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ENHANCING RETURN AND MINIMIZING RISKS: INSIGHTS FROM DYNAMIC PORTFOLIO REBALANCING IN INDIA WITH AI

1Abhijit Biswas, 2Dr. Meghdoot Ghosh, 3Tulika Choudhary, 4Rohan Sarkar

Article

AI is the one contributing factor that has turned everything topsy-turvy for property or portfolio management for emerging markets like India. Portfolio rebalancing has been done using AI for enhanced returns on investment, as well as risk mitigation, thus identifying the core financial management objective among others for dynamic portfolio rebalancing in the volatile market setting of India. AI-enabled advanced machine learning models, predictive analytics, and real-time data processing can thus lead to effective and timely portfolio adjustment by accurately identifying market shifts and risk factors. The paper identifies sectoral trends, regulatory considerations, and unique challenges towards the application of AI in the Indian context. AI-enabled portfolio rebalancing strategies that have been presented provide significantly enhanced risk-adjusted returns vis-a-vis more traditional approaches, thereby boosting investor confidence and trust. This chapter will provide useful insights for both institutional and individual investors about the all-important role of AI toward building resilient, secure and efficient investment strategies in a rapidly changing financial infrastructure.

Keywords

AI, Macroeconomic Factors, India Stock Market, Dynamic Rebalancing, Portfolio Optimization, Investor Sentiment, Risk Management

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