Authors: Amandeep Sharma, Dr. Sahil Nazir
Abstract: Investment decisions are primarily influenced by the relationship between risk and return. Investors seek investment avenues that provide maximum returns while maintaining an acceptable level of risk. Equity shares and fixed-income securities are among the most widely preferred investment instruments. Equity shares offer opportunities for capital appreciation and dividend income but involve higher market risk. Fixed-income securities such as government bonds, corporate bonds, and debentures provide stable returns with comparatively lower risk. The present study examines the risk-return characteristics of equity shares and fixed-income securities using both primary and secondary data. Primary data were collected from 200 investors through a structured questionnaire, while secondary data were obtained from stock market reports, company annual reports, and financial databases. Statistical tools including percentage analysis, mean, and standard deviation, coefficient of variation, correlation analysis, chi-square test, t-test, and regression analysis were employed. The findings indicate that younger investors prefer equity investments due to higher return expectations, whereas older investors favor fixed-income securities for capital preservation and income stability. The study further reveals that equity shares generate higher average returns but are associated with greater volatility. Fixed-income securities exhibit lower returns but provide greater consistency and lower risk exposure. The research concludes that a balanced portfolio containing both asset classes can optimize risk-adjusted returns and achieve long-term financial objectives.
DOI: http://doi.org/10.5281/zenodo.20643891
