How to Maximize Portfolio Performance Using Software Tool?

Portfolio management software is like a personal assistant that takes care of your investment. With this tool, you can manage your assets like stocks, pension funds, hedge funds, mutual funds, currency, and cash in one place. Also, it helps you track these assets, calculate the returns receivable on each, and the list goes on! Look at the pointers below to explore more features of investment portfolio management software. 

#1 - Real-time statistics:

These software tools give access to real-time information regarding the assets held. For instance, if you have an energy sector mutual fund, the software will reflect the real-time prices of the stocks in that fund. Similarly, you can expect the same for currencies as well.  

#2 - Valuable insights:

Apart from the basic price story, you also receive valuable insights. In fact, most software has a dashboard depicting the trends and extensive analysis of the securities traded today. This helps in making informed investment decisions before the market trends. 

#3 - User-friendly interface:

Dodging complexity and confusing interfaces is easier with assistants like Limina, which deploys the portfolio management software and makes investment management workflows smoother for you. With the user-friendly interface, customization via multiple filters is possible. This means you can move the stocks you want to track to the top and the rest below that. 

#4 - Automated workflows:

As technology dominates this space, performance reporting and return calculation are automated. You can utilize time-series data (P&L, cash, FX, and trade position) to report to stakeholders on portfolio performance, asset allocation, and tax implications. 

#5 - Simulation and what-if scenarios:

Predictive modeling techniques act crucial in forecasting the certainty of future events. For example, if you want to replace a stock with another one, this tool can help you decide on the risks and exposures associated with the latter. 

#6 - Rebalancing:

Diversification and rebalancing are crucial in optimizing the portfolio to the desired investment goals. Hence, popular software tools can be used to align the portfolio against the benchmark (elimination and addition of assets).

In recent times, the financial industry has witnessed a drastic shift in the technology landscape. This shift is mostly seen in cloud-based solutions when managing the assets under management (AUM). A report by Gartner claims that around 95% of financial sector workloads will migrate to cloud storage. Likewise, another report states that 73% of respondents will develop software for easy management by next year. But how does that help you?

Well, the major population moving towards cloud-based solutions is, of course, not a fake trend. It saves space, provides quick access, and can be deployed anywhere. So, if you wish to access your portfolio, this cloud-based portfolio management system allows you to visit your assets at any hour. The basic requirement is a device and a stable internet connection. But, if you delve deeper, there are more benefits to this cloud storage!

• Secure, stable, and flexible financial solutions for your portfolio.
• Hybrid solutions (on-site and cloud-based elements) for lesser costs and more scalability.
• No hassle of maintaining hardware systems or files related to your portfolio assets as this storage takes up no space in your system. 
• Utilizing in-built analytical tools to assess portfolio risk and provide remedies beforehand.

By harnessing the power of data analytics, it is possible to make sound investment decisions. However, what matters is how you utilize the data gained. There are multiple ways to interpret a set of big data, yet the correct way is to leverage the same to nullify the risks and boost the existing portfolio. With investment portfolio management software, historical data can be analyzed and later used to identify patterns. So, if a stock price in your portfolio has been below average for seven months, it will follow a flat or downward curve. This trend can further assist in restructuring your portfolio from scratch.

These analytics enable investors like you to analyze a large set of data and make informed decisions based on the trends noticed. They also provide valuable insights about a particular security and the potential risks associated with it. Any person who wants to acquire a big stake (or investment) can leverage these analytics in an environment filled with noise. 

Nonetheless, you can also deploy predictive analytics like decision trees, neural networks, and regression analysis, which are necessary to calculate the certainty of market events and enhance the investment strategies initially developed.

Managing a portfolio does not include just the assets but the invisible threats behind them. Your portfolio may have the best stocks, yet you will still face losses and, eventually, poorer performance than expected. What matters is how well you control your decisions, not the outcome, which is inevitable anyway. And that is where evaluating and strategically managing risks becomes vital. 

Portfolio risk management involves three components, mainly risk identification, risk assessment, and risk mitigation strategies. Firstly, it is necessary to identify the type of risk (downside, shortfall, liquidity, and inflation risk) and how it is affecting your portfolio (also known as risk evaluation). You need to analyze the impact of the risk on the portfolio and understand how deploying a strategy can mitigate the risk. Useful risk evaluation tools, like cash flow simulations, scenario analysis, and Carlo simulations, can visualize the impact of market factors on the portfolio. For instance, if there is a downside (or negative) risk, we can trade off and balance the portfolio with scenario analysis. Likewise, in the case of inflationary risk, integrating the real return asset classes can mitigate the risk in the short term.

Sometimes, a picture can foretell what even words cannot. Data visualization works in the same way. It helps depict a relationship between two variables and how they are correlated to your portfolio. You can also estimate which asset (or security) forms a major component of your portfolio and how it can boost its overall performance. Also, pie charts, graphs, and trendlines can assist in gaining insightful experiences from the security price data present in the portfolio management software interface. By choosing the right visualization tool and data, it is possible to make sound investment decisions for your portfolio. 

Visualization is central to advanced data analytics for a reason, and it eventually leads to unmeasurable insights regarding security. Thus, if a stock or currency shows a green candlestick pattern, you can eventually predict the next market move and invest likewise.

The urge and pressure to create a successful portfolio are inevitable. To some extent, it does cater to the retirement and future goals of oneself. However, planning and having the right platform to manage your assets is also vital. By chance, if you end up with a hasty fund manager, profits will definitely break with your portfolio. At such a time, having investment portfolio management software is all that you need. With no hassle, robust portfolio construction, analysis tools, secured SaaS (software as a service) solution, flexibility, and access from anywhere, the software is your best investment management tool. 

Not just that, these software tools also have altogether integrated technology to work with any ecosystem and get it installed in just a few minutes. With this, take the next step to automate your portfolio and manifest the desired investment success with portfolio management software.