Upload 6_Learn.py

pages/6_Learn.py

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+"""
+Page 6: Educational Resources
+==============================
+
+Learn about portfolio optimization:
+- Modern Portfolio Theory
+- Risk metrics explained
+- Optimization techniques
+- Investment strategies
+- Common mistakes to avoid
+"""
+
+import streamlit as st
+
+# ============ PAGE CONFIGURATION ============
+st.set_page_config(
+    page_title="Learn | NSE Optimizer",
+    page_icon="📚",
+    layout="wide"
+)
+
+# ============ MAIN APP ============
+
+def main():
+    st.title("📚 Educational Resources")
+    st.markdown("Learn about portfolio optimization, investing principles, and risk management")
+    
+    st.markdown("---")
+    
+    # Table of Contents
+    st.markdown("## 📖 Quick Navigation")
+    
+    col1, col2, col3 = st.columns(3)
+    
+    with col1:
+        st.markdown("""
+        **Basics:**
+        - Modern Portfolio Theory
+        - Risk vs Return
+        - Diversification
+        """)
+    
+    with col2:
+        st.markdown("""
+        **Advanced:**
+        - Sharpe Ratio
+        - Efficient Frontier
+        - Monte Carlo Simulation
+        """)
+    
+    with col3:
+        st.markdown("""
+        **Practical:**
+        - How to Use This App
+        - Investment Strategies
+        - Common Mistakes
+        """)
+    
+    st.markdown("---")
+    
+    # Lesson 1: Modern Portfolio Theory
+    with st.expander("🎓 Lesson 1: Modern Portfolio Theory (MPT)", expanded=True):
+        st.markdown("""
+        ### What is Modern Portfolio Theory?
+        
+        **Developed by:** Harry Markowitz (Nobel Prize 1990)
+        
+        **Key Principle:** Don't put all your eggs in one basket
+        
+        **Core Idea:**
+        - Risk can be reduced through diversification
+        - Optimal portfolios maximize return for given risk level
+        - Mathematical framework for portfolio construction
+        
+        ### The Efficient Frontier
+        
+        The efficient frontier represents all optimal portfolios:
+        - Each point offers maximum return for its risk level
+        - Points below the line are sub-optimal
+        - Your goal: Find the point that matches your risk tolerance
+        
+        ### Why It Matters
+        
+        **1. Quantifies Diversification Benefits**
+        - Shows exact impact of adding stocks
+        - Measures correlation effects
+        
+        **2. Risk-Adjusted Returns**
+        - Not just about highest return
+        - Considers risk you're taking
+        
+        **3. Objective Decision-Making**
+        - Removes emotion from investing
+        - Based on mathematical optimization
+        
+        ### Real-World Example
+        
+        Imagine two portfolios:
+        - **Portfolio A:** 20% return, 25% volatility
+        - **Portfolio B:** 18% return, 15% volatility
+        
+        Which is better? MPT helps you decide based on your risk tolerance!
+        """)
+    
+    # Lesson 2: Risk Metrics
+    with st.expander("📊 Lesson 2: Understanding Risk Metrics"):
+        st.markdown("""
+        ### Key Risk Metrics Explained
+        
+        #### 1. Volatility (Standard Deviation)
+        **What:** Measures how much returns vary  
+        **Example:** 15% volatility = returns typically within ±15% of average  
+        **Good/Bad:** Lower is less risky
+        
+        **Interpretation:**
+        - < 10% = Very low risk (stable, like bonds)
+        - 10-20% = Moderate risk (balanced portfolio)
+        - > 20% = High risk (aggressive stocks)
+        
+        #### 2. Sharpe Ratio
+        **Formula:** (Return - Risk-free Rate) / Volatility  
+        **What:** Return per unit of risk taken  
+        
+        **Benchmark:**
+        - < 1.0 = Poor (not worth the risk)
+        - 1.0-2.0 = Good (acceptable risk-adjusted return)
+        - > 2.0 = Excellent (great risk-adjusted return)
+        
+        **Example:** If portfolio returns 15% with 10% volatility and risk-free rate is 6%:
+        - Sharpe = (15% - 6%) / 10% = 0.9 (below 1, needs improvement)
+        
+        #### 3. Value at Risk (VaR)
+        **What:** Maximum expected loss at confidence level  
+        **Example:** 95% VaR of -2% = 95% chance daily loss won't exceed 2%  
+        
+        **Use Cases:**
+        - Set stop-loss levels
+        - Determine position sizing
+        - Prepare emergency funds
+        
+        #### 4. Maximum Drawdown
+        **What:** Largest peak-to-trough decline  
+        **Example:** -30% = portfolio lost 30% from highest point  
+        
+        **Psychological Impact:**
+        - Tests your ability to hold during downturns
+        - Many investors sell at worst time
+        - Know your drawdown tolerance!
+        
+        #### 5. Correlation
+        **Range:** -1 to +1  
+        
+        **Interpretation:**
+        - +1 = Move together perfectly (no diversification)
+        - 0 = No relationship (good diversification)
+        - -1 = Move opposite directions (excellent hedge)
+        
+        **Goal:** Seek low/negative correlations for diversification
+        """)
+    
+    # Lesson 3: Optimization
+    with st.expander("⚙️ Lesson 3: How Portfolio Optimization Works"):
+        st.markdown("""
+        ### Portfolio Optimization Process
+        
+        #### Step 1: Data Collection
+        - Download historical prices (typically 2-5 years)
+        - Calculate daily returns
+        - Compute statistics (mean, volatility, correlation)
+        
+        #### Step 2: Define Objective
+        **Maximize:** Sharpe Ratio (most common)  
+        
+        **Constraints:**
+        - Sum of weights = 100%
+        - No short selling (weights ≥ 0)
+        - Optional: Max per-stock limit (e.g., 20%)
+        
+        #### Step 3: Mathematical Optimization
+        Uses **CVXPY** (convex optimization):
+        - Solves quadratic programming problem
+        - Finds global optimal solution
+        - Guarantees mathematically best result
+        
+        #### Step 4: Allocation
+        - Convert percentage weights to shares
+        - Account for transaction costs
+        - Generate buy/sell orders
+        
+        ### What Makes a Portfolio "Optimal"?
+        
+        **1. Maximum Sharpe Ratio**
+        - Best risk-adjusted returns
+        - Efficient use of capital
+        
+        **2. Proper Diversification**
+        - Low correlation between holdings
+        - Sector balance
+        
+        **3. Risk Management**
+        - Controlled volatility
+        - Acceptable drawdown limits
+        
+        ### Common Optimization Approaches
+        
+        **Minimum Variance:** Lowest possible risk  
+        **Maximum Return:** Highest possible return (usually too risky)  
+        **Maximum Sharpe:** Best risk-adjusted (recommended) ✅  
+        **Risk Parity:** Equal risk contribution from each asset
+        """)
+    
+    # Lesson 4: Monte Carlo
+    with st.expander("🎲 Lesson 4: Monte Carlo Simulation"):
+        st.markdown("""
+        ### What is Monte Carlo Simulation?
+        
+        **Purpose:** Understand range of possible outcomes
+        
+        **How It Works:**
+        1. Use historical volatility and returns
+        2. Generate 1000+ random future scenarios
+        3. Calculate portfolio value in each scenario
+        4. Analyze distribution of outcomes
+        
+        ### What You Learn
+        
+        **Best Case (95th percentile):**
+        - Top 5% of outcomes
+        - Optimistic scenario
+        - "If things go really well..."
+        
+        **Expected Case (50th percentile):**
+        - Most likely outcome
+        - Median result
+        - "Most probable scenario..."
+        
+        **Worst Case (5th percentile):**
+        - Bottom 5% of outcomes
+        - Prepare for this mentally
+        - "If things go badly..."
+        
+        ### Important Limitations
+        
+        ⚠️ **NOT a prediction of the future**
+        
+        - Based on historical patterns
+        - Markets can change dramatically
+        - Black swan events not captured
+        - Use as one input, not definitive answer
+        
+        ### Best Use Cases
+        
+        **1. Risk Assessment**
+        - Understand downside risk
+        - Prepare psychologically
+        - Set realistic expectations
+        
+        **2. Scenario Planning**
+        - "What if" analysis
+        - Stress testing
+        - Contingency planning
+        
+        **3. Goal Setting**
+        - Realistic return expectations
+        - Time horizon planning
+        - Retirement projections
+        
+        ### Example Interpretation
+        
+        Investment: ₹1,00,000  
+        Time: 1 year  
+        
+        Monte Carlo Results:
+        - **Best Case:** ₹1,35,000 (35% gain)
+        - **Expected:** ₹1,12,000 (12% gain)
+        - **Worst Case:** ₹85,000 (15% loss)
+        
+        **Question:** Can you handle a ₹15,000 loss?
+        """)
+    
+    # Lesson 5: Practical Guide
+    with st.expander("🎯 Lesson 5: How to Use This App Effectively"):
+        st.markdown("""
+        ### Complete Workflow
+        
+        #### For New Investors
+        
+        **Step 1: Start with New Portfolio**
+        1. Choose NIFTY 50 for broad diversification
+        2. Set investment amount (min ₹10,000)
+        3. Use 2-3 years historical data
+        4. Keep default settings initially
+        
+        **Step 2: Review Results**
+        1. Check Sharpe Ratio (aim for >1.0)
+        2. Review sector allocation (avoid concentration)
+        3. Understand risk metrics
+        4. Download action plan
+        
+        **Step 3: Execute**
+        1. Open trading account if needed
+        2. Place exact buy orders
+        3. Keep leftover cash in savings
+        4. Mark calendar for quarterly review
+        
+        #### For Existing Portfolio Holders
+        
+        **Step 1: Use Rebalance Page**
+        1. Upload current holdings CSV
+        2. Or enter manually
+        3. Set rebalancing threshold (5% default)
+        
+        **Step 2: Analyze Current vs Optimal**
+        1. Compare performance metrics
+        2. Review improvement potential
+        3. Check transaction costs
+        
+        **Step 3: Execute Rebalancing**
+        1. Follow buy/sell recommendations
+        2. Execute during market hours
+        3. Update your records
+        
+        #### Regular Monitoring
+        
+        **Monthly:**
+        - Check portfolio value
+        - Review major news
+        - Monitor for large drifts
+        
+        **Quarterly:**
+        - Check for >5% drift
+        - Consider rebalancing
+        - Review risk metrics
+        
+        **Annually:**
+        - Full portfolio review
+        - Tax planning
+        - Goal reassessment
+        - Reoptimize if needed
+        """)
+    
+    # Lesson 6: Common Mistakes
+    with st.expander("⚠️ Lesson 6: Common Investment Mistakes to Avoid"):
+        st.markdown("""
+        ### Top 10 Mistakes to Avoid
+        
+        #### 1. Emotional Decisions 😱
+        **Problem:** Panic selling during crashes, FOMO buying during rallies  
+        **Solution:** Stick to your plan, focus on long-term, automate decisions
+        
+        #### 2. Chasing Returns 🏃
+        **Problem:** Buying last year's winners, sector rotation chasing  
+        **Solution:** Focus on fundamentals and diversification, not past performance
+        
+        #### 3. Over-Concentration 🎯
+        **Problem:** Too much in one stock/sector (>20%)  
+        **Solution:** Use optimization, limit single stock to 15-20% max
+        
+        #### 4. Ignoring Costs 💸
+        **Problem:** Frequent trading erodes returns  
+        **Solution:** Consider transaction costs, tax implications, hold long-term
+        
+        #### 5. Market Timing ⏰
+        **Problem:** Trying to predict market moves  
+        **Solution:** Time IN the market > Timing the market
+        
+        #### 6. Neglecting Rebalancing ⚖️
+        **Problem:** Portfolio drifts from targets over time  
+        **Solution:** Rebalance quarterly or when drift >5%
+        
+        #### 7. Following Tips 📢
+        **Problem:** Acting on rumors/tips/hot stock recommendations  
+        **Solution:** Do your own research, use systematic approach
+        
+        #### 8. Ignoring Risk 🎲
+        **Problem:** Only looking at returns, not volatility  
+        **Solution:** Always check risk metrics (volatility, drawdown, VaR)
+        
+        #### 9. No Emergency Fund 🚨
+        **Problem:** Forced to sell during emergencies at worst time  
+        **Solution:** Keep 6 months expenses in liquid funds first
+        
+        #### 10. Overconfidence 💪
+        **Problem:** Thinking you can beat professionals consistently  
+        **Solution:** Use proven frameworks like MPT, stay humble
+        
+        ### Golden Rules for Success
+        
+        1. **Diversify** across stocks and sectors
+        2. **Rebalance** regularly (quarterly or semi-annually)
+        3. **Stay disciplined** during volatility
+        4. **Focus on process**, not short-term outcomes
+        5. **Keep learning** and adapting
+        6. **Control costs** - fees and taxes matter
+        7. **Have patience** - wealth compounds over time
+        8. **Know yourself** - match investments to risk tolerance
+        """)
+    
+    # Additional Resources
+    st.markdown("---")
+    st.markdown("## 📖 Additional Learning Resources")
+    
+    col1, col2 = st.columns(2)
+    
+    with col1:
+        st.markdown("""
+        ### 📚 Recommended Books
+        
+        **For Beginners:**
+        1. "A Random Walk Down Wall Street" - Burton Malkiel
+        2. "The Intelligent Investor" - Benjamin Graham
+        3. "Common Sense on Mutual Funds" - John Bogle
+        
+        **For Intermediate:**
+        4. "Common Stocks and Uncommon Profits" - Philip Fisher
+        5. "One Up On Wall Street" - Peter Lynch
+        6. "The Little Book That Builds Wealth" - Pat Dorsey
+        
+        **For Advanced:**
+        7. "Security Analysis" - Graham & Dodd
+        8. "Margin of Safety" - Seth Klarman
+        9. "The Most Important Thing" - Howard Marks
+        
+        ### 🎓 Online Courses
+        
+        - **Coursera:** Investment Management Specialization
+        - **Khan Academy:** Finance & Capital Markets (Free)
+        - **NSE Academy:** Free Certification Courses
+        - **Zerodha Varsity:** Free Indian Market Education
+        """)
+    
+    with col2:
+        st.markdown("""
+        ### 🏛️ Regulatory & Official Sources
+        
+        **Regulatory Bodies:**
+        - [SEBI](https://www.sebi.gov.in) - Securities regulator
+        - [RBI](https://www.rbi.org.in) - Reserve Bank of India
+        - [NSE](https://www.nseindia.com) - National Stock Exchange
+        - [BSE](https://www.bseindia.com) - Bombay Stock Exchange
+        
+        **Market Data & News:**
+        - [Moneycontrol](https://www.moneycontrol.com)
+        - [Economic Times Markets](https://economictimes.indiatimes.com/markets)
+        - [Bloomberg Quint](https://www.bloombergquint.com)
+        - [LiveMint](https://www.livemint.com)
+        
+        ### 🔧 Useful Tools
+        
+        - **Screener.in** - Stock fundamentals analysis
+        - **TradingView** - Charts and technical analysis
+        - **Investing.com** - Global market data
+        - **ValueResearch** - Mutual fund analysis
+        """)
+    
+    st.markdown("---")
+    
+    # Glossary
+    st.markdown("## 📝 Investment Glossary")
+    
+    with st.expander("Common Terms Explained"):
+        st.markdown("""
+        **Alpha:** Excess return beyond market benchmark  
+        **Beta:** Measure of volatility relative to market  
+        **Correlation:** Relationship between two assets (-1 to +1)  
+        **Diversification:** Spreading risk across multiple investments  
+        **Efficient Frontier:** Set of optimal portfolios  
+        **FMCG:** Fast-Moving Consumer Goods  
+        **Market Cap:** Total value of company (price × shares)  
+        **NIFTY 50:** India's benchmark index of top 50 companies  
+        **P/E Ratio:** Price-to-Earnings ratio (valuation metric)  
+        **Portfolio:** Collection of investments  
+        **Rebalancing:** Adjusting portfolio back to target weights  
+        **Risk-free Rate:** Return on safest investment (G-Sec)  
+        **Sharpe Ratio:** Risk-adjusted return measure  
+        **Volatility:** Measure of price fluctuation  
+        **Yield:** Income return on investment
+        """)
+    
+    st.markdown("---")
+    
+    # FAQ
+    st.markdown("## ❓ Frequently Asked Questions")
+    
+    with st.expander("How much should I invest?"):
+        st.markdown("""
+        **General Guidelines:**
+        - Start with what you can afford to lose
+        - Have 6 months emergency fund first
+        - Don't invest money needed within 3-5 years
+        - Typical: 10-20% of monthly income
+        
+        **Portfolio Size Recommendations:**
+        - Minimum: ₹10,000 (for diversification)
+        - Comfortable: ₹50,000+ (better diversification)
+        - Optimal: ₹2,00,000+ (full benefits)
+        """)
+    
+    with st.expander("How often should I rebalance?"):
+        st.markdown("""
+        **Rebalancing Frequency:**
+        - **Quarterly:** Good balance (recommended)
+        - **Semi-annually:** Acceptable for most
+        - **Annually:** Minimum frequency
+        
+        **Trigger-based:**
+        - When any position drifts >5% from target
+        - After major market moves (>10%)
+        - When adding new capital
+        
+        **Cost Considerations:**
+        - More frequent = higher transaction costs
+        - Less frequent = more drift from optimal
+        """)
+    
+    with st.expander("What's a good Sharpe ratio?"):
+        st.markdown("""
+        **Sharpe Ratio Benchmarks:**
+        - **< 0:** Worse than risk-free rate (bad)
+        - **0-1:** Positive but sub-optimal
+        - **1-2:** Good risk-adjusted returns ✅
+        - **2-3:** Very good performance
+        - **> 3:** Exceptional (rare, verify data)
+        
+        **Context Matters:**
+        - Compare to market benchmark (NIFTY ~1.0)
+        - Higher risk tolerance = can accept lower Sharpe
+        - Lower risk tolerance = need higher Sharpe
+        """)
+    
+    with st.expander("How do I handle market crashes?"):
+        st.markdown("""
+        **During a Crash:**
+        1. **Don't panic sell** - worst decision
+        2. **Review fundamentals** - has anything changed?
+        3. **Check diversification** - is portfolio balanced?
+        4. **Consider buying** - if you have cash (buy low)
+        5. **Stick to plan** - trust your strategy
+        
+        **Preparation:**
+        - Know your maximum drawdown tolerance
+        - Have emergency fund separate
+        - Don't check portfolio daily
+        - Remember: markets recover (historically)
+        
+        **Historical Perspective:**
+        - Markets always recovered from crashes
+        - Average recovery time: 1-3 years
+        - Those who stayed invested won
+        """)
+    
+    st.markdown("---")
+    
+    # Final Tips
+    st.markdown("## 💡 Final Tips for Success")
+    
+    col1, col2, col3 = st.columns(3)
+    
+    with col1:
+        st.markdown("""
+        **Mindset:**
+        - Think long-term (5+ years)
+        - Control emotions
+        - Stay disciplined
+        - Keep learning
+        """)
+    
+    with col2:
+        st.markdown("""
+        **Strategy:**
+        - Diversify properly
+        - Rebalance regularly
+        - Control costs
+        - Review quarterly
+        """)
+    
+    with col3:
+        st.markdown("""
+        **Risk Management:**
+        - Know your tolerance
+        - Set stop-losses
+        - Have emergency fund
+        - Don't overtrade
+        """)
+    
+    st.markdown("---")
+    
+    st.success("""
+    💡 **Remember:** Successful investing is a marathon, not a sprint. 
+    Use this tool to make informed decisions, but always consult a qualified financial advisor 
+    for personalized guidance. Happy investing! 📈
+    """)
+    
+    # Footer
+    st.caption("For more help, visit other pages: Home | New Portfolio | Rebalance | Risk Analysis | Market Insights | Settings")
+
+if __name__ == "__main__":
+    main()