BENEFITS OF INTERNATIONAL PORTFOLIO DIVERSIFICATION FOR THE INDIAN INVESTOR

Singh, Nikhil Kumar (2008) BENEFITS OF INTERNATIONAL PORTFOLIO DIVERSIFICATION FOR THE INDIAN INVESTOR. [Dissertation (University of Nottingham only)] (Unpublished)

Full text not available from this repository.

Abstract

This dissertation provides evidence to support the hypothesis that suggests that there are long-term benefits for the Indian investors to diversify in the international equity markets. The evidence is based on the data from the stock markets of India and ten other international markets, over the period from 1st January 1998 to 31st December 2007.

The methodology adopted was to construct a correlation coefficient matrix in order to examine the correlations between the Indian stock market and other international markets. In order to identify the markets for investment purposes, the mean, the standard deviation and the Sharpe's ratio was also calculated for each index of the selected markets. It was found that there was very low correlation between the Indian and the international markets. None of the chosen markets

influenced the Indian markets significantly, and there were markets which offered higher returns suggesting that there are benefits available to investors who want to diversify in international

markets.

Therefore, the conclusion was that, there may still be benefits from diversifying across international equity markets. This result may be valuable information for Indian investors who would like to take advantage of the international diversification strategy while constructing their portfolios.

Item Type: Dissertation (University of Nottingham only)
Keywords: Diversification, Correlation Coeffcient
Depositing User: EP, Services
Date Deposited: 30 Sep 2008
Last Modified: 18 Nov 2014 12:10
URI: http://eprints.nottingham.ac.uk/id/eprint/22319

Actions (Archive Staff Only)

Edit View Edit View