16Alternative Data in Investment Management
Rangapriya Saivasan* and Madhavi Lokhande
International School of Management Excellence, Research Centre, Affiliated with the University of Mysore, Bangalore, Karnataka, India
Abstract
Alternative data refers to nontraditional, unstructured information from various sources, offering unique insights to enhance investment decision-making. This study explores data quality and validation in alternative data analysis for investments, aiming to gain a competitive edge and make informed decisions. In this study, qualitative research, utilizing secondary sources, thematic, and user analysis, explores prominent themes and practices in alternative data adoption. The challenges of alternative data in investment management include data quality, privacy concerns, and lack of standardization. Best practices like data governance, integrating multiple sources, and continuous monitoring enhance insights from alternative data. Data quality and validation are crucial for leveraging alternative data effectively, aiming to gain an edge with robust validation and best practices for informed investment decisions. High-quality data and validation processes are imperative for harnessing the power of alternative data in investment analysis. Embracing alternative data and overcoming challenges opens doors to innovation and improved investment outcomes in the evolving investment management landscape.
Keywords: Alternative data, investment management, data standardization, ...
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