You may already have stocks or mutual funds as a portion of your portfolio, but you may haven’t noticed you are not getting most of your current portfolio at the given risk level. In one word, you are earning less than you could.
Important as you construct your portfolio, Kalengo helps you decide how much of each asset you should hold in the portfolio, in order to maximize your expected return without taking on additional risk.
Simply by clicking Optimization, you may find your expected return moving from current spot to the optimal one.
With Portfolio Optimization, Kalengo provides you with three views.
- The first view shows you the current portfolio in relation to the set of all optimal portfolios, known as Efficient Frontier (as Graph 1 shows)
- The second view shows the current and optimal weight of each asset, the risk and return between the current and optimal portfolio.
- The third view is the pie chart of current and optimal portfolio.
If you are reaching the optimal portfolio, that’s good. If not, just adjust and rebalance your portfolio with the indications.