Portfolio Optimisation for Retail Investors in the Indian Market: An MCDM Approach

Abstract

This study aims to create an optimal portfolio for retail investors investing in the Indian Markets through utilising MCDM methodologies to rank and select investments balancing maximum returns with minimal risk. This study incorporates six MCDM methods including Entropy for weighing purposes and TOPSIS, WASPAS, COPRAS, SAW, PROMOTHEE for ranking and decision making. The approach prioritizes 3 asset classes for investments that are Equity, Debt & Commodities. The ranking and selecting the ideal assets for investment in multiple asset classes will be useful for individual retail investors. The multiple quantitative and decision-making analyses run may also aid future analysts for further research. This study intends to aid retail investors for navigating investments in the Indian Markets while focusing on returns and risk.