Chatbot for Portfolio Selection

International Journal of Research and Scientific Innovation (IJRSI) | Volume V, Issue VII, July 2018 | ISSN 2321–2705

Chatbot for Portfolio Selection

Sreedevi P¹, Vineetha S Das²

¹ Research Scholar, Department of Mechanical Engineering, College of Engineering Trivandrum
APJ Abdul Kalam Technological University, College of Engineering Trivandrum, Kerala, India
² Associate Professor, Department of Mechanical Engineering, College of Engineering Trivandrum
APJ Abdul Kalam Technological University, College of Engineering Trivandrum, Kerala, India

Abstract- A chatbot is a computer program to stimulate human response and there by facilitates communication with clients with the support of rule based or machine learning tools. A portfolio is a group of financial assets. It includes stocks, bonds, cash equivalents and their fund counterparts, including mutual funds, exchange-traded funds and closed end funds. In this paper it is attempted to suggest a suitable portfolio to an investor based on his age, investable amount, investment tenure and expected returns.

Keywords: Chabot, portfolio, investment tenure, exchange traded funds, closed end funds.

I. INTRODUCTION

Portfolio is a collection of financial assets. An individual selects portfolio based on his risk tolerance, duration of investment and his investment objectives. The investors will focus on investing in a portfolio which will give maximum return with minimum risk. Investing in a portfolio can deliver better returns compared to specific asset counterparts and is because of the diversification of risks among various available investment avenues.
To achieve a positive, long-term goal, the investor should select a portfolio based on his objectives and formulate a suitable investment strategy. The future portfolio performance depends on investment policy. The selected portfolio should be well diversified to ensure that losses from one security are compensated by gains from other asset classes in the portfolio.

There are two forms of portfolio management. Passive management which tracks a market index (indexing or index investing) and active management with a single or a team of managers attempting to beat the market by actively managing a fund’s portfolio. The investment decisions are based on research and decisions on individual holdings. Closed-end funds are examples of actively managed funds.

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