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Research Paper | Finance | India | Volume 12 Issue 2, February 2023
A Study on Effectiveness of Cognitive Computing for Risk Management in Portfolio Selection
Abstract: Awareness and learning of financial instruments and company fundamentals is the first step for any investor to enter into capital markets. Basic knowledge of investment opportunities and strategies is essential for retail investors to avoid getting into incorrect selection of investment types and portfolio building. The probability of loss, i.e., Risk will always be there in all forms of investments to some extent. Risk management becomes most important in such a situation. With the development of Artificial Intelligence in the nearest future, fund managers can seek the help of permutations and combinations to suggest the best stocks and funds. Cognitive computing is more trusted than Artificial intelligence for investments since it is more to do with human behaviour pattern and Artificial Intelligence is only predesigned patterns which will not consider the fluctuations in value of underlying assets caused due to human sentiments during any unusual situations like pandemic, natural disasters, recession and so on.
Keywords: Artificial Intelligence, Risk management, Cognitive computing, Portfolio selection
Edition: Volume 12 Issue 2, February 2023,
Pages: 354 - 355