A ChatGPT-created Portfolio Has Outperformed Top UK Competitors
A theoretical stock portfolio consisting of 38 companies created by ChatGPT has outperformed the top 10 most popular funds in the UK. According to finance website Finder.com, the AI-powered fund generated almost 5% returns in only eight weeks. In contrast, the group of competing funds experienced a 0.78% loss within the same period. The AI model picked stocks using a range of investing principles and has outperformed real funds in 34 of the 39 market days.
The top-performing stocks:
- Meta
- Microsoft
- Intel Corporation
These three stocks generated roughly 30%, 20%, and 18% increases, respectively. In addition, the portfolio included other well-known companies such as Visa, Home Depot, Johnson & Johnson, Nvidia, and Netflix. The ChatGPT fund’s results pose an interesting question about the possibility of using AI-technology for investing research. While big funds have been using AI for years, the feasibility of the public using a rudimentary AI platform raises concern over this approach and its lack of market psychology intricacies.
Despite this, a recent survey conducted by Finder revealed that about 19% of UK adults said they would consider receiving financial advice from ChatGPT, and a further 8% said they were already doing so. In contrast, over a third of Brits stated they weren't sure what ChatGPT was altogether. With half of British investors using social media for investing advice, using AI could be a better option than relying on an unqualified source. However, as with any investing method, spending time researching via primary sources or a qualified advisor is the safer approach.
