Asset allocation Calculator
Everything in our lives seeks balance; too much of anything may increase risk. The same is the case with your investments. If you sway too much towards one asset class, you are putting too many eggs in one basket. Here comes into the picture- asset allocation. Asset allocation is one of the most effective investment strategies to balance risk and returns in an investment portfolio. It allocates various assets in a portfolio according to your financial objectives, risk profile, and investment horizon.
The asset classes considered for asset allocation are equity, fixed-income, gold and real estate, etc. Each asset class has different levels of risk and potential returns. Therefore, returns on each asset fluctuate differently over time. As their risks differ, so do their returns. And hence, the need for asset allocation, so that your risks and returns get averaged out.
For Asset Allocation like a financial planner, what you need to do is:
- Assess your risk tolerance level.
- Determine your Investment Goals
- Identify your Time Horizon.
- Select asset classes to suit your requirements.
Here is a quick way to calculate your asset allocation - Asset Allocation Calculator.
Asset Allocation Calculator
Asset Allocation Calculator is a ready-to-use tool that you can use to get an appropriate asset allocation. You need to enter your current age, level of risk you can take (from very low to very high), investment horizon in years, and the choice from mid, small and large companies.
Based on your choices, the calculator will create a profile and suggest the ideal asset allocation for you, for example, 55% in debt and 45% in equity. Against popular opinion, asset allocation is not just about equities. An investment planner looks at the risk level of each asset class while allocating a target percentage to each. There should be a perfect mix of assets in a balanced way. However, you need not be an expert. The asset allocation calculator takes care of asset allocation for you. It does not make recommendations; the outcome is only a suggestion.
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Disclaimer: The above results are for illustration purpose only. Please get in touch with a professional advisor for a detailed suggestion. The calculations are not based on any judgments of the future return of the debt and equity markets / sectors or of any individual security and should not be construed as a promise on minimum returns and/or safeguard of capital. While utmost care has been exercised while preparing the calculator, NIMF does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator. The examples do not purport to represent the performance of any security or investments. Given the individual nature of tax consequences, each investor is advised to consult his/her professional tax/financial advisor before making any investment decision.
The information/illustrations provided herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, affiliates or representatives (“entities & their affiliates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their affiliates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document.
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