Puisa Kotha Hunibo? I Tested AI to Assess my Portfolio

The interesting part about AI and money is that it can already do many things that once required hours of research. It can explain mutual funds, compare investment options, calculate loan costs, build a budget and simplify complicated financial terms. So, will AI become your financial advisor?

AI is extremely useful for research. Suppose you are considering a home loan. You can ask it to explain fixed and floating rates, calculate your EMI at different rates, compare tenures and even suggest questions to ask the bank. The same applies to investments. It can explain SIPs, index funds, taxation and asset allocation, and help you organise your finances.

But there is a catch. AI works largely with information and patterns that already exist. It can analyse the past and use that information to produce an answer, but the future may look very different from the past. Think of it like driving while looking only at the rear-view mirror. The mirror is useful, but you cannot drive safely by looking only at what is behind you.

I experienced this myself when I used AI to analyse my investment portfolio. It was able to assess most of my holdings, but when it came to some newer funds and ETFs, it could not give them a score. The reason? There wasn’t enough historical data.

And that is the limitation. What happens when something is new, a new fund, a new business model, a new technology or a new opportunity? There may not be enough history to analyse.

There is another concern. AI can sound very confident while being wrong. Tax rules change, financial products change and markets are unpredictable. A beautifully written answer is not proof that the answer is correct.

AI can give you an answer and even recommend what it thinks you should do. But when things go wrong, who are you going to hold accountable? Who takes responsibility for the consequences of that decision? That matters even more when the decision involves your health, your legal rights or your money.

Your finances are not just numbers. They involve your family, your goals, your risk tolerance, your career and your peace of mind. AI can process data, but it does not truly live your life. So use AI as a research assistant, not a financial guru. Let it help you learn, compare, calculate. But verify important information, use human judgment, and make the final decision yourself.

And when it comes to money, that’s exactly where Moneybar comes in, because your money deserves more than an AI-generated answer.

The original published article can be found at : I Tested AI to Assess my Portfolio