Empowering Investors on Risk-Return Trade-off

The Problem:

ProblemA large global ETF provider and asset manager was planning an innovative solution to empower investors to understand and decide the risk-return trade-off of their investments, and hence selling the new ETF products. The plan is to allow large investors to assess the risk and return of their entire portfolio, along with any additional investments in some of the client ETFs to their portfolio of investment, on the go.

Aranca's Solution:

SolutionA team of multi-skilled associates was deployed to create the tool, that could be hosted in the public website of the client. A risk and return attribution framework and tool was developed, in discussion with the client. Using the client’s subscription to databases like Morningstar and the internally developed risk and return attribution tool, another tool was developed that would enable the investors to check the expected changes in risk-return characteristics by inputting their existing portfolio holding information and the planned investment in ETFs.

Client Benefit:

BenefitThe client was able to create a unique product to empower the investors to decide their portfolio composition based on their risk appetite and future wealth expectations. By creating this, the client was able to create a digital marketing buzz in the industry, on a cost effective manner.