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ChatGPT Will Propel Mutual Funds in Five Scenarios

Mar 07-2023   



Will ChatGPT take the role of mutual fund managers in making investment decisions? The chat robot itself repudiates such a prospect, admitting its inability to consider a wider range of factors, according to a media commentary by Huang Zhuo, Associate Professor of the NSD, and Shen Shaowei, Chief Fund Investment Analyst of Fullgoal Fund. Nevertheless, the two authors identified five scenarios in which ‘generative AI’ will be of use for the mutual fund industry.

 

Fluctuations in the markets have given rise to an increasing amount of client complaints and after-sales requests for mutual funds. Currently, many companies outsource customer service to slash costs but have to grapple with lengthy personnel training time. It is likely that ChatGPT will be tasked with ‘smart customer services’ to improve after-sales services and better address client queries.

 

Another scenario might see ChatGPT leveraging AI-Generated Content (AIGC) to assist mutual fund companies in formulating tailor-made, differentiated marketing plans to achieve better branding and wider product reach. The authors expect more lively and appealing marketing campaigns that incorporate visuals, music, videos and 3D interactive content.

 

Some mutual fund companies have been streaming on social media to spread financial knowledge, a trend that ChatGPT is set to accelerate, said the two authors. Virtual hosts powered by ChatGPT will be able to offer round-the-clock investment services to clients. Compared with human hosts, they will be free of time constraints, does a better job at luring young investors, and be tuned to be more rational and stable so as to steer away from compliance concerns and negative exposure.

 

ChatGPT shall also help improve investment and consulting services of mutual funds, wrote the authors. As an ‘intelligent consultant’, ChatGPT can keep investors updated with what’s happening in the marketing, and match investors’ risk preferences and investment characteristics with product investment strategies, thereby assisting investors to be more rational in investment. In addition, as an ‘intelligent sales assistant’, ChatGPT can offer individually targeted advice to sales personnel and wealth managers so that they can improve their professionalism and competence.

 

Furthermore, fund managers can use ChatGPT to do data analysis and uncover more perspectives for identifying high-quality investment targets. In fact, some analysts have started to apply ChatGPT to drafting industry research reports. As large-scale language model (LLM), ChatGPT can be harnessed to do programming, searching, and brainstorming; it can also derive statistics on market sentiment changes from breaking news or conduct vertical and horizontal comparisons of industries and companies through crunching historical data.

ChatGPT Will Propel Mutual Funds in Five Scenarios

Mar 07-2023   



Will ChatGPT take the role of mutual fund managers in making investment decisions? The chat robot itself repudiates such a prospect, admitting its inability to consider a wider range of factors, according to a media commentary by Huang Zhuo, Associate Professor of the NSD, and Shen Shaowei, Chief Fund Investment Analyst of Fullgoal Fund. Nevertheless, the two authors identified five scenarios in which ‘generative AI’ will be of use for the mutual fund industry.

 

Fluctuations in the markets have given rise to an increasing amount of client complaints and after-sales requests for mutual funds. Currently, many companies outsource customer service to slash costs but have to grapple with lengthy personnel training time. It is likely that ChatGPT will be tasked with ‘smart customer services’ to improve after-sales services and better address client queries.

 

Another scenario might see ChatGPT leveraging AI-Generated Content (AIGC) to assist mutual fund companies in formulating tailor-made, differentiated marketing plans to achieve better branding and wider product reach. The authors expect more lively and appealing marketing campaigns that incorporate visuals, music, videos and 3D interactive content.

 

Some mutual fund companies have been streaming on social media to spread financial knowledge, a trend that ChatGPT is set to accelerate, said the two authors. Virtual hosts powered by ChatGPT will be able to offer round-the-clock investment services to clients. Compared with human hosts, they will be free of time constraints, does a better job at luring young investors, and be tuned to be more rational and stable so as to steer away from compliance concerns and negative exposure.

 

ChatGPT shall also help improve investment and consulting services of mutual funds, wrote the authors. As an ‘intelligent consultant’, ChatGPT can keep investors updated with what’s happening in the marketing, and match investors’ risk preferences and investment characteristics with product investment strategies, thereby assisting investors to be more rational in investment. In addition, as an ‘intelligent sales assistant’, ChatGPT can offer individually targeted advice to sales personnel and wealth managers so that they can improve their professionalism and competence.

 

Furthermore, fund managers can use ChatGPT to do data analysis and uncover more perspectives for identifying high-quality investment targets. In fact, some analysts have started to apply ChatGPT to drafting industry research reports. As large-scale language model (LLM), ChatGPT can be harnessed to do programming, searching, and brainstorming; it can also derive statistics on market sentiment changes from breaking news or conduct vertical and horizontal comparisons of industries and companies through crunching historical data.