2025, Vol. 6, Issue 1, Part O
A study on investment strategies and financial awareness through Sharpe’s single index model for portfolio optimization of selected nifty 50 stocks
Author(s): Bindu S and Sr Cathelina
Abstract: Investors face difficulties in spotting lucrative investment opportunities and determining whether to purchase or sell shares due to the securities market's extreme volatility. For investors, the performance of many industries adds even another level of complication. By employing technical analysis methods to help investors make educated judgments about building an ideal portfolio, this study seeks to solve these problems. The application of Sharpe's Single Index Model to the construction of a portfolio for Bank Nifty stocks with the goal of optimizing returns and reducing risks is the specific subject of this study. Twelve equities from the NIFTY 50 index, chosen from the banking, cement, power, and steel industries, are analysed in this study. The research is based on secondary data from reputable sources, including the National Stock Exchange (NSE), Money control, firm annual reports, and different publications. Descriptive research methodologies are used in this study to analyse the performance of the ideal portfolio, determine the proper proportions for each stock in the portfolio, and measure risk and return for the chosen stocks. The principal aim is to assist investors in making logical investment choices by building an ideal portfolio, figuring out investment ratios, and assessing its risk-return characteristics. For portfolio optimization, the study also seeks to improve practical understanding of the Sharpe Single Index Model.
DOI: 10.22271/27084515.2025.v6.i1o.596
Pages: 1334-1343 | Views: 76 | Downloads: 34
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How to cite this article:
Bindu S, Sr Cathelina. A study on investment strategies and financial awareness through Sharpe’s single index model for portfolio optimization of selected nifty 50 stocks. Asian J Manage Commerce 2025;6(1):1334-1343. DOI: 10.22271/27084515.2025.v6.i1o.596
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