Take investment strategy to the next level.


Portfolio LAB ™ is a formal mathematical approach to making investment decisions across a collection of financial instruments or assets. It contains advanced asset allocation, portfolio optimization and risk management techniques, based on the most recent achievements in portfolio theory (MPT) and behavioural finance (Prospect Theory). It combines highly advanced and innovative proprietary algorithms with a user-friendly, intuitive interface, perfectly suited to any level of expertise and experience.


EFFICIENT FRONTIER

Our models create an efficient frontier using a technique known as mean-variance optimization (MVO). The efficient frontier is derived from the underlying asset classes’ expected return, standard deviation, and correlations. MVO is the process of identifying portfolios that have the highest possible return for a given level of risk, or the lowest possible risk for a given return.

MONTE CARLO SIMULATION

Monte Carlo simulation is a problem-solving technique utilized to approximate the probability of certain outcomes by performing multiple trial runs (simulations)
using random variables. The probability distribution of the results is calculated and
analysed in order to infer which values are most likely to be produced.

BLACK-LITTERMANN MODEL

The Black-Litterman asset allocation model, developed in 1990 at Goldman Sachs by Fischer Black and Robert Litterman, is a sophisticated portfolio construction method that enables investors to combine their unique views regarding the performance of various assets with the market equilibrium in a manner that results in intuitive, diversified portfolios.

RISK-ADJIUSTED RETURN

When you compare the performance of two investments or check returns of your portfolio, you should not only consider the returns generated by the investments but also the amount of risk taken to earn these returns. Risk-adjusted return can help you measure the same. Our models measure an investment’s return by examining how much risk is taken in obtaining the return.

RISK PROFILE

A risk profile is an evaluation of an individual’s willingness and ability to take risks. Every single person has a different risk profile as the risk appetite depends on psychological factors, loss bearing capacity, investor’s age, income & expenses and many such other things. Use our risk assessment tool to select and determine the proper asset allocation for an investor’s portfolio.

PROSPECT THEORY

Prospect theory (Daniel Kahneman and Amos Tversky) is behavioural model that shows how people decide between alternatives that involve risk and uncertainty (i.e. % likelihood of gains or losses). It demonstrates that people think in terms of expected utility relative to a reference point (i.e. current wealth) rather than absolute outcomes.


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