• Shubham Singh
• Tanish Kapoor

The study is based on the selection of optimal portfolio for investment out of stocks and mutual funds. Two shares each from Pharmaceutical sector and IT sector along with two large cap Mutual funds as well as their rate of return and investment requirements were analyzed. With the obtained information, a mathematical model was set up for using simplex method in which the problem was converted into its standard form of linear programming problem. Simplex method of optimization was used in determining the optimal portfolio and return. The LPP model results gave an optimal portfolio of ₹4,00,000, ₹4,00,000, ₹1,00,000, ₹1,00,000 for Sun Pharma, TCS, Infosys and Axis BlueChip fund respectively. Further using the sensitivity report the reasons for 0 investment in Cipla and ICICI Prubluechip fund were analyzed. With Simplex method the values to be invested in stocks and mutual funds were obtained at once instead of obtaining them separately. We further concluded that a combination of stock and mutual funds can optimally give the best return considering with the fact that diversification of investment is highly encouraged to reduce loss.

Portfolio,Simplex,LPP

"Linear Programming Model for Optimal Portfolio Selection", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 10, page no.473-478, October-2018, Available :http://www.jetir.org/papers/JETIR1810461.pdf

"Linear Programming Model for Optimal Portfolio Selection", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 10, page no. pp473-478, October-2018, Available at : http://www.jetir.org/papers/JETIR1810461.pdf