Recent media reports have revealed that Chatbot, ChatGPT, powered by Artificial Intelligence (AI), has outperformed some of the most popular investment funds in stock selection.
In an experiment conducted by financial compilation site Finder.com between March 6 and April 28, a dummy portfolio of 38 stocks selected by ChatGPT gained 4.9 percent, while 10 major investment funds recorded an average decline of 0.8 percent.
Expectations of change in the business world
As a result, many experts are hopeful that the advent of ChatGPT will bring about a significant change in the business world. The diversified portfolio of funds designed by ChatGPT has provided better returns than stocks suggested by fund managers.
During the experiment, fund managers from HSBC and Fidelity Company were tested, while the Standard and Poor 500 Index (S&P 500 Index) registered a gain of 3 percent.
ChatGPT funds yield better returns
The experiment showed that the portfolio suggested by ChatGPT yielded better returns for investors compared to those suggested by fund managers. Consequently, it is expected that ChatGPT could challenge various tasks that require human intelligence in the future.
Fund managers typically select funds that can provide better returns to investors, but now ChatGPT has accomplished this task with excellent results. The funds selected by ChatGPT have given investors excellent returns.
Debt and Growth history play a significant role
The companies that ChatGPT advised investors to invest in had less debt and were focused on their growth history. These companies included major corporations like Microsoft, Netflix, and Walmart.
While investing based on ChatGPT’s advice is still relatively new, with its continued improvement in the future, it can provide better results than a human fund manager.
