A Study on Risk - Adjusted Performance Evaluation of Selected Portfolios in India

Portfolio performance evaluation plays a crucial role in investment analysis, particularly in assessing the trade-off between risk and return. Key measures such as Sharpe?s Ratio, Treynor?s Ratio, and Jensen?s Ratio provide valuable insights into risk-adjusted performance. An examination of securities listed under the Nifty 50 index enables a comprehensive understanding of their return behaviour, market returns, and beta coefficients. For portfolio construction, the top ten performing securities were selected based on superior market returns, followed by a comparative assessment of their risk-adjusted performance. The analysis is based on secondary data obtained from annual reports, return data from the National Stock Exchange of India, and information from the Reserve Bank of India. Portfolio ratios were computed for the selected securities and benchmarked against the Nifty 50 index to evaluate relative performance. Additionally, statistical correlation technique was employed to analyze the relationship between variables such as market returns, excess returns and beta.