Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

@article{190889,
        author = {Feny V Martin and ERIC MALIL SUNNY and A SANJAY GOPAL and Aswal Ashokan and Dr. R.Suma},
        title = {OPTIMAL PORTFOLIO FORMATION USING THE SINGLE INDEX MODEL AND CAPITAL ASSET PRICING MODEL: AN INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT PERSPECTIVE},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {8},
        pages = {4512-4514},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=190889},
        abstract = {Modern portfolio theory emphasises the importance of constructing optimal portfolios that balance risk and return in a systematic manner. Investors are increasingly dependent on quantitative asset pricing models to support rational investment decisions in uncertain market environments. This article examines the process of optimal portfolio formation through a comparative analysis of the Single Index Model (SIM) and the Capital Asset Pricing Model (CAPM) within the framework of Investment Analysis and Portfolio Management (IAPM). Drawing upon established theoretical foundations and empirical insights from existing literature, the study explains how these models assist investors in identifying efficient portfolios, estimating expected returns, and managing systematic risk. While CAPM provides a market-wide equilibrium perspective on risk–return trade-offs, the Single Index Model offers a simplified and operationally efficient approach to portfolio construction. The article highlights the strengths, limitations, and practical relevance of both models and demonstrates their role in improving portfolio efficiency, risk assessment, and investment decision-making.},
        keywords = {Portfolio Selection, Single Index Model, CAPM, Risk–Return Trade-off, Investment Analysis and Portfolio Management.},
        month = {January},
        }