Toubro ltd with BSE

risk

30 25 20 15 10 5 0 L&T ltd BSE

Interpretation:

The risk of L&T ltd is more at 28.53 when compared to the market (BSE) at 22.40

Table – 4.13 Table showing the risk of prime securities with BSE

Year prime securities BSE returns

2011 9.046 -25.0547

2012 -15.594 25.0539

2013 35.692 8.497

2014 211.529 29.5786

2015 111.673 -4.9779

Graph – 4.13 Graph showing the risk of prime securities with BSE

risk

100

0 prime securities BSE

Interpretation:

The risk of prime securities is more at 92.17 when compared to the market (BSE) at 22.40

Table – 4.14 Table showing the risk of Mahindra & Mahindra with BSE

Year Mahindra & Mahindra BSE 2011 29.143 -25.0547 2012 -1.28 25.0539 2013 -20.722 8.497 2014 -30.934 29.5786 2015 17.471 -4.9779

Graph – 4.14 Graph showing the risk of Mahindra & Mahindra with BSE

risk

21 mahindra & mahindra BSE

Interpretation:

The risk of Mahindra & Mahindra is more at 25.17 when compared to the market (BSE) at 22.40.

Table – 4.15 Table showing the systematic risk.

Companies Systematic risk Muthoot finance 1.18148 bajaj finserv 0.770352 bajaj holdings 0.39087 reliance capital 0.803062 l& T ltd 0.2564 prime securities 1.520975 mahindra & Mahindra -0.94532

Graph – 4.15 Graph showing the systematic risk.

systematic risk

1.5

0.5

0 Muthoot bajaj bajaj reliance l& T ltd prime mahindra -0.5 finance finserv holdings capital securities & mahindra -1

Interpretation:

In the above analysis of systematic risk of various companies, Prime securities have the highest systematic risk of 1.5209 and Mahindra & Mahindra have the lowest systematic risk of -0.945.

Table – 4.16 Table showing the risk of comparison of all the companies

Companies risk Muthoot 28.77 bajaj finserv 29.91 bajaj holdings 10.74 reliance capital 25.15 L&T ltd 28.53 prime securities 92.17 mahindra & mahindra 25.17

Graph – 4.16 Graph showing the risk of comparison of all the companies

risk

100 90 80 70 60 50 40 30 20 10 0 muthoot bajaj bajaj reliance L&T ltd prime mahindra finserv holdings capital securities & mahindra

Interpretation:

In the above risk comparison of the companies, Prime securities has the highest risk of 92.17. And Bajaj holdings have the lowest risk of 10.74.

CHAPTER 5

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 Summary of Findings  Muthoot finance had the highest returns of 43.498 in the year 2012.  Muthoot finance gave a lowest return of -28.255 in the year 2011.  Bajaj Finserv has given a highest return of 77.667 in the year 2014.  Bajaj Finserv gave a lowest return of 1.249 in the year 2013.  Bajaj Finserv has not made any negative returns in the last five years.  Bajaj holdings & investment ltd has given a highest return of 29.49 in the year 2014.  Bajaj holdings & investment ltd gave a lowest return of 0.805 in the year 2011.  Bajaj holdings & investment ltd has not made any negative returns in the last five years.  Reliance capital has given a highest return of 24.355 in the year 2014.  Reliance capital gave a lowest return of -36.232 in the year 2011.  L&T ltd has given a highest return of 55.684 in the year 2012.  L&T ltd gave a lowest return of -19.324 in the year 2015.  Prime securities have given a highest return of 211.529 in the year 2014.  Prime securities gave a lowest return of -15.594 in the year 2012.  Mahindra & Mahindra financial services have given a highest return of 29.143 in the year 2011.  Mahindra & Mahindra financial services have given a lowest return of -30.934 in the year 2014.  In 2011 there was a negative return of -25.05 in BSE index which was recorded as the lowest when compared with the last five years data.  In 2014 there was a increase in the returns of 29.57 which was the highest return when compared with the last five years data.  The risk of muthoot finance is more at 28.77 when compared to the market (BSE) at 22.40  The risk of bajaj finserv is more at 29.91 when compared to the market (BSE) at 22.40  The risk of bajaj holdings is less at 10.74 when compared to the market (BSE) at 22.40

 The risk of reliance capital is more at 25.15 when compared to the market (BSE) at 22.40  The risk of L&T ltd is more at 28.53 when compared to the market (BSE) at 22.40  The risk of prime securities is more at 92.17 when compared to the market (BSE) at 22.40  The risk of Mahindra & Mahindra is more at 25.17 when compared to the market (BSE) at 22.40.  Prime securities have the highest systematic risk of 1.5209 and Mahindra & Mahindra have the lowest systematic risk of -0.945.  Prime securities has the highest risk of 92.17. And Bajaj holdings have the lowest risk of 10.74

5.2 Suggestions  The investor can pick up the securities based on his choice from the study done on risk & return analysis.  Information regarding the performance of different stocks in the market in terms of risk and return will be provided from this study.  To construct an efficient portfolio, it is better to avoid such stocks in which, a stock having more systematic risk it will not be favourable for investors in the investment because of its highest market risk, which cannot be diversified like unsystematic risk.  The study does not suggest the universal best or worst stocks for investment, because ratings of the stocks must be based on the type of investment and the type of investor.  Where risk and returns are high, an investor will ready to bear high risk but expect high return on such stocks. Whereas, where the risk and return are low, an investor with less risk bearing capacity will go for those stocks.  From the various stocks under study, prime securities has the highest actual returns and abnormal returns and therefore better for those investors whose objective of investment is to maximize the returns.  A risk averse investor can prefer Mahindra & Mahindra stocks as it has the lowest risk compared to all other stocks under study.

5.3 Conclusion

The present study was concentrated on analysis of risk and return. For any investor before the section of his portfolio analysing the risk and return with respect to particular companies plays a very important role.

Hence, this study gave an overall view of the trend of risk and returns over a period of five years of selected Non-banking financial companies, it is observed that all the firms are volatile to the market. Especially it is found that Mahindra and Mahindra financial services is highly volatile that refers higher risk and higher returns. Hence investors are advised to study the current market conditions before they invest.

BIBLIOGRAPHY

1. Investment Analysis & Portfolio Management, By, Reilly and Brown, 2006, Cengage Publishers 2. Security Analysis And Portfolio Management, By, Donald E.Fisher and Ronald.J.Jordan, Pearson India Publishers 3. Investment Analysis & Portfolio Management, By Prasanna Chandra, 2008, 3rd edition, Tata McGraw Hill publishers.

WEBLIOGRAPHY

 www.nseindia.com  www.muthootfinance.com  www.investopedia.com  www.moneycontrol.com

REFERENCES

1. Arditti “A study on observed variables like the second and third moments of the probability distributions were reasonable risk measures”, international journal of commerce and management, ISSN:1120-1900, 1967 2. Nerlov “A study on observed sales, retention of earnings and growth in earnings were found to possess relationship with returns, international journal of commerce and management, ISSN:2300-3018, 1968 3. Sharma “A study on the factors affecting the relative prices of equity shares in India”, international journal of commerce and management, ISSN:1018-2038, 1989 4. Rao and Jose “A study on the CAPM was valid in India”, international journal of commerce and management, ISSN:1564-2824, 1996 5. Ansari “A study on the applicability of CAPM in India”, international journal of commerce and management, ISSN:1321-3512, 1997

6. Raj and Rakesh “A study on relationship between risk and return”, international journal of commerce and management, ISSN:1852-2915, 2006 7. Sangeeth and Dheeraj “A study on the risk return relation using market and accounting based information”, international journal of commerce and management, ISSN:2425-3605, 2007 8. Gulnur and Sheeja “A study on the impact of a firm‟s leverage on stock yields in the London Stock Exchange”, international journal of commerce and management, ISSN:1769-2921, 2008 9. Madhu and Tamini “A study on CAPM good in Indian stock market”, Universal Journal of Accounting and Finance, ISSN:2315-3487, 2010 10. Surya Narayan, “A Study on Risk & Return Relationship - An Analysis on Selected Companies in Muscat Securities Market”, international journal of commerce and management, ISSN:1319-2285, 2011. 11. Dr P Vikkraman and P Varadharajan “A Study about Risk and Return examination of Indian car industry”, international journal of commerce and management, ISSN:1638-2761, 2004-2007. 12. P karthika & Dr. P. Karthikeyan “A Study on Comparative Analysis of Risk and Return with reference to Selected loads of BSE Sensex file, India”, international journal of commerce and management, ISSN : 2251-1571, 2013 13. Bedanta Bora & Anindita Adhikary “A Study on Hazard and Return Relationship – An Empirical Study of BSE Sensex Companies in India”, Universal Journal of Accounting and Finance, ISSN : 2381-1111, 2001 14. Mr.Alpesh Gajera “A Study on Risk and return analysis of BSE small, medium & large capitalization indices”, scholedge international journal of management & development, ISSN-2394-3378, 2007. 15. Dr. S. Krishnaprabha and Mr.M.Vijayakumar “A Study on Risk and Return Analysis of Selected Stocks in India”, International Journal of scientific research and management, ISSN-2321-3418, 2015. 16. Dr. Sandeep Malu & Dr. Rahul Deo “A study on relationship in the middle of danger and return of select value connected sparing plans of shared assets in india”, international journal of commerce and management, ISSN 2348-8891, 2014.

17. Abu T. Mollik & M. Khokan Bepari(2015) “A study on Hazard Return Trade-off in Emerging Markets: Evidence from Dhaka Stock Exchange Bangladesh”, international journal of commerce and management, ISSN:2567-1241, 2015.