Asset Allocation Calculator
Optimize your investment portfolio with smart asset allocation across equity, debt, gold, and real estate based on your age and risk profile
Recommended Allocation
High growth potential with higher volatility
Stable returns with lower risk
Inflation hedge and portfolio diversifier
Tangible asset with rental income potential
Target Investment Amounts
Understanding Asset Allocation Strategy
Who Should Use This Calculator
Asset allocation is fundamental for every investor, as it determines 90% of your portfolio's performance.
- Beginner Investors: Start your investment journey with proper allocation
- Retirement Planners: Build age-appropriate portfolios for long-term goals
- Portfolio Managers: Optimize institutional fund allocations
- Goal-based Investors: Create specific portfolios for different objectives
Why Asset Allocation Is Critical
Different asset classes perform differently under various market conditions, providing natural diversification.
- Performance Driver: More important than individual security selection
- Risk Reduction: Diversifies away unsystematic risk across asset classes
- Volatility Management: Reduces portfolio swings while maintaining growth
Typical Indian Portfolio Allocation
A balanced approach for Indian investors across different asset classes and investment vehicles.
- Equity (60%): Mutual funds, stocks, ELSS for growth and tax savings
- Debt (30%): PPF, EPF, bonds, debt funds for stability
- Gold (5%): Digital gold, gold ETFs for inflation hedge
- Real Estate (5%): REITs for smaller investors, direct property for large portfolios
Rebalancing & Implementation
Asset allocation requires periodic maintenance and adjustment based on market movements and life changes.
- Regular Review: Rebalance annually or when allocation deviates 5-10%
- Tax Efficiency: Consider tax implications during rebalancing
- Systematic Approach: Use SIPs to maintain target allocation automatically
- Life Changes: Adjust allocation as age, goals, and risk tolerance evolve
Benefits of Asset Allocation
- Reduces overall portfolio risk through diversification
- Balances growth potential with capital preservation
- Provides steady returns across market cycles
- Helps maintain discipline during market volatility
Important Considerations
- Review and rebalance portfolio regularly
- Consider tax implications when rebalancing
- Adjust allocation as your life circumstances change
- Don't chase short-term market trends
Asset Allocation Calculator FAQs
Get answers to common questions about asset allocation, portfolio diversification, and investment strategy.
Need More Help?
Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.