In the recent past, the advancements in technology and its widespread adoption have led to transformations in the stock trading landscape, and India’s financial markets are rapidly evolving. Artificial Intelligence, arguably the most disruptive technology in the twenty-first century so far, is playing a major role in this transformation. A number of online trading platforms such as Zerodha, Groww, Upstox, Shoonya by Finvasia, among others are providing users with AI-powered tools to enhance their trading experience and empower investors to make better decisions, manage portfolios and reduce costs.
Here are key trends related to AI in wealth management in India:
The Rise Of Robo-Advisory
Digital platforms that use AI to provide automated investment advice and portfolio management services are known as robo-advisors, and are becoming increasingly popular in India. The advanced AI-powered advisory offers investors a convenient and affordable way to invest their money.
Personalised Investment Advice
Artificial Intelligence being used to develop more personalised investment advice. This is possible as AI-powered tools can analyse a client’s financial situation, investment goals, and risk tolerance, and the results yielded from the analysis can be used to create a customised investment plans, enabling investors to seek better outcomes from their investments.
Improved Risk Management
Wealth managers are leveraging AI technology to develop better risk management tools. This is achieved through AI-powered recommendations that help identify potential risks to an investor’s portfolio, which further lead to identifying ways to mitigate them.
AI is being used to automate mundane tasks in wealth management, such as portfolio rebalancing and compliance checks. The power of automation lets managers free up their time and focus on more strategic tasks and services.
The potential impact of AI in wealth management and stock trading is enormous, and is helping people make better decisions, manage their portfolios more efficiently, while making stock trading more accessible for a wider range of investors and democratising India’s financial markets. This positive development for traders and investors indicates that the trend towards AI-powered wealth management is likely to accelerate in the coming years, driven by factors such as increasing availability of data, growing popularity of online trading, and a shortage of qualified financial advisors.