AI and Portfolio Management

Le résumé fourni par la source

Portfolio management is one of the important functions of financial management which includes critical decision-making based on various factors such as historical price data, Economic indicators (inflation, deflation, GDP, etc.), company fundamentals (Earnings, Balance sheet, P&L, etc.), Market sentiment and people perception. Artificial intelligence (AI) has emerged as an efficient tool for portfolio management. AI uses sensitive analysis, text recognition, etc. in predicting future downturns, and upturns in various sectors thereby enabling investors and professionals to make informed decisions and reduce risk elements associated with the investment decisions. This chapter elaborates on how AI helps in the enhancement of various equations used in portfolio management by using algorithm data and considering several areas and factors within a fraction of a second. It also elaborates on how investment funds and asset management companies used AI and machine learning for risk mitigation and increasing the overall portfolio returns. In this chapter, various techniques used by AI have been discussed along with future predictions on AI.

Ce résumé expose les affirmations des auteurs. BNTIC ne l’interprète pas comme une validation indépendante des résultats.