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Step 3 | Create a Personalized Proposal
Explain the Proposal's Content
Explain the Proposal's Content

This article will explain our charts within the proposals

Updated over a week ago

Net Expense Ratio

The Net Expense Ratio for each fund is sourced from the fund's prospectus (via a data feed from Morningstar).

  • Net Expense Ratio is the percentage of the fund's assets (net of reimbursements) used to pay for operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund (except for brokerage costs).

  • The Net Expense Ratio is reflected in the fund's NAV. Sales charges, Advisor’s fees or platform fees are not included in the expense ratio.

  • The Net Expense Ratio is collected annually from a fund's prospectus assuming the latest prospectus date is less than one year old.

    • If the prospectus is not available or >1 year old, the Annual Reported Net Expense Ratio is used.

  • The Portfolio-level Expense Ratio is calculated using an aggregated weighted-average of all fund-level Expense Ratios.

Does TIFIN Wealth show internal expense ratios/transaction fees?

No - TIFIN Wealth does not consider/reflect internal expense ratios/transaction fees. These are generally specific to the custodian and there are a lot of nuances as to when these can be waived and/or reduced.

Volatility & Max Drawdown

  • Volatility, as defined by standard deviation, is one indicator of portfolio risk. Too high means the portfolio is at risk of large losses. Too low, the portfolio's potential may be restricted.

  • Max Drawdown is a peak-to-trough decline of a portfolio. For example, if a trading account has $10,000 in it and the funds drop to $7,000 before moving back above $10,000, then the drawdown in this portfolio is 30%.

Upside & Downside Capture

  • Upside Capture and Downside Capture show us whether a given fund or portfolio has gained more or lost less than a broad market benchmark during periods of market strength and weakness.

  • The relative benchmark security is selected by the Advisor. Returns are net of Expense Ratios and net of the Advisor’s advisory fee

Potential Return Simulation

  • TIFIN Wealth calculates the forward expected returns and volatility for the Current and Recommended Portfolios. TIFIN Wealth aggregates Capital Market Assumptions (CMAs) from various large third-party asset managers and uses proprietary techniques to forecast security and portfolio specific returns and volatility. Using geometric Brownian motion, TIFIN Wealth projects the Current and Recommended portfolios’ balances for 10 years. The “Mean band” represents the expected return (50th percentile) of the respected portfolio (Current or Recommended); the “Lower band” represents the bottom 15th percentile of possible portfolio balances; and the “Upper band” represents the top 85th percentile of possible portfolio balances. This results in ~70% of possible portfolio balances falling with the “Upper” and “Lower” bands; given the forecasted portfolio’s return and volatility.

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