If a client is willing to make changes to their investment strategy, they might be interested in observing the impact of these choices over the long run. Portfolio visualizer tools enable them to build models or simulations to help them evaluate the possibilities of the results. The most effective tools are simple to integrate as an advisor and are easy for clients to understand.
What Is a Portfolio Visualizer?
Portfolio visualizer is a tool that permits advisors to analyse and analyze investment portfolios in a way that is granular to their clients. They can be standalone tools that can be used independently of software programs. Additionally, they can be integrated into the financial planning software or programs specifically designed for the requirements of advisors.
What types of tools help you? A portfolio visualizer could be extended to:
- Comparing tactical allocation models
- Analysis and Fund screening
- Back-testing
- Modeling for portfolio optimization
- Running Monte Carlo simulations
These types of tools are designed to assist you in your efforts to give the most precise recommendations to clients. It also lets clients see what their portfolio appears as it is now and how it would look if they decide to go with X Z, Y, or X when it comes to their investments, or should they undergo significant life changes.
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5 Best Portfolio Visualizer Tools
It can be a great help for those with visual learning. They learn more quickly by looking at it, instead of just listening to it. Giving a client graphs, charts, or other visual aids will help to reinforce the information you’re giving them to make it easier for them to understand.
Selecting tools to integrate into your business usually depends on the type of features you’re looking for and the level of functionality you’re looking for, and the price you’re able to afford. When you’re comparing visualiser tools, you should think about the following:
- What am I looking for this tool to accomplish in my favor (and my customers)?
- What are the most important features to be sure
- What price do I want to pay for the various options or benefits?
- In that light, this list of six portfolio visualizers that advisors should consider:
1. Morningstar Office
Morningstar Office is a comprehensive software solution built specifically for registered investment advisors (RIAs). It combines portfolio and practice management tools into one powerful platform.
Key features include:
- Portfolio modeling and performance reporting
- In-depth portfolio analysis
- Investment and retirement planning tools
- Risk modeling and client risk profiling
- Built-in CRM capabilities
- Easy portfolio rebalancing
Advisors also gain access to Morningstar’s trusted research, data, and analytics—ideal for building custom model portfolios for clients. Want to explore it yourself? You can request a demo directly from Morningstar to see how it fits your practice.
2. NaviPlan
NaviPlan is an end-to-end financial planning software solution used by banks, insurance providers, and broker-dealers worldwide. Designed as an end-to-end solution for advisors, spanning everything from client onboarding to compliance monitoring and data protection issues.
This software’s unique features enable advisors to deliver financial advice collaboratively and visually, such as its Guided Retirement tool, which makes it simple for clients to see whether or not their plans for retiring may be altered by changing healthcare costs.
NaviPlan provides Monte Carlo analysis, scenario evaluation, and retirement income modeling capabilities. Advisors can create custom reports with charts, graphs, and visual components tailored specifically for their clients’ needs – or take a trial version before making their commitment.
3. Nitrogen
Nitrogen provides wealth management firms and advisors looking for an all-in-one growth platform with interactive visualization tools available at their disposal, providing access to various forms of support such as:
Modeling risk capacity so clients understand the amount of risk necessary for them to meet their goals. helping clients understand the ramifications of various life changes or financial decisions (from paying for college fees to when to claim Social Security), like taking early benefits or paying down student debts.
Conduct stress tests and model different investment scenarios to assess outcomes and make an accurate evaluation.
Nitrogen conducts daily analyses on over two and a quarter million securities, such as stocks, exchange-traded funds (ETFs), mutual funds (MFs), bonds, and real estate investment trusts (REITs). Advisors can leverage this data wealth to model performance and assess risk at an in-depth level.
4. FundVisualizer
FundVisualizer allows advisors to quickly compare ETFs, mutual funds, and indexes both directly and within portfolios. Morningstar data as its the basis for comparison across 80 performance and risk metrics. This stand-alone visualizer tool also makes portfolio comparison easy!
Key features include:
- Portfolio modeling and analysis
- Interactive charts
- Report creation
FundVisualizer makes sharing research findings with clients easy via email and is completely free for advisors to use. You will simply need access to download it from the App Store and register for an account.
5. Portfolio Visualizer
Portfolio Visualizer provides advisors who wish to generate visual models and reports for client accounts with another standalone solution, the Pro subscription plan being specifically intended for both personal and commercial usage.
Key features include:
- Portfolio backtesting
- Monte Carlo simulations
- Portfolio optimization
- Factor regression
- Asset analytics
- Tactical allocation models
View examples of portfolio visualization on our site or sign up for a demo to try the tool yourself and decide whether or not it meets your needs.
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How to Integrate Portfolio Visualizer Tools into Your Business
Integrating portfolio visualizer tools into your financial advisory business can enhance services and boost client satisfaction. There are five general areas where these tools could be useful:
Client Onboarding
Involve new clients early on in the investment decision-making process by using portfolio visualizer tools during client onboarding. Demonstrate how your strategies meet individual needs and risk tolerances using these visualization tools. Establish clear expectations early about how investments will be managed while making clients feel like an active part of this decision process.
Review Meetings Regularly
Create visualizers as an integral part of your review meetings. They can be used to demonstrate to clients the present performance on their investments, and to consider possible changes. For instance, you can utilize a visualiser to show the benefits of increasing the exposure to equity or diversifying into different types of assets. This can not only inform customers but also encourage more involvement with the investment strategies they employ.
Scenario Analysis
Visualizer tools to perform scenario analysis in periods of market volatility or significant occasions for customers, like the purchase of a house or retirement. Visual projections of various scenarios can help investors make better informed decisions on how they can adjust their portfolios to accommodate changes in the market.
Education Workshops
Hold client workshops that demonstrate how to use these tools. This is a great method to demonstrate to clients how important it is to have a well-thought-out portfolio design and the advantages of continuous management. It is also an efficient marketing strategy, showing your expertise in technology and commitment to openness.
Marketing Materials
Use the outputs of portfolio visualizers for your marketing materials. For instance, include hypothetical or case studies of results of your portfolio inside your monthly newsletters or on your site, or in presentations for clients. This will not only highlight your analytical skills, but it could also aid potential clients in understanding what type of analysis they can expect.
Summing Up
Portfolio visualizer tools will make your work as an advisor a lot easier if you are able to show clients what they could expect when they choose one investment over another. Knowing which features are the most likely to be popular with your customers can aid you in deciding which tool or tools are the right choice for your company.
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