Learning Mutual Fund Categorization using Natural Language Processing

These categorization systems go deeper than the broader asset class based classification (equity, fixed income, etc) and provide Categorization of mutual funds or Exchange-Traded-funds (ETFs) further granular categories based on the portfolio breakdown. They have long served the financial analysts to perform peer analysis have been used to identify the top performing as well as worst for various purposes starting from competitor analysis, to quantifying performing funds within their peer groups, called peer analysis portfolio diversification. The categorization methodology of funds; to identify a home-grown fund to recommend against a usually relies on fund composition data in the structured format competitor's fund; to explain similarities and advantages of homegrown extracted from the Form N-1A. Here, we initiate a study to learn products compared to competitors' products for marketing the categorization system directly from the unstructured data as purposes; to quantify portfolio diversification of a given fund of depicted in the forms using natural language processing (NLP).