Portfolio Asset Allocation Planner
Determine your optimal asset allocation split across Equity, Debt, Gold, and Cash based on your age and risk parameters.
Recommended Split
Frequently Asked Questions
What is the 100 minus age rule of asset allocation?
The "100 minus age" rule is a classic rule of thumb. It suggests allocating a percentage of your portfolio to equities equal to 100 minus your current age (e.g., at 30, you allocate 70% to equities). The rest goes to safer debt instruments. This calculator refines this by shifting the base formula based on risk tolerance (Aggressive uses 110 minus age, Conservative uses 80 minus age, and Moderate uses 100 minus age) with predefined caps.
How often should I rebalance my portfolio's asset allocation?
You should rebalance your portfolio annually or semi-annually, or when any asset class allocation drifts from its target by more than 5% to 10%. Rebalancing forces you to systematically sell high (taking profits from outperforming assets) and buy low (allocating more to underperforming assets).
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The One Number That Determines Your Long-Term Investment Success
Research consistently shows that 90%+ of portfolio returns are explained by asset allocation — not stock picking, not market timing. Yet most Indian investors spend most of their energy thinking about which specific mutual fund to buy, not how to divide their wealth across asset classes.
Asset allocation is the decision of what percentage of your portfolio goes into Equity, Debt, Gold, and Cash equivalents. The classic rule of thumb: subtract your age from 100 to get your equity percentage. Age 30 → 70% equity, 30% debt. Age 50 → 50% equity, 50% debt. But this is a starting point, not a rule.
Your allocation should be refined by: risk tolerance (from the Risk Profiler), time horizon (when you need the money), and income stability (government employees can hold more equity than freelancers with variable income).
Gold deserves a special mention in the Indian context: 5–10% allocation to gold (sovereign gold bonds for the lowest cost) serves as a hedge against currency depreciation and black swan events. More than 15–20% in gold dilutes long-term portfolio returns significantly.
Rebalance your allocation every 12 months. If equity has run up from 70% to 80%, sell some equity and buy debt to return to your target. This forced "sell high, buy low" discipline is one of the simplest ways to improve long-term returns.
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