Al in Equity Investing and Portfolio Management Services

Abstract

Artificial Intelligence has been transforming every sphere of our lives. It reinvents our point of view towards how we analyze huge amounts of data to draw useful insights that drive prudent decision making. One such area where Al has been repainting the global scenario is in Investing and _ Portfolio Management Services. Mathematical modelling and complex algorithm based trading strategies have been long used for portfolio management. Perhaps the most notable personality related to the same is hedge fund managzr Jim Simons and his company Renaissance Technology’s “Medallion Fund”. Founded in 1988 by mathematician Jim Simons, the Medallion Fund has’ generated 62% annualized returns for its investors and has become synonymous with the idea of using mathematical models and algorithms to trade in financial markets. Al allows portfolio management service providers to create portfolios as per the required rate of return guided by the investment policy statement (IPS) which captures various aspects of an investor’s profile such as investment horizon, liquidity requirements and risk tolerance.