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Applying artificial intelligence to the world of finance is all the rage, and a new investing platform is taking it to another level.
magnificent One of the first investment platforms to use ChatGPT and computer programs to provide personalized, data-driven investment advice. Not only does it answer investor questions in a human-like conversation, but it also monitors individual portfolios and guides users through market-swinging events like rate hikes and earnings reports. And a bonus – it acts like a brokerage where you can trade stocks and ETFs directly.
“It’s the co-pilot of the autonomous investor,” Magnifi founder Vinay Nair said in an interview. “Today, brokerages have democratized access to trading and markets, but they lack intelligence and they lack user personalization. Magnifi is trying to democratize intelligence in a personalized way.”
As artificial intelligence continues to make breakthroughs, Wall Street is increasingly curious about how the technology could disrupt the asset management business. The world’s hottest artificial intelligence tool, ChatGPT, may have the potential to improve investment decisions, according to a recent preliminary study.
To see how Magnifi is doing and how it stacks up against professional advisors, I asked it a few different questions.
First, I asked the question “Which stocks would Warren Buffett buy?” It’s back with an explanation of his value investing principles and the “Oracle of Omaha’s” biggest holdings, Bank of America, apple and Coca Cola.
The system is then able to compare the returns and volatility of the three stocks over the past year.
Second, I wanted to see how Magnifi would help me through earnings season.I asked it what would happen in a hypothetical situation amazon Hold when the e-commerce retailer reports earnings.
The bot showed me Wall Street analysts’ earnings forecasts and Amazon’s track record over the past few quarters.
Finally, I asked how rising rates would affect my imaginary portfolio, and the iShares 20+ Year Treasury Bond ETF is one of my holdings. It tells me that rising interest rates can negatively impact bond funds like TLT, and provides examples of historical performance in similar environments.
Many investors tend to ask general questions like “how do I get started?” Nair said. But the more users involved, the more information the system collects and the more personalized the answers it provides, the founders said.
The platform charges a flat fee of $14 per month, and Nair said his company doesn’t make money from payments for transactions or order flow.
“It’s a customer-centric model, and we have no incentive for them to do too many transactions, directly or indirectly,” Nair said.