How do I analyze my portfolio
The Portfolio Analyzer creates a comprehensive report analyzing the overall performance of your entire Quicken portfolio. It displays your holdings in context and identifies areas that may benefit from further investigation. Use this feature to understand how your portfolio fits within a sound investment strategy.
- Open the Portfolio Analyzer
1. If Classic Menus are not turned on, choose View menu > Classic Menus to turn them on.
2. Choose Investing menu > Investing Tools > Portfolio Analyzer.
3. Use the navigation pane on the left to view specific groups of performance measures (for example, tax implications).
- View descriptions of the performance measures used in the Portfolio Analyzer
The links below correspond to the choices displayed in the left pane of the Portfolio Analyzer window. Click a link below for more information.
• The average annual return calculation converts your cumulative total return into an annualized figure. For example, an investment that has a cumulative return of 30 percent over three years—meaning it has gained 30 percent for the entire three-year period—has an annualized gain of 9.1 percent. That is, the security's average annual return for each of those three years was 9.1 percent. (Total return is the sum of any appreciation or depreciation in the value of a security plus the value of any dividends produced by the security.)
• Based on their average annual returns, the Portfolio Analyzer lists securities here that are the best and worst performers in your portfolio.
- HoldingsYour portfolio contains these accounts displays the investment accounts included in the Portfolio Analyzer report. You can customize the report to include different combinations of accounts. These are your largest holdings displays individual securities in your portfolio, ranked by their total market value, and sorted alphabetically.
- Asset Allocation
The Asset Allocation snapshot displays your portfolio's asset allocation. Use this to monitor the expected risk and return of your portfolio. To create or change your target asset allocation mix, use the Asset Allocation Guide.
- Risk Profile
The Risk Profile snapshot uses standard deviation to identify the expected risk and return of your portfolio, relative to the expected risk and return of various asset types.
Standard deviation is a common statistical tool used to measure the volatility in the performance of a single security or an entire portfolio, typically by calculating monthly returns over a period of 36 months. The result is usually reported on an annualized basis. A security with a high standard deviation has a lot of variation in its monthly returns. Such volatility generally indicates that there is a significant downside risk. Short-term bonds often have standard deviations of less than 1 while precious metals stocks and funds can have standard deviations of 25 or higher.
If your expected standard deviation is not displayed, then it means you may not have assigned asset classes to your securities. You can either edit your securities to assign asset classes manually, or download asset classes.
- Tax implications
• Your realized capital gains for the current year displays realized capital gains (The difference between the selling price of a security and the cost basis. If you sell it for more than you paid, there is a (real) gain. If you sell it for less, there is a (real) loss. For example, when you sell 50 shares for $2000, and the cost basis of those shares is $1201, your realized gain is $799. Quicken displays realized gain or loss in the capital gains report under the heading Gain/Loss. A negative value indicates a (real) loss.) for securities you sold this year.
• The tax implications of your current holdings displays the holdings terms for your portfolio, broken down by the percentage of your holdings that fall into each category, short-term and long-term. For more information about the tax rates that apply to your situation, see the Tax Planner.
Quicken relies on accurate and complete data to derive reliable performance measures. To view certain performance measures, it may be necessary first to replace placeholder entries with complete historical data.
- Customize the Portfolio Analyzer
1. In the Portfolio Analyzer window, click Customize.
2. In the Customize Portfolio Analyzer dialog, set the options you'd like
- In the Value as of date field, specify a date. To analyze your portfolio's historical value and performance, click the calendar button and select a previous date. Otherwise, use today's date.
- In the Selected Investment Accounts list, select the accounts you want to include in the report.
- Tell me more about selecting accounts
• Selected accounts are check marked in the Selected Investment Accounts list.
• To select or clear individual accounts, click them in the list.
• To include or remove all accounts, click Mark All or Clear All.
• To include hidden accounts, make sure the Show Hidden Investment Accounts check box is selected.
• To exclude hidden accounts, clear the Show Hidden Accounts check box. Hiding an account is useful when you no longer want to see obsolete accounts, or if you want to see the effect of removing particular accounts from your portfolio.
- Tell me more about selecting accounts
3. In the Tax Bracket list, select the Federal Tax rates you want the Portfolio Analyzer to use in its calculations.
For rates that most closely reflect your true tax situation, including changes that may occur over the course of the tax year, use your tax rates from the Tax Planner.
- Print the Portfolio Analyzer report
1.In the Portfolio Analyzer window, click anywhere in the right side of the window to activate the main page.
3.Select the appropriate options, and then click Print.