A Systematic Review of Recent Advancements in PINN Augmented Deep Learning and Mathematical Modeling for Efficient Portfolio Management

TL;DR

This review explores recent advancements in physics-informed neural networks combined with deep learning and mathematical models to improve portfolio management strategies in finance.

Contribution

It provides a comprehensive overview of how PINNs enhance portfolio optimization by integrating physics and finance principles into neural networks.

Findings

PINNs ensure forecasts align with financial regulations.

Deep learning models improve portfolio selection accuracy.

Mathematical models complement neural networks in finance.

Abstract

In finance, portfolio management is a traditional yet difficult problem that has drawn attention from practitioners and researchers for many years. However, there are still difficult technological problems that need to be solved. In the world of finance, managing a portfolio has never been easy. Selecting portfolios in a volatile market is made easier with the help of portfolio management. The goal of this review study is to present the concept of physics-informed neural networks because they provide a novel approach to directly incorporating physics and finance principles into the neural network's learning process. By doing so, physics-informed neural networks ensure that their forecasts are in line with established financial regulations and processes in addition to offering precise forecasts. Furthermore, this article provides an overview of the current state of research in portfolio optimization with the support of mathematical models, deep learning models and physics-informed neural networks. In addition, the advantages and disadvantages of various deep learning and mathematical modelling are discussed. Researchers and business professionals alike should find the data useful for advancing the field of investment management and trying out new portfolio management strategies. For this purpose, in this review work, emphasis is given to these factors. Finally, a few challenging issues and potential future directions are discussed, encouraging readers to consider fresh ideas in this field of study.