Evaluation of long-term risk and return performance of Borsa İstanbul sector indices

There are many investment alternatives in the financial markets. While looking at the habits of investors to evaluate their savings among these investment alternatives; it is seen that the majority of developed country investors prefer capital markets. When this situation is analyzed in terms of developing countries, it is observed that the rate of investors' evaluating their savings in the capital markets tended to increase compared to previous years. Although this situation shows us the increase in the number of investors, the aim should be to increase the number of conscious investors.For this reason, this study aims to shed light on investors by measuring the long-term risk and return performances of sector indices. As a matter of fact, risk factor should not be ignored while calculating the returns of investors. Since the future cannot be foreseen clearly, it always contains a risk factor and some of these risks can be eliminated and some of them cannot be eliminated. In this study, risk and return performances of sector indices are measured. The aim is to reveal to what extent the existing risks affect which sector. Thus, the results obtained in this study have a guiding nature in investors' investment decisions. For this, 10-year index data of four main and 19 sub-sector indices in Borsa Istanbul were used and their risks were measured by finding their returns. As a result of the findings obtained, it is determined which main system index and sub-sector indexes have the highest value which systematic risk and which ones have the lowest value.