Help Investors Understand Risk-Return Trade-off

The Problem:

ProblemA large global ETF provider and asset manager is planning an innovative solution to help investors understand and decide the risk-return trade-off of their investments. It is, hence, introducing new ETF products. The plan is to allow large investors to assess the risks and returns concerning their portfolios and consider additional investments in some of the new ETF products. This was aimed at helping investors manage their portfolio more dynamically.


Aranca's Solution:

SolutionA team of multi-skilled associates was deployed to create a tool that could be hosted on the client’s public website. A risk and return attribution framework and tool were developed after brainstorming sessions with the client. Using the client’s subscription to databases such as Morningstar and the internally developed risk and return attribution tool, another tool was developed to enable investors to check the expected changes in risk-return characteristics by feeding in information on their existing portfolio and planned investment in ETFs.


Client Benefit:

BenefitThe client was able to create a unique product to enable investors to decide their portfolio composition based on their risk appetite and future wealth expectations. These unique reports were an instant success and gained recognition across teams in the organization. Moreover, according to the requirement, analytics were incorporated in the pitches. Through this product, the client was able to create a digital marketing buzz in the industry in a cost-effective manner