Investment in any form has the basic or primary objective of getting return.Return is the primary motivational key force that drives Investment. People have money for investment but they are not much aware about the avenues and therisk associatedwiththesame.Thereisasaying regarding the investmentthat“Don’tputallegginonebasket”andinfact,thisisthe golden rule of the investment.It says that, don’t invest all money in one securities. Most of the investors are mainly guided by the pecuniary motive of earning a return on their Investment. It represents the reward for undertaking Investment. Investorsinvest their money after proper consultation as they are not aware of the risk associated withthe InvestmentDecisions. We know that every Investment is characterized by Return and Risk. For earning Return every investors have to bear risk associate with it. Objectives: To construct a portfolio out of several securities with various combination and to know the effect ofcombining securities on the risk diversification of aportfolio. Conclusion: For Investing in the dynamic market like INDIA, one has to invest afterconsulting professionals. Small investors may incur a huge loss if they invest in Indian securities in spotmarket without anyconsultancy.