AgPa #21: AI-Powered vs. Human Funds
Do AI-Powered Mutual Funds Perform Better? (2022)
Rui Chen, Jinjuan Ren
Finance Research Letters, Volume 47, Part A, URL/SSRN
This week’s AGNOSTIC Paper compares the performance of AI-powered- and human mutual funds between 2017 and 2019 in the US. Although AI-powered funds are not the holy grail some investors may have hoped for, they still added value compared to their human peers…
- AI-powered mutual funds did not outperform the US market
- But AI-powered funds outperformed their human peers
- And AI-powered funds avoided the disposition- and rank effect