Portfolio management: A tool to curb risk Dr. Kushalappa S.*, Sowmya B** *Asst. Professor, Dept. Of MBA, AIET, Moodbidri, Dakshinakannnada District, Karnataka **Lecturer, Commerce, Govt. First Grade College, Siddakatte, Dakshinakannnada District, Karnataka Online published on 8 April, 2014. Abstract Return is the primary motivating force that drives investment. One can't talk about investment return without talking about risk because investment decisions invariably involve a trade-off between the two. Risk refers to the possibility that the actual outcome of an investment will differ from its expected outcome. More specifically, most investors are concerned about the actual outcome being less than the expected outcome as the wider the range of possible outcomes, the greater the risks. Almost everyone recognizes that risk must be considered in determining value and making investment choices. In fact, valuation and an understanding of the trade-off between risk and return form the foundation for maximizing shareholder wealth. An investor always looks into an investment avenue which gives maximum return for minimum risk. But in reality, it is very difficult to identify an investment avenue which will offer maximum return for minimum risk. Efficient portfolio management is the best strategy to meet this particular objective. The current paper deals with construction of an efficient portfolio which will satisfy the needs, i.e. high return for a given level of risk, of an investor. The sample size of the study is BSE 30 companies. The study is purely based on secondary data extracted from various sources Top Keywords Portfolio, optimum portfolio, market risk, unsystematic risk, variance, efficient portfolio. Top |