5 Ways Investment Intelligence Boosts Investor Decision Making
Investment intelligence is a new way to think about investment knowledge and research, introducing new technologies and techniques to both finance professionals and everyday investors. At its core, investment intelligence is a process, one that is designed to drive action and investor decision making.
It leverages technology to extract insights from existing data sources, coupled with a new point of view, and gives investors a higher level of confidence and a clearer understanding of information than traditional methods. But what is it precisely about investment intelligence that gives investors a clearer path for choosing investment opportunities that are best for them?
Factors that Affect the Investor Decision Making Process
No two investment portfolios are exactly alike because there are so many variables that influence individuals. These factors can be either internal or external:
Internal
A person’s financial situation, investment knowledge, and goals are all considerations. But the most critical is their risk tolerance, which will determine what kinds of return they expect, how long they are willing to wait for that return, and what types of investment they are open to considering.
External
External factors like tax brackets and investment laws are also important. As are things like a person’s access to information – is it through a broker, or their own research? Are up-to-date and high-quality sources available to them? Finally, timing has a huge influence on the choice to invest, with much of the advantage going to those who learn about significant events first–which enables better buy/sell decisions.
Challenges to Confident Investor Decision Making
Inherent within these factors are stumbling blocks that interfere with making the right selection at the right time. For instance, risk. It can be difficult to compare risk rates among hundreds of stocks, considering all of the influences on a company’s or fund’s returns. Similarly, public information is a resource needed to assess these risks, which are made even more complex depending on when a person learns about market trends and company performance.
It all leads to one perilous result: hesitation. When an investor’s money is on the line, they want to be absolutely sure before making a move. Have they really looked at all the angles? Is there a stock, industry, or index that they haven’t considered?
How Investment Intelligence Enables Confident Investor Decision Making
A faster, more informative analysis method is what investment intelligence is all about. This technique looks at a wider range of sources, but boils down all of that knowledge into something both easily understood and more actionable. Here are 5 important ways that investment intelligence can boost smarter decision making:
1. An Agile Pool of Data
Finding an investor’s preferred level of risk means diversification within asset classes. Investment intelligence gathers information from across the globe instead of looking at only the big indexes. And, it collects various sorts of financial market news that covers current events, economic trends, and social media. With the help of AI, investment intelligence translates all of this information and breaks down barriers that arise from different reporting systems.
2. Focus on Relevant Insights
Investment intelligence platforms start with masses of data and then categorize, condense, and filter insights into digestible content. In fact, the most valuable feature of investment intelligence is its ability to display, process, and interact with information in virtually any way that the user wishes.
3. Transparent Recommendations with Clear Reasoning
Artificial intelligence is put to good use to provide clear buy/sell recommendations. A possible investor dashboard might include a comparative performance breakdown of potential investments along with clear information to help them understand the reasons supporting the recommendation.
4. Learning and Customization
Over time, an investment intelligence platform has the ability to understand investor preferences and behavior according to the choices they have made. This allows it to refine its recommendations based on individual exposure levels, success rates according to different markets and strategies, and forecasts using all of the data at its disposal.
5. Analysis and Action
The many functions of investment intelligence mean a faster, clearer ability to make decisions. It distills masses of information into simplified, forward-looking, intuitive data based on investment goals and preferences. All that’s left to do is to identify the most relevant insights and place an order.
Decision Time Is Money Time
This one should be easy. Investment intelligence is a new idea that supports investors of any level, helping them to understand not just the “what” of investment insight, but the “why” as well. For more information about investment intelligence and how it can support your investors, sign up for a demo of BridgeWise today.
