Advisors love Riskalyze Pro because they can take any set of investments — mutual funds, ETFs, stocks, third party funds or REITs — and instantly calculate the 95% mathematical probability of risk and reward for that portfolio.
But we noticed something interesting. The next step many of our advisors took was to play with removing funds, adding funds, or tweaking the allocations, in an effort to reduce the risk and increase the potential return of the portfolio.
Today, we’ve made that process a lot easier by launching Portfolio Heat Maps — three new analytics that help advisors visually identify the risk and reward, dividend yield and expenses hidden in their portfolios.
The Risk/Reward Heatmap is a powerful feature in portfolio construction and review for portfolios with 100 holdings or less. Many advisors use the Risk/Reward Heatmap with clients to demonstrate the diversification of their portfolios. The more gold showing, the more diversified the portfolio is.
Here’s an example of a portfolio in its traditional view.
With a single click, the Risk/Reward Heat Map allows advisors to visualize how much risk and reward each investment is contributing to the portfolio.
In addition, advisors see a visual representation of the diversification benefits that each investment adds to the overall portfolio.
The Dividend and Expense Ratio Heat Maps allow advisors to see the overall dividend yield and expense ratio of a portfolio, and visually identify the investments that are contributing dividends…
…or driving expenses in the portfolio.
Portfolio Heat Maps are now live for all Riskalyze Pro users, including our Free Plan users. We’re excited to be delivering great tools to help advisors cut through the noise and discover great ways to continually add value to their clients.
Interested in learning more about our Portfolio Heat Maps? Read our Knowledge Base article to learn how to start taking advantage of this feature today!