Portfolio Analytics - The missing piece in the puzzle

Most Financial Planning / Stock broking neo companies do have a host of nice interesting features, but I have not come across any particular firm/app/website which is focussing more on the portfolio analytics feature.

Portfolio analytics is quite crucial as it really helps to understand the bird’s eye view of an individual’s performance. Lot of institutional investors have these features, but none of them have percolated for retail investors as of today .

For starters a simple need, even today none of my brokers (even the much loved zerodha) can give me a clear understanding whether i have underperformed or over performed the index. The calculation is not complex, with daily portfolio returns in place we can calculate whole set of analytics with a few lines of code.

For example, just give me portfolio’s daily return for 1 year and we can calculate the following using few lines of code in python

a. Time-weighted Return and Money Weighted Returns
b. Drawdowns
c. Calmar
d. Ulcer index
e. Sharpe.
f. Sortino
g.Jensen’s Alpha
h. YTD return, 3M ,6M, Yearly returns
i. VAR,CVAR
j. Skew, Kurtosis
k. All kinds of active and passive benchmarking
l. Beta
j. Historical Efficient frontiers

This is what institutional portfolio manager’s have in place today , but none of these are available for retail investors.

There can be two reasons why the companies are not investing on this
A. It’s possible they might think Retail Investors don’t care for any of these
B. It is too computationally intensive to get these in place

(or There must be something else beyond my understanding at this point)

It is possible retail investors at this point must not be aware of the need for such kind of analytics. However educating the importance of these analytics will help lot of investors/financial planners to see beyond the apple of immediate returns [Similar to the case study of Lululemon and Yoga Pants branding ].

Finally ,this can make customer’s sticky to any firm providing these features as an inbuilt feature as there is higher incentive to maintain all the investments in 1 single place

Hey Vasu, welcome to the community! thanks for sharing your suggestion.

I understand the need for a detailed quant analysis of your portfolio would definitely benefit retail investors. When you’ve mentioned this for your entire portfolio (slew of asset class), we’ve built something that helps you at least take the first step and check benchmark index performance for your Mutual Funds to start with.

Give this a try if you haven’t already

and let me know what do you think about it.

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