Asset Allocation Calculator
Get personalized portfolio recommendations based on your risk profile
Discover the ideal mix of equity, debt, and gold investments tailored to your risk appetite and financial goals.
Asset Allocation
💡 Tip: Select a risk profile that matches your investment goals and time horizon, or customize your own allocation.
Understanding Asset Allocation
Equity
- • High growth potential
- • Higher risk and volatility
- • Best for long-term goals
- • Expected return: 12-15%
Debt
- • Stable and predictable
- • Lower risk
- • Provides regular income
- • Expected return: 6-8%
Gold
- • Hedge against inflation
- • Portfolio diversification
- • Safe haven asset
- • Expected return: 7-9%
Risk Profiles Explained
Conservative (Low Risk)
Suitable for investors nearing retirement or with low risk tolerance. Focus on capital preservation with 60% debt, 30% equity, and 10% gold.
Moderate (Balanced Risk)
Ideal for investors with medium-term goals (5-10 years). Balanced approach with 50% equity, 40% debt, and 10% gold.
Aggressive (High Risk)
Best for young investors with long investment horizons. Growth-focused with 75% equity, 15% debt, and 10% gold.
Very Aggressive (Very High Risk)
For experienced investors seeking maximum growth with 90% equity, 5% debt, and 5% gold. Requires strong risk appetite and long time horizon.
Why Asset Allocation Matters
- Risk Management: Diversification reduces portfolio volatility and protects against market downturns
- Goal Alignment: Different asset classes serve different purposes in your financial plan
- Optimal Returns: Proper allocation balances risk and reward for maximum efficiency
- Regular Rebalancing: Review and adjust your allocation annually or when life circumstances change
Why Our Asset Allocation Calculator Stands Out
Visual Portfolio Mix
Interactive pie charts and visual breakdowns show your portfolio allocation across equity, debt, and gold in an easy-to-understand format.
Customizable Allocation
Choose from predefined risk profiles or create your own custom allocation mix to perfectly match your investment strategy and goals.
Risk-Adjusted Returns
Get personalized recommendations based on your risk profile with detailed expected return projections for each asset class.
How to Use the Asset Allocation Calculator
Select Your Risk Profile
Choose from Conservative, Moderate, Aggressive, or Very Aggressive profiles based on your age, goals, and risk tolerance.
Customize Your Allocation
Adjust the percentage sliders to fine-tune your asset mix across equity, debt, and gold based on your preferences.
Review Your Portfolio Mix
View your allocation breakdown through charts and see the expected returns for each asset class in your portfolio.
Rebalance Periodically
Review and rebalance your allocation annually or when your financial situation changes to maintain optimal diversification.
Frequently Asked Questions
What is asset allocation?
Asset allocation is the process of dividing your investment portfolio among different asset categories like equity, debt, and gold. It's a fundamental strategy for managing risk while pursuing returns based on your financial goals and risk tolerance.
How do I choose the right asset allocation?
Your ideal allocation depends on factors like age, investment horizon, financial goals, and risk tolerance. Generally, younger investors can afford higher equity exposure, while those nearing retirement should favor debt and stable assets.
How often should I rebalance my portfolio?
Review your portfolio allocation at least once a year or when market movements cause significant deviation from your target allocation. Major life events like marriage, childbirth, or job changes also warrant rebalancing.
What is the ideal equity-debt ratio?
A common rule of thumb is: Equity percentage = 100 - your age. So at age 30, you might have 70% equity and 30% debt. However, this should be adjusted based on your individual risk tolerance and financial situation.
Why include gold in my portfolio?
Gold serves as a hedge against inflation and market volatility. It typically moves inversely to equity markets, providing portfolio stability. Financial advisors recommend allocating 5-10% of your portfolio to gold.
Can I change my allocation strategy later?
Yes, your asset allocation should evolve as you age and your circumstances change. It's common to gradually shift from aggressive to conservative allocation as you approach your financial goals or retirement.