InvestWise: An AI-Powered Premium Investment Advisory Platform for Optimal Portfolio Management in Indian Markets
DOI:
https://doi.org/10.53555/jaes.v21i4.85Keywords:
Artificial Intelligence, Portfolio Optimization, Risk Assessment, Financial Technology, Mutual Funds, Investment Advisory, Machine Learning, Indian Financial MarketsAbstract
The Indian financial market presents unique challenges for individual investors, particularly in portfolio diversification and risk management. This paper presents InvestWise, the first Indian-market-specific AI advisory framework integrating GPT-4 and Black-Litterman optimization for personalized investment guidance. Motivated by real-world investor experiences, such as the case of Ajit, a 30-year-old actor who suffered significant losses during the 2002 tech bubble burst, our platform employs advanced machine learning algorithms for comprehensive risk assessment and portfolio optimization.
The system integrates OpenAI GPT-4 for intelligent analysis, React 18 for responsive user interfaces, and sophisticated financial modeling to provide personalized mutual fund recommendations. Our methodology encompasses multi-dimensional risk profiling, dynamic portfolio allocation, and real-time performance monitoring.
Experimental results demonstrate superior portfolio performance with risk-adjusted returns of 12-18% annually and 31% higher Sharpe ratio compared to traditional advisory services, significantly outperforming existing approaches. The platform achieves a 94% user satisfaction rate in risk assessment accuracy and provides comprehensive financial ratio analysis including Sharpe ratio, Jensen's alpha, and Treynor ratio calculations.
This research contributes to the advancement of FinTech solutions in emerging markets, demonstrating the efficacy of AI-driven investment advisory systems in improving individual investor outcomes while maintaining regulatory compliance and fiduciary responsibility.
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