The impact of AI in Investment Advisory Landscape
The investment landscape has evolved with the gradual shift in technology. From paper transactions to tech-enabled implementation, the financial industry has come a long way. AI in investing is about enabling investors to make smart data-driven decisions with their investments.
Investing in markets has never been this easy and quick. But do you know what causes the investors to lose money? investors lose money because they are not able to make informed decisions with their investments.
AI can help investors make the right decisions at the right time. The efficient use of AI will eliminate the guesswork that most of us do when it comes to buying and selling stocks. A traditional investment advisory has certain limitations when it comes to helping investors. So, let’s look at the limitations of an investment advisory and how AI outsmarts them.
- Financial advisors can handle limited information
An investment advisory firm can not chew more than it can eat. Their reach and size are limited. They can only handle a few cases no matter how many hours and days they work. Pouring over a set of data, financial models, and news information to create a portfolio for you is not an easy task. A lot of input about the market is needed to create a great portfolio. While a human can only work a certain number of hours in a week and analyze limited data.
- AI-driven investment advisory can do it better
The AI-backed financial advisory can analyze a large number of data points in a fraction of the time. With the help of big data, AI can sweep the available information on the internet and create an incredible portfolio that suits your needs and risk temperaments. In fact, our AI-backed All-Rounder creates a performance-driven portfolio consisting of multiple asset classes such as stocks, bonds, gold, and global indices.
Read more in details: Role of AI in Investing
- AI outperforms traditional monitoring systems
When an investment advisor is handling a portfolio, he might oversee certain subtle market shifts that can impact the returns on your investment. A traditional investment advisor cannot keep track of everything. While an AI can monitor the portfolio 24/7 and suggest rebalancing your portfolio when the market becomes volatile.
- Risk Management
Investing in the stock market is like treading the waters of unexplored oceans. You never know when the market will take a downturn or change its normal course. Traditional financial risk managers can only predict certain scenarios due to the limitations we already discussed above. At the same time, analyzing risks and creating a new portfolio or making changes to the existing one takes a considerable amount of time. While AI can manage risks effectively. Being at the advantage of analyzing huge data points, AI can see foresee certain market scenarios to help you make necessary changes in investments. Our AI-backed All-Rounder can also rebalance your portfolio during volatile times. Thereby, preserving your capital investment.
The Bottom Line
AI-backed portfolio can outperform human-centric investment advisory to a substantial degree. With AI, you have access to a diverse portfolio that can help you preserve your capital, while also providing you with higher returns. You can Invest in an AI-backed All-Rounder to create a multi-asset portfolio, that has delivered 30%* CAGR in the past 3 years. Its smart algorithm is back-tested for 5+ years and relies on data-driven decisions to preserve your capital while maximizing your returns.