Mutual Fund Percentage Calculator

Allocation Formula:

\[ \% Allocation = \frac{Units \times NAV}{Portfolio Total} \times 100 \]

% Allocation:

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1. What is Portfolio Allocation?

Portfolio allocation refers to the percentage of your total investment portfolio that is invested in a particular mutual fund or asset. It helps investors understand how their investments are distributed across different funds and maintain proper diversification.

2. How Does the Calculator Work?

The calculator uses the allocation formula:

\[ \% Allocation = \frac{Units \times NAV}{Portfolio Total} \times 100 \]

Where:

\( Units \) — Number of mutual fund units held
\( NAV \) — Net Asset Value per unit (in currency)
\( Portfolio Total \) — Total value of the entire investment portfolio (in currency)

Explanation: The formula calculates what percentage of your total portfolio value is represented by a specific mutual fund holding.

3. Importance of Portfolio Allocation

Details: Proper portfolio allocation is crucial for risk management, diversification, and achieving investment goals. It helps investors avoid over-concentration in any single investment and maintain their desired asset allocation strategy.

4. Using the Calculator

Tips: Enter the number of units you hold, the current NAV of the mutual fund, and the total value of your entire investment portfolio. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is portfolio allocation important?
A: It helps maintain proper diversification, manage risk, and ensure your investments align with your financial goals and risk tolerance.

Q2: What is a good allocation percentage?
A: This varies by individual goals, risk tolerance, and investment strategy. Generally, no single investment should dominate your portfolio unless it aligns with your specific strategy.

Q3: How often should I check my allocation?
A: Regular monitoring (quarterly or semi-annually) is recommended, with rebalancing when allocations drift significantly from your target percentages.

Q4: Does NAV change affect allocation?
A: Yes, as NAV changes, the value of your holding changes, which affects its percentage of your total portfolio.

Q5: Should I include all assets in portfolio total?
A: For comprehensive allocation analysis, include all investable assets (stocks, bonds, mutual funds, ETFs, etc.) in your portfolio total calculation.