Artificial intelligence (AI) is gaining momentum as a disruptive technology that is expected to revolutionize various industries in the coming years. If you are looking to invest in AI through funds, here are three options worth considering.
Sanlam Global Artificial Intelligence is a global fund that focuses on companies involved in AI, whether as service providers or adopters of AI technology. Its portfolio includes top holdings such as Nvidia, Alphabet, and Microsoft, which are leading players in the AI sector. One attractive feature of this fund is its low fees, with an annual charge of just 0.5%. Although its performance can be volatile, it has delivered impressive returns of nearly 100% over the last five years.
Polar Capital Artificial Intelligence takes a broad approach to AI by investing in both enablers and beneficiaries of the technology. Its top 10 holdings include Nvidia, Alphabet, Advanced Micro Devices, and Amazon, all of which are prominent players in the AI revolution. However, investors should be aware that this fund charges a performance fee of 10% on returns above its benchmark. Despite this, it has still generated a solid return of around 66% over the past five years.
While Blue Whale Growth is not solely focused on AI, it currently offers substantial exposure to the theme. Its top holdings, including Nvidia, ASML, Lam Research, Adobe, and Veeva Systems, are expected to benefit from the growth of AI in the long run. Although the fund has a concentrated portfolio with around 30 stocks, it has shown impressive performance with a 55% return over the last five years.
It is important to note that all investments come with risks, and these funds are no exception. Investors should carefully consider their investment goals and risk tolerance before making any decisions.
– Hargreaves Lansdown (Data as of 7 September 2023)