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Do AI-powered mutual funds perform better?
Chen, Rui; REN, Jinjuan
2022-06
Source PublicationFinance Research Letters
ABS Journal Level2
ISSN1544-6123
Volume47Issue:Part APages:102616
Abstract

We evaluate the performance of artificial intelligence (AI)-powered mutual funds. We find that these funds do not outperform the market per se. However, a comparison shows that AI-powered funds significantly outperform their human-managed peer funds. We further show that the outperformance of AI funds is attributable to their lower transaction cost, superior stock-picking capability, and reduced behavioral biases.

KeywordArtificial Intelligence Mutual Fund Performance Behavioral Biases
DOI10.1016/j.frl.2021.102616
URLView the original
Indexed BySSCI
Language英語English
Funding ProjectThe Influence of Suppressed Short-Sale Demand on Asset Pricing and Corporate Decisions
WOS Research AreaBusiness & Economics
WOS SubjectBusiness, Finance
WOS IDWOS:000821879600029
PublisherScienceDirect
Scopus ID2-s2.0-85121294373
Fulltext Access
Citation statistics
Document TypeJournal article
CollectionDEPARTMENT OF FINANCE AND BUSINESS ECONOMICS
Faculty of Business Administration
Corresponding AuthorREN, Jinjuan
AffiliationUniversity of Macau
First Author AffilicationUniversity of Macau
Corresponding Author AffilicationUniversity of Macau
Recommended Citation
GB/T 7714
Chen, Rui,REN, Jinjuan. Do AI-powered mutual funds perform better?[J]. Finance Research Letters, 2022, 47(Part A), 102616.
APA Chen, Rui., & REN, Jinjuan (2022). Do AI-powered mutual funds perform better?. Finance Research Letters, 47(Part A), 102616.
MLA Chen, Rui,et al."Do AI-powered mutual funds perform better?".Finance Research Letters 47.Part A(2022):102616.
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