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Disclaimer

  • The results/recommendations are for illustration purpose only and can differ from the original hence please get in touch with a professional advisor for a detailed suggestion before concluding. The calculations should not be construed as a promise or guarantee on any kind of returns, these calculations are also not based on any judgments of the future return of the debt and equity markets / sectors neither do they provide or safeguard of minimum returns and/or security of capital.

  • Though we have taken utmost care while preparing the calculator, IndiaFirst or any of his employees/ directors/ affiliates or representatives (“entities & their affiliates”) including persons involved in the preparation or issuance of this material refrains from any warranty towards the completeness or guarantee that the illustrative computations/calculations are precise or flawless and disclaims any/ all kinds of liabilities (direct/indirect/special/incidental/consequential/punitive/exemplary damages) or 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 or any of our products. The individual should consult his/her professional tax/financial/Investment advisor before making any investment decision.

  • The Recipients/Investors/Readers/Entities and their affiliates of this information are advised to rely on their own analysis, interpretations & investigations. The Recipients/Investors/Readers/Entities and their affiliates alone shall be fully responsible for any decision taken on the basis of this document/illustration.

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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.

What are the 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