Suresh AS
Risk and return relationship is an important component of investment in decision making. Though studies have examined the nature of a risk and return relationship, the investor always like to invest in a combination of funds that provides the higher return and has lowest risk; and it is very necessary to create a portfolio which meet the investor’s goals and objective. The investor tries to attain maximum return with minimum risk. There are some investors who are active. They do their own research and understand the factors which may affect their investments in future. On the other hand there are some investors who are apprehensive and take action only when they see tangible merits on the change. As financial markets become more sophisticated and complex, investors need a financial intermediary which can provide the required knowledge and professional expertise for successful investing. The objective of an individual or organization is to meet the needs of the investors, thus maximize the returns and minimizing risk through effective diversification.
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