Investment Reporting Tools: How to Choose the Right One for Your Business

Investment Reporting

Large organisations and institutional investors often depend on asset managers for portfolio management. Asset managers protect their investments from different risks. They aim to maximise the portfolio performance for their clients. Investment consultants, portfolio managers, and other professionals also focus on reporting. Investment reporting is mandatory to maintain communication with the client. Not to forget, clients know about the current portfolio performance through investment reporting. Asset managers rely on several investment reporting tools to generate insights and visualise data. Some organisations directly use digital investment reporting solutions to make business decisions without the involvement of asset managers. Read on to understand how to choose the right reporting tools.

Comprehending Investment Reporting

Investment reporting is a comprehensive process of collecting, analysing, and presenting investment data. Professionals collect investment data and convert it into a structured form. The structured investment data is then analysed to produce meaningful insights. These insights are visualised and presented to the required individuals. Investment reporting helps understand the portfolio performance and the risk that might leave an impact. Besides KPIs and insights, investment reporting also determines asset allocation and diversification standards. In short, investment reporting includes everything about a portfolio, from performance to associated risks. One can understand the composition of one’s portfolio easily with an investment report. Many investors rely on professional reports to assess their risk profiles.

Large organisations or institutional investors usually depend on asset management firms for portfolio management. The asset management firm will rely on numerous investment reporting tools to provide KPIs, metrics, and data insights to clients. Some organisations might have in-house asset managers or investment consultants to overlook portfolio performance. Such organisations might provide in-house employees with investment reporting tools for reduced manual burden. Nowadays, automated investment reporting solutions are available in the market for organisations. Personalised reporting solutions are also available for individual investors to keep a check on their portfolios. You can also choose effective reporting tools for your business and make informed decisions.

Tips to Choose the Right Investment Reporting Tool

Since there are several investment reporting solutions in the market, choosing one can be a challenging task. You need an effective reporting solution that can handle the complexities of your portfolio. Here are some tips for choosing the right investment reporting tool for your business:

Check for Data Visualisation Features

One of the functions of a reporting tool is to convert data into meaningful insights. Let us say you are reviewing the percentage of the portfolio allocated to different assets. The data can be represented within a pie chart for increased comprehension. Anyone can look at the pie chart and identify the asset allocation. An effective investment reporting solution will provide users with Venn diagrams, line graphs, pie charts, charts, and other facilities. It will help meet the varying data visualisation needs of clients.

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Portfolio Tracking Features

Portfolio tracking is among the essential features of a reporting tool. You cannot use data visualisation techniques when there is no investment data. Many new-age reporting tools are available in the market that collect portfolio performance data at all times. You can also use two different tools for portfolio tracking and data visualisation. When a software solution tracks portfolio performance at all times, it generates ample data for analysis. You cannot generate meaningful insights without having an abundance of unstructured investment data.

Custom Reporting Facilities

Some reporting tools allow users to generate only pre-installed reports. It means you might not change the layout, details, or other features of a report. On the other hand, some software solutions allow users to create customised reports that suit the needs of different clients. You can change the layout, data visualisation methods, and other features as and when required.

KPIs or Metrics

An investment reporting tool generates KPIs (Key Performance Indicators) or performance metrics. These metrics allow investors to understand their portfolio performance in detail. Portfolio value, annualised return, standard deviation, Sharpe ratio, dividend yield, relative performance, risk-adjusted return, realised gains/losses, and correlation matrix are a few metrics generated by reporting tools. Check for the availability of more and more KPIs before choosing a reporting tool for your business.

Scalability Features

The portfolio for your business might grow with time as you invest in new assets. The reporting tool must cope with the growing portfolio size and work with the same effectiveness. It can happen when you choose a reporting solution with excellent scalability features. A reporting solution with excellent scalability features is preferred by asset managers. They can incorporate more clients as they grow with such a reporting solution.


Investment reporting is essential to make informed decisions in today’s era. You must be careful when choosing an investment reporting solution for your business. Consider the scalability, analysing power, and other features of the reporting solution. Choose your investment reporting solution right away!



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