Asset allocation based system for individual investor portfolio selection

Abstract

A system for allocation asset based portfolio investment and management provides model portfolios which are selected by correlation to investor's responses to a questionnaire concerning time frames and risk tolerance. Recommended model portfolios are presented to investors by asset allocation class percentages only, without identification of any specific securities of fund holdings of the portfolio and without enabling the participating investor to choose or delete specific assets for inclusion in the recommended portfolio. The system enables the investor only to alter the asset allocation. The model portfolios are professionally overseen and managed for compliance with projected returns and conformance to the assigned asset class. The system can be executed on paper or in the form of computer software run locally or on a network.

What is claimed is: 
     
         1 . A method of using a computer system including a computer and a database for managing investments in an account of a particular investor, said method comprising the steps of:
 providing a plurality of predetermined model investment portfolios each having a plurality of different investment asset allocations selected in advance by one or more experts to achieve a different degree of risk;   providing an investor questionnaire to the particular investor, said questionnaire including questions adapted for use to determine a degree of risk for the particular investor;   inputting investor answers to the investor questionnaire provided by the particular investor to the computer system;   the computer system automatically determining the degree of risk for the particular investor from said investor answers;   the computer system selecting at least one of said predetermined model portfolios by comparing the degree of risk for the particular investor to the degree of risk of each model investment portfolio; and   the computer system presenting the selected at least one of said predetermined model portfolios for acceptance or rejection by the particular investor, wherein   should the particular investor accept the selected at least one of said predetermined model portfolios, performing the step of purchasing shares in said selected at least one of said predetermined portfolios for holding in the account of the particular investor.   
     
     
         2 . The method of  claim 1 , wherein said questions include a plurality of questions pertaining to a) a number of years which the investor will contribute funds to be invested in a portfolio, b) a number of years which the investor will want to withdraw funds from the portfolio, and c) the investor's tolerance for fluctuation in the value of the portfolio. 
     
     
         3 . The method of  claim 1 , wherein said plurality of predetermined model investment portfolios each has a different investment performance based on the different investment asset allocations selected by the one or more experts. 
     
     
         4 . The method of  claim 3 , wherein said questionnaire includes questions adapted for use to determine an expected investment performance or variance or average performance for the particular investor, and wherein said method further includes the step of the computer system automatically determining the expected investment performance for the particular investor from said investor answers, wherein said selecting the at least one of said predetermined model portfolios for investment by said investor also includes the step of comparing the expected investment performance for the particular investor to the investment performance of each model investment portfolio. 
     
     
         5 . The method of  claim 1 , wherein said particular investor's shares of said at least one of the predetermined model portfolios are automatically asset balanced to maintain consistency with the degree of risk for the particular investor without any purchase or sale of shares of said at least one of the predetermined model portfolios in the account of the particular investor. 
     
     
         6 . The method of  claim 1 , wherein the different investment asset allocations of the at least one of said model portfolios is not changed by implementing said method. 
     
     
         7 . The method of  claim 1 , wherein the asset allocations of each one of said plurality of predetermined model investment portfolios is regularly updated by one or more experts independent of any action by the particular investor. 
     
     
         8 . The method of  claim 1 , wherein, only after the investor accepts the selected at least one of said predetermined model portfolios, the asset allocations of the at least one of said predetermined model portfolios is displayed to the particular investor. 
     
     
         9 . A method of using a computer system including a computer and a database for managing investments in an account of a particular investor, said method comprising the steps of:
 providing a plurality of predetermined model investment, portfolios each having a plurality of different investment asset allocations selected in advance by one or more experts to achieve a different investment performance;   providing an investor questionnaire to the particular investor, said questionnaire including questions adapted for use to determine an expected investment performance for the particular investor;   inputting investor answers to the investor questionnaire provided by the particular investor to the computer system;   the computer system automatically determining the expected investment performance for the particular investor from said investor answers;   the computer system selecting at least one of said predetermined model portfolios by comparing the expected investment performance for the particular investor to the past and/or expected future investment performance of each model investment portfolio; and   the computer system presenting the selected at least one of said predetermined model portfolios for acceptance or rejection by the particular investor, wherein   should the particular investor accept the selected at least one of said predetermined model portfolios, performing the step of purchasing shares in said selected at least one of said predetermined portfolios for holding in the account of the particular investor.   
     
     
         10 . The method of  claim 9 , wherein said questions include a plurality of questions pertaining to a) a number of years which the investor will contribute funds to be invested in a portfolio, b) a number of years which the investor will want to withdraw funds from the portfolio, and c) the investor's tolerance for fluctuation in the value of the portfolio. 
     
     
         11 . The method of  claim 9 , wherein said plurality of predetermined model investment portfolios each has a different degree of risk based on the different investment asset allocations selected by the one or more experts. 
     
     
         12 . The method of  claim 11 , wherein said questionnaire includes questions adapted for use to determine a degree of risk for the particular investor, and wherein said method further includes the step of the computer system automatically determining the degree of risk for the particular investor from said investor answers, wherein said selecting the at least one of said predetermined model portfolios for investment by said investor also includes the step of comparing the degree of risk for the particular investor to the degree of risk of each model investment portfolio. 
     
     
         13 . The method of  claim 9 , wherein said particular investor's shares of said at least one of the predetermined model portfolios are automatically asset balanced to maintain consistency with the expected investment performance for the particular investor without any purchase or sale of shares of said at least one of the predetermined model portfolios in the account of the particular investor. 
     
     
         14 . The method of  claim 9 , wherein the different investment asset allocations of the at least one of said model portfolios is not changed by implementing said method. 
     
     
         15 . The method of  claim 9 , wherein the asset allocations of each one of said plurality of predetermined model investment portfolios is regularly updated by one or more experts independent of any action by the particular investor. 
     
     
         16 . The method of  claim 9 , wherein, only after the investor accepts the selected at least one of said predetermined model portfolios, the asset allocations of the at least one of said predetermined model portfolios is displayed to the particular investor. 
     
     
         17 . A method of using a computer system including a computer and a database for managing investments in an account of a particular investor, said method comprising the steps of:
 providing a plurality of predetermined model investment portfolios each having a plurality of different investment asset allocations selected in advance by one or more experts to achieve a different degree of risk and a different investment performance;   providing an investor questionnaire to the particular investor, said questionnaire including questions adapted for use to determine an investor degree of risk for the particular investor and said questionnaire also including questions adapted for use to determine an expected investment performance for the particular investor;   inputting investor answers to the investor questionnaire provided by the particular investor to the computer system;   the computer system automatically determining the degree of risk for the particular investor from said investor answers;   the computer system automatically determining the expected investment performance for the particular investor from said investor answers;   the computer system selecting at least one of said predetermined model portfolios by both comparing the degree of risk for the particular investor to the degree of risk of each model investment portfolio, and by comparing the expected investment performance for the particular investor to the investment performance of each model investment portfolio; and   the computer system presenting the selected at least one of said predetermined model portfolios for acceptance or rejection by the particular investor, wherein   should the particular investor accept the selected at least one of said predetermined model portfolios, performing the step of purchasing shares in said selected at least one of said predetermined portfolios for holding in the account of the particular investor.   
     
     
         18 . The method of  claim 17 , wherein the asset allocations of each one of said plurality of predetermined model investment portfolios is regularly updated by one or more experts to maintain their corresponding degree of risk and their investment performance without any purchase or sale of shares in the account of said particular investor. 
     
     
         19 . The method of  claim 17 , wherein the different investment asset allocations of the at least one of said model portfolios is not changed by implementing said method. 
     
     
         20 . A method of using a computer system including a computer and a database for managing investments in accounts of a plurality of investors, said method comprising the steps of:
 providing a plurality of predetermined model investment portfolios for purchase by any of a plurality of investors, each one of said predetermined model investment portfolios having a plurality of different investment asset allocations selected in advance by one or more experts to achieve a different degree of risk and a different investment performance;   providing an investor questionnaire to each one of the investors, said questionnaire including questions adapted for use to determine an investor degree of risk for each one of the investors and said questionnaire also including questions adapted for use to determine an expected investment performance for each one of the investors;   inputting answers to the investor questionnaire provided by each one of the investors into the computer system;   the computer system automatically determining the degree of risk for each one of the investors from the answers of that investor;   the computer system automatically determining the expected investment performance for each one of the investors from the answers of that investor;   for each one of the investors, the computer system selecting at least one of said predetermined model portfolios by both comparing the degree of risk for that investor to the degree of risk of each model investment portfolio, and by comparing the expected investment performance for that investor to the investment performance of each model investment portfolio; and   for each one of the investors, the computer system presenting the selected at least one of said predetermined model portfolios selected for that investor for acceptance or rejection by that investor, wherein should that investor accept the selected at least one of said predetermined model portfolios, performing the step of purchasing shares in said selected at least one of said predetermined portfolios for holding in the account of that investor, and wherein   the asset allocations of each one of said plurality of predetermined model investment portfolios is regularly updated by one or more experts to maintain their corresponding degree of risk and their investment performance.