Inside the surge of AI-themed funds

According to research by Morningstar, global assets in AI and Big data funds have risen more than sevenfold over the past five years. In Europe, the largest market for these funds, assets grew fivefold and reached a record valuation by the end of last year. A record number of global inflows occurred in the first quarter of 2025, following a rise in interest from Chinese investors due to DeepSeek’s success. However, the US-centric nature and dominance of Magnificent Seven stocks within these funds has created challenges for fund managers and asset allocators seeking diversification. Additionally,...