Tax-Smart Asset Allocation
Portfolio Rebalancing Calculator (Tax-Smart Asset Allocation)
Calculate portfolio asset drift and execute tax-smart rebalancing across Equity, Debt, Gold, and Cash with fresh capital allocation to minimize capital gains tax.
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Adjust Parameters
₹
₹
010,00,00,000
New cash you can direct towards underweight asset classes.
1. Equity (Mutual Funds & Stocks)
₹
₹
010,00,00,000
%
%
0100
2. Debt (FDs, Debt MFs, EPF/PPF)
₹
₹
010,00,00,000
%
%
0100
3. Gold (SGB, Gold ETFs, Physical)
₹
₹
010,00,00,000
%
%
0100
4. Cash & Liquid Reserves
₹
₹
010,00,00,000
%
%
0100
Maximum Asset Drift
10%
Rebalancing Recommended (Exceeds 5% tolerance)
Current Portfolio Value
₹20,00,000
Across 4 asset classes
Total Fresh Capital Deployed
₹99,999
Target: ₹21,00,000
Holdings to Sell
₹0
₹0 (Zero tax friction)
Rebalance Strategy
Tax-Smart Cash Flow
Selected mode
Tax-Smart Advantage: By deploying fresh capital instead of selling existing holdings, you incur ₹0 capital gains tax, 0 exit loads, and no transaction friction.
Asset Class Allocation & Action Matrix
| Asset Class | Current | Target | Drift | Recommended Action |
|---|---|---|---|---|
| Equity (Mutual Funds & Stocks) | ₹14,00,000 70% | 60% | +10% | HOLD |
| Debt (FDs, Debt MFs, EPF/PPF) | ₹4,00,000 20% | 25% | -5% | BUY ₹52,083 |
| Gold (SGB, Gold ETFs) | ₹1,00,000 5% | 10% | -5% | BUY ₹45,833 |
| Cash & Liquid Funds | ₹1,00,000 5% | 5% | 0% | BUY ₹2,083 |
Execution Action Steps
- 1.Direct ₹52,083 of fresh capital into Debt (FDs, Debt MFs, EPF/PPF) without triggering sales.
- 2.Direct ₹45,833 of fresh capital into Gold (SGB, Gold ETFs) without triggering sales.
- 3.Direct ₹2,083 of fresh capital into Cash & Liquid Funds without triggering sales.
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Asset Allocation Drift & Rebalancing Formulas
Transparent mathematical formulas and assumptions used across our financial engines.
Mathematical Formula
Asset Drift % = Current Allocation % - Target Allocation %
Variables & Legend
Current%
(Asset Amount / Total Portfolio) × 100
Target%
Desired strategic asset allocation percentage
Drift%
Deviation triggering rebalancing if > tolerance (e.g. 5%)
Step-by-Step Calculation
- Calculate Portfolio Total & Asset Weights:
Current% = (Holding / Total Portfolio) × 100Determine the exact percentage of your current wealth in each asset class.
- Measure Asset Drift against Target:
Drift = Current% - Target%Flag asset classes that have drifted beyond your tolerance threshold (e.g. ±5%).
- Calculate Rebalancing Transactions:
Cash Flow Mode: Shortfall = Target Amount - Current HoldingAllocate fresh incoming funds preferentially to underweight classes to avoid selling.
Frequently Asked Questions
During equity bull markets, your stock allocation may balloon from 60% to 75%, exposing you to far more downside risk than your financial plan intended. Rebalancing locks in gains and enforces the discipline of buying low and selling high.