MUMBAI, India, Aug. 10 -- Intellectual Property India has published a patent application (202641083296 A) filed by Dr. Bejoy Joseph; and Dr. Devi Sekhar R on July 07, 2026, for Portfolio Decision Support System Using Risk-Entropy Model For Automated Investment Optimisation.
Inventors include Dr. Bejoy Joseph; and Dr. Devi Sekhar R.
The application for the patent was published on July 31, 2026, under issue no. 31/2026.
Abstract: The present invention relates to a computer-implemented Intelligent Portfolio Decision Support System (IPDSS) employing a Risk-Entropy Model (REM) for automated portfolio optimisation and investment decision-making. The system is configured to acquire financial market information, validate and preprocess financial datasets, determine expected returns and covariance relationships among selected financial assets, and generate an initial portfolio allocation using mean-variance optimisation. The system further evaluates portfolio diversification using Shannon entropy, determines investor-specific risk tolerance, and estimates the probability of investment loss against an investor-defined target return. The generated outputs are communicated to a Risk-Entropy Model Optimisation Engine configured to iteratively optimise portfolio allocation by simultaneously evaluating expected return. portfolio risk, diversification, risk tolerance and probability-of-loss constraints. A Portfolio Allocation and Decision Support Module generates final investment recommendations comprising portfolio allocation, return estimates, risk measures, diversification statistics and probability-of-loss information, thereby enabling improved automated and investor-oriented portfolio decision-making.
Disclaimer: Curated by HT Syndication.
