Portfolio Allocation Calculator — Optimize Your Investment Mix & Asset Distribution

Portfolio Allocation Calculator

Optimize your investment portfolio by calculating the ideal asset allocation based on your risk tolerance, investment horizon, and financial goals.

Step 1: Portfolio Details

£50,000
20

Understanding Risk Tolerance

Conservative portfolios have more bonds and cash. Aggressive portfolios have more stocks. Your risk tolerance should match your investment timeline and comfort with volatility.

Step 2: Asset Allocation

Stocks (Equities) 60%
60%
£30,000
Bonds (Fixed Income) 30%
30%
£15,000
Cash & Equivalents 5%
5%
£2,500
Alternative Investments 5%
5%
£2,500

Total Allocation: 100%

Adjust the sliders to create your ideal portfolio mix. The total must equal 100%. Different asset classes have different risk and return characteristics.

Portfolio Allocation Analysis

Summary
Risk Profiles
Allocation

Recommended Portfolio Mix

60/30/5/5
Stocks/Bonds/Cash/Alternatives allocation based on moderate risk profile
Expected Return
6.2%
Risk Level
Medium
Projected Value in 20 Years
£164,000
Recommended Rebalancing
Quarterly

Risk Profile Comparison

Risk Profile Stocks Bonds Cash Expected Return

Asset Allocation Breakdown

Portfolio Optimization Formula

Expected Portfolio Return = Σ(Asset Weight × Expected Return)

Modern Portfolio Theory suggests that diversification across uncorrelated assets can reduce risk while maintaining returns. Rebalance periodically to maintain your target allocation.

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