Portfolio Diversification in a New Era of Financial Markets

Rosa Galvão – Polytechnic Institute of Setúbal, School of Business and Administration, Setúbal, Portugal

Rui Dias – ISG – Business & Economics School, CIGEST, Lisbon, Portugal; ESCAD – Polytechnic Institute of Lusophony, Lisbon, Portugal

Cristina Palma – Polytechnic Institute of Setúbal, School of Business and Administration, Setúbal, Portugal

Paulo Alexandre – Polytechnic Institute of Setúbal, School of Business and Administration, Setúbal, Portugal

Sidalina Gonçalves – Polytechnic Institute of Setúbal, School of Business and Administration, Setúbal, Portugal

Abstract: The main purpose of this study is to understand the movements between Fintech and AI stock indices, namely the Global Fintech, Artificial Intelligence & BigData Index (IAIQ), Blockchain Index (ILEGR), Disruptive Technology Index (IDTEC), in order to understand whether they behave as diversifying assets for India’s main stock index (Nifty 50). The results show no evidence that the Fintech and Artificial Intelligence (AI) stock indices, as well as other related indices such as Blockchain and Disruptive Technology, behave as diversifying assets concerning India’s main stock index, the Nifty 50, during the period from January 2020 to January 2024. In conclusion, in­vestors should adopt a prudent approach when considering including these assets in their portfolios and seek effective diversification through a variety of assets and strategies.

8th International Scientific Conference – EMAN 2024 – Economics and Management: How to Cope With Disrupted Times, Rome, Italy, March 21, 2024, SELECTED PAPERS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-84-4, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.S.P.2024

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