Portfolio Diversification in a New Era of Financial Markets
Portfolio Diversification in a New Era of Financial Markets

Author(s): Rosa Galvão, Rui Dias, Cristina Palma, Paulo Alexandre, Sidalina Gonçalves
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Artificial intelligence; Fintech; Portfolio rebalancing
Summary/Abstract: The main purpose of this study is to understand the movements between Fintech and AI stock indices, namely the Global Fintech, Artificial Intelligence & BigData Index (IAIQ), Blockchain Index (ILEGR), Disruptive Technology Index (IDTEC), in order to understand whether they behave as diversifying assets for India’s main stock index (Nifty 50). The results show no evidence that the Fintech and Artificial Intelligence (AI) stock indices, as well as other related indices such as Blockchain and Disruptive Technology, behave as diversifying assets concerning India’s main stock index, the Nifty 50, during the period from January 2020 to January 2024. In conclusion, investors should adopt a prudent approach when considering including these assets in their portfolios and seek effective diversification through a variety of assets and strategies.

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