Proper portfolio analysis is essential to ensure that your assets are secured and allocated to fulfill your goals and avoid potential financial risk.

The various types of assets in an investor’s portfolio are directly connected to determining long-term investment returns.

An investor’s ideal portfolio would be determined by risk tolerance, personal income level, age range and investing time horizon. Depending on the magnitude of these factors, a portfolio mixture (equities vs. bonds vs. cash) can be determined to achieve the highest possible long-term return while decreasing potential short-term risks.

Portfolio analysis is a process which requires a review of current portfolio asset allocation to determine whether the current distribution helps the investor achieve their financial goals without embracing potential financial risks. To achieve an ideal asset allocation, the investor must balance their portfolio with their maximum risk tolerance. Growth-oriented assets are essential to avoid the long-term risk of inflation, but the rewards of growth-orientated investments involve short-term risks of volatility and uncertainty.

A professional with the knowledge and expertise to properly evaluate all the factors that affect the long-term performance of various assets can best analyze an individual portfolio. Proper portfolio analysis is essential to long-term financial success because each asset allocation within a portfolio comes with various long-term and short-term risks.

By measuring the magnitude of an investor’s short and long-term investment goals against different investment possibilities and return probabilities, a professional financial advisor can assist an investor in determining an ideal portfolio to reach their goals.

Check out the Annual Asset Review Sheet 

Questions about Portfolio Asset Allocation? Call Denikings Insurance and Investment Broker today!

Disclaimer: Insurance, Investment and Mortgage products & services are provided by Devangkumar Shah.
Mutual Funds are sold through Shah Financial Planning Inc., the Mutual Fund Dealer.
Lotus Loans and Mortgage ltd. is the principal mortgage broker.