This week, we asked the Invstr Community if they’ve used our Portfolio Builder to create a diversified portfolio – and the responses were 50/50!
The winning option amassed 42% – representing Invstrs who have used the Portfolio Builder feature. In second place, we have 36% of Invstrs who haven’t used Portfolio Builder and want to learn more. This suggests that they were not entirely aware of the feature, whereas the final 22% of Invstrs who answered, ‘I will try it soon!’, are familiar with it but haven’t tried it yet.
Invstr’s Portfolio Builder, simply put, personalizes investment picks for you! Since we produce an Instrument Score for every asset in the platform, and User Stats for every user, we know two valuable things: where and how a user invests, how successful they are, and how the instruments they are investing in rank compared to similar instruments. With this information at hand, we help users get exposure to the right instruments:
Asking users directly where and how they want to invest (asking questions about their risk tolerance, sectors of preference, etc.), or inferring their preferences from their revealed behavior while using Invstr, Portfolio Builder gives users a high-quality, diversified portfolio made of assets which correspond to their declared or inferred preferences.
The output of this model is a vector of instruments and the weights in a simulated portfolio, plus a backtest of the resulting portfolio. The backtest will adjust the weights on a risk basis and is constructed according to standard modern portfolio theory techniques.
You can mix and match variables and see how your portfolio changes as a result! When you get the simulated returns you desire, you can follow all the picks or just add the ones you really love to your watchlist.
Is this something you will try? Make smarter decisions with Portfolio Builder and reach your investing goals! Sign up to Invstr Pro now to try it out for yourself.
Have fun and see you next time with more poll results!
- The Invstr Team 🙂