Calculating allocation for maximum portfolio expected return (when available)

Maximum portfolio expected return is an investment strategy designed to achieve the highest possible return for any given portfolio. Using Your Portfolio UniverseTM, the maximum portfolio expected return is indicated by the topmost point on the graph (or the furthest point right along the efficient frontier):

Calculate maximum portfolio expected return with Diversiview

High risk investors seeking to maximise long-term gains can leverage Diversiview’s maximum portfolio expected return optimisation. This guide will walk you through calculating your maximum portfolio expected return and unlocking valuable insights to make informed investment decisions.

1. Analyse Your Portfolio:

  • Before optimising, run a portfolio analysis (click here to learn how).

2. Calculate Maximum Portfolio Expected Return Portfolio:

  • From your Portfolio Analysis Report, scroll down to reveal the Table of Contents.
  • Click “Maximum Portfolio Expected Return ” under “Your Portfolio Options” in the right column. This will display within Your Portfolio UniverseTM.
  • Click on ‘Calculate Maximum Portfolio Expected Return”.
  • You will be prompted with a dialogue box indicating that this optimisation will cost 10 credit points. Click ‘OK’ if you wish to continue.

3. Specify Weighting Constraints (Optional):

  • Before you run the optimisation, you can select you weighting constraints. Here you can choose your maximum and/or minimum weighting constraints.
  • For example, if you don’t want to hold more than 40% in any investment, move the max weight slider to 40%. Similarly, if you don’t want to hold less than 2% in any investment, move the min weight slider to 2%.
  • Click ‘Calculate’ 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.

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