FUZZY RULE-BASED SYSTEM FOR AVENUE MANAGEMENT

Abstract

Mutual Funds are becoming effective way for investors to participate in financial markets. An investor must learn to analyze and measure the risk and return of the portfolio. The performance of funds is mainly affected by characteristics such as asset size, turnover and fee structure. Investors’ highest priority lies in understanding the relation between fund performance and above properties. Currently the investors depend upon advisors for their financial planning and further no customized tools are available for investment decision. In this work, a fund planner tool called Techno-Portfolio Advisor is proposed which helps the investors to understand the critical relations and support mutual funds selection across the Asset Management Companies (AMCs) in India. The Techno-Portfolio Advisor is designed based on the fuzzy inference rules by considering the investor preferences like investment amount, age, future goal and return rate. Further, the optimal funds for achieving the investor goal are evaluated based on the quantitative data available from the historical NAV from SEBI/AMFI/AMCs. Thus the Techno-Portfolio Advisor creates awareness among the investor community in choosing the optimal mutual fund scheme as well as to achieve their investment goals.