Role of Artificial Intelligence in Wealth Management through Investment in Mutual Funds

Major Assignment - Research report
MAF702 Financial Markets 2018

TABLE OF CONTENTS
ABSTRACT...............................................................................................................................3
Introduction................................................................................................................................3
Research topic........................................................................................................................3
Background of the study........................................................................................................3
Research aim..........................................................................................................................4
Research questions.................................................................................................................4
The significance of the study.................................................................................................4
Structure.................................................................................................................................4
Literature review........................................................................................................................5
Role of artificial intelligence in wealth management............................................................5
Methods and technologies used for investment decisions in mutual funds...........................6
Mutual funds managed by artificial intelligence....................................................................7
Sprott BUZZ Social Media Insights ETF...........................................................................8
The Global X Robotics & Artificial Intelligence ETF (BOTZ).........................................9
ARK Industrial Innovation ETF.........................................................................................9
Robo Global Robotics and Automation Index...................................................................9
Benefits of the introduction of artificial intelligence in wealth management through
investment in mutual funds....................................................................................................9
Methodology............................................................................................................................10
Research design....................................................................................................................10
Data collection.....................................................................................................................10
Data analysis........................................................................................................................11
Findings and conclusion...........................................................................................................11
References................................................................................................................................14

ABSTRACT
The main objective of the Artificial intelligence is to increase the accuracy and efficiency
which are performed by the human being. Due to the efforts of the external elements and the
enhancement of the technology, AI is implemented in the various era. However, the
application of the AI in the finance leads to challenging in the future. This study provides an
overview of AI applications in mutual funds for wealth creation, particularly in financial
industry and reveals the essential technology and particular parts. The role of the computer is
very vital in the matter of the investing. Artificial intelligence can be implemented for
program trading along with the other phases of investing. The study made use of thematic
analysis in order to determine the Role of artificial intelligence in wealth management
through investment in mutual funds. The technique of artificial intelligence involves the
knowledge-based, machine learning and natural language processing. Identification of the
data, valuation of assets, and management of the risk are required for investing. The study
concludes that Artificial intelligence technique put on the various aspect of the investing, as it
can focus on the credit risk assessment as well as through the machine learning technique, it
could emphasis on the stock valuation. AI has been extensively implemented in the area of
risk management, compliance, trading in security and monitoring, along with this it also
extended to the customer relationship management (CRM). Adopting the AI is very
beneficial, as it assists in risk reduction that can be occurred due to fraud, provides the new
opportunity to the customer by which revenue increase, reducing the fine from the non-
compliance and prevented securities trade exception, if not perceived, will lead to delay on
the settlement.
INTRODUCTION
Research topic
Role of artificial intelligence in wealth management through investment in mutual funds.
Background of the study
Robotics and Artificial intelligence can be stated as the forefront of advanced technology
which exhibits a significant transformational “megatrend” or an innovative industrial
revolution. The pace in which technology is changing and thus the same as having a major
impact on various organizations as well as in few organizations it can be seen that it’s just an

initiate of change (Lee and Lee, 2015). Investors might be interested in analyzing the long-
term potential of these technological breakthroughs in order to predict profitability and
opportunities in same. Present report revolves around the analysis of technology relating to
Artificial Intelligence (Brynjolfsson, Rock and Syverson, 2017). A detailed analysis of the
application of artificial intelligence is done in various segments comprising mutual funds,
equities and other securities.
Research aim
The aim of the study is to assess all the perspectives of artificial intelligence relating to
wealth management in order to assess the opportunities available to one through its
application. Further, the other side of the study, i.e. the challenges as well as the limitation of
artificial intelligence has also been analyzed in order to conclude the negative side of same.
Research questions
 What is the role of artificial intelligence in wealth management?
 What are the mutual funds managed by artificial intelligence?
 What are the significant limitations and future scope of artificial intelligence in mutual funds
investment management?
The significance of the study
Following research, the topic has been considered for analysis because of the increasing
significance of artificial intelligence in the commercial world. With the improvisation and
development of technologies, it has been noticed that various financial institutions are
making use of artificial intelligence in making investment decisions. Therefore, for a better
understanding of subject matter present study aims to evaluate the role of artificial
intelligence in wealth management through investment in mutual funds.
Structure
The conducted study primarily covers the following chapters:
Introduction: This part of the study shows the background and significance of the conducted
research.
Literature review: This section covers viewpoint of research scholars regarding the use and
significance of artificial intelligence in the management of mutual funds.
Methodology: This part of the study covers research methodologies applied to draw valid
findings and conclusion.