To buy or not to buy? Retail investors often find themselves dealing with this dilemma when it comes to investing in stock markets. Especially in the current scenario, when the benchmark indices are trading at all time high levels and valuations have reached dizzying heights, there are a number of emotions investors are currently going through. There is fear of an impending correction at steep market cap-to-GDP and therefore, it is perhaps perplexing for many retail investors to be able to take the right decisions. In times like these, would you bank upon artificial intelligence to help you take such decisions?
On Kaise Bachahyen, Kaise Badhayen, our series of exploring how new age fin-tech startups are aiding in financial inclusion, we spoke to Atanuu Agarrwal, Co-founder of Upside AI, s a SEBI-registered portfolio management (PMS) start-up which uses machine learning to make fundamental investing decisions.
While sharing the thought behind launching the firm and Agarrwal said, “The company was founded on the belief that technology will make better decisions than humans over the long term since machines are unbiased and unemotional decision-makers. ”
He said that humans tend to make sub-optimal, irrational a lot and several studies show that herd mentality and loss-aversion often come in the way of portfolio returns.
He also said that technology and investing is not new when we see that in the US, top five hedge funds use some form of technology.
“For machine learning to work, we need clean data and stock markets are a great place to apply this technology. At Upside AI they use both fundamental analysis and machine learning. Our algo maps what the market is valuing toady dynamically and therefor selects the optimally the best investment options,” he said.
In the exclusive conversation on Money9 he also shares why he believes that artificial intelligence is the new Warren Buffett.
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