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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.