Did you know that AI, which has been applied in various fields in recent years, is also being used in investment trusts?
With investment trusts, investment targets are determined by experts, so you may be concerned about costs and reliability.
Therefore, by using AI, it analyzes all kinds of information and provides asset management advice, making it possible to use it with confidence.
What is AI investment trust?
An investment trust is a product that combines money collected from investors into one large fund and is invested and managed in stocks, bonds, etc. by asset management experts.
With investment trusts, experts decide where to invest based on the investor’s investment amount, and the investment results are distributed.
Therefore, there is no need for investors to decide where to invest.
When AI is utilized in the aforementioned investment trusts, AI will take the place of investment experts.
By using AI-powered investment trusts, you can manage your assets while referring to advice from AI.
Advantages of using AI investment trust
There are two advantages of AI investment trusts:
- Able to make calm decisions
- no cost
I will explain each point.
Able to make calm decisions
The first advantage of AI investment trusts is that they allow you to make calm decisions.
Emotional trading can be avoided as AI provides operational advice.
Using machine learning and deep learning , you can quickly analyze huge amounts of data and make predictions.
AI advice reflects large-scale and detailed analysis results that were impossible with traditional human analysis.
Therefore, you can notice things that humans might miss, so you can invest in investment trusts with confidence.
no cost
The second advantage of AI investment trusts is that there are no costs.
Generally, investment trusts incur fees such as purchase fees and audit fees.
However, some AI investment trust services charge only management fees.
Depending on the product and investment method you choose, there are no labor costs, and costs can be kept lower than investment trusts.
How to choose an investment destination
Now let’s talk about general investment.
There are two ways to choose a recommended investment destination:
- Focus on familiar companies
- Focus on the company’s track record and business content
Focus on familiar companies
First, let’s take a look at the companies whose products and services we often use.
Then, think about what you like about the company and what it will look like in the future, and decide whether to invest in it.
Focus on the company’s track record and business content
Next, let’s examine the company’s underlying business content and performance.
After researching them, it is important to know what their strengths are and what their future business plans and direction will be.
In the process of researching a company’s performance, it’s a good idea to check items such as trends in sales and profits, and the company’s position in the industry.
Examples of investment trusts using AI
As an example of an investment trust that utilizes AI, we would like to introduce “Deep AI”, which is set up and operated by Asset Management One.
In addition, based on the model analysis results, a portfolio is constructed by combining text analysis such as news flow and fundamental analysis of individual companies at the discretion of the fund manager.
The future of AI investment trusts
Currently, many AI investment trusts and related products are on sale in Japan.
However, it is said that the penetration rate of AI investment trusts is low in Japan compared to other countries.
This is related to the doubts about reliability due to the fact that AI is not perfect, which was mentioned in the section on the disadvantages of AI investment trusts.
From now on, AI will be used in a variety of fields, and it is expected that trust in AI will increase.
Investment trusts that collect AI companies
Apart from AI investment trusts, there are other general investment trusts that only deal with AI companies.
Why not consider an investment trust that specializes in AI companies that have gained momentum in recent years?
The following are two investment trusts that collect recommended AI companies.
- Global AI Fund
- Nomura Global AI Related Stock Fund A Course
Global AI Fund
First, we will introduce the “Global AI Fund” set up and managed by Sumitomo Mitsui DS Asset Management.
As of November 2021, it is an AI investment trust that has grown four times in five years and has high expectations.
A distinctive feature is that the group of companies related to AI ( artificial intelligence ) is not limited to the technology sector (information technology and communication services).
Therefore, as AI permeates industries, we are expanding our investment scope.
We are also taking flexible measures as industries such as travel, dining out, and entertainment, which have been suspended due to the coronavirus pandemic, are moving toward resumption.
Nomura Global AI Related Stock Fund A Course
Next, we will introduce the “Nomura Global AI-related Stock Fund A Course” set up and managed by Nomura Asset Management.
The main investment target here is AI ( artificial intelligence ) technology-related stocks from around the world, including emerging countries.
When selecting stocks, we focus on research results in advanced AI technology from a global perspective.
Stocks are selected with a focus on profit growth, with a focus on stocks in AI-related fields that are expected to become more attractive as investments as AI technology becomes more practical.
In addition, as a general rule, we aim to reduce exchange rate fluctuation risk through currency hedging (including alternative hedges using currencies of developed countries, etc.).
summary
In this article, we introduced investment trusts that utilize AI and general investment trusts that collect only AI companies.
Similarly, AI continues to gain momentum in other industries as well.
It is predicted that AI will be used for even more things in the future.
