Financial Calculators
Portfolio Return Calculator
Your portfolio is not all equity. Plan with the blended rate it actually earns.
Blended portfolio return
9.7%
- Use this in goal calculators
- Instead of a pure equity rate
A portfolio's expected return is the weighted average of its parts. Plans built on a blended rate survive reality better than plans built on the equity rate alone.
The rate your plan should use
Goal calculators are only as honest as the return you feed them. A 60-30-10 portfolio of equity, debt and gold does not earn the equity rate; it earns the weighted average of all three. Planning at 12% while holding a blended 9.7% portfolio quietly under-funds every goal.
Compute your blend here, then use it everywhere: SIP goals, retirement, education. If the weights do not sum to 100, the calculator normalises them.
Weighted average
Blended = (w1 x r1 + w2 x r2 + w3 x r3) / (w1 + w2 + w3)Worked example: a portfolio of 60% equity at 12%, 30% debt at 7% and 10% gold at 4% has a blended expected return of 9.7%, noticeably below the equity rate alone.
Frequently asked questions
Why not just use the equity return in goal plans?
Because only part of your money is in equity. Using the blended rate keeps SIP requirements honest and avoids nasty shortfalls at the goal date.
What returns should I assume for each bucket?
Long-run planning bands: equity 10-13%, quality debt 6-8%, gold 4-8% with high variance. Assumptions, not promises; revisit them yearly.
Does rebalancing change the blended return?
Rebalancing keeps the weights, and hence the blend, on target, and historically adds a small bonus by systematically selling high and buying low.
Where do EPF, PPF and DSOP fit?
Count them in the debt bucket at their notified rates. Many households discover their real equity allocation is far lower than they assumed once these are counted.
Plan with your real number.
An allocation review often changes the plan more than any product ever could.