Portfolio Investment diversification at Global stock market

Sarfaraz A. Bhutto, Rizwan Raheem Ahmed, Dalia Streimikiene, Saifullah Shaikh, Justas Streimikis

Portfolio Investment diversification at Global stock market

Číslo: 1/2020
Periodikum: Acta Montanistica Slovaca
DOI: 10.46544/AMS.v25i1.6

Klíčová slova: Portfolio diversification, emerging BRICS(P) group, financial globalization, global stock markets, A.R.D.L. method

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Anotace: This study investigates the outcomes of emerging BRICS(P) groups

at the global stock market. The Emergence of this Group helps the
investors in the diversification of international portfolio funds.
However, economic and financial globalization assimilated the
world's leading economies to provide an interdependent investment
portfolio structure for investors and savings in the transformation
and allocation of funds. The diversification of the international
stock market may bounce the investors of BRICS(P) Group to
maximize the expected returns along with a certain level of risk
placement. This study prefers to use Auto-Regressive Distributed
Lag (A.R.D.L.) method to evaluate the outcomes of investment
diversification and to investigate the short-term and long-term
changing patterns of the sampled stock exchange markets in the
BRICS(P) nations. The findings of this study show that a
significant investment portfolio diversification may originate
benefits if the funds become merged among the B.R.I.C.S. (Brazil,
Russia, India, China, and South Africa) nations. Moreover, this
study made a separate point of view for the investment funds of
India and Pakistan. The study investigates that the funds of these
two nations are assimilated, and the appropriate diversification of
investment may exist through the assimilation of these two
economies. The results would suggest the international and native
investors merge their investment proposals among these economies
and to construct a well-diversified portfolio because a shared value
of risk protects the investors. It gives opportunities to earn desirable
returns. The study has implications on all sectors of the economy,
including mining as well as natural resource prices.