Are AI stocks a
good investment?
I’ve been investing in a unit trust for the past 10 years and I’m considering changing up my strategy in order to keep up with the current market environment. Would it be worth looking at AI stocks?
Jac De Wet, Wealth Manager, PSG Wealth, Somerset West, Cape Town
responds: Firstly, the unit trusts universe that is available to invest in is massive. Therefore, I assume an investment in a diversified SA unit trust portfolio to answer this question.
Secondly, there is a vast difference between unit trust investments and direct share investments. The former typically allows for wider choice and diversification (and subsequent reduced risks), and the latter typically is more concentrated (and perceived to be riskier), particularly when considering sector specific stock picks, like artificial intelligence (AI).
Thirdly, when
