In this paper, we will explore how iVaR provides a next-generation, human-centric measure of risk that captures all risk dimensions an investor might care about. Building further on Dr. Markowitz groundbreaking work, we compare iVaR to traditional variance-based portfolios and find that iVaR tends to concentrate less and leads to more natural diversification. Dr. Markowitz was a pioneer in the world of economics and finance. His contributions and influence will remain a guiding force for us.

The limited space and time available during the in-app onboarding of clients creates a real challenge for roboadvisors. Collecting objective facts about investors is one thing. Understanding how they feel about risk is something completely different. It requires a scientifically sound methodology combined with an engaging user experience that sets the tone for a long and fruitful relationship.

InvestSuite’s approach to measuring risk arose from the desire to capture what people intuitively perceive as investment risk. In the end, investors all want the same thing – an account that offers the steady growth of a savings account with a very low probability of losing money, but with the returns of the stock market. We cannot guarantee this, but we can optimise for it, which is precisely why we have developed our own measure of risk: iVaR.