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

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.