{"id":571,"date":"2024-04-15T08:30:00","date_gmt":"2024-04-14T22:30:00","guid":{"rendered":"https:\/\/diversiview.online\/blog\/?p=571"},"modified":"2024-11-27T11:44:53","modified_gmt":"2024-11-27T01:44:53","slug":"increase-your-expected-portfolio-returns-with-regular-optimisation","status":"publish","type":"post","link":"https:\/\/diversiview.online\/blog\/increase-your-expected-portfolio-returns-with-regular-optimisation\/","title":{"rendered":"Increase Your Expected Portfolio Returns with Regular Optimisation"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Benefits-of-regular-portfolio-optimization-with-Diversiview-1024x576.jpg\" alt=\"Benefits of regular portfolio optimization with Diversiview\" class=\"wp-image-596\" srcset=\"https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Benefits-of-regular-portfolio-optimization-with-Diversiview-1024x576.jpg 1024w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Benefits-of-regular-portfolio-optimization-with-Diversiview-300x169.jpg 300w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Benefits-of-regular-portfolio-optimization-with-Diversiview-768x432.jpg 768w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Benefits-of-regular-portfolio-optimization-with-Diversiview-1536x864.jpg 1536w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Benefits-of-regular-portfolio-optimization-with-Diversiview-2048x1152.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The stock market offers exciting investment opportunities, but navigating its volatility can be challenging. Diversifying your portfolio with various assets is crucial, but how do you ensure the optimal allocation for maximum return and minimum risk? This is where Diversiview comes in.<\/p>\n\n\n\n<p>Let&#8217;s explore a scenario with <strong>four popular NSE stocks<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tata Steel<\/strong> (TATASTEEL)<\/li>\n\n\n\n<li><strong>Tata Motors<\/strong> (TATAMOTORS)<\/li>\n\n\n\n<li><strong>State Bank of India<\/strong> (SBIN), and<\/li>\n\n\n\n<li><strong>GAIL Limited<\/strong> (GAIL)<\/li>\n<\/ul>\n\n\n\n<p>Imagine you invested an initial <strong>\u20b9100,000<\/strong> in these stocks in <strong>January 2022<\/strong>. Diversiview would analyse historical data with backtesting to calculate an <strong>optimal asset allocation<\/strong> for the ideal balance between risk and return. This allocation wouldn&#8217;t be static, and with the help of Diversiview, investors can continuously optimise their portfolio.<\/p>\n\n\n\n<p class=\"has-custom-0132-ca-color has-text-color has-link-color has-large-font-size wp-elements-f9f0a0b7530959e4dd09402a9194c0e6\"><strong>The Power of Regular Optimisation<\/strong><\/p>\n\n\n\n<p>We compared three portfolios with the same initial investment but different rebalancing frequencies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rebalance to Original Weightings<\/strong>: Initial optimal allocation held for 2 years.<\/li>\n\n\n\n<li><strong>Quarterly Rebalancing:<\/strong>&nbsp;Optimised every 3 months.<\/li>\n\n\n\n<li><strong>Half-yearly Rebalancing:<\/strong>&nbsp;Optimised every 6 months.<\/li>\n<\/ul>\n\n\n\n<p>All portfolios were initially optimised in <strong>January 2022<\/strong> with the following allocation:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"323\" src=\"https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Untitled-design.png\" alt=\"Optimised portfolio allocation for NSE stocks: TATASTEEL, TATAMOTORS, SBIN and GAIL in January 2022\" class=\"wp-image-572\" srcset=\"https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Untitled-design.png 900w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Untitled-design-300x108.png 300w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Untitled-design-768x276.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption class=\"wp-element-caption\"><sub><sup>Portfolio Allocation in January 2022<\/sup><\/sub><\/figcaption><\/figure>\n\n\n\n<p>Diversiview&#8217;s strength lies in its ability to adapt to market fluctuations. As the market conditions changed, the optimal allocation for each stock also changed significantly over time. This highlights the potential benefits of <strong>regular optimisation<\/strong>, which goes beyond simply rebalancing to the original weights. Here is a notable instance of the asset allocation in <strong>April 2023<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"609\" src=\"https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Untitled-900-x-421-px-2.png\" alt=\"Optimised portfolio allocation for NSE stocks: TATASTEEL, TATAMOTORS, SBIN and GAIL in April 2023. Comparing no rebalancing, quarterly rebalancing and half-yearly rebalancing and it's effect on expected portfolio return of the portfolio.\" class=\"wp-image-580\" srcset=\"https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Untitled-900-x-421-px-2.png 900w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Untitled-900-x-421-px-2-300x203.png 300w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Untitled-900-x-421-px-2-768x520.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption class=\"wp-element-caption\"><sub><sup>Portfolio Allocation in April 2023<\/sup><\/sub><\/figcaption><\/figure>\n\n\n\n<p class=\"has-custom-0132-ca-color has-text-color has-link-color has-large-font-size wp-elements-95b08c58314b1277cb7eba2407d2eb80\"><strong>Expected Portfolio Performance<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"700\" src=\"https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Professional-Page-Graphics-2.png\" alt=\"Line graph showing the expected portfolio returns for NSE stocks: TATASTEEL, TATAMOTORS, SBIN and GAIL. Comparing no rebalancing, quarterly rebalancing and half-yearly rebalancing and it's effect on expected portfolio return of the portfolio.\" class=\"wp-image-579\" srcset=\"https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Professional-Page-Graphics-2.png 900w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Professional-Page-Graphics-2-300x233.png 300w, https:\/\/diversiview.online\/blog\/wp-content\/uploads\/2024\/04\/Professional-Page-Graphics-2-768x597.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><\/figure>\n\n\n\n<p>The graph showcases the overall performance of the three strategies between January 2023 and January 2024. While the portfolio that was rebalanced to the original allocation did see growth, reaching a potential return of <strong>\u20b9147,900<\/strong> by January 2024, it significantly underperformed compared to the rebalanced portfolios. The <strong>quarterly rebalanced portfolio achieved the highest potential return<\/strong> <strong>of \u20b9164,300<\/strong> by January 2024, followed by the half-yearly rebalanced portfolio with <strong>\u20b9150,400<\/strong>. This highlights the potential benefits of regular rebalancing, especially in a dynamic market.<\/p>\n\n\n\n<p>It is important to note that this portfolio demonstrates the potential benefits of regular portfolio optimisation using a specific set of stocks. <strong>The results achieved are not guaranteed and may not apply to all portfolios<\/strong>. Regular optimisation is a valuable practice, but every portfolio is unique. Market conditions and individual goals significantly impact performance. Diversiview helps you create an optimised portfolio based on your specific risk tolerance and investment goals.<\/p>\n\n\n\n<p class=\"has-custom-0132-ca-color has-text-color has-link-color has-large-font-size wp-elements-b1d78d66e5f9c04f152d25b2c7b0aa5d\"><strong>How Diversiview Empowers You<\/strong><\/p>\n\n\n\n<p>Diversiview equips you with the tools to make informed investment decisions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Optimal Asset Allocation<\/strong> gives data-driven insight for allocating your funds across chosen stocks, with the ideal balance between risk and return.<\/li>\n\n\n\n<li><strong>Regular Rebalancing<\/strong> helps you stay on track by optimising your portfolio based on historical data.<\/li>\n\n\n\n<li><strong>Portfolio Backtesting<\/strong> visualises the performance of your portfolio using your investment&#8217;s market fluctuations of the previous three years.<\/li>\n<\/ul>\n\n\n\n<p><strong>Don&#8217;t leave your portfolio&#8217;s potential to chance! Get a free Diversiview analysis today and experience the power of data-driven investing.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The stock market offers exciting investment opportunities, but navigating its volatility can be challenging. Diversifying your portfolio with various assets [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1118,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"Increase Your Expected Portfolio Returns with Regular Optimisation","_seopress_titles_desc":"Explore how regular rebalancing can outperform static allocation, with Diversiview&#039;s Portfolio Optimisation features. \r\n","_seopress_robots_index":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[26,41,13,31,14,15,1],"tags":[29,16,33,12,7,32],"class_list":["post-571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2024-investments","category-case-studies","category-finance","category-fintech","category-investment","category-portfolio","category-uncategorised","tag-2024-investments","tag-fintech","tag-investment","tag-investment-strategy","tag-portfolio-optimisation","tag-rebalancing"],"_links":{"self":[{"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/posts\/571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/comments?post=571"}],"version-history":[{"count":12,"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/posts\/571\/revisions"}],"predecessor-version":[{"id":597,"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/posts\/571\/revisions\/597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/media\/1118"}],"wp:attachment":[{"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/media?parent=571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/categories?post=571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diversiview.online\/blog\/wp-json\/wp\/v2\/tags?post=571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}