📈 Trading & Investing

Portfolio Allocation Calculator

Split your capital across five assets by percentages.

Advertisement

Split your capital across five assets by percentages. This dedicated page is built for fast, clean calculations and search visibility.

Enter your values, click calculate, and see the result instantly. The page uses a simple, focused layout to improve usability on mobile and desktop.

How to use this calculator

  1. Open the portfolio allocation calculator page.
  2. Enter the required values in the form fields.
  3. Click Calculate to see the result and breakdown.
  4. Use the related links to explore similar tools.
Results are estimates. For lending, taxes, trading, nutrition, or medical decisions, verify with a qualified professional.

Portfolio Allocation Calculator

Split your capital across five assets by percentages.

Result
    Advertisement

    The principles of portfolio allocation

    Portfolio allocation (asset allocation) is the distribution of investments across asset classes — equity, debt, gold, real estate, cash. Asset allocation is the primary determinant of portfolio returns and risk over time, often more important than individual security selection. Studies show 90%+ of return variability across portfolios is explained by asset allocation, not stock picking.

    The standard starting framework is the "100 minus age" rule: allocate your age as a percentage to debt/safe assets, remainder to equity. A 30-year-old would hold 70% equity, 30% debt. This reflects the principle that younger investors can tolerate more volatility and have time to recover from downturns.

    Asset class characteristics

    • Equity (10–12% CAGR, high volatility): Large-cap funds, index funds, mid/small-cap funds. For long-term goals (7+ years).
    • Debt (6–8% return, low volatility): FDs, debt mutual funds, PPF, bonds. For short to medium-term goals (1–5 years).
    • Gold (8–10% CAGR, moderate volatility): Sovereign Gold Bonds offer 2.5% coupon + price appreciation. 5–10% portfolio allocation as inflation hedge and diversifier.
    • International equity: US index funds add USD diversification and hedge against INR depreciation. 5–10% allocation is reasonable.

    After strong equity bull runs, rebalancing — selling equity and buying debt to restore target allocation — enforces "sell high, buy low." Annual or semi-annual rebalancing consistently improves risk-adjusted returns over time.

    Frequently asked questions

    What is a good asset allocation for a 35-year-old Indian investor?▼
    A balanced starting point: 65–70% equity (mix of large-cap index funds, mid-cap funds), 15–20% debt (PPF, short-duration debt funds, FDs), 5–10% gold (Sovereign Gold Bonds), 5% international equity (US index fund). Adjust equity downward and debt upward if your risk tolerance is low or investment horizon is under 7 years.
    How often should I rebalance my portfolio?▼
    Annual rebalancing is sufficient for most investors. A threshold-based approach (rebalance when any asset class drifts more than 5–10% from target) is more sophisticated than calendar rebalancing. Avoid rebalancing too frequently — transaction costs, taxes on redemptions, and behavioral noise can outweigh benefits.
    Should gold be part of every portfolio?▼
    A 5–10% gold allocation provides meaningful portfolio diversification because gold is negatively or weakly correlated with equity — it tends to perform well when equity underperforms. Sovereign Gold Bonds offer 2.5% annual coupon + gold price appreciation with no GST or storage cost. LTCG on SGB at maturity is tax-exempt, making them far superior to physical gold or gold ETFs for long-term holding.
    What is the right equity allocation for building a retirement corpus?▼
    For 20+ years to retirement: 80–90% equity, 10–20% debt. For 10–20 years: 65–75% equity. For 5–10 years: 50–60% equity. Within 5 years: 30–40% equity with progressive glide path to capital protection. The key principle: you need equity for the first 20 years of accumulation, then a gradual shift to capital preservation as retirement approaches.