Is the future of the stock market in AI? ChatGPT outperforms leading UK fund managers

In its latest feat, a basket of stocks selected by chatgpthas outperformed some of the most popular investment funds in the United Kingdom.

Financial comparison site Finder.com revealed that between March 6 and April 28, a dummy portfolio of 38 stocks gained 4.9%, while 10 leading investment funds posted an average loss of 0.8%.

Finder.com also reported that during the same eight-week period, S&P 500 The index, which tracks the 500 most valuable companies in the United States, rose 3%. Europe’s counterpart, the Stoxx Europe 600 index, ticked up 0.5% in that time.

A typical investment fund pools money together from a number of investors, and is overseen by a fund manager who decides how to invest that money.

Finder’s analysts took 10 of the most popular UK funds on trading platform Interactive Investor as a benchmark to assess the performance of ChatGPT-generated funds. Those selected included funds managed by HSBC (HSBC) and Fidelity.

analysts asked chatgpt To select stocks based on some commonly used criteria, including choosing companies with low levels of debt and a track record of growth. Selected companies include Microsoft (MSFT), Netflix (NFLX) and Walmart (WMT).

While major funds have used AI for years to support their investment decisions, ChatGPT puts the technology in the hands of the general public with the potential to guide the decisions of retail investors.

A survey of 2,000 UK adults conducted last week by Finder showed that 8% have already used ChatGPT for financial advice, while 19% said they would consider doing so.

Yet a whopping 35% said they would not consider using a chatbot to help them make decisions about their money.

Can ChatGPT predict stock-price movements?

Last month, researchers at the University of Florida found that ChatGPT could more accurately predict the stock price movements of specific companies than some more basic analysis models.