CLUSTER BASED GROWTH-ORIENTED EQUITY DIVERSIFIED SCHEMES OF MUTUAL FUND ON THE BASIS OF RETURN AND RISK

Abstract

A mutual fund is a professionally run investment program that invests in stocks, bonds, and other assets by pooling the money of several individuals. Asset management companies usually handle these funds. Clustering techniques are now frequently employed in the banking sector to address financial issues. This study combines the clustering techniques of hierarchical clustering and principal component analysis to examine the performance of a growth-oriented mutual fund scheme under Net Asset Value. On the basis of the clustering results, a clustering-based model is built at the same time to forecast the NAV points of an Indian mutual fund scheme. This paper's main contribution is to present the top mutual fund investment plans based on NAV and mutual fund type (Large Cap, Mid Cap, Small Cap, Multi Cap).