A study on optimal portfolio construction with special reference to NSE CNX Nifty pharma index

M. Raja, R. Venkatamuni Reddy, M. Muthu Gopalakrishnan, Anand Patil

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

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 aren’t 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.

Original languageEnglish
Pages (from-to)1355-1363
Number of pages9
JournalInternational Journal of Civil Engineering and Technology
Volume9
Issue number13
Publication statusPublished - 01-12-2018
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Civil and Structural Engineering
  • Building and Construction
  • Computer Networks and Communications

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  • Cite this

    Raja, M., Venkatamuni Reddy, R., Muthu Gopalakrishnan, M., & Patil, A. (2018). A study on optimal portfolio construction with special reference to NSE CNX Nifty pharma index. International Journal of Civil Engineering and Technology, 9(13), 1355-1363.