Investing is one of the most common financial goals, but getting started isn’t always easy. – Whether it’s deciding how much to invest each month or choosing between mutual funds, stocks, gold and other assets, first-time investors are often overwhelmed by conflicting advice.
To find out, I wanted to see if ChatGPT could help me plan my investments. I started with a simple prompt: “Act like an expert investment and financial planner.“
Instead of immediately suggesting where I should invest, ChatGPT first explained its approach to financial planning.
Rather than recommending investments straight away, ChatGPT said it would first build a financial plan covering cash flow, risk management, debt, investments, taxes and retirement planning.
It also said its recommendations would be based on improving long-term financial health rather than suggesting popular investment products.
At this point, ChatGPT hadn’t recommended a single mutual fund. Instead, it was trying to understand my financial situation before making recommendations.
ChatGPT refused to recommend mutual funds immediately
For the next step, I gave it another prompt. “My in-hand salary is (mention your salary) per month and I want to invest 15% of my salary. Can you help me create the best investment plan based on my salary?”
ChatGPT said it couldn’t recommend investments without first understanding my financial goals, adding that a sound investment plan should be driven by goals rather than returns.
It then divided investing into three broad categories:
The first was a “Safety” bucket, meant for emergencies such as medical expenses, job loss or unexpected financial needs.
The second focused on “Wealth Creation”, covering long-term goals such as retirement, buying a house and achieving financial independence.
The third bucket was designed for “Lifestyle Goals”, including future expenses such as travel, higher education or other planned purchases.
Only after laying out this framework did ChatGPT suggest an initial allocation across different asset classes, including an emergency fund, an index fund, a flexi-cap fund, a mid-cap fund and gold.
However, it said that these were only preliminary suggestions because it still didn’t know enough about my finances.
Since ChatGPT already knew about my loan and monthly commitments from earlier conversations, it asked whether investing 15% of my salary would still be comfortable after meeting all my financial obligations.
It then asked whether I could comfortably invest that amount every month after meeting all my financial commitments. If the answer was yes, it said it would create a final investment strategy. Otherwise, it would first help improve my cash flow before recommending investments.
I told ChatGPT I could invest consistently. It immediately changed its approach
I told ChatGPT that investing 15% of my monthly salary wouldn’t strain my finances. Its response shifted from assessing affordability to building a long-term investment strategy.
It replied, “The important detail isn’t that you can invest more some months—it’s that this is an amount you can invest consistently even in a bad month. That’s exactly how long-term wealth is built.”
Instead of focusing on returns, ChatGPT linked every investment to long-term financial goals such as retirement, financial independence, buying a home and wealth creation.
Based on those goals, it proposed the following allocation:
- 40% in a Nifty 50 Index Fund
- 30% in a Flexi Cap Fund
- 20% in a Mid Cap Fund
- 10% in Gold
It also advised increasing investments gradually as my income grows rather than trying to chase higher returns. As ChatGPT put it: “You don’t need to chase higher returns if you steadily increase the amount you invest.”
Instead of tracking the market every week, it recommended increasing SIPs by around 10% to 15% after every salary hike and reviewing the portfolio only once a year.
Then ChatGPT found I was a first-time investor
At this point, I thought the portfolio was final. But before concluding the conversation, I shared another important detail. “My current age is (mention your age) years and my DOB is (mention your date of birth). Also, I don’t have any ideas about any kind of investment,” I said.
Instead of encouraging me to invest in more aggressive funds because I was young, it simplified the portfolio. ChatGPT removed the mid-cap allocation, explaining that it didn’t want a first-time investor to become discouraged by sharp market swings.
“I don’t want your first experience to be watching a more volatile fund fall 30-40%,” it replied.
Rather than trying to maximise returns, ChatGPT prioritised investing discipline.
Its revised recommendation became much simpler:
- 50% in a Nifty 50 Index Fund
- 30% in a Flexi Cap Fund
- 20% in Gold
It also advised against investing directly in individual stocks during the first year, arguing that successful stock investing requires understanding company financials, valuations and market psychology—skills that beginners usually develop over time.
The chatbot also set realistic expectations. Instead of promising extraordinary returns, it said a diversified portfolio could reasonably aim for 10–12% annualised returns over the long term while reminding me that some years could still deliver negative returns.
Turning advice into a practical monthly investment plan
Once ChatGPT understood my financial situation, age and investing experience, I asked it to convert its advice into a practical monthly investment plan. It organised my investments into three simple buckets.
Safety (20%)
ChatGPT recommended investing 20% of my monthly investment in a liquid fund or a high-interest savings account to build an emergency fund. It suggested continuing this until I accumulated around six months’ worth of essential expenses.
Wealth Creation (65%)
The largest allocation was directed towards equity mutual funds, split between a Nifty 50 Index Fund and a flexi cap fund.
According to ChatGPT, the index fund would provide low-cost exposure to India’s largest listed companies, while the flexi-cap fund would allow professional fund managers to invest across different segments of the market.
Future Goals (15%)
The remaining allocation went to a gold ETF or gold mutual fund.
ChatGPT explained that gold wasn’t included to generate higher returns but to diversify the portfolio and reduce overall risk during periods of market volatility.
The chatbot also recommended automating SIP deductions immediately after salary day, reviewing investments briefly every month and conducting a comprehensive review once a year.
Which mutual funds did ChatGPT recommend?
Once the investment framework was in place, I asked the question that most first-time investors would probably ask. “Great, also suggest which funds should I invest in, as I already said I have zero ideas about funds and stocks, etc.”
ChatGPT said its objective was to build a portfolio that could be held comfortably for the next 20-30 years instead of chasing last year’s top-performing fund.
It shortlisted funds based on four factors: track record, expense ratio, assets under management and long-term investment philosophy. It then recommended four investments for different purposes.
Safety bucket: Parag Parikh Liquid Fund
For the emergency fund, ChatGPT recommended the Parag Parikh Liquid Fund – Direct Growth.
It explained that the objective wasn’t to generate high returns but to keep money accessible during emergencies while earning slightly better returns than a regular savings account. It also advised continuing investments until I had built an emergency corpus equivalent to roughly six months’ essential expenses.
Core equity: UTI Nifty 50 Index Fund
For the largest allocation, ChatGPT recommended the UTI Nifty 50 Index Fund – Direct Growth.
According to the chatbot, an index fund forms the foundation of the portfolio because it provides low-cost exposure to India’s 50 largest listed companies without depending on a fund manager’s stock-picking ability.
Growth allocation: Parag Parikh Flexi Cap Fund
For long-term growth, ChatGPT selected the Parag Parikh Flexi Cap Fund – Direct Growth.
It explained that the fund complements the index fund by giving professional fund managers the flexibility to invest across large-, mid- and small-cap companies depending on market opportunities.
Gold for diversification
For the remaining allocation, ChatGPT recommended the Nippon India Gold Savings Fund – Direct Growth.
It emphasised that gold wasn’t included to outperform equities but to diversify the portfolio because it doesn’t always move in the same direction as the stock market.
Besides recommending funds, ChatGPT also suggested investment platforms including Groww, Kuvera and Zerodha Coin. It advised choosing Direct Growth plans over Regular plans because of their lower costs.
Before wrapping up, ChatGPT highlighted three key investing habits: automate SIPs, stay invested during market downturns and increase investments after every salary hike.
I asked ChatGPT to verify its own recommendations. It revised one of them.
Although the recommendations looked well thought out, I wanted to know whether they would still hold up after checking the latest information available online.
So I gave ChatGPT another prompt. “You can also scan the web also to confirm.”
After checking recent information available online, ChatGPT retained most of its earlier recommendations, saying it preferred funds with strong long-term credentials over recent top performers.
It continued to recommend:
- Parag Parikh Liquid Fund for the emergency corpus.
- UTI Nifty 50 Index Fund for core equity exposure.
- Parag Parikh Flexi Cap Fund for long-term growth.
However, one recommendation changed. Instead of the Nippon India Gold Savings Fund, ChatGPT suggested either the HDFC Gold ETF Fund of Fund – Direct Growth or the ICICI Prudential Gold ETF Fund of Fund – Direct Growth.
It explained that these options would be simpler for beginners investing through SIPs while continuing to provide long-term exposure to gold.
The revised portfolio looked like this:
- 20% – Parag Parikh Liquid Fund – Direct Growth
- 35% – UTI Nifty 50 Index Fund – Direct Growth
- 30% – Parag Parikh Flexi Cap Fund – Direct Growth
- 15% – HDFC Gold ETF FoF – Direct Growth
The chatbot also explained why it had deliberately avoided recommending several well-known funds, including Motilal Oswal Midcap Fund, Nippon India Small Cap Fund, Quant Flexi Cap Fund and various thematic funds.
According to ChatGPT, those options may offer higher growth potential but also introduce greater volatility. Since I was a beginner, it preferred keeping the portfolio simple and diversified.
I wanted to understand the reasoning behind every recommendation
Even after receiving the final portfolio, I still wanted to know why ChatGPT had selected these particular funds. So I asked: “Also, please give reasons why I should invest in these particular plans.”
Rather than discussing past returns, ChatGPT explained that the portfolio was built around four principles. ChatGPT said the portfolio was built around four principles:
-Safety before returns
-Diversification over concentration
-Low-cost investing
-Long-term compounding
It explained that the liquid fund was meant to protect me during emergencies so I wouldn’t have to rely on personal loans or redeem long-term investments at the wrong time.
The UTI Nifty 50 Index Fund, it said, formed the core of the portfolio because it provided diversified exposure to India’s largest listed companies through a low-cost passive strategy.
The Parag Parikh Flexi Cap Fund complemented the index fund by allowing active fund managers to identify opportunities across different market segments. As for gold, ChatGPT said the objective wasn’t to maximise returns but to reduce portfolio volatility because gold and equities don’t always move in the same direction.
The chatbot also stated why it hadn’t recommended investing directly in individual stocks. According to ChatGPT, analysing company financials, valuations and annual reports requires time and experience. For beginners, diversified mutual funds provide a simpler and less risky starting point.
ChatGPT wrapped everything into a long-term financial blueprint
For my final request, I asked ChatGPT to organise everything we had discussed into a single investment plan. “Please arrange everything we’ve discussed into a monthly, yearly and long-term investment plan.”
Instead of repeating its earlier recommendations, ChatGPT brought everything together into a structured financial blueprint.
The plan combined monthly investment allocations, yearly review guidelines and a long-term roadmap based on different stages of life.
It also recommended:
- Increasing SIPs after every salary hike.
- Reviewing the portfolio once every year.
- Rebalancing investments whenever required.
- Avoiding frequent fund switches because of short-term performance.
Rather than treating the portfolio as fixed forever, ChatGPT said it should evolve with major life events such as salary increases, marriage, buying a house or changing jobs.
My verdict
After several rounds of conversation, ChatGPT did much more than recommend a few mutual funds. Instead, it first tried to understand my salary, financial commitments, investment goals, age and investing experience before building a personalised investment plan. As I shared more information, it revised its recommendations and simplified the portfolio to suit a beginner.
What impressed me most wasn’t the list of funds, but the reasoning behind each recommendation. Unlike a one-time consultation, ChatGPT adapted its advice as the conversation evolved.
That said, I wouldn’t rely on it blindly. When I asked ChatGPT to verify its recommendations using the latest information available online, it revised part of the portfolio. Since fund performance, expense ratios and market conditions change over time, I’d still cross-check AI-generated suggestions with the latest information and, where necessary, consult a qualified financial adviser.
For me, ChatGPT worked best as a financial and investment planning, not a replacement for professional advice.
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Disclaimer: This article is based on the author’s personal experiment using ChatGPT to create an investment plan. The AI-generated responses should not be construed as financial or investment advice. Investment decisions should be based on individual financial circumstances, risk appetite and goals. Readers are advised to conduct their own research and consult a qualified financial adviser before making any investment decisions.