Equivalent Portfolio Value (EPV)

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What is Equivalent Portfolio Value (EPV)?

Equivalent Portfolio Value (EPV) is a financial concept used in investment management. It represents the value of an investor’s portfolio after adjusting for risk, usually comparing a current portfolio to a benchmark or a standard risk profile.

Epv Meaning

Key Aspects of EPV:

  1. Risk Adjustment: EPV adjusts the actual portfolio value by considering the risk taken to achieve that value. A higher-risk portfolio might have a lower EPV than its actual value.
  2. Performance Comparison: It’s used to compare the performance of a portfolio with different risk levels to a benchmark, ensuring a like-for-like comparison.
  3. Investment Strategy Analysis: Investors and fund managers use EPV to assess whether taking additional risk is yielding proportionate returns.

Examples of EPV Use:

  • A High-Risk Portfolio: An investor’s portfolio valued at $1 million but with high risk might have an EPV of $900,000 when compared to a lower-risk benchmark.
  • A Low-Risk Portfolio: Conversely, a portfolio with a lower actual value but also lower risk might have a higher EPV than its market value.

Use The Annuity Experts retirement calculator to plan for your future today

Importance for Investors:

EPV helps investors understand if the extra risk they’re taking is justified by the returns. It’s a tool for making more informed decisions about portfolio adjustments and risk management.


Equivalent Portfolio Value provides a nuanced view of an investment portfolio, balancing risk against returns. It’s essential for informed investment strategy and risk assessment. Contact us today for a free quote.

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top