Portfolio Diversification Calculator

Portfolio diversification is crucial for managing investment risk while optimizing returns. Our calculator analyzes your current asset allocation and provides recommendations based on your age, risk tolerance, and investment goals.

The calculator evaluates diversification across five major asset classes and provides a diversification score along with personalized recommendations for portfolio optimization.

Asset Classes Analyzed:

• Equity: Stocks, equity mutual funds, ELSS
• Debt: Fixed deposits, bonds, debt funds, PPF
• Gold: Physical gold, gold ETFs, gold funds
• Real Estate: Property investments, REITs
• Cash: Savings accounts, liquid funds

Diversification Benefits:

• Risk Reduction: Spread risk across different asset classes
• Volatility Management: Reduce overall portfolio volatility
• Return Optimization: Balance growth and stability
• Inflation Protection: Different assets perform well in different economic cycles

Age-Based Allocation Guidelines:

• 20s-30s: 70-80% equity, 15-20% debt, 5-10% gold/others
• 40s: 60-70% equity, 20-30% debt, 10% gold/others
• 50s: 50-60% equity, 30-40% debt, 10% gold/others
• 60+: 30-40% equity, 50-60% debt, 10% gold/others

Risk Tolerance Adjustments:

• Conservative: Lower equity, higher debt allocation
• Moderate: Balanced allocation based on age
• Aggressive: Higher equity allocation for growth

Features:

• Comprehensive portfolio analysis across 5 asset classes
• Diversification score calculation (0-100)
• Age and risk-based allocation recommendations
• Visual asset allocation breakdown
• Personalized portfolio optimization suggestions