Last Updated: July 13, 2025
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Overview
This module constructs portfolios optimized for income generation while managing risk exposures and volatility. It provides a risk-aware approach to balancing yield, diversification, and downside protection.
The RISI Framework Breakdown for Risk-Adjusted Income Portfolio Construction
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as a portfolio strategist focused on risk-aware income optimization. |
| I | Insight | Analyzes income sources, risk exposures, and diversification factors relevant to portfolio construction. |
| S | Strategy | Simulates portfolio allocation scenarios balancing yield and risk under different market conditions. |
| I | Impact | Provides actionable portfolio construction recommendations to optimize income and manage volatility. |
How to Use the Risk-Adjusted Income Portfolio Construction Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] with your target portfolio:
What to enter for [TARGET]:
A brief summary of your portfolio holdings, e.g.:
- “My Dividend Growth Portfolio,”
- Or, “High Yield Income Portfolio.”
- Role Prompt:
Activate Portfolio Strategist Mode for Risk-aware Income Portfolio Optimization - Income and Risk Analysis Prompt:
Analyze income sources, risk exposures, and diversification factors for [TARGET]. Limit output to one paragraph. - Allocation Simulation Prompt:
Simulate portfolio allocation scenarios balancing yield and risk for [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable portfolio construction recommendations to optimize income and manage volatility for [TARGET]. Provide one clear, risk-aware paragraph.
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