What is Portfolio Analyzer Report?
The purpose of the Portfolio Analyzer report is to analyze an investor’s portfolio and give insights based on different financial measures. For instance, you can determine the proportion of assets invested in different sectors, equity styles, or asset classes. Investors can also see how their portfolio is exposed to the same stocks in various funds. It shows the level of diversification or concentration of one’s portfolio. Proper diversification brings reduced volatility and risk than an over or under-allocated portfolio.
The Asset Allocation section shows the percentage of assets spread across various asset classes like Stocks, Bonds, Cash, and Others. It is derived by aggregating an investor's portfolio asset class of direct stocks and underlying holdings. An investor should have the right mix of assets based on goals and risk appetite. (Read more)
As per the image displayed above, the asset allocation of this client is mainly of equity stocks that constitute over 93%. Others include around 6% & the Cash component of just over 0.1%.
Stock Sector (%)
Stock Sector shows the percentage of portfolio equity assets invested in each of the three supersectors (Cyclical, Defensive, and Sensitive) and the 12 major industry sub-classifications. (Read more)
In this instance, the nature of portfolio holdings is Cyclical in nature, with 47.51% of the assets in the cyclical sector. Financial Services is the major contributor with 36.81%, followed by Consumer Cyclical with 9.91% & Base Materials with 0.80%, as shown below:
Investment Style
Equity Style is a grid that provides a graphical representation of the investment style of stocks and portfolios. It classifies securities according to market capitalization (the vertical axis) and growth and value factors (the horizontal axis). (Read more)
Top 10 Underlying Holding
The Top 10 Underlying Holdings shows the actual securities held by an investor listed in descending order of their portfolio weights.
Return Analysis
Risk/Return analysis is shown based on each holding’s risk and return over the most recent 3-year period. Risk is measured as a 3-year standard deviation of return (Horizontal Axis), and Return is measured as 3 years mean (Vertical axis). The chart also shows the portfolio’s risk and return. Numbers on the risk/return plot represent holdings from the Top 10 Portfolio holdings list. (Read more)
Correlation Matrix
Correlation refers to the degree to which investments within a portfolio share similar risk and return characteristics. A portfolio bearing assets that are highly correlated is less diversified. As a result, high correlation is associated with greater risk in the form of volatility. By contrast, the more diversified a portfolio is, the lower the correlation of its underlying assets, reflected as lower volatility. (Read more)
Top 10 Portfolio Holdings
The Top 10 Portfolio Holdings shows the actual securities held by an investor listed in descending order of their portfolio weights. 3 year Mean and Standard Deviation are also indicated for each of the holdings.
Risk and Return Statistics
- Sharpe Ratio: The Sharpe Ratio is a risk-adjusted measure calculated using standard deviation & excess return.
- Standard Deviation: Standard deviation is a measure of market volatility.
- Arithmetic Mean: Mean is the annualized performance of the overall portfolio over 3 & 5 years.
- Alpha: It measures the difference between a fund's actual returns & its expected performance.
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Beta: Beta is a measure of a fund’s sensitivity to market movements.
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R Squared: It measures the correlation of the portfolio to a benchmark index.
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Tracking Error: It is a measure of financial performance that determines the difference between the return fluctuations of an investment portfolio & a chosen benchmark Index.
- Information Ratio: It measures portfolio returns above the returns of a benchmark Index to the volatility of those returns.
Holding Overlap
This section brings up the overlap of underlying portfolio holdings. In other words, if a scrip is held by multiple underlying holdings, it is called as holdings overlap as the concentration is bestowed in a particular scrip or sector. (Read more)
Portfolio Holdings:
The portfolio of all the holdings will be available along with the Type of holdings, Value, Weightage, 3 Year annualized return, and the folio ratings from our partners Morningstar.
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