Did you know that combining different types of investments in a financial portfolio can reduce risk? This software tool will help you explore ways that your existing portfolio can be adjusted to reduce risk while maintaining your desired investment return.
Select the types of investments you have available in your investment plan. (help with acronyms and data source acknowledgments)
Can I add more assets?
Choose a target compound annual percentage return.Target compund return (CAGR): %
Press the "Diversify" button to find an example portfolio allocation that would have had good historic risk as measured by worst year. (Or you can also enter fixed percentages next to each asset class above.)
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After the diversified portfolio allocation is complete you can find the percentages applied to each asset class highlighted above the line graph. Statistics such as compound return and worst year in the return history are also presented with the return graph.
If this process did not seem to work it is possible that your web browser may be at fault. See FAQ #2
Rolling 10 year returns a available in bar chart below. This shows you how much money the portfolio would have made in each rolling decade period. The raw return numbers for both annual and 10 year rolling periods is available at the bottom of the page.
If you are happy with the portfolio you have designed, then you can consider implementing the suggested asset allocation (percentages in each fund) for your clients or in your own portfolio.