An Efficient Method to Provide Investment Avenues to Retail Investors

摘要

Investment architecture being a vague term consists of various avenues within and is often very difficult to understand by simple investors. The proposed system addresses the concerns related to investments with the help of different algorithms. With the help of several techniques like Risk Identification Algorithm, Selecting K best Algorithm, and Portfolio Strength Index, the system aims to provide a sound investment plan to the user catered to his/her specific needs. The proposed system also describes a method to provide investors with an estimate of how the ideal Portfolio should look like with specific risk tolerance and a set amount of expected return from the investment. The final solution minimizes the risk associated with the suggested investment plan and at the same time maximizing the returns which can be generated from the invested amount. The system uses Knapsack Algorithm, Sharpe Ratio, maximization techniques to improve the quality and provide investors with a solution towards an efficient investment plan.