Allocation of Investment in Financial Sector Securities (With Special Reference to Selected financial Institutions in India)

  • P Chellasamy Associate Professor Department of Commerce, Bharathiar University, Coimbatore, Tamil Nadu
  • Sreekrishnan P. M.Phil. Scholar Department of Commerce, Bharathiar University, Coimbatore, Tamil Nadu
Keywords: Closing Price, Volatility, Trend, Ordinary Least Square method, ARCH 1 and GARCH 1

Abstract

This study deals with the allocation of securities for the investment purpose. The allocation is based on the rate of return and risk of a security. The objectives of this research are to find out the volatility and the trend of the selected financial institutional securities in India. For the study, thirty three financial institutions were selected from banking and non-banking institutions. The study applied ARCH 1 and GARCH 1 is used to find the share prices volatility and Ordinary Least Square method is used to find the share prices trend. From the volatility test, it is revealed that out of thirty three companies’ share return, twenty are highly volatile and the remaining thirteen are moderately and low volatile and most of them have trend effect.

References

1. http://www.investopedia.com/articles/pf/05/06/505.asp, retrieved at 15th October, 2016.

2. JasvinderjitKaur., 2016, Performance Evaluation of Gold Loan NBFCs Using CAMEL Model, Pacific Business Review International, Vol. 1, Issue 1, June 2016, retrieved from http://www.pbr.co.in, on 27th July, 2016.

3. Anjali, A., &Thomachan, K.T., 2015, A Long Run Relationship between Gold Price and Inflation-Evidence From the Indian Experience, International Journal of Research-Granthaalayah, Vol. 3, Issue: 6, June 2015, pp. 100-107.

4. JarkkoPeltomaki., 2015, Does Diversity of Derivatives use Affect Fund Performance? Evidence from Hedge Funds and Funds of Hedge Funds (Doctoral Dissertation), Managerial Finance, Vol. 39, No. 8, 2013, retrieved from http://www.emeraldinsight.com/0307-4358.html,at 27th July, 2016

5. SarojitMondal., 2015, Comparison of Growth between Non-Banking Financial Companies and Banks and their Contribution in the Indian Economy, International Journal of Arts, Humanities and Management Studies, Vol. 1, No. 8, August 2015.

6. Rajvardhan, M., Indi, 2014, Analysis of Investment Portfolio of Scheduled Commercial Banks in India During 2000 & 2010, retrieved from http://www.shodhganga.inflibnet.ac.in, at 25th July, 2016.

7. http://www.indiabudget.nic.in/ub2016-17/bh/bh1.pdf, retrieved at 8th September, 2016.

8. http://www.investing.com, retrieved at 4th August, 2016.

9. http://www.articles.economictimes.indiatimes.com/2014-07-18/news/51708641-1-local-area-banks-nbfcs-financial-inclusion.com, retrieved at 19th September, 2016.
Published
25-12-2016
How to Cite
Chellasamy, P., & P., S. (2016). Allocation of Investment in Financial Sector Securities (With Special Reference to Selected financial Institutions in India). Journal of Global Economy, 12(4), 269-276. Retrieved from http://www.rcssindia.org/jge/index.php/jge/article/view/438
Section
Articles