Industry experts believe that AI is re -shaping the investment strategies, but remains a tool to complement human expertise rather than replacing it.
Fund management
Managing partner Brijesh Damodaran at Auxano Capital said how AIF is taking advantage of AI to improve efficiency and decision making.
âAI tools simplify investment tracking, provide real -time market updates, and provide performance analysis. This enables fund managers to make more informed decisions, âhe said.
The AI-operated data analysis helps fund managers to monitor the portfolio with greater accuracy, automate repetitive tasks and identify investment trends more effectively.
Asset allocation and risk evaluation
In asset allocation and risk evaluation, AI processes large dataset, including income reports, financial statements and market spirit from news and social media.
“By identifying hidden patterns and correlations, AI helps AIF assess risks more effectively and highlight market trends,” Damodaran said.
The ability to analyze large amounts of unnecessary data of AI allows fund managers to evaluate potential investment with deep insight, leaving the risks associated with volatility and market ups and downs.
Aye in hedge funds
Hedge funds within the AIF segment are using AI for algorithm trading and market predictions.
Damodaran said, “AI-managed quantitative strategies analyze extensive financial data to identify business signals and patterns that can ignore human analysts.”
By improving the future accuracy, AI-run strategies refine the trading algorithms, increasing the business results.
The automation of trading strategies also enables hedge funds to rapidly change market and emerging opportunities.
AI as a growth tool, not a replacement
While AI plays an important role in modern fund management, this is unlikely to change the human fund managers perfectly. “At this point, AI serves as a support tool rather than replacement,” Damodaran insisted. “AI enhances the capabilities of the fund managers by providing data-powered insights and by automating regular tasks, allowing them to focus on strategic decision making.”
Human elements are important in explaining AI-related insights, understanding the dynamics of the complex market and making decision-based investment decisions.
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(Tagstotransite) Alternative Investment Fund (T) Alternative Investment Fund Bharat (T) Artificial Intelligence
