Asset allocation is the most important decision in investing — studies show it explains over 90% of long-term portfolio returns. This tool lets you build your ideal portfolio across major asset classes, see your blended expected return, risk level, and projected growth over time.
Combining assets with low correlation reduces overall portfolio risk without necessarily sacrificing return. Bonds tend to rise when stocks fall — the classic hedge.
Higher expected returns come with higher volatility. Crypto may offer 20%+ long-term returns, but with 80%+ drawdowns. Bonds offer stability at 3–5% annual return.
Over time, winning assets grow to dominate your portfolio. Annual rebalancing forces you to trim winners and buy laggards — systematically buying low and selling high.
Younger investors can tolerate more risk (more stocks/crypto). Those near retirement should shift toward capital preservation (bonds, cash, dividend stocks).
| Asset Class | Allocation % | Slider | Exp. Return % | Risk Level |
|---|---|---|---|---|
| Total: 0% Must equal 100% ✓ Valid | ||||