Where can I find investment management software

Portfolio Management Test 2021 • The best portfolio managements in comparison

What is portfolio management?

In the field of Finance or the investment, the term “portfolio management” means the Compilation of financial investments or investments. This can be securities as well as raw materials or real estate. In practice, pure securities, real estate or raw material deposits are rather rare. Rather, an investment portfolio is usually a colorful mix of many different types of investment.

The investor's goal is to secure or even increase their own assets in the long term. A consistent one Management of the portfolio is advisable if the collection is a very large, complex portfolio. Management in connection with the administration and regular control of the portfolio.

How to get a Portfoliocomposed in detail, always depends on the respective wishes and ideas of the investor. It is important to always pay attention to the balance between the expected return and the corresponding risk. The risk of losing money can be reduced by optimizing management.

By the way: The management can be done by the investor himself, but also by trained Portfolio managers (asset managers) or corresponding financial service providers. In the case of do-it-yourself management, it is particularly important to rely on good software with suitable tools.

How does portfolio management work?

Portfolio management is based on three different pillars:

  • the portfolio planning
  • the portfolio realization
  • the portfolio control

The portfolio planning

The planning is of particular importance because it decides right from the start whether the investor will be successful with his investments. Before you start building a portfolio as an investor, you need to determine what your short-term or long-term financial goals are and what strategy you want to use to achieve them. The strategy usually results from your personal wealth and capital situation.

Set as Private investor For example, if you find that you have invested your capital unprofitable in the past, the goal may be to invest your capital in the future in such a way that you achieve your individual return targets. Strategy means the way in which or in what you invest your money in order to achieve long-term success.

One form of hedging is the diversification strategy, in which investments are made in several projects or systems at the same time. When planning the portfolio, your personal willingness to take risks and your expectations of returns also play an important role. In practice, this means, for example, that you as a short to medium-term investor should not invest in lengthy projects.

The portfolio realization

After the planning comes the realization. In the case of securities, in this phase, for example, transactions take place on the stock exchange or in other ways. Existing information, strategies, analyzes and investment opportunities are compared and evaluated with one another. Furthermore, the portfolio structure is determined, which basically states what relative proportion of investments can be held in the portfolio in order to implement the previously defined strategy.

The portfolio control

At the control or at the Management of the portfolio the main thing is to monitor investments. If your investment does not develop according to your expectations, you must act accordingly. The best way to do this is of course with the help of an asset manager, whose job it is to follow the investment strategy you have developed or to revise it as required.

A professional asset manager will give you decision-making recommendations; depending on the agreed decision-making powers, he will also have the competence to make investment decisions himself. According to the law, however, express permission must first be obtained from the Federal Financial Supervisory Authority (BaFin).

For whom is portfolio management important?

The thorough, mindful Maintenance of a portfolio It is always worthwhile when the financial portfolio has reached a large size and is difficult to oversee and control without appropriate management.

Furthermore, even very complex investments require good, regular portfolio management in order to carefully weigh the benefits and risks. The management of a portfolio is also recommended for everyone who owns your Increase returns, increase your wealth or secure your money for the long term want. The investor can be a private investor as well as a company or a professional asset manager. Regardless of whether private or business - there is a suitable one for every investor Offers and strategies to invest your wealth sensibly.

Portfolio management for companies

An adequately organized portfolio management represents an effective lever for companies, which can have a positive influence on the overall company result. It is considered more important Key factor for increasing the company value and answers the question in which direction the company should steer in the long term.

Furthermore, it deals, for example, with the questions in which business areas should be invested and which business areas should be closed because they do not make a profit. Good to know: Using special software for companies, several portfolios can be managed separately from one another.

Portfolio management for private investors

Just like companies Many private investors are also increasingly relying on good portfolio management. The process is basically similar to that of a business investor, but private portfolios usually differ from business entrepreneurial portfolios in that they limit the amount invested.

Return and risk

For whom portfolio management is actually worthwhile and which goals should be pursued with it, depends primarily on the existing assets as well as on the parameters of return and risk. When investing money, both parameters must be precisely coordinated.

The creation of an individual risk profile plays a role that should not be neglected, because the key to the right investment is always personal risk tolerance, risk tolerance and ultimately that Risk profile A civil servant with a secure job, for example, can take significantly more risk than a self-employed person, who usually has a relatively low risk Risk tolerance owns.

What types of portfolio management service providers, services and software are there?

As already mentioned, the demands on portfolio management increase with the volume of investments. For this reason, numerous financial service providers, including large banks, offer their customers professional asset management by a so-called asset manager. An asset manager controls and monitors the portfolio, develops or revises the investment strategy and advises you as an investor on your decisions.

Financial service providers like that Deutsche Bank offer your customers an extensive range of services in this regard, from securities advice to asset management as well as their own systems and software. The advantage is that the banks provide competent, professionally trained asset managers who can advise you as a customer on all your concerns. The fact that the route through the financial service provider entails running costs could be viewed as a disadvantage.

If you do that management If you prefer to take your portfolio into your own hands, the team of experts recommends appropriate software that enables you to oversee and control your portfolio. As a rule, such programs are also used by asset managers and other financial service providers.

Portfolio management software helps you to determine how balanced your portfolio is, how it is with your current wealth distribution and which investments are actually worthwhile in the long term. Different systems can be merged and clearly displayed in your personal dashboard. In-depth, informative analyzes enable current course data and appealing graphics to be always available.

The advantage is that you usually only have to invest once in the software (but there are also programs that you have to pay for on a monthly basis). Compared to a personal asset manager, you get away much cheaper. At the same time, however, the competent advice and decision-making aid of a professional financial service provider is no longer necessary, because the software only helps you to manage your portfolio. You have to make your decisions completely by yourself.

Which services can portfolio management offerings include, and which ones are particularly important?

What services you get from a Portfolio management offer can expect depends, of course, primarily on the type of offer. If you choose a personal asset manager, you can usually count on extensive support. You will be advised individually and can use your Finances place in the hands of a professional portfolio manager as required. It is clear that such personal support differs significantly from the range of services offered by software, and not just in terms of price.

What does an asset manager do?

A Asset managerthat is made available by a bank, for example, does of course other things than software. Since the team of expert testers mainly dealt with the possibilities of the various software and the offers can differ greatly from one another, the asset manager topic should only be touched upon briefly at this point.

The aim of such a manager is to advise as a financial partner, to generate a high return with comparatively low risk and to develop a suitable strategy together with you. The services offered usually include individual (securities) advice for your personal securities account and the option of having your own assets managed by an expert.

What does portfolio management software do?

With the help of portfolio management software you can control and manage your portfolio. It does not make the decisions for you, but it can help you make your financial decisions on the basis of solid foundations. Software usually gathers up-to-date information, analyzes it and presents it graphically in an understandable way. First of all, you need your Securities or enter your other forms of investment into the software. If necessary, the overview can also be exported directly from the depot. Then the software current market values ​​in order to determine the total value of the portfolio.

Other forms of investment can also be managed with the help of suitable software, but you usually have to keep them up to date yourself. Ultimately, the system creates key figures and graphical analyzes that identify the individual Investments reflect and summarize the course of the entire portfolio. Further functions can, depending on the software, for example tax optimization and Folder summary include. The latter offers you the opportunity not only to analyze the portfolio and plan possible changes, but also to buy or sell systems directly from the software.

Tax optimization, on the other hand, helps you to structure your investments in such a way that as few taxes as possible have to be paid. Whether this function can be used in your country depends on the software in question. In any case, various functions of mathematical and graphic processing belong to every program. The only difference is the additional functions.

Which services do not usually include various portfolio management software offers?

As with any product, portfolio management software has some disadvantages. On the one hand, of course, there is no personal advice that an asset manager offers. On the other hand, it is your job to deal with the system and deal with it appropriately. Essentially Portfolio management software is a neutral tool that provides you with extensive analyzes and graphics, but does not give you any explicit recommendations. If you decide on such a system, you should be familiar with the subject in advance so as not to make wrong decisions in the long term. Some products also only support equity portfolios.

If you also want to manage other systems, you should definitely have one appropriate software choose that also allows this. Also keep in mind that individual services and functions can vary greatly from software to software.

A inexpensive or even free software usually offers significantly fewer functions, which is why such systems are only suitable for passive management. If you want to run your portfolio management regularly and ambitiously, we recommend a more professional and usually more expensive software that offers you the necessary tools (e.g. tax optimization and integrated folder management).

How much does portfolio management software cost?

Portfolio management software doesn't always have to cost something. In addition to offers that are paid monthly, annually or as a one-off payment, there are also some FreewareProductsthat can be used completely free of charge. However, freeware usually brings some disadvantage with himself. If you opt for a free tool, you shouldn't expect any current stock market inquiries. As a result, you have to manually keep your daily rate up to date, which can mean a lot of work. Would you like this work save, you will inevitably have to switch to a paid service.

As an investor, be that Portfolio self managed, you have to come up with prices from 30 euros upwards calculate. If you want to manage several portfolios in parallel, the price starts at around 100 euros per month. Professional portfolio managers who manage many different portfolios and rely exclusively on the best software, on the other hand, like to pay 1,000 euros per month to optimally manage their customers' investments.

There is also software that at a single price from around 60 euros can be purchased. In this case you do not take out a subscription and do not have to pay any fixed costs, but you have to update your daily rate manually here too. Up-to-date stock exchange queries are usually only available from subscription software and professional software for asset managers. Some providers do not charge a monthly fee, they charge one annual fee. This is based on the value of your portfolio and is on average 0.25 to 1.3 percent.

This is how portfolio management providers are compared

Whether freeware, inexpensive investor software or professional Portfolio Management System - General functions Every program offers mathematical and graphic preparation. The real difference is made by the additional functions and the price-performance ratio.

Smart portfolio management software is characterized by various factors, for example the scope of services and the media experience. The crew of expert testers took a closer look at what is important in detail and the criteria used to compare portfolio management programs.

Graphic representation

As mentioned earlier, each offers Portfolio management software a graphic preparation, mostly in the form of tables or the like. Whether the software is graphically appealing and, above all, clear in practice contributes significantly to the overall assessment. Good portfolio management software offers a modern, attractive and intuitive user interface.

If the user interface is confusing or if outdated, difficult to understand graphics are used, we advise against using the software, as this makes it more difficult to assess the prices and investments that have been made promptly and correctly.

user friendliness

hand in hand the graphical representation goes hand in hand with user-friendliness, which primarily depends on a clear dashboard and intuitive usability. Not all software shines with excellent user-friendliness, which can also unnecessarily complicate the management of the portfolio, especially at the beginning.

Range of functions

A good portfolio management software should, in addition to an optimal graphic representation and intuitive usability, above all with a solid Range of functions to convince.Freeware or demo versions are usually left out with regard to the range of functions, because this is usually severely limited. The standard functions that any paid portfolio management software should include Portfolio realignments, performance reports, task and contact management and customer portals.

Ideally, various analysis and visualization tools should be available that enable you to create interactive dashboards. The advantage is that such dashboards result in better Investment decisions let meet. Another very useful feature is the so-called integrated order management, which enables you to manage your Portfolio not only to analyze and plan possible changes, but also to buy shares directly from the program. The also very practical function of tax optimization also helps you to structure your investments in such a way that you have to pay as little tax as possible.

Which functions you actually need in practice, however, essentially depends on your personal ambitions and your know-how. The more time and the higher investment ambitions you bring with you, the higher the range of functions of the program should be.

Investment opportunities

Before buying a suitable one software you should definitely check the investment opportunities this offers. Some programs only support equity investments, which limits your investment flexibility considerably.

language selection

There are numerous Portfolio Management Programswhich are unfortunately only available in English so far. If you can speak the English language, this is of course not usually a big problem. Nevertheless, it is of course easier to select several languages ​​and set them as required.

Demo version

Some providers provide their customers with a free one Demo version available that can be tested over a period of time. The advantage is that you can first take a look at the program with the help of such a trial version, without having to enter into a binding subscription or buy the software. Whether or not the free trial version includes all of the features may vary from provider to provider.

Support and additional services

No matter how modern, mature or practical a software appears at first glance - if there is a lack of easily accessible, professional support that is not available to you if problems or questions arise, this clearly speaks against the program.

Ideally, support should be available via email, chat and / or phone. In addition, a clear FAQ page should be available to you in order to solve potential problems as quickly as possible and to quickly find your way around the software.

price

As already mentioned, there are several in the field of portfolio management software Pricing modelsranging from a one-time payment to an annual or monthly payment. The more functions the software contains and the more professional the system, the higher the price. So that you do not invest in the wrong software, you should first look at the respective range of functions and all other important criteria.

As a private investor, it is not necessarily worth investing in an expensive program of well over 100 euros per month. In this case, an inexpensive program with a balanced price-performance ratio will usually do the trick, which will enable you to manage your portfolio clearly on your own.

When does the purchase, subscription or membership pay off?

The Purchase of portfolio management software or the conclusion of a corresponding subscription always pays off for you if you take the management of your investment portfolio into your own hands and want to forego the use of a professional (but unfortunately also very expensive) asset manager.

Which one Tool is suitable for you personally, essentially depends on whether you want to act privately or for business and how ambitious you are management operate. In any case, it is an advantage that the software usually offers you constant access to current data, practical additional functions and appealing graphic processing.

One thing is clear: with the help of portfolio management software, you can get the most out of your investments and have the opportunity to secure or increase your assets yourself.

What you have to pay attention to when taking out a subscription or when making a purchase

Pay attention to the Buying a software or when taking out a subscription to the corresponding conditions and services that go with it. When does the monthly fee have to be paid? What specific services are offered to you?

Are there cheaper providers that offer the same Features for less money or offer it for a small one-time fee? If you have the opportunity, you should ideally test the software beforehand free of charge.

If necessary, pay attention to testimonials from customers to determine whether the provider you prefer is a reputable company with a good price-performance ratio.

Presentation of the top 7 software

With the help of a Portfolio management software you always have an eye on your investments. Nevertheless: Even if most paid programs offer a number of useful functions, a clear dashboard and good support, not all software is automatically suitable for every user.

To make your choice easier, the team of expert testers has the 7 leading portfolio management software analyzed in detail and checked for their individual strengths and weaknesses.

  • Ledgex
  • FinFolio
  • ReconAdvantage
  • StockMarketEye
  • softTarget iBalance
  • Lexware Finance Manager
  • Master Investor 6

Ledgex

At Ledgex is a US-American, English-language software that is used to visualize and control investment portfolios. The software was launched in 2010 and is primarily aimed at multi-fund managers. As a tool to improve the portfolio structure, Ledgex is used to systematically control and manage the portfolio, but also to carry out complex, mathematically-based analyzes. The comprehensive functions that the software has to offer are exceptional. In addition to pure portfolio management, Ledgex enables compliance reporting, client management and the administration of funds. Individual, interactive dashboards that help you make better investment decisions can be created in no time using practical visualization and analysis tools. The software is particularly suitable for companies, because with the help of the easy-to-use, already integrated workflow management, different users can be controlled based on their activity path. In addition, the software impresses with its simple, modern and intuitive user interface. Small coats of paint are only given in the area of ​​configuration and maintenance, because experience shows that these tend to be slow. There are plus points for the support, because it can be reached around the clock via email or phone. By the way: You can use the contact form to request a free test version - the price of the software, however, is unfortunately not openly communicated and remains a secret until the actual purchase is made.

FinFolio

Also at FinFolio It is a comprehensive, leading program that is used for asset management and portfolio management and is similar to Ledgex and other professional programs in juxtaposition. It is primarily aimed at investment and asset managers, offers a classic back office and can be quickly and easily integrated into numerous asset management products. In addition to performance reports, the software also offers the possibility of portfolio realignment, customer portals and task and contact management. Data can be easily exported to Excel, individual data evaluations and presentations including optical personalization can also be produced with just a few clicks. In addition, the creation of manual model portfolios poses no problem at all, which sets the software apart from comparable providers. A small drawback, however, are the updates, which can sometimes lead to annoying difficulties. All in all, FinFolio is a solid tool that shines with numerous useful functions, top support, an extensive FAQ department and a modern, easy-to-use user interface. The price of the software is likely to be similar to Ledgex, but the manufacturer does not announce the price publicly here either. A free demo version can be requested via email or the contact form.

ReconAdvantage

The portfolio management software ReconAdvantage As an in-house suite of the US company PortfolioShop, it offers comprehensive solutions in the field of portfolio management, accounting and performance measurements. ReconAdvantage contains numerous useful functions, for example partnership accounting, the possibility of portfolio analysis as well as modern investor accounting and reporting. The program supports you as an investor or asset manager not only in managing your portfolios, but also in tracking dividend accruals and in daily portfolio control. The software supports all common asset classes, including stocks, currencies and fixed-incom investments. An insight into your daily asset valuations is always available to you. ReconAdvantage is particularly convincing with its clear structure, which makes it easier to get started with the software. The only disadvantage is that the software is currently only offered in English. The provider, on the other hand, collects plus points for its support and for its blog, which is regularly updated and provides answers to important questions. Unfortunately, ReconAdvantage only answers the price question on request. Before doing this, however, you can request a free trial version to familiarize yourself with the program for the first time.

StockMarketEye

The classic portfolio management software StockMarketEye is available for Windows, Mac and Linus, but also as a mobile app for iOS and Android devices. The software, which is kept quite simple, is perfect for private investors with comparatively little experience, because the focus is primarily on the uncomplicated, rapid analysis of profits and losses. Furthermore, the software offers you the option of generating extensive, detailed reports on your investment portfolios. With just a few clicks, for example, profit and loss or back-in-time reports can be generated. From a purely visual point of view, the program unfortunately turned out to be not very modern in the test. Nevertheless, StockMarketEye scores with a very good structure and its flawless functionality. For its one-off price of around 45 euros, the software is definitely convincing, especially since you can test the program for 30 days free of charge beforehand.

softTarget iBalance

The portfolio management program softTarget iBalance comes from Canada and was specially designed for fund management. In addition to the classic functions of a conventional portfolio management program, the software also includes functions for automating the workflow, for aligning the portfolio and for modeling. The integrated portfolio optimization function, which supports you in making the best buying and selling decisions for each individual portfolio, is absolutely convincing. On the other hand, the somewhat confusing, very complex user interface has to be criticized, which makes it difficult to get started with the software and can overwhelm the user, especially at the beginning. In the event of difficulties, however, support can be contacted, which can be reached around the clock via email or telephone. If you are interested, a free demo version can also be requested here. The same applies to the price, because this is only disclosed by the manufacturer on request.

Lexware Finance Manager

At the Lexware Finance Manager, formerly “Quicken”, is a proven financial software that enables you to keep an eye on all of your assets. The software is ideal for beginners because it is characterized above all by its user-friendliness, simple structure and its uniquely low price. The software is available in the standard and the slightly more expensive deluxe version, which among other things offers you the convenient evaluation of your investments through automatic categorization as well as the possibility of observing, managing and analyzing up to 50 securities prices online. At around 50 euros for the deluxe version and around 33 euros for the standard version, the software scores with its very good price-performance ratio.

Master Investor 6

The investment portfolio management and analysis software Master Investor 6 von Owl is aimed at both investors and professional portfolio managers. The company also offers personal portfolio managers for private investors. Master Investor 6 enables investors and professional money managers to track and analyze investment portfolios made up of stocks, bonds, funds, options and other assets. The 37 available investment reports can also be customized to cover any time span and combination of portfolios. The software also includes the ability to track investment transactions, automatically calculate net assets, capital gains, unrealized gains, returns on capital and create up to 999 portfolios. The extensive software is unfortunately only available in English so far and costs around 69 dollars, the equivalent of around 60 euros.

Online or offline: The best place to go for a portfolio management subscription or purchase

Some portfolio and wealth management programs can be purchased locally from selected specialist dealers, but the team of expert testers always recommends purchasing through the Online trade.

Of advantage is that most retailers provide their customers with a free trial version that makes it easier for you as an investor to choose the right product. Furthermore, you save yourself unnecessary trips, of course, because most programs can be downloaded conveniently and safely from the provider. Some providers supplement the software with a corresponding CD, which you can conveniently send to your home on request.

Further Of course, you benefit online from the mostly lower prices as well as from the much larger selection of corresponding software. Many English-language programs can only be purchased within Germany by download, which is why you can only win in this regard with an online purchase.

Portfolio management software in the test - evaluation and results

Interested customers rarely find informative tests and analyzes on the subject of portfolio management software, as well as a corresponding comparison table, but they are available. Many blogs that dealt with the inspection and comparison of software are in the English-speaking area - for example Robo-Adviser Pros (https://www.roboadvisorpros.com/best-portfolio-management-software-for-investors/).

Accordingly, only English-language programs are presented, tested and compared with one another in a test run. On the other hand, it offers a good German-language comparison trusted.de (https://trusted.de/investment-portfolio-management) - The platform comes to a similar result with regard to the various software offers in agreement with the crew of expert tests. According to the sample and survey by trusted, it is important to select the right software individually.

Not every program According to the test result, fits every user and according to the analysis not every function is inevitably required. Which software is best for you depends not only on your personal budget, but also on your ambitions, the type of investments, the size of your portfolio, your language skills and your individual needs.

It is best to take a detailed look at the software in question in the form of a free trial version before buying it, try to compare it and only then decide whether it meets your personal requirements and wishes.

questions and answers

What possible strategies does portfolio management offer investors?

In portfolio management, a distinction can be made between two different strategies: the top-down approach and the bottom-up approach. The first approach starts with the goal and tries to develop a suitable strategy based on it, whereas the bottom-up approach is the exact opposite, in which the performance analysis is examined first.

What does strategic portfolio management mean in detail?

Strategic portfolio management is primarily based on the definition of the portfolio structure, but also on the definition of the portfolio style. The structure components are divided into percentages, for example in 40 percent stocks and 60 percent bonds.

If the structure is maintained rigidly, one speaks of countercyclical, more speculative behavior. Pro-cyclical behavior, on the other hand, is considered conservative. The portfolio style can be distinguished from one another as follows: active (active deviations in return), passive (slight deviations in return compared to the index) and semi-passive investment style.

What are the disadvantages of portfolio management software?

Some Portfolio management tools for private investors ausschcon-itemeßcon-itemch manage shares. In addition, the costs for the software reduce the profit, depending on the acquisition or fixed costs.

When is it not worth investing in portfolio management software?

If you only have low ambitions to secure and increase your wealth, a purchase or a subscription is usually not worthwhile. Hobby investors who do not have the time to deal with the matter regularly do not necessarily benefit from paid software and should rather get good freeware if necessary.

Alternatives to fee-based portfolio management software providers

Of course there are some on the market too Freeware offersthat can be used absolutely free of charge and that are perfect for testing. As an investor, however, you should bear in mind that such programs (mostly apps) usually require more effort, as you always have to manually keep your portfolio and current prices up to date.

For example, a free app is Personal Capital Finance for iOS, Android and Amazon devices. The English-language apps are also freely available Yahoo! Finance, Ticker: Stocks Portfolio Manager and SigFig Wealth Management.

Links and sources

Portfolio management worth knowing

Professional portfolio management

5 finance apps