The RI Indicator is a proprietary quantitative model developed by Return Insights that classifies stocks using clearly defined statistical criteria. Using this classification, the rules‑based RI Index is constructed, and its composition is updated monthly in accordance with the model logic. RI conducts its analyses autonomously and independently, based solely on quantitative and publicly available data.
The chart below shows the performance of an illustrative savings plan with contributions of €500 and annual increases of 2.00% over the past ten years before taxes. The capital development is based on the RI Index. For context, capital developments for the S&P 500 and the MSCI World are shown as comparative benchmarks.
The model applies monthly updates to the index composition based on the RI Indicator. Equities that no longer meet the selection criteria are removed. When an equity is removed, the analysis assumes that it is sold and that the proceeds, together with the monthly contribution, are reinvested according to the prevailing index weights.
The table below presents performance metrics derived from the historical analysis.
TWR (Time‑Weighted Return): Measures the pure investment performance of the portfolio, independent of the timing and size of cash flows. The TWR is suitable for comparing different investment strategies because it evaluates only the quality of the portfolio allocation — not the investor’s contribution behavior. It answers the question: How strong was the investment strategy itself?
IRR (Internal Rate of Return): The IRR is the discount rate at which the net present value of all cash inflows and outflows equals zero. It incorporates the timing and size of every cash flow, thereby reflecting the investor’s actual realized return — including transaction costs. It answers the question: What return did the investor personally achieve?
For further information about the RI Index methodology, please contact RI by email.
Disclaimer: This presentation was prepared by Return Insights for informational and analytical purposes only. It is intended solely to present statistical analyses based on historical market data. All metrics, charts, and calculations are based on past price developments and serve to describe observed market behavior. Future returns and risk profiles may differ from historical observations due to changing market conditions. Despite the utmost care in data collection and processing, no guarantee can be made regarding the accuracy, completeness, or timeliness of the information presented. All calculations have been performed to the best of RI’s knowledge. Data sources are Yahoo Finance and FRED (Federal Reserve Economic Data). The information contained in this presentation does not constitute regulated financial analysis, investment advice, investment recommendations, or a solicitation to buy, sell or hold any financial instrument.