How to use Diversset. A complete guide. Find great stocks and construct an efficient investment portfolio.
Diversset was made by a former institutional trader and treasurer to help investors find value or growth stocks depending on investors’ investment goals and construct well-diversified investment portfolios. No financial knowledge is required to use the app.
In this article, I will explain how to use Diversset to find great stocks and ETFs that will match your risk appetite, minimize portfolio loss, and maximize the expected return.
- Step. Go to the Diversset webpage and press the label as shown in the picture below
2. Answer two simple questions. Investor type question defines the level of risk you are willing to take and the expected return is your required portfolio return.
3. Press the button at the bottom to see the results. After that, you will see the list of stocks as shown in the picture below. This is the list of stocks and ETFs sorted for you (based on the question that you answered). The application performs the stock search worldwide (from all over the world, from all the major exchanges).
4. Now press the “Portfolio builder” button. And the application will build you your efficient portfolio. You can manually choose 10 stocks and ETFs from the sorted list and build your efficient portfolio from your selection (but please choose exactly 10 assets). Or if you don’t select assets manually, Diversset will take 10 of the most liquid from the list, and build your portfolio from them. As you can see in the picture below, Diversset suggests the stock allocation for your portfolio so that your portfolio will generate the minimum possible volatility, given your required return. Also if Diversset will not be able to build the portfolio using your indicated required return (as shown in the picture), it will build the portfolio with the highest possible return and the lowest possible loss. In the below example, the portfolio’s expected return is 111%, and the expected volatility is 1.54%. The “return issue” label indicates that we initially put the 14% as our required return, but Diversset was not able to build an efficient portfolio with your indicated parameter so it suggested another, higher expected return.
I hope you liked the tutorial and Diversset. Please don’t forget to share the application if you like it. Please also follow me on Medium. I post stock market-related educational articles and videos. Thank you.
