Investing Updates : Millennials and Gen Z Are Using AI to Improve Their Investing—Should You?

Source : 

https://www.investopedia.com/millennials-genz-ai-investing-11717048

Apple Intelligence : 

• AI Adoption in Investing: Millennials and Gen Z are more likely to use AI for investing compared to other generations.

• AI Tools in Investing: AI tools for investing include robo-advisors, chatbots, and analytics engines.

• AI-Driven Investment Management: 41% of millennials and Gen Z would trust an AI assistant to manage their investments.

• AI Adoption in Investment: Millennials and Gen Zers are significantly more comfortable using AI tools for investment management compared to older generations.

• AI Usage in Personal Finance: A large percentage of Gen Zers and millennials utilize AI for managing personal finances, including saving, budgeting, and credit score improvement.

• AI-Powered Investment Tools: Retail investors have access to a variety of AI-enabled tools, such as robo-advisors, algorithmic trading bots, AI-powered ETFs, and AI assistants, to simplify the investment process.

• AI in Investment: AI tools like Kavout’s K Score use deep learning to analyze equities and investor sentiment.

• AI Benefits: AI can remove human error, process vast amounts of data, and provide personalized investment advice.

• AI Risks: AI models may struggle with unexpected market shifts, lack transparency, and pose data privacy concerns.

• AI in Personal Finance: AI is already being used in personal finance by Millennials and Gen Zers.

• AI-Powered Financial Tools: Robo-advisors, AI-powered ETFs, and AI research assistants are available for financial management.

• Limitations of AI in Finance: AI should complement, not replace, sound financial judgment.

Investing Updates : Syfe Downside Protected S&P 500 Portfolio

https://www.theedgesingapore.com/news/funds/syfe-launches-worlds-first-downside-protected-sp-500-portfolio-singapore

OpenAI

Syfe has introduced the world's first Downside Protected S&P 500 portfolio in Singapore. This portfolio aims to mitigate losses using ETFs with option strategies, providing various protection levels while allowing for potential gains. Investors can access protection starting from a 3.3% estimated maximum loss and gains up to 12.4%, with no lock-in periods. Syfe's CEO, Dhruv Arora, highlights this as a solution to navigate volatile markets and encourage new investors who are cautious about risk.

The Syfe Downside Protected S&P 500 portfolio is generally well-received by risk-averse investors. It offers a blend of downside protection (capping losses) and limited upside potential. Investors appreciate it for its ability to reduce market volatility while still capturing some gains from the S&P 500. However, concerns include the cap on returns and the risk of currency fluctuations since it's denominated in USD. It’s viewed as a good fit for conservative investors seeking market exposure with protection from large losses. 

My Thoughts

• Interesting product. If it existed 10 years ago, I might have hopped on to it.

• For DIY investors, it's not quite relevant since we manage risk actively.

• Every product innovation is good. It encourages competitiveness and can bring awareness on financial markets.