InnovestX - Intelligent Portfolios Case Study
⚙️ Background
Intelligent portfolios is a digital advisory feature that automatically invest, rebalance and execute DCA orders for clients. This project is a case study where I explored areas of improvement in assisting users to achieve their financial goals through the use of digital advisory.
Who is the main user?
According to FGD findings (Jun 2023), majority users of Intel Port age range from 27-58 years old. Users from age 27-42 focus on building net-worth and personalized advisory while users over the age of 40 prefers wealth-sustaining portfolio and reliable service. Both personas have busy schedule with little time to manage their investments.
Goal: Make better financial decision, invest in steady & sustainable assets with proposed allocation that suits their preferences
Pain: Lack of time & investment discipline, anxious about market volatility
01 User Profiling & Personalization
Understand user's Financial goals + Risk tolerance + Investment horizon to gauge User Investment Preferences.
Goal-Based Portfolios allow users to customize inputs such as investment amounts, timeframes, and risk preferences to see personalized projections and allocation strategies. If the likelihood of reaching their financial targets is low, there will be options to autofill suitable inputs for clients. This empowers users to make informed decisions, reduces manual effort, and guides them toward setting more realistic and achievable goals based on their current financial situation.
02 Enhancing Credibility & Value Proposition Communication
The new Guru Portfolios design focuses on improving info presentation by displaying expected returns per year and showcasing historical performance. Additionally, it includes Stand Deviation data under the graph for easy risk comparison against the MSCI benchmark. Furthermore, users can see the number of investors subscribed to the portfolio and the associated management fees which provide transparency. Clear communication about fees is essential for building trust and managing user expectations.
03 Visualizing Wealth Growth & Recommending Optimal Portfolio Allocation
Interactive features such as probability analysis tools and wealth projection charts, can enhance personalization and manage user expectations. A clear asset allocation graph instills confidence in users by providing a transparent and structured view of how their money will be invested. This can increase user trust in the advisory service and the investment recommendations provided.
04 Encouraging Investment Discipline and Mitigating Market Volatility
Through auto-invest, users can automate their investment contributions, fostering investment discipline and consistency. This approach not only helps users stay committed to their financial objectives but also leverages dollar-cost averaging to mitigate market volatility. Dollar-cost averaging, facilitated by auto-invest spreads investment purchases over time, reducing the impact of short-term fluctuations on overall portfolio performance while saves users time and effort by eliminating the need for manual transactions or periodic investment adjustments.
By placing the auto-invest button prominently on the portfolio management screen, users can quickly and conveniently set up automated investments without navigating through multiple menus or options.
05 Keep Users Committed to their Goals: Preventing Impulsive Withdrawals
Implementing measures to discourage hasty decisions within the UX develops financial discipline and promotes a stable investment approach, safeguarding long-term goals.
Key Summary
In summary, Intelligent Portfolios has been specifically designed to meet the diverse needs identified in the FGD sessions. It begins by providing personalized features that align most with individual goals, risk tolerance, preferences and expectations while remaining credible.
Once the most suitable digital advisory have been recommended, the feature employs behavioral nudges. These include promoting investment discipline, managing risks, and goal commitment to guide users—especially those with busy schedules and limited time for managing investments—progress closer towards their financial objectives.
