A study on optimal portfolio construction with special reference to NSE CNX Nifty pharma index
subject: Pharma index; Portfolio constructions; Portfolio performance; Sharpe single index
description: Portfolio is a process of blending together the broad asset classes so as to obtain optimum return with minimum risk is called portfolio construction. In order to reduce the risk, investors need to diversify, spread their portfolio across a broad mix of assets. Diversifying the portfolio can help smooth out market ups and downs and returns from better performing assets help to offset those that arent performing so well. The present study has empirically examined the portfolio construction with special reference to NSE CNX Nifty Pharma Index. The study applied the Sharpe Single Index model to generate an efficient combination of securities from sample Pharma companies and has come up with a subsequent pattern. The study found that out the sample Pharma companies, Aurobindo Pharma Ltd attracted high risk while Glenmark Pharmaceuticals Ltd experienced the least risk, on the basis of return earned by the companies in the Pharma Index; Aurobindo Pharma Ltd has high return while Lupin Ltd has lowest return. Experimental results have demonstrated the feasible of the investment strategy, portfolio idea and electiveness of the combination assets on the investment strategy. IAEME Publication.
creator: Raja M.; Venkatamuni Reddy R.; Muthu Gopalakrishnan M.; Patil A.
source: International Journal of Civil Engineering and Technology, Vol-9, No. 13, pp. 1355-1363.
publisher: IAEME Publication
date: 2018-01-01
rights: Restricted Access
relation: ISSN: 9766308
format: Online
language: English
type: Article
coverage: Raja M., P.G and Research Department of Commerce, Bharathidasan University Constituent College, Tiruchirappalli, India; Venkatamuni Reddy R., Department of Commerce, MIT Campus, Manipal Academy of Higher Education, Manipal, India; Muthu Gopalakrishnan M., School of Business Studies and Social Sciences, CHRIST (Deemed to be University), BGR Campus, Bangalore, India; Patil A., School of Business Studies and Social Sciences, CHRIST (Deemed to be University), BGR Campus, Bangalore, India