Self-Perfecting Model for Managing Individualized Investment Portfolios

Abstract

Individualization is a process that adapts a ser vice or product to the needs of specific individuals. This process is a key element in recommender systems and is applied to establish innovative ser vices for technological solutions in the financial industry. For this purpose, a self-perfecting model for managing individualized investment portfolios is built, through which segmentation and evaluation of users are performed and for each of them a set of investment portfolios is recommended. This paper presents the process of recommending a portfolio of investment instruments, individualized according to the individual preferences of clients, methodology for its construction, and results of the approbation. Examples are shown of individualized portfolios, as well as a comparison of the main measures of the recommended portfolios in the respective clusters.