In today's concept, Indian securities market is a highly volatile and sensitive market. The best way to analysis the market for getting good returns is through portfolio construction. Thus, the main focus of this research is to construct an optimal equity portfolio usingthe sharpe index model (SIM) Method. In this research, the sectors of energy and FMCGhas been taken into consideration for constructing the optimum portfolio. Nineteen companies were taken into studied out of which the energy companies were BPCL, CAIRN INDIA, HPCL, IOC, NTPC, RIL, TATA POWER, ONGC, GAIL and FMCG companies are HUL, TATA GLOBAL, BRITTANIA, ITC, DABUR, GODREJ, MARICCO, EMAMI, MCDOWELL'S, JUBLIANT FOODWORKS have been selected and excess to beta ratio has been calculated and ranked the companies based on that ratio. The cut-off point was calculated based on the highest value and cut-off point should be used to calculate the proportion of money to be invested in each stock. This research findings and suggestions would be helpful to investors for investing in media and entertainment sector.
Risk, Return, Portfolio, Residual Variance, Sharpe
