Is AI set to reserve the decline of active managed funds?

ISS Market Intelligence's ‘State of the Market: Future of Retail Products’ report, covering the 2023-2027 outlook for long-term funds in the US, estimates that passive funds will account for more than 50% of assets under management by 2027, and active funds share of assets will decline from 53% to 44%. A review of the ten best performing investment strategies over the last decade highlights that four of the top ten strategies were passive strategies i.e., index funds. So you can see why institutions wish they had invested in Bitcoin a decade ago! But, more on that topic in future editions of Digital Bytes….

Best investment strategies in last ten years

Source: This is money

Meanwhile, a fictional fund, selected by using Artificial Intelligence (AI), invested in 36 equites and picked Meta (up 30%), Microsoft (up 20%) and Intel (up 18%). The same portfolio has risen in value by 4.7% (excluding costs) in the last two months compared to the average of UK’s 10 most popular funds, which have co…