Tag Archives: scoring

Should I invest in the T-Advisor top score assets?

Top Score in T-Advisor

We have several times mentioned that T-Advisor has its own scoring for the assets. It is like the old marks that we got in the school, but this qualification is linked to our investments.

T-Advisor has a module that shows the best assets classified by the score. The question is: Should I include these assets in my portfolio? In fact, this is a good idea, but we do not have to forget two things:

  • Past performances do not guarantee future ones.
  • We have to be watchful of our investments, because markets change continuously.

If we look at our monthly top score (that we publish in this blog), we have always found interesting stocks and funds, because they usually have high performances. This fact is clearer in stocks than in funds (specially, in fixed-income funds).

However, it is interesting to see the evolution. It is not usual that top score assets repeat. Markets are naturally unstable, but instability does not mean something negative. It just means that there are continuous ups and downs and investors should regularly look into and watch their portfolios.

Our top score specifies the best performing assets with our best score in a specific moment. They give us clues about countries and sectors that are moving positively. Our score detects also these changes and includes them in the qualification. That is why our score is also live. It is not a mark that provides a position for a long term. On the contrary, it is always near the reality and sudden changes are also detected and included.

Top score assets provide guidelines about possible interesting movements, but investors do not have to move their strategies to certain assets guided by the moment. They have to look at the long term, instead of short-term impulses.

So, if you finally ask: then, what to do with the top score assets? In or out of my portfolio? The answer is: it depends. Check if they match your investment strategy and read the full T-Report. Then, take the decision and check regularly your portfolio and the changes in the scoring in the assets.

The tools that you need to invest efficiently with your portfolio

Think about that you have a portfolio. Fine, you have organised your financial target into a structured composition of stocks, bonds or any asset that agrees your investor profile. However, you are a motivated investor and have interest in monitoring, improving, analysing… and you do not find the right tools to do it.

What kind of tools do you need? First of all, you need a platform that lets you easily create your portfolio with simple steps and implement your assets from your own Excel file or directly on the system. It is important that you can select properly your profile since the very beginning.

T-Advisor tools: screen to create your portfolio

Once you have created your portfolio and included the assets, you need to monitor and analyse it. It is not only about different timeframes for performance or volatility, but also an analysis of the diversification and the risks. As investor, you should take into account that one of the main goals is capital preservation. This means that a right investment strategy should outperform the benchmark in bull periods and have substantially less losses in bear periods. Diversification benefit, which assets contribute more to risk or a comparison with the composite benchmark (or smart benchmark, as it is denominated in T-Advisor) are useful tools for it.

T-Advisor risk analysis screen

This analysis should also include a graphical analysis of the allocation to understand the risk concentration in different concepts.

T-Advisor asset allocation analysis

And finally, what refers to analysis and monitoring, you should have access to a kind of scoring to perceive the quality of your portfolio and some suggestions to improve it.

T-Advisor scoring and suggestions screen

In the case of you perceive that your portfolio needs an improvement, your platform should include a tool to analyse where the troubles come from and optimise the results. The optimisation has to propose an efficient frontier for the portfolio allocation and a proposal of what changes you should implement.

T-Advisor optimiser tool

Efficient frontier optimisation in T-Advisor

And, last but not least, you need an alert system to react when there are deep movements in the markets that affect your portfolio. Your platform should also provide you a system to set the alerts depending your own needs.

Alerts setting in T-Advisor

T-Advisor is your alternative to create, monitor, optimise and modify efficiently your portfolio in a self-directed way. There are many platforms, but they usually have less tools or under payment. You can choose T-Advisor for free to feel the investment experience and control your finances on your own.