Company Name: InvestWise
Project Objective
InvestWise is facing challenges in providing small-scale investors with accessible tools to understand and practice portfolio diversification strategies. Many investors lack the experience and resources to evaluate risks and returns effectively, which leads to suboptimal investment decisions. The absence of a user-friendly simulation tool further complicates their ability to explore different strategies in a risk-free environment. The objective is to develop an interactive simulation tool that allows users to experiment with portfolio diversification strategies, assess potential risks and returns using historical market data, and visualise performance insights.
Requirement
Create an interactive tool that:
- Simulates Investment Strategies:
- Allow users to allocate resources across multiple asset classes, including stocks, bonds, and mutual funds.
- Enable customisation of investment goals and preferences.
- Evaluates Portfolio Risk and Return:
- Use historical market data to calculate expected returns and associated risk metrics, such as standard deviation and beta.
- Provide a risk-reward assessment for each allocation strategy.
- Visualises Performance:
- Generate dynamic charts and dashboards to compare and analyse various portfolio strategies.
- Highlight portfolio growth projections and risk comparisons.
Detailed Features
App Features
- Portfolio Builder:
- Users can select asset classes, allocate resources, and define investment goals.
- Risk and Return Analysis:
- Calculate risk metrics (e.g., standard deviation, beta) and expected returns using historical market data.
- Performance Visualisation:
- Interactive dashboards displaying performance metrics, growth projections, and risk comparisons.
Deliverables
- Phase 1 – Design and Mockups:
- Portfolio simulation framework documentation, detailing calculation formulas and risk metrics.
- Wireframes for portfolio builder and performance dashboards.
- Sample historical data tables for testing simulations.
- Phase 2 – Prototype:
- A functional Excel-based simulation tool for portfolio building and risk-return analysis.
- Basic dashboard with visual representations of portfolio performance.
Technology Suggestion
- Excel: Simulate portfolio calculations and build visual dashboards.
- PowerPoint/Figma: Wireframe design for app interface.
Expected Output
- Phase 1: Design document, calculation formulas, and wireframes.
- Phase 2: Interactive Excel tool with performance dashboards and risk calculators.