Create your own AI generated investment portfolio

Artificial Intelligence is a game changer, and it’s only just begun to show what kind of impact it has in our world and how we create.

In the investing space, AI can be a useful and powerful tool. The ability to analyse vast amounts of data quickly and identify patterns that humans might overlook, is just one way AI can play a supporting role in your investment journey.

We’ve taken that a step further. We’ve launched AI functionality on the EasyEquities platform that allows you to generate your own investment portfolio called a “basket”, based on a theme or description of what you want to invest in.

This adds to the managed investments already on offer on EasyEquities, a concept driven by our community not knowing what to invest in. We are constantly addressing this need with educational resources and content, along with these products which provide investors with expertly constructed ready-made portfolios by asset managers. There has been good uptake in these products, with many wanting some portion of their portfolio managed. Currently there are over 32 000 people who have invested R498 Million into managed bundles, which are portfolios compiled and managed by asset managers. The new AI Basket functionality is an extension of this.  

It also offers an interactive educational experience, giving you the opportunity to engage with an AI-powered chatbot to learn more about the selection of companies picked for any particular basket and why they have been selected. In other words: You choose the theme, AI does the homework.

“This enables anyone to turn their ideas or interests into a flexible basket of stocks to invest in,” says EasyEquities Chief Product Officer, Almero Oosthuizen. “The EasyEquities AI Baskets allow users to prompt our AI engine with investment ideas that can be translated into actionable investment opportunities. AI can scan vast amounts of data, identifying trends, relationships, and potential opportunities that humans might miss. This can inspire new investment ideas beyond your usual scope.”

The project has been a collaboration between EasyEquities and Telescope AI, a leading API provider enabling publishers, brokers, and fund managers to leverage AI for finance. Telescope has partnered with a number of international brokers and fintechs, but EasyEquities is the first to launch publicly.

Luc Pettett Founder and CEO of Telescope says: "We began early prototypes of this technology in 2023 not long after GPT3.5 but today everything we do looks very different. In the early days an investor could really only get meaningful portfolios from prompts such as "electric vehicles", today you can prompt our systems with very complex scenarios, events, fact or fiction. There was a pivotal moment in 2023 when we realised our platform could really solve the overwhelming problem investors have; finding stocks for an idea they believe in. This was actually around the same time EasyEquities started working with us as one of our foundation clients."

Almero also sees this as another way to lower investment barriers and support investor education. “AI can recommend suitable investment options from a single prompt and provides a personalized approach to help investors navigate the vast universe of choices. This, coupled with our AI-powered chatbots and other educational resources, helps investors build a knowledge base before diving in.”

Luc adds that the AI baskets will help combat ‘investor paralysis', which he has experienced himself. “Sometimes you believe in an idea but spending hours on Google trying to find stocks is very overwhelming. Perhaps you like a theme such as "electric vehicles”, but you irrationally only pick the vehicle manufacturers; you don't know about the other beneficiaries. AI baskets help investors filter through this complex problem, and the investor has the ultimate choice on what they want to buy.”

The team had a lot of fun testing this feature. Even with the most arbitrary prompts, the AI engine was able to create an investment case with a selection of relevant stocks. When prompted with the description “potato chips” it was able to create a basket with relevant companies in the potato chip industry. This was the description it gave:

Potato chips are a staple snack food in the United States, with the average American consuming around 6 pounds per year. As health trends drive demand for better-for-you snacks, this presents an opportunity for companies innovating in the potato chip space with offerings like baked chips, veggie chips, and chips made from alternative vegetables. Companies able to capture shifting consumer preferences stand to gain market share in a $22 billion market. Investors should target companies leveraging proprietary technologies or capabilities in order to produce potato chips that deliver on taste while improving nutritional profiles. Chip manufacturers with strong brand equity and distribution have upside if they can translate their brand strength into better-for-you offerings. Emerging brands focused exclusively on healthier chips also warrant consideration, though their smaller scale makes growth tougher. The keys will be taste, health profile, and brand trust - companies able to deliver on all three will be best positioned to capitalize on rising demand for better snacks.

As much as these baskets are fun, they are safe too. The Telescope team and ensured that the AI system is programmed to filter out inappropriate content and in no way give financial advice.

“We’ve put significant work into developing guardrails at Telescope. Our systems are benchmarked across thousands of prompts to ensure they do not provide personal or subjective advice and are capable of rejecting inappropriate investment ideas. We’re committed to providing investors with reliable and compliant information,” he explains.

AI Baskets are free while the product is in Beta mode, however once out of Beta mode investing in an AI basket will cost you 250 credits, equivalent to R20. 

When a basket is generated you are presented with an equally weighted list of stocks, but you also have the option to adjust your investment based on market capitalization. This means that the investment can be proportionally distributed according to the market share held by each company, ensuring a diversified and market-size adjusted portfolio.

You can exclude certain stocks from this list too, with the AI updating the provided growth graphs in real time. These graphs serve as a visual aid to gauge potential investment performance. Moreover, the platform enriches the decision-making process by supplying a feed of real-time news articles. This feature allows you to become more acquainted with the companies in the list and to stay informed on current events and developments in the market.

How to access AI Baskets:

1. Make sure your USD account is funded. You can do this by transferring Rands from your ZAR Account into Dollars in your USD account via the My Funds tab.
2. Select the Invest Tab in the app or the Invest Now tab on Desktop.
3. Select My Investment, My Way.
4. Select Invest with AI Technology.
5. AI Baskets are free while the product is in Beta mode, however once out of Beta mode investing in an AI basket will cost you 250 credits, equivalent to R20. To create a basket you will need to have EasyCredits. You will be able to buy EasyCredits from this page directly if you don’t currently have any. 
6. Type in a description for the basket you would like to create.
7. You’ll be presented with a relevant selection of US shares, an investment thesis as to why the shares have been chosen, and the opportunity to ask questions about them with our AI chatbot.
8. You can then scroll down and on the bottom left of this screen where you will be shown your current US Account balance with which you can invest in the basket.