A Study on the Smart Portfolio Construction and Optimization Using Sectoral Analysis and Risk Profiling
B. Sreekanth, Pesala Govinda Likhitha · INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT · 2025
- This research investigates smart portfolio construction using sectoral analysis and investor risk profiling, focusing on the Indian equity market. The study selects 12 stocks from four key sectors-IT, Banking, Pharma, and FMCG between January 2022 and December 2024. Risk and return were calculated using standard deviation and mean returns, and the Sharpe Ratio was applied to assess performance. Sector-wise mini-portfolios were built and optimized based on investor risk tolerance (aggressive, moderate, conservative). The analysis reveals that Pharma and FMCG sectors provide better risk-adjusted returns, while IT offers high returns at higher risk. The findings help tailor portfolios based on sector dynamics and investor profiles. KeyWords: Portfolio Optimization, Sectoral Analysis, Sharpe Ratio, Risk Profiling, Equity Investment, Indian Stock Market