What is an AI investment trust?
An investment trust is a product in which money collected from investors is put together as a single large fund and invested and managed in stocks, bonds, etc. by an asset management expert.
In investment trusts, experts judge investment destinations according to the investor’s investment amount, and the investment results are distributed.
Therefore, investors do not have to decide where to invest.
When AI is used in the aforementioned mutual funds, AI will take the place of investment experts.
By using investment trusts powered by AI, you can manage your assets while referring to advice from AI.
Advantages of AI investment trust
The merits of AI investment trusts are the following two points.
- Able to make calm decisions
- no cost
I will explain each point.
Able to make calm decisions
One of the merits of AI investment trusts is the ability to make calm decisions.
Avoid emotional trading as AI provides operational advice.
Leverage machine learning and deep learning to quickly analyze vast amounts of data and make predictions.
AI advice reflects large-scale and detailed analysis results that were not possible with conventional human analysis.
Therefore, you can notice points that humans would miss, so you can invest in investment trusts with peace of mind.
No cost
The second advantage of AI investment trusts is that they do not incur costs.
General investment trusts charge fees such as purchase fees and audit fees.
However, some AI investment trust services only charge management fees.
Depending on the product and operation method you choose, it is possible to keep costs lower than investment trusts without labor costs.
How to choose an investment destination
Now let’s talk about general investment.
There are two ways to choose your investment destination.
- Focus on companies close to you
- Focus on company performance and business
Focus on companies close to you
Start by looking at companies whose products and services you use regularly.
Then, think about what you like about the company and what it might look like in the future, and decide whether to invest in it.
Focus on company performance and business
Next, let’s examine the business content and achievements that form the foundation of the company.
After researching them, it is important to know what your strengths are, and what your future business plan and direction will be.
In the process of investigating a company’s performance, it would be a good idea to check items such as trends in sales, profits, and its position in the industry.
Examples of investment trusts using AI
As an example of an investment trust that utilizes AI, we will introduce “Deep AI” set up and operated by Asset Management One.
Asset Management One substantially invests in global equities excluding Japan.
The feature of “Deep AI” is that it uses a deep learning model originally developed by Asset Management One to extract stocks that are judged to have relatively high investment attractiveness.
In addition, based on the analysis results of the model, the fund manager decides to combine text analysis such as news flow and fundamental analysis of individual companies to build a portfolio.
The future of AI investment trusts
Currently, many AI investment trusts and related products are sold in Japan.
However, it is said that the penetration rate of AI investment trusts is lower in Japan than in other countries.
This is related to doubts about credibility due to AI not being perfect, which was mentioned in the section on the disadvantages of AI investment trusts.
From now on, AI will be used in various fields, and it is expected that trust in AI will increase.
There is also an investment trust that collects AI companies
Apart from AI investment trusts, there are general investment trusts that only deal with AI companies.
In recent years, how about considering an investment trust that specializes in AI companies that are gaining momentum?
The following two investment trusts are a collection of recommended AI companies.
- Global AI Fund
- Nomura Global AI-related Equity Fund Course A
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 fourfold in five years and has high expectations.
The 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, we are expanding the scope of investment as AI permeates each industry.
We are also taking flexible measures in response to the resumption of industries such as travel, restaurants, and entertainment that were suspended due to the corona disaster.
Nomura Global AI-related Equity Fund Course A
Next, we will introduce the “Nomura Global AI-related Equity Fund Course A” set up and managed by Nomura Asset Management.
Here, AI ( artificial intelligence ) technology-related stocks around the world, including emerging countries, are substantial major investment targets.
In selecting stocks, we focus on the research results of advanced AI technology from a global perspective.
Stocks are selected with a focus on profit growth, centering on stocks in AI-related fields that are considered to be more attractive for investment as AI technology is put into practical use.
In addition, in principle, we aim to reduce the risk of exchange rate fluctuations by currency hedging (including alternative hedging 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.
In this way, AI has been actively used in the field of investment trusts in recent years.
Similarly, the momentum of AI is unstoppable in other industries as well.
