Daily Archives: July 24, 2014

Create a portfolio: organizing my investments

Imagine this situation: you are an investor, you have different assets which have different performances and evolutions in the markets. Think about you have dozens of assets: ETF, stocks, mutual funds, bonds, maybe alternatives… And you cannot find a way to organise and control all of them. Well, the answer is: you have to create a portfolio.

First of all, you have to think about a strategy. The main steps are:

  • Define your goals. Answer yourself: when will I need the money? Consider a strategy for a short-term or a long-term taking into account the volatility and the Value at Risk.
  • Consider your risk aversion. An investment is always risky. If you choose very volatile assets, you may get high returns… or losses.
  • Consider the asset correlation. Uncorrelated assets help reduce losses.
  • Think also about how often you will control your investments: every week, every month, every three months. It should be related with your goals. Consider changing your asset allocation and rebalancing your portfolio.

My portfolio in T-Advisor

T-Advisor provides you a tool to create your own portfolio. The steps to do that are very easy: after defining your investor profile (depending your risk aversion, from very conservative to aggressive), just follow the steps in this video tutorial.

Then you will find a great deal of information to analyze your investments, as performance, risk and diversification. You can also review the investment movements that you have done, buying and selling assets.

My portfolio charts and data in T-Advisor

But what are the main advantages of creating an investment portfolio?

  • You can allocate different kinds of assets to protect you against volatility. A portfolio helps you structure your investments in order to diversify and reap benefits.
  • It helps you plan your finances. Think about that you are saving money for different milestones in your life: a house, the studies of your children, your retirement. You set a portfolio with a certain investor profile to get certain returns in order to achieve your performance goals.
  • You can rely on a passive investment style. Once you create a portfolio, you do not need to change your assets as a day-trader, but just rebalance them every certain period of time, if necessary.

T-Advisor is ready to cover your investor needs. Our tools report you about the main figures and data from stocks, ETF and funds from many markets around the world, so that you can choose the best for your interests and design the suitable portfolio for you.