Authors: Devatha Chenchu LS Harika
Abstract: This study examines portfolio management strategies and evaluates the performance of FMCG and IT sector stocks with a focus on risk, return, diversification, and optimization. Using secondary data from selected FMCG and IT companies, the study employs descriptive statistics, independent samples t-tests, analysis of variance (ANOVA), and portfolio performance measures such as the Sharpe Ratio, Treynor Ratio, and Jensen’s Alpha. The findings reveal that IT sector stocks generate higher returns but exhibit greater risk, while FMCG stocks provide stable returns with lower volatility. Empirical results confirm significant differences in risk–return characteristics and portfolio performance between the two sectors. Moreover, the optimized portfolio combining FMCG and IT stocks demonstrates superior risk-adjusted performance, highlighting the benefits of sectoral diversification. The study reinforces modern portfolio theory and provides practical insights for portfolio managers and investors seeking to balance growth and stability in equity investments.
