RiskMetrics has released a freely available application for US consumers to assess the level of risk and diversification in their 401k retirement plans.
The 401k CheckUp application is based on RiskMetrics Group's benchmark measure of volatility, the RiskGrade. Assigned to every exchange-traded equity and comparable security across all asset classes, the RiskGrade measures volatility on a scale ranging from zero for cash to 1000 or higher for the most speculative investments. Using this number as a barometer, investors are able to tailor a portfolio to their personal investment timelines and goals.
The package comes complete with stress-testing tools to analyse the impact to the portfolio of major market shifts; clear measurements of the level of diversification in the portfolio; and an investment style category breakdown.