Broker Check
What is a Portfolio Diagnostic Report?

What is a Portfolio Diagnostic Report?

| April 15, 2019

A Portfolio Diagnostic Report is a comprehensive assessment of an investment portfolio that displays a complete analysis of a portfolio’s holdings. Such as the assets, types of stocks, bonds, or alternative investments. The report provides an at-a-glance growth or income model of the portfolio.

The Portfolio Diagnostic Report helps you determine if your portfolio is properly aligned with your goals, objectives and time horizon by illustrating your current asset classes, allocation and diversification.

The Portfolio Diagnostic Report ultimately helps you determine what balance of risks and rewards is susceptible to your current holdings and whether or not it is positioned to produce the desired income, growth or both.


What is a Portfolio Design?

Simply stated, a Portfolio Design should help complement your goals, objectives, time horizon, and risk tolerance. There are steps that should be considered when constructing an investment portfolio. Such as asset allocation, asset diversification, in addition to maintaining the appropriate asset rebalancing and portfolio monitoring.

In short, asset allocation will ultimately determine the percentages of the investment portfolio chart/pie.

[For instance a chart may have 50% stock 50 % bonds or may have 40% bond & 60% stocks that include alternative investments. ]

The level of market risk that an investor can tolerate will play a role on how a portfolio allocation should be classified from being conservative vs. being aggressive. Having a clear investment objective & understanding the difference between asset allocation and asset diversification will make the construction of such a portfolio simpler & aligned with your ultimate objective.

[Example, it becomes more evident whether the percentages of an investment should be waged toward growth/income or on the tax-sensitive side. ]

Note: remember the power of diversification, re-balancing strategies, and the continuation of monitoring your investments could have a positive effect on the overall portfolio. Diversification/Asset Allocation does not ensure a profit or guarantee against loss.