Trust Based Stock Recommendation System – A Social Network Analysis Approach

We propose a novel system to recommend the leading investment option in stocks utilizing a methodology based on the transactions of trusted mutual funds and their corresponding stock holding portfolio. The network formed by the stock holding portfolio is the mutual funds are analyised by the tools of social network analysis. The analysis of the method using the Indian mutual funds data qualifying CRISIL-1 rating shows that it can effectively be used as a reliable portfolio recommendation system for non-professional investors looking for stock investment guidance and reveals the similarity between investment pattern of various Indian mutual funds.