Asset Allocation Calculator

Rebalance your portfolio by calculating current allocation deviations from target equity, debt, gold, and cash weights.

Parameters
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%
%
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10%
Calculated automatically (100% - Target Equity - Target Debt - Target Gold)
Calculated Results
Total Portfolio Value-
Rebalance Status-Requires adjustments
Visual Projection
Equity
Debt
Gold
Cash
Yearly Breakdowns
Asset ClassCurrent ValueCurrent Alloc %Target Alloc %Target ValueAdjustment (Buy/Sell)
      
      
      
      

Rebalancing Your Portfolio Across Asset Classes

Asset allocation is how your money is divided between equity, debt, gold and cash, and it shapes both the long-term return and how bumpy the journey feels. A portfolio can hold good funds and still behave badly if the mix does not match the goal or the time available. The trade-off between risk and return across these classes is covered in risk, return and diversification. This calculator takes your current values and target percentages and shows the exact amount to buy or sell in each class.

Rebalancing is a deliberately contrarian exercise: it trims whatever has run up and tops up whatever has lagged, pulling the portfolio back to the risk level you chose. On the default ₹10 lakh portfolio (50% equity, 30% debt, 10% gold and 10% cash against a 60/20/10/10 target) the tool asks you to move ₹1 lakh from debt into equity. It flags "Action Needed" whenever any class drifts more than 5 percentage points from its target, a practical trigger for a review.

A common starting point is the 100-minus-age rule: hold equity equal to 100 minus your age, so roughly 70% at 30 and 50% at 50, with debt, gold and cash making up the rest. Treat it as a first approximation and adjust for income stability, goals and how much volatility you can tolerate. When you sell to rebalance, remember that realised gains are taxed (12.5% on equity gains above ₹1.25 lakh a year for units held over 12 months, and 20% on shorter holdings) so directing fresh savings into the lagging class is often the gentler route. Track the whole picture with the net worth projection calculator, and remember that a cash-heavy allocation still loses ground to inflation; measuring how each asset has actually performed is easier once you know the difference between CAGR and XIRR.

Popular Asset Allocation Calculations

Click on any of the popular search scenarios below to load the calculator with pre-configured values:

Frequently Asked Questions

What is asset allocation?
It is the way you divide your investments among asset classes (typically equity, debt, gold and cash) rather than choosing individual funds first. The division matters because each class behaves differently: equity drives growth but falls hardest in a crash, debt steadies the portfolio, and gold often moves independently of both. This calculator compares your current mix with your target and shows the rupees to move in each class.
How often should I rebalance my portfolio?
A yearly review is a sensible default, plus an extra check whenever a class drifts more than 5 percentage points from its target, the threshold this calculator uses to flag "Action Needed". Rebalancing far more often adds transaction costs and tax without much extra benefit, while never rebalancing lets a bull-market winner quietly turn the portfolio into a much riskier one than you chose.
What is the 100-minus-age rule for asset allocation?
It is a shortcut that holds equity equal to 100 minus your age: 70% equity at 30, 50% at 50, with the rest in debt and gold. The logic is that the ability to ride out a crash usually falls as retirement approaches, but the rule ignores your actual goal, income and risk tolerance. Use it as a baseline and adjust: a household with a stable income and a large emergency fund can usually hold more equity than the rule suggests.
How much gold should I hold in my portfolio?
Many planners suggest keeping gold to roughly 5-10% of the portfolio, and the default target here is 10%. Gold helps because its price often moves independently of Indian equity markets, but it pays no interest or dividend and can stay flat for years, so it is held for balance rather than growth. Rebalancing naturally forces you to sell gold after a spike and buy it after a slump.

Formula & Mathematical Approach

Suggests a portfolio rebalancing strategy to align your assets with a target allocation.

Target Value=Total Portfolio Value×Target %100\text{Target Value} = \text{Total Portfolio Value} \times \frac{\text{Target \%}}{100}
Rebalance Amount=Current Value−Target Value\text{Rebalance Amount} = \text{Current Value} - \text{Target Value}
Show Plain Text / Excel Formula
Target Value = Total Portfolio Value * Target % / 100
Rebalance Amount = Current Value - Target Value

Key Assumptions

  • Transaction costs, exit loads, and capital gains taxes are excluded.
  • Execution of rebalancing trades is immediate.