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If you own stock index funds, you're invested in AI. There may be better ideas.

By Sophie Hawthorne
Published in Investing
May 26, 2023
1 min read
If you own stock index funds, you're invested in AI. There may be better ideas.

As investors, we all want to put our money in the right place so that it can grow. According to a recent article by CNN, if we own stock index funds, we are already invested in artificial intelligence (AI). Index funds are mutual funds or exchange-traded funds that are made up of a portfolio of stocks that track a particular market index. Since AI stocks are present in a majority of market indexes, we are already investing in AI without even realizing it.

While that may seem like a good thing, experts advise that we should invest our money in individual AI companies that are likely to have higher growth rates. Index funds provide a diversified investment, but the returns may not be as high as investing in individual companies.

However, investing in individual companies also comes with risks, as one bad investment can wipe out overall gains. It’s crucial to research companies before investing in them and to not put all one’s eggs in one basket.

Another important consideration is the ethical implications of investing in AI companies. Artificial intelligence is still in its nascent stages, and questions about its impact on society and job displacement are being raised. In the long run, it’s important to weigh the benefits of investing in AI against potential negative impacts.

In conclusion, investing in AI is no longer just a futuristic concept, but a present-day reality. As investors, we need to be aware of our exposure to AI through index funds, and weigh the benefits and risks of investing in individual AI companies. It’s important to keep a long-term horizon and invest in ethical AI companies that have proven growth rates to maximize returns and contribute to a better future.


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Sophie Hawthorne

Sophie Hawthorne

Freelance Writer

TitleFinTech Ideas: Reasons to Invest in Fin Technologies
June 28, 2023
1 min

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