Abstract:
The empirical research uses CNXIT, an index of IT companies, as benchmark index and a sample of 256 IT companies listed, on National Stock Exchange of India. Companies are ranked in the order of shareholder value created (SVC) as measured by Pablo Fernandez Model (PFM). A portfolio is created replicating the CNXIT in terms of number of companies and their weights in the portfolio, based on their rank in SVC and portfolio riskreturn are measured . The research finds that portfolio thus, created has an ability to be a good mediator to enhance portfolio return while reducing the portfolio risk.
