A study on the efficiency of portfolio management practices by IDLC Investments Limited

Abstract

This report is a brief overview of the internship experience and the company’s operational practices. The first chapter of this report contains detailed information regarding the list of tasks performed during the internship period and the contribution to the company through them, the experience gained during the internship that will benefit the student, and the difficulties faced throughout these three months. The second chapter is about the overview and analysis of the company’s internal and external environment. This chapter starts with a brief history of the company. Secondly, the management practices, marketing practices, operations practices, and information system management of the company have been described. Additionally, financial statements have been analyzed to determine the health of the company- its profitability, liquidity, solvency, and efficiency- over time, and comparison has been done with other companies in the industry as well. Moreover, a SWOT analysis has been done to identify the strengths, weaknesses, opportunities, and threats. Finally, Porter’s five forces analysis has been carried out to assess the structure of competitiveness in the industry and profitability situation. In the last chapter - the project part - a detailed analysis has been done to determine the efficiency of the portfolio management practices by IDLC Investments Limited. A macro analysis, followed by an industry life cycle analysis and a business cycle analysis have been carried out to determine the attractiveness of the stocks in the omnibus portfolio of the company. Furthermore, the optimal risky portfolio - using the Markowitz Model - has been calculated to compare the optimal annual expected return, standard deviation, and Sharpe ratio with those in the omnibus portfolio. Finally, recommendations have been made to improve the efficiency of the portfolio management practices of IDLC Investments Limited.