:: Asset Allocation Calculator

Asset Allocation Calculator

For a long-term financial goal, equity is necessary to combat inflation

Suppose the inflation is (%)

The return you expect from equity, if invested for 10+ years is (%)

Do not expect more, assuming past returns were higher.
Note: Expect less, so that you can invest more and be disappointed less!

The post-tax return from a fixed income instrument for 10+ years is (%)

For a (%)

equity exposure and therefore,

{{ a.income_exp }} %

fixed income exposure.

The net expected portfolio return is

{{ a.portfolio }} %

Note:
Do not naively assume higer equity allocation implies higher return.
As a simple thumb rule, an equity allocation of X% implies the portfolio is likley to fall at least once from a maximum.
value to a minimumvalue of X%!

That is, if you have 60% equity allocation, you should be able to accept a fall of about 60% (or more!) if the market crashes.
Since the portfolio needs time to recover from such crashes, it is best to use equity only for long-term goals (10+Y)

Disclaimer:

Please note that these calculators are for illustrations only and do not represent actual returns.
Stock Market does not have a fixed rate of return and it is not possible to predict the rate of return.