Bard’s AI Portfolio Outperforms Top Australian Funds, Achieving 8.2% Gain in 3 Months
Recent research conducted by Finder, one of Australia’s premier comparison platforms, has shed light on the potential role of artificial intelligence (AI) in stock selection. In a comprehensive three-month assessment, AI-designed portfolios created by ChatGPT and Bard were pitted against the performance of Australia’s most esteemed investment funds.
Emerging as the clear winner, Bard surpassed both ChatGPT and the top 10 managed funds listed in Australia. Over the May to August 2023 period, Bard’s portfolio, consisting of 19 stocks with a strong focus on the technology sector, achieved an impressive average gain of 8.2%. In contrast, the top 10 managed funds reported an average increase of 6.3%, while ChatGPT’s portfolio showed a more modest average rise of 4.21%.
The research tasked ChatGPT and Bard with the challenge of creating stock portfolios that closely adhered to the investment strategies employed by Australia’s top 10 managed funds. ChatGPT curated a diversified portfolio featuring 23 stocks primarily sourced from the United States, with additional stocks from Australia, the UK, and parts of Asia. Bard, on the other hand, primarily derived its portfolio from the US, with a strong emphasis on the technology sector.
To assess performance, the benchmark used included the ten most popular actively managed listed funds on the ASX, determined by their assets under management. Notably, while some of these funds individually outperformed the competitor portfolios, the combined average performance of all ten funds fell short of Bard’s outstanding performance.
Kylie Purcell, an investment expert at Finder, highlighted the current financial landscape in Australia, where rising costs and fluctuating interest rates have left many feeling financially strained. In light of this, she encouraged Australians to reassess their financial strategies, emphasizing the potential benefits of redirecting funds into the stock market. Purcell underscored the importance of continuing to invest during challenging times, as passive income becomes increasingly vital to counter the impact of inflation on household budgets.
Purcell concluded by noting the importance of building a strong financial foundation during tough times, as it cultivates the discipline necessary to navigate more favorable financial conditions in the future. She emphasized the enduring value of prudent financial planning and strategic investment in an ever-evolving economic landscape.
While it’s important to acknowledge that passive index funds are popular in Australia, they were excluded from the research as they simply aim to mimic the market rather than outperform it. The study focused on funds that offer stock portfolios and excluded any single industry thematic funds for a fair comparison.
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In conclusion, the research conducted by Finder demonstrates the potential of AI-designed portfolios in outperforming traditional investment funds. Bard’s impressive gain of 8.2% over a three-month period highlights the capabilities of AI in stock selection, particularly in the technology sector. As Australians navigate challenging financial times, strategic investments guided by AI could provide a pathway to achieving financial goals and countering the impacts of inflation.
