Efficient Frontier positions refer to the set of investment portfolios that offer the highest expected return for a given level of risk, or the lowest possible risk for a given level of expected return. These portfolios lie on the efficient frontier, as shown in the Your Portfolio UniverseTM:
Diversiview allows you to calculate for Efficient Frontier positions for any given set of investments.
Here’s a straightforward written guide to calculate the efficient frontier positions unlocking valuable insights:
1. Analyse Your Portfolio:
- Before optimising, run a portfolio analysis (click here to learn how).
2. Calculate Efficient Frontier Positions:
- From your Portfolio Analysis Report, scroll down to reveal the Table of Contents.
- Click “Efficient Frontier Positions” under “Your Portfolio Options” in the right column. This will display your Efficient Frontier within Your Portfolio UniverseTM.
- Click on ‘Calculate Efficient Frontier Positions.
- You will be prompted with a dialogue box indicating that this optimisation will cost 20 credit points. Click ‘OK’ if you wish to continue.
3. Find Efficient Frontier Positions:
- Diversiview allows you to explore various positions on the Efficient Frontier. Each point on the frontier represents a portfolio with a specific risk level and expected return.
- Click ‘Run Analysis’ once you are happy with your selection.
4. View Your Analysis Report:
- Within a few minutes, your personalised analysis report will be ready for viewing on your Diversiview dashboard. This report offers valuable insights into your portfolio’s asset allocation, risk profile, and potential areas for improvement.
By following these steps and exploring the additional resources provided, you’ll be well on your way to making informed investment decisions.