Open AccessImplementation of the Markowitz method in the Robo-Advisor application for best investment selection
Author(s) -
Y A Gerhana,
Muhammad Mishlahul Umam,
Aldy Rialdy Atmadja
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1098/3/032051
Subject(s) - mutual fund , portfolio , rate of return , equity (law) , investment (military) , selection (genetic algorithm) , investment strategy , investment performance , modern portfolio theory , investment fund , economics , finance , business , return on investment , financial economics , actuarial science , computer science , microeconomics , artificial intelligence , production (economics) , politics , political science , market liquidity , law
Investment is the best way to ensure financial security in the future. The number of investment choices available often makes potential investors confused in determining the right investment choice. The purpose of this study is to implement the Markowitz Method in the Robo-Advisor application to the selection of appropriate mutual fund investment products. This research is experimental in finding the best mutual fund portfolio. The Mutual Funds products used are Danareksa Flexible Orchid (DAF), Bahana Trailblazer Fund (BTF), CIMB Principal Total Return Equity (CIMBPTRE), and Danareksa Mawar Consumer 10 (DMK). The data used amounted to 60 data from 2014 to 2018. Based on the results of calculations, the first portfolio has a higher return rate of 0.55%, while the second portfolio has a return rate of 0.54%.