Total Portfolio Value
₹ 10,00,000
Equity Actual vs Target
60.0% (Target: 60%)
Debt Actual vs Target
30.0% (Target: 30%)
Gold Actual vs Target
10.0% (Target: 10%)
Rebalancing Action Required
Portfolio is Balanced
About the Asset Allocation Calculator
Our free Asset Allocation Calculator helps investors evaluate their current portfolio distribution and compare it against their ideal target weights. Proper asset allocation across equity, debt, gold, and other asset classes is one of the most effective ways to balance risk and optimize long-term returns.
What is Asset Allocation & Portfolio Rebalancing?
Asset allocation is the strategy of dividing your investment portfolio among different asset categories based on your risk tolerance, financial goals, and investment horizon. Over time, market fluctuations cause your actual asset weights to drift away from your targets. Portfolio rebalancing involves adjusting your holdings back to your original target percentages.
How to Use the Calculator
Simply enter your current investment values and your intended target percentages:
- Current Values: Enter the present market value of your holdings in equity, debt, and gold.
- Target Percentages: Enter your desired portfolio percentage for each respective asset class.
Click the Calculate button to view your total portfolio value, actual asset breakdown percentages, and recommended rebalancing actions.
Frequently Asked Questions (FAQs)
Why is asset allocation important?
Asset allocation helps control overall portfolio volatility. Different asset classes perform differently under various market conditions, reducing your exposure to severe downturns.
How often should I rebalance my portfolio?
Most financial experts recommend reviewing and rebalancing your portfolio annually, or whenever your asset allocation drifts more than 5% away from your target percentages.
Does rebalancing incur tax liabilities?
Selling assets to rebalance may trigger capital gains tax (such as STCG or LTCG on equities). Alternatively, you can rebalance by directing fresh investments into underweighted asset classes.
