The study aimed to test the relationship between the Variables of portfolio management diversification, marketability and return the mediating role perceived financial risk,. Research sample consist of investors in Khartoum stock exchange in Khartoum state Sudan. The sample was taken by random probability sampling. In addition for that researcher depended on questionnaire for data collection, the sample was taken from the investors who were still own the investment portfolio. This was done to facilitate the distribution of questionnaires and the accuracy of answers given by the investors. Research sample 400 investors the total response rate 81.75% the analysis technique used in this research is quantitative data analysis technique using Path Analysis modeling using (AMOS v 25). The results revealed the relationship between portfolio management and return it positive because it different form zero at 0.05 level of significance. And the relationship between portfolio management and perceived financial risk it positive because it different from zero at 0.05 level of significance. And the relationship between perceived financial risk and return it positive because it different from zero at 0.05 level of significance. The mediating role of perceived financial risk on the relationship between portfolio management and return it positive because it different from zero at 0.05 level of significance. The recommendation is must be well diversified of individual portfolio by less correlations (assets components of portfolio). The investor should know about benefit of diversification education may be solution. The achieved return of portfolio should be near to expect return should have known much about investor’s goals and preferences to develop framework that describes how they form portfolio.

Keywords : Portfolio Management, Diversification, Marketability, Risk, Return.