The weighted return of a portfolio, and how much of it each holding actually produced. Averaging the returns of the holdings equally is the common mistake and it flatters small winners badly.
Also called: weighted portfolio return, portfolio performance calculator.
8.25% across 4 holdings worth ₹10,00,000. Equity fund contributed 5.68 of those points on 40% of the portfolio. The unweighted average of the holding returns is 7%, which is not the portfolio return and differs by 1.25 points here. Enter inflation to see the return in purchasing power rather than in currency.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
| Holding | Value | Weight | Return | Contribution | Gain |
|---|---|---|---|---|---|
| Equity fund | ₹4,00,000 | 40% | 14.2% | 5.68% | ₹56,800 |
| Debt fund | ₹3,00,000 | 30% | 7.5% | 2.25% | ₹22,500 |
| Small cap | ₹2,00,000 | 20% | -3.1% | -0.62% | -₹6,200 |
| Gold | ₹1,00,000 | 10% | 9.4% | 0.94% | ₹9,400 |
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
Portfolio return is the size-weighted average of the holding returns. The contribution column is where the useful information sits: a holding at five percent of the portfolio returning forty percent contributed two points, while one at fifty percent returning eight contributed four. The unweighted average is shown alongside precisely so the gap is visible. Costs and inflation are then subtracted in the right order, expenses first because they are charged on the portfolio, inflation second and geometrically because it is a change in the unit of measurement rather than a fee.
each holding contributes its return in proportion to its size, so a small holding with a spectacular return moves the portfolio very littleEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Portfolio return8.25%
0.4x14.2 + 0.3x7.5 + 0.2x-3.1 + 0.1x9.4; the unweighted average is 1.25 points lower
Open this examplePortfolio return8.25%
boundary: 8.25 gross becomes 0.99 in purchasing power
Open this exampleFormula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator