Portfolio Management using Beetle Swarm Optimization with Penalty Method

There being many options to invest in, the people with non-financial background are uncertain that the investments they have made will give them a profit. Many people still think that investing in the stock market is a gambling game. In order to help them to burst this bubble the following paper will give them a fair idea and suggestions where they should invest. This paper demonstrates a model that can effectively allocate the savings and surplus amount of an investor under different aspects based on the risk and returns that the user has applied for. In this paper, a multi objective optimization algorithm i.e. beetle swarm optimization is used in order to suggest the user most optimal scheme which has lesser risk and which will be in the interest of the user and will give good profit. K-means clustering method is used to prevent user to invest in similar sectors. Penalty function is used so that infeasible solutions which violates the user's investment conditions are not considered in the early stage of calculations itself.