# Tool for assessing balance / risk of portfolio



## Queenspawn (5 Jun 2011)

Can I ask if anyone knows of a free online tool to assess the balance of an investment portfolio.  I'm thinking of something that might look across my investments and say it looks like you're a bit exposed to e.g. Japan or you have no commodities or might assess portfolio as being (too) cautious.  Any pointers would be appreciated.


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## horusd (5 Jun 2011)

Never heard of one and doubt it would be of any use anyhow This is work you need to do for yourself. You presumably could do an excel type sheet in a jiffy and see a snapshot of your portfolio for quick reference. But realistically how is is a program to "know"  whether your investments are good or not? 

If you have a good spread across industries and markets your probably safest. But only you can decide what level of exposure is right for you. Even bluechips can perform badly, ie Sony. fool.com offer some info that might help, bloxham stockbrokers have a newsletter I find useful, and yahoo and moneymate are other resources too.


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## markowitzman (6 Jun 2011)

asset allocation by gibson a useful start


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## Fat Boy (7 Jun 2011)

Why not post your current allocation here (%ages only), and the type of risk/return you want.
You will get some good honest advice and criticism on this forum


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## PMU (7 Jun 2011)

Queenspawn said:


> Can I ask if anyone knows of a free online tool to assess the balance of an investment portfolio.


   You have to pay for it (about 200 USD p.a.) but there is a very good portfolio modeller at Index Investor (http://www.indexinvestor.com/).  I have used this myself in the past and one of its benefits is that you can develop a model where the EUR is your functional currency. Otherwise with a lot of the stuff on the 'net, you end up using models that assume the USD is your functional currency.  

  You could also profitably read ‘_Unconventional Success: A Fundamental Approach to Personal Investment_ ‘ by David Swensen.  

  If you want some free stuff, a good intro to asset allocation is [broken link removed] and you can find plenty of model portfolios on Seeking Alpha    (again usually written from the perspective of a USD investor).


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## Chris (8 Jun 2011)

I think horusd has nailed it on the head. Investment asset allocation is all about your personal level of risk tolerance and your personal view of what is risky. My own portfolio is made up of about 30% to 35% in gold, silver and mining. A lot of people would see this as very risky and exposed to one asset allocation, but for me this is reducing my risk exposure based on my economic beliefs.


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## daredevils (8 Jun 2011)

I heard about a portfolio tool i.e. The Kraljic Portfolio Model. I think this will help you get rid of your problem.



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Asset Finance Experts


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## Queenspawn (13 Jun 2011)

Thanks everyone.  I agree that this is ultimately a personal attitude to risk but it'd interesting to see where on that risk spectrum I currently lie.  I'll pick up some of the books and get to work on it.  As for Fat Boy's suggestion I appreciate I could post up the ratios but that I think would just start a fire about differing attitudes to risk.


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