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Lesson 1.5 - Creating a Custom Allocation Model

If you want to create your own custom allocation models, first select the Settings tab. Click on Advisor Models then Add New Allocation.

Give the allocation model a name.

Next, enter the appropriate asset class weights. Remember to make sure that everything adds up to 100% (inStream won't allow you to save a model that doesn't have 100% weight. Sorry, no margin accounts or shorting allowed.)

If you would like to enter custom risk and return values for this model click on the Use Custom Values check box. It is important to remember that the return number is an average, as opposed to an annualized, return. If you would like a refresher on what the difference between these two numbers is, please see The Difference Between Annualized and Average Returns article. The last variable to set is the Portfolio Expense Ratio. All of our risk and return assumptions are based on index returns, so they do not incorporate the expenses from actual investment vehicles. The last thing to do is save your model.

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