/asset-allocation

Primary LanguageJava

Asset Allocation Problem

System to allocate user funds based on the Deposit Plans chosen by the customer and automatically distributing funds based on the customer's deposits.

Core Idea

Every user will have 2 plans associated with user portfolio -

  1. High Risk Plan
  2. Retirement Plan

Every user plan will have 2 types of investment amounts defined

  1. One time investment
  2. Monthly investment

Each user will have a Risk Appetite associated to the profile (on a scale of 0-1). Based on the risk appetite the user is categorised into 3 types -

  1. Aggressive
  2. Balanced
  3. Defensive

Fund Allocation Strategy

  • Allocate funds to each category till the one time investment goal is met.
    • The fund distribution strategy is derived by customer's Risk Appetite. (Aggresive portfolio will prioritize achieving the high risk plan goal first, whereas Defensive portfolio will target to fulfill Retirement goal first)

All use cases are written under /test/resources/acceptance-criteria.yml.

Example

- depositPlan:
    onetime:
      highRisk: 10000
      retirement: 500
    monthly:
      highRisk: 0
      retirement: 100
    riskAppetite: 0.2
  description: Happy Path, Defensive
  deposits:
    - 10500
    - 100
  fundAllocation:
    highRisk: 10000
    retirement: 600

The above is an example of a scenario, where user chooses a deposit plan with specified High Risk & Retirement plan fund allocation. deposits is a list of monthly deposits of the customer. fundAllocation is the final allocation expected after all the deposits.

Running Tests

mvn clean test