What is Asset Allocation?

Investment asset allocation is the process of using different investment strategies to spread out any investment risks amongst diverse asset classes. Asset allocation strategies can be categorised into different types based on the assets being invested in, including equity asset allocation, debt asset allocation or fixed income allocation, and money or cash allocation.

When you calculate investment allocation using an asset allocation calculator, you will also need to factor in alternative assets such as commodity investments, art purchases, and real estate.

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What are the Benefits of asset allocation calculator

Building wealth is a long-term process and involves planning, investing, and making course corrections.

Calculate Investment Allocation

To give yourself the best chance at creating a corpus, it is essential to calculate investment allocation.

Balance your risk and returns

Choose from different types of funds to balance your risk and returns.

Multiple Asset Allocation Strategy

Choose from different asset allocation strategies to create an optimal investment asset allocation ratio.

How to use fund allocation calculator

Step 1

Fill Out Your Information

Enter your name, age, and contact details in the provided form.

Step 2

Product calculation is based on premium

Choose the sum assured amount that suits your financial situation and future requirements.

Step 3

Review Quote and Premium

Check the provided quote for the selected sum assured.

Step 4

Expert Assistance

If you have questions or need assistance, contact our experts. They will guide you to make informed decisions.

How do Retirement Calculators work?

How does fund allocation calculator work?

Every user is prompted with a consistent series of 9 questions related to their financial goals, income, risk-tolerance, and market knowledge. Each question offers 4 choices, allowing the user to respond based on their insight. Based on the selection of answers a list of suitable funds and the user’s risktaking capabilities is calculated by IndiaFirst Life.

Types of asset allocation strategies

While calculating asset allocation using an asset allocation calculator, it is important to remember that there is no fixed way of conducting investment asset allocation. Financial advisors can help you arrive at the best strategy for you based on a number of factors including your age, goals, and risk appetite.

Age-Based Investment Asset Allocation

Investment asset allocation is done based on your age in this strategy. Calculating asset allocation with this strategy involves basing investment decisions on the investor’s life expectancy. Stock allocation in this strategy is based on the deduction of the investor’s age from 100 which is the base value. A high life expectancy equals to a riskier owner’s equity calculation.

Life Cycle Funds Asset Allocation

This strategy works on the basis of targeted date of returns. Calculating asset allocation with this strategy involves maximising one’s ROI by keeping three factors in mind – risk appetite, age, and investment goals.

Other popular investment asset allocation strategies include:

Constant weight investment asset allocation
Tactical investment asset allocation
Insured investment asset allocation
Dynamic investment asset allocation

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Frequently Asked Questions

How do you calculate asset allocation?

Answer: The simplest way to calculate asset allocation is by using IndiaFirst Life’s asset allocation calculator. This easy-to-use tool helps you calculate total assets, apply the strategy of your choosing, and come up with a funds asset allocation that is optimal for you. a good asset allocation calculator takes the guesswork out of investment asset allocation by factoring in goals, risk tolerance, and investment horizon.

What is thumb rule for asset allocation?

Answer: Before you invest heavily in equity allocation or debt funds asset calculation, keep in mind this thumb rule for asset allocation—your risk exposure has to decrease as your age increases. Your equity allocation has to come down as you grow older. Equity allocation is a popular strategy because it allows you to invest in equity funds that offer high returns. However, it also presents high risk. The thumb rule for asset allocation is to deduct your current age from 100. For instance, a 25-year-old investor can invest 75% funds in equity, while a 35-year-old should not invest more than 65% in high-risk equities.

What is the best asset allocation strategy?

Answer: There is no single asset allocation strategy that can be considered the best. Asset allocation strategies are designed to keep a number of factors in mind. Depending on your age, risk appetite, income, income, and financial goals, there is likely an asset allocation strategy that is the best for you at the moment. Use an asset allocation calculator to find the best investment asset allocation for your needs.

Why asset allocation is so important?

Answer: When you invest your hard-earned money, there is a certain amount of risk associated with every investment decision. Asset allocation is important to balance out the risk with the returns. Calculate investment allocation using IndiaFirst Life’s asset allocation calculator to create a balanced financial portfolio that is optimal for your needs.

How should i allocate my assets?

Answer: Calculate total assets while factoring in age, risk tolerance, goals, and time horizon to understand exactly how you need to allocate your assets. Use the asset allocation calculator or asset allocation tool to spread your investments across asset types and safeguard your money against market changes as much as possible.

How to formulate an asset allocation strategy?

Answer

When it comes to asset allocation, there are a number of strategies that you can use. This includes stock allocation, equity allocation, debt funds asset calculation, tactical allocation, and more. Formulating an asset allocation strategy requires you to factor your age, investment goals, time horizon, and risk tolerance. An asset allocation calculator can help you make these decisions in the smartest possible way.

What is a typical asset allocation strategy?

Answer: A typical asset allocation strategy is one that allows you to divide your investments and spread them across diverse asset classes so as to reduce market-linked investment risks as much as possible. An investment allocation calculator can help you arrive at a balanced mix that can protect you against typical investment risks.