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Sno. Particulars Pageno 1 Summary of The Project 1 2 2 3 Objective of The Project 2 4 Literature Survey 3 5 Methodology 3 6 Time Activity Chart 3

This document outlines a research project analyzing the risk and return of companies in the Indian FMCG sector. The project aims to determine the best securities for investors to invest in that provide high returns with low risk. It will analyze the average returns and risks of the top 10 companies by the Nifty FMCG index over several years. The methodology will use descriptive statistics based on monthly return data from the stock market index and the 7 sample companies. The results will help suggest the most favorable stocks for investors seeking the optimal risk-return tradeoff.

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88 views3 pages

Sno. Particulars Pageno 1 Summary of The Project 1 2 2 3 Objective of The Project 2 4 Literature Survey 3 5 Methodology 3 6 Time Activity Chart 3

This document outlines a research project analyzing the risk and return of companies in the Indian FMCG sector. The project aims to determine the best securities for investors to invest in that provide high returns with low risk. It will analyze the average returns and risks of the top 10 companies by the Nifty FMCG index over several years. The methodology will use descriptive statistics based on monthly return data from the stock market index and the 7 sample companies. The results will help suggest the most favorable stocks for investors seeking the optimal risk-return tradeoff.

Uploaded by

sudhakar kethana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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RISK AND RETURN ANALYSIS ON FMCG'S COMPANY

SNO. PARTICULARS PAGENO

1 Summary of the Project 1

2 Introduction 2

3 Objective of the project 2

4 Literature Survey 3

5 Methodology 3

6 Time Activity Chart 3

1. SUMMARY OF THE PROJECT:

The investor has an investment alternative and it has its strengths and weaknesses. Investment in
the stock market always has a higher return but has a higher risk. Investment in PPF, Deposits
are providing safety with no risk but the return is low. Most of the investors don’t have a
knowledge that where to invest. The stock market is one of the best investing platforms for
Investors. They should know how much risk they are facing in their securities and also how
much return they get from the risk. In these articles, I would like to find out the risk and return of
the selected companies in the Indian stock market. This study limited to only analyzing the
NIFTY FMCG sectors. I have chosen the top ten companies in the Nifty FMCG Index. These are
HUL Ltd, ITC Ltd. (L), Nestle India Ltd. (L), Dabur India Ltd., Britannia Industries Ltd., Marico
Ltd., Colgate-Palmolive (India) Ltd. This study will find out the best security for the investors to
invest to get high returns with low risk. If the investors will face high risk and will be getting a
high return. This study finds out the best security for the investor to get a high return with low

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RISK AND RETURN ANALYSIS ON FMCG'S COMPANY

risk. Theses FMCG’s companies during Covid-19 and pre-covid19, how they manage risk and
return cover this study.

2. INTRODUCTION:

An investment return is characterized by two important factors that are risk and return. Risk
involves future uncertainty and deviation from expected income. Investors expect to gain from
their investment. To get higher return involves higher risk. The risk measures uncertainty.
Investors take a higher risk, get a higher return. The measures the return and there is a direct
relationship between risk and return. There are two types of risk involved in the securities. These
are systematic risk and unsystematic risk. Systematic risk is the risk that is unavoidable and
cannot diversify. It includes economic growth, recessions, inflation, interest rates, currency
fluctuations, etc. It is caused by a factor that is beyond the control of the company. E.g. Inflation
rate, interest rate, and govt. policy. It is measured by the beta coefficient. Unsystematic risk is
unique to a company or industry. It can be avoided, reduced through diversification.
Unsystematic risk is within the control of the company such as management issues, operational
issues and labor conditions. The Equity Markets across the world are volatile but India has a
higher level of volatility. Banking and financial services sector funds have generated superior
risk-adjusted returns until now, they suffer from the risk of portfolio concentration as a single
stock accounts for an equity portfolio. Measurement of risk has been critical for ansy investment
decision. Risk cannot be eliminated, investors estimate the risk for taking investment decisions.

3. OBJECTIVES OF THE PROJECT:

 To analyse the average returns of selected companies securities in the FMCG industry.

 To analyse the risk associated with selected companies securities in the FMCG industry.

 To analyse and compare the performance of seven Indian FMCG Companies.

 To suggest the investors' best security before investing in any FMCG stock.

4. LITERATURE SURVEY:

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RISK AND RETURN ANALYSIS ON FMCG'S COMPANY

Anju Bala (July 2019)Stock Market is one of the most important sectors in the International
Journal of Multidisciplinary Research and Development 9 financial system, marking an
important contribution to economic development. Stock Market is a place where buyers and
sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures, etc.
Investors are ready to invest in the stock market for getting a higher return. There is two large
stock exchanges of India are Bombay Stock Exchange (BSE) and National Stock Exchange
(NSE). The stock market is one of the best investment platforms for investors who ready to take
risks. The stock market provides a suitable investment for the common man. It also provides
diversified, managed portfolios at a low cost.

Shrikumar HD (Mar 2015)


The risk and return analysis help the investors for choosing securities. Stock with more
systematic risk is not favorable for investment because it has the highest market risk. The
investors have to avoid those higher risky stocks. Most investors expect a higher return with low
risk. Investing in a stock market the investors should understand the trade-off between risk-return
analysis for getting higher profit. The study is undertaken with the main objective of determining
the risk-return profile of 7 listed stock of NSE. Only the top 7 companies share listed on NSE are
considered.

5. METHODOLOGES

The present research is exploratory and empirical in nature with descriptive statistics based on
the monthly returns of the stock market index and 7 companies of the NSE FMCG Industry.
Based on the objectives of the study, descriptive research has adopted. Descriptive research is
one which largely used to draw inferences about the possible relationships between variables. It
is designed to gather descriptive information and provides information for formulating more
sophisticated studies. The risks and returns have been analyzed using the monthly closing prices
of 7 companies and the NSE FMCG Index. The return and risk based on FMCG Index have been
taken as the measurement of market return and market risk, respectively. In this study, the
Judgment sampling method is used for selecting the sample. Totally a sample of seven
companies is taken from FMCG sectors. The study is based on secondary data. The data used for
the study is extracted from the NSE India website.

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