Published Paper Details:

The present study aims to construct and analyze optimal investment portfolios using the Markowitz Mean-Variance Model with reference to the BSE Sensex 30 companies during the period (April, 2022-October 2025) 4.5 years. From the Sensex list, five companies exhibiting high return and high risk -- Eternal, Trent, Mahindra & Mahindra, Bharti Airtel and Bharat electronics -- were selected for the risk-taker (aggressive) portfolio, while five companies with moderate return and low risk -- ICICI, Bharti Airtel, ITC, Kotak Mahindra and Tech Mahindra -- formed the risk-averse (conservative) portfolio. Monthly closing prices were used to compute individual stock returns, standard deviations, and inter-stock covariances, leading to the formation of a comprehensive covariance matrix that quantified diversification benefits. The average expected return of the risk-taker portfolio was 3.39% with a standard deviation of 6.46%, while the risk-averse portfolio yielded 1.27% and 3.84%, respectively. The efficient frontier was constructed to demonstrate the trade-off between risk and return, showing all possible optimal portfolio combinations. The findings highlight that the Markowitz Model effectively identifies efficient portfolios and provides strategic insights for both risk-taking and risk-averse investors in the Indian equity market.