Asset Allocation Calculator

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Asset Allocation Calculator

It’s not always about saving some money for the future, but more about where you put your money among different buckets you have got digitally and physically. That’s what we call Asset Allocation and here we’ll know about the importance of knowing this technique for everyone alive planning to have a better future.

After having the research from various studies, we have finally concluded this topic and so you’ll also see some research points highlighted below. Besides, the major benefit of this page is to provide you with a proficient calculator that works virtually and offers you the proportion of how you should allocate all your assets regarding the most important virtues.

Asset Allocation Calculator

Understanding Asset Allocation

If you look at the historic studies, and even the most recent similarities, more than 90% of your returns come from correct Asset Allocation. Once we list out various asset classes for diversifying our incomes and gains, we’ll find what we’re lacking.

Although, the below list will help you understand asset allocation with more info about the three most important classes:

Stocks or Equities - When you first approach the asset allocation calculator, and feed the important details, more than 1/3rd of the chart you’ll see filled with the Equities. Equities stands for the shares of an individual company raising money and spreading risk.

These are a little risky kind of investments that makes your portfolio sound better versus inflation.

Bonds - Bonds being shown as lesser or almost non-risky asset allocation components and they work as a better mixture with the equities.

These bonds make you stand as a lender to the same stocks where you last invested as an investor, but this time you’re among the risk-free lenders like Nippon India Income Funds and US Treasury Bonds.

Cash - Allocating a least but important part of income in Cash is also a brilliant option if you’re investing your money in a trusted high-yield savings account.

The difference between other investments and cash is about the anytime required liquidity. When having some funds allocated here, you can have access to it anytime you want without any penalties.

Factors Influencing Asset Allocation

There are a few necessary factors which genuinely influence asset allocation, and once you are good with all of them together, your future would sound brighter than 90% of global investors. We’re listing them all below with the acknowledgement of each -

Age - Age throws a bigger impact on Asset Allocation as there is an American research showing that those 10 years late in having their first investment plan, get 30 years behind. That’s what we call compounding, and the same reason makes Age the most influential factor.

Risk Tolerance - The lowest yield rates per annum you get from the Bank’s FD gives you lowest risk, where there are no negative sides and if you think 5% per annum is weird—which it really is in front of inflation—risking a bit is also seen as important while allocating assets.

Financial Goals - Having different future financial goals can impact your asset allocation differently. If you’re having bigger short term goals, like purchasing a car, having an apartment etc., it’s more likely to get through them if your investments are more centered on equities, and vice versa.

Investment Horizon - Investment Horizon stands for the term for which you’re going to have your investments unshakable. As equities also have different kinds, containing the riskier mid-caps and small-caps, as well as the less riskier large-caps.

Different horizons give space for different risk factors and continuously different investment horizons.

Apart from all the above listed necessary factors, there are also some sudden or unthinkable factors which can affect your Asset Allocation.

These can be the market conditions, economic trends, hyperinflation, or personal circumstances. Like when all the biggest companies’ stocks were booming to newer heights in 2020, Covid-19 breakdown made a crash of more than 28,000 points for Indian Sensex as well as the whole global markets.

The Significance of a Stock Market Asset Allocation Calculator

If you think diversifying is easier without any factors influencing it, the above section is properly detailed on the same. The most significant reason for using stock market asset allocation calculators is to drop paying bigger stacks to the financial advisors.

However, the Asset Allocation Calculator shown above have below few significant points -

  1. Allocating money in assets properly is not a piece of cake if you’re not in finance. This calculator employs the best factors and uses the statistical reports to show up to 90% probable future.
  2. You don’t need to run any complex math related to finance as it simplifies the complex allocation decisions just through a few feeds.
  3. Soma Asset Allocation Calculators also show the most probable changes to your funds as per the upcoming future.
  4. You can feed as much data as you can for getting the more proper data-driven and objective approach and optimal allocations.
  5. Allocating Assets properly would help your investments to be winning even when having the worst inflation results ever.

How the Calculator Works

The Asset Allocation Calculator that you get here works sophisticatedly using the data that you feed up above. It's data driven math where it gets your age, risk tolerance, investment horizon, goals, and your currently running investments for creating a new brilliant plan.

However, the calculator won’t be as efficient as the actual financial planner as the details you feed in here would still be lesser than what a human can tackle together. Still, you can get up to 80% of investment allocation mindset through this calculator using below steps -

  1. Open either this link or get to the top section of the precise webpage.
  2. Feed your age either using the seekbar or feeding the numerals.
  3. Choose your risk tolerance between five different options from Less Risky to Highly Risky.
  4. Fill up the money in numbers related to your futuristic goals and necessities.
  5. Feed up the details related to your current portfolio in the next section.
  6. Finally, choose the investment horizon for which you’re ready to be staking.
  7. Click the Calculate button in the end and the calculator would momentarily show you a pie chart.

This pie chart would contain all kinds of investments in different colors so that you can comprehend very well, including the meaning of each colored section. You can also reset using the Reset button for making a newer research relatively different from the last.

Analyzing Risk and Return 

The automated statistic generator algorithms in this calculator would automatically show you the plan as per your risk tolerance, but your risk tolerance would always be your own deal.

Still, as an explanation of risk and returns reflected to different Asset Classes on the Calculator results, below is a list with the necessary acknowledgement - 

Equities - Equities have subtypes and this calculator shows them on the basis of your risk tolerance. If you can risk higher, small-caps and mid-caps can help you earn higher rewards, and conversely it’ll show you a bigger proportion of large-cap when your risk tolerance is low.

Bonds - Bonds eventually wouldn’t have any risk with them, apart from some degree of Credit Risk which you would have to pay if you’re defaulting, or withdrawing before maturity.

Cash - Cash refers to no risk at all and it’s just the liquidity that you can take out whenever you want. But at the same time, it wouldn’t have any rewards higher than 4-5% APY. 

Debts - These are the investments where you lend some money and you’re referred to get them back with interest. Again, risks are not at all except for untrusted lendings, and rewards would still not beat inflation properly. 

Customizing Allocations 

It’d be a good step to change your asset allocation plans as your age rises, because once you’re retired, you can have the better fruits of compounding. Rebalance it based on all the different factors affecting asset allocation that we marked at the top of this article. 

However, that wouldn’t be any convenient without having an upper hand on the calculator to customize the already calculated allocations. Don’t be worried, as we’ve the customization options for you where you get the below three adjustments to be flexible with investments - 

Conservative Allocation - If you’re keen to think about your retirements from the lower ages, remember, a good start is neither too late, nor too early. You can take the best advantages of compounding with the conservative allocation of your assets from the start. 

Moderate Allocation - Moderate strategies of asset allocation will help you grow your money with a normal risk tolerance and what we call a more balanced strategy. Most calculators show us moderate calculations with near 50/50 proportions of stocks and bonds.

Aggressive Allocation - Aggressive Allocations strategy contains a huge part of Equities, while again having a diversity of small-cap and mid-cap funds which can path you to greater returns. But remember that all of the greater return strategies are backed by greater risks.

In that case, you can analyze risk and return when going for initializing an investment plan with an additional manual approach to the calculations of this web-based calculator. Be flexible, try different plans, and choose them mostly on the basis of your future plans.

Common Mistakes to Avoid 

Warren Buffet once said “Predicting rain doesn’t count; building the ark does.” That’s so true because none of us actually knows what’s gonna happen next, and having all of our eggs in a single bucket can be risky if that only side of the investment gets downed.

In that case, we already had adjusted for the first common mistake by using this Asset Allocation Calculator. Still you need to be better acknowledged about the misconceptions and pitfalls majorly people have in their minds while allocating assets.

  1. Having no plans for proper allocation can dig you deep inside when the inflation strikes back or your unique plan gets crashed with running consequences.
  2. The more you can risk, the more you can get. It’s true, but this won’t work if you’re customizing the allocations uniquely than the suggestions based on your horizon.
  3. Be balanced with your investments, neither too aggressive, nor too conservative. 
  4. Risk comes from not knowing what you’re doing, so make sure if your plan sounds good, not just by being dominated by online marketing. 
  5. Don’t put all your eggs in a single basket, as things can go wrong faster than you think. Even if you get much focus on a based sector, keep little part of your investments in other sectors. Simply, make them be concentrated.

Utilizing the Calculator for Retirement Planning 

The best way of investing has always been investing with your own perspective, complete research, and risk-reward potential. But what we actually forget is to diversify our investments, and next we get downed either by inflation or market crashes.

This thing matters the most when we’re planning asset allocation for our retirement. 

This calculator can aid you projectively as per your retirement planning through taking the important feeds, like your age, risk tolerance levels, and the remaining horizons.

After an age, your investment plans would change from active to passive, and that’s when you’ll start seeing the fruits of recent rebalancing.

Just keep this page bookmarked on your browser and be keen to have changes in asset allocation.

Always, when you’ll find changes in your spendings and incomes, you can feed the proper recent reports in here and get a new plan to balance for excellent retirements. Below is how you can use this calculator for better retirement planning - 

  1. You can take advantage of compounding from starting earlier and being responsive to invest a part of your income always.
  2. Using the calculator for having modifications as per the remaining investment horizon and age would be a better approach for responsive retirement planning.
  3. It’s a convenient process to comprehend better asset allocation than having bigger appointment pauses or time expenditure with Financial planners. 
  4. Hybrid and Mixed Allocation of capital will make your upcoming ages beautiful for having drastically higher gains and lower risk tolerance.


In the end, there would be no investment advice located here and all your future investments would be subjected to your own risk and reward potential.

Be careful while deciding the equities between small-cap, mid-cap, large-cap, and try maximizing the proportions as your age gets enhanced with spendings and income sources. 

Customization of Asset allocation after the results you get can be a smarter move and we really appreciate your process to have an upper hand on your future-centered investments.

Investing is basically the art of balancing everything, including your incomes, fund growth, capital preservation, spendings, gross profits, etc.

All the details shown on this page are perfectly related to the feedback of major recent users and as per the majorly practiced allocation plan globally.

If you still have any questions related to your asset allocation, you can find out the best financial advisors either nearby or on the internet. Have a great plan and better goals to make successful future investments!

Hi, I'm Bhupendra, a financial enthusiast. Join me on my website for tips on making money, stocks, mutual funds, and personal finance. You'll also find helpful financial calculators to assist with your financial planning.