Analysis of portfolio with public and private banking stocks in India — A study from 2011 to 2016

摘要

Portfolio Management is considered to be one of the biggest task for fund managers. Managing the portfolio with appropriate stocks at right time is always aimed for. Banking industry is significant in a country's economic growth. Banking stocks are majorly observed among the investors. The paper aims to understand the performance of banking stocks in India. The paper also focuses to compare private and public banking stocks. Two portfolios each consisting of five public banking stocks and private banking stocks are created. Risk and return is calculated using standard deviation and mean respectively for individual stocks. Further the above calculation is extended for portfolio. Returns on stocks and portfolio at optimistic and pessimistic conditions are also evaluated. Capital Market Line (CML) is drawn to plot stocks graphically. Alpha values for both the portfolios are found out to understand the performance.