A STUDY ON PORTFOLIO MANAGEMENT AND ANALYSIS OF SELECTED SECURITIES

Author

K. Meghana , K. Lavanya


Abstract

This study examines portfolio management and the risk–return behaviour of five actively traded Indian securities — Maruti Suzuki, ACC Limited, ICICI Bank, Reliance Industries, and Tata Consultancy Services (TCS) — using India Infoline Limited (IIFL) as the reference financialservices institution for secondary market data. Drawing on five years of closingprice and dividend data (2021–2025), the study applies mean return, standard deviation, Pearson correlation, and combined portfolioreturn analysis (Markowitz framework) to determine the riskreturn profile of each security and to identify efficient threesecurity portfolio combinations. The findings show that ICICI Bank generated the highest average return (21.49%), followed by Maruti Suzuki (19.36%), TCS (6.10%), ACC Limited (3.88%), and Reliance Industries (1.07%). Correlation analysis revealed a wide dispersion of relationships among the five scrips, ranging from a strong negative correlation between Maruti Suzuki and ICICI Bank (r = 0.932) to a strong positive correlation between ACC Limited and ICICI Bank (r = +0.790), confirming that diversification benefits differ sharply by pairing. Among the equally weighted threesecurity combinations tested, the Maruti Suzuki–ICICI Bank–ACC Limited portfolio produced the highest combined return of 14.76%, while the Reliance Industries–TCS combination produced the lowest at 2.71%. The study concludes that combining securities with low or negative correlation, rather than selecting highreturn stocks in isolation, is the primary driver of superior riskadjusted portfolio performance, and offers suggestions for diversification strategy suited to both conservative and aggressive investors.


Keywords

Portfolio Management, Risk and Return, Correlation Analysis, Standard Deviation, Diversification, Markowitz Model, Equity Portfolio, IIFL, BSE, NSE.



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