What is a good portfolio return in India?

A good portfolio return in India depends on the asset mix. A conservative portfolio (60% fixed income, 40% equity) might target 9 to 11% annual return. An aggressive portfolio (80% equity, 20% fixed income) might aim for 12 to 15% annually. The Nifty 50 has historically returned approximately 12 to 13% CAGR over 10-year periods. A well-diversified portfolio should aim to beat inflation by at least 4 to 5% annually.

How do I calculate my total portfolio return with multiple investments?

Step 1: List every investment you hold with the current market value and its annual return rate. Step 2: Add up all values to get the total portfolio value. Step 3: For each investment, divide its value by the total to get the allocation percentage. Step 4: Multiply each allocation percentage by the investment return rate. Step 5: Sum all the results to get the weighted portfolio return. This calculator does all five steps automatically.

What is the difference between portfolio return and CAGR?

CAGR measures the annualised growth of a single investment from start to finish. Portfolio return measures the blended return of multiple assets at a point in time. CAGR looks backward at historical performance. Portfolio return can be forward-looking based on expected returns or backward-looking based on actual returns of individual holdings.

How does asset allocation affect portfolio return?

Asset allocation is the primary driver of portfolio return. Research shows that more than 90% of a portfolio return variability comes from asset allocation decisions, not individual security selection. A portfolio with 80% in equity and 20% in fixed income will have a very different expected return and risk profile than one with 30% equity and 70% fixed income.

What is the portfolio return formula?

Portfolio Return = sum of (wi × ri) where wi is the weight or proportion of investment i in the total portfolio, and ri is the return rate of investment i. The weight wi is calculated as Amount invested in i divided by Total portfolio value. The result is multiplied by 100 to get a percentage. Example: FD of Rs 5 lakh at 7% and mutual fund of Rs 5 lakh at 12% gives portfolio return of 9.5%.

Can I use this calculator for mutual fund portfolio return?

Yes. Add each mutual fund scheme as a separate investment entry. Enter the current value of your holdings and the fund trailing return (1-year, 3-year, or 5-year CAGR as appropriate). The calculator will show how each fund contributes to your overall portfolio weighted return. You can also copy the table into your investment tracking sheet.

How do I find the return rate for each investment?

For mutual funds, check the trailing return on AMFI fact sheets or your broker app (Groww, Zerodha Coin, Kuvera). For bank FDs, use the current FD rate. For EPF, use 8.25% (current EPFO rate). For PPF, use 7.1% (current rate). For stocks, use the 1-year or 3-year return from your broker dashboard. For expected future returns, use conservative estimates based on historical asset class averages.

How does the portfolio contribution percent work?

Contribution percentage measures how much each investment contributes to the total portfolio weighted return, not just how much of the portfolio it represents. A large FD allocation at a low return rate might contribute less to overall return than a smaller equity allocation at a higher return rate. This metric helps you identify which assets are driving your portfolio performance.

Should I use actual or expected returns in this calculator?

You can use either. For a backward-looking analysis of your current portfolio performance, use actual trailing returns from your investment statements. For forward-looking planning and asset allocation decisions, use conservative expected returns based on historical averages. Past performance does not guarantee future results, so forward-looking estimates should be treated as projections, not guarantees.

Fermor is a financial platform built for India. The calculators are the distribution layer : free tools that give real answers to real financial questions with no sign-up required. The product being built is an automated financial action system that uses the Account Aggregator framework to connect real financial accounts and close the gap between knowing what you should do with your money and actually doing it.

Portfolio Return Calculator : Calculate Weighted Return of Your Portfolio Investments

Investment	Amount	Return Rate	Allocation %	Contribution %
FD	₹5,00,000	7.0%	50.0%	36.8%
Mutual Funds	₹5,00,000	12.0%	50.0%	63.2%

What Is Portfolio Return?

Portfolio return is the weighted average rate of return earned on a collection of investments held by an individual or institution. It combines each investment individual return rate with its proportion of the total portfolio value to produce a single blended rate.

Most Indian investors hold more than one type of asset. FD earns 7%, mutual funds aim for 12%, EPF pays 8.25%, and gold moves in its own direction. The portfolio return answers the question that matters: across all your investments together, what is the blended annual return you are earning?

Portfolio return is the single most important number for evaluating whether your asset allocation is working as intended. A high-return equity allocation can be dragged down by a heavy FD position. The portfolio return reveals the net effect.

How to Calculate Weighted Average Portfolio Return

The weighted average portfolio return uses a simple formula that accounts for both the return rate and the size of each investment.

Portfolio Return = sum of (Amount_i divided by Total amount) x Return rate_i

Step 1: List every investment with its current value and annual return rate. A Rs 10 lakh portfolio might hold Rs 4 lakh in FD at 7%, Rs 3 lakh in mutual funds at 12%, Rs 2 lakh in EPF at 8.25%, and Rs 1 lakh in gold at 10%.

Step 2: Multiply each investment value by its return rate. FD: 4,00,000 x 0.07 = Rs 28,000. Mutual funds: 3,00,000 x 0.12 = Rs 36,000. EPF: 2,00,000 x 0.0825 = Rs 16,500. Gold: 1,00,000 x 0.10 = Rs 10,000.

Step 3: Add all the weighted returns. Rs 28,000 + Rs 36,000 + Rs 16,500 + Rs 10,000 = Rs 90,500.

Step 4: Divide by the total portfolio value. Rs 90,500 divided by Rs 10,00,000 = 9.05%. This is the weighted average portfolio return.

Why Portfolio Return Matters

A portfolio return tells you whether your asset allocation is aligned with your financial goals. If you need 10% annual growth to reach your retirement target but your portfolio is returning only 7.5%, either the allocation needs to shift toward higher-return assets or the goal timeline needs to extend.

Portfolio return also reveals concentration risk. A portfolio where 70% of returns come from one asset class is dangerously undiversified. The contribution metric in the breakdown table highlights exactly this : if a single investment is driving most of the return, the portfolio has a single point of failure.

For retirees and near-retirees, portfolio return matters differently. The goal shifts from maximising return to generating stable income with capital preservation. A portfolio returning 7% with low volatility may be superior to one returning 10% with high volatility when withdrawals are regular.

SEBI-registered investment advisers in India use portfolio return analysis to review client portfolios. The difference between your portfolio return and a relevant benchmark , such as the Nifty 50 for equity-heavy portfolios or the CRISIL composite for balanced portfolios, tells you whether active decisions are adding value.

How to Use This Portfolio Return Calculator

Start by adding each investment you hold. Use the preset buttons for common Indian asset classes: FD, Mutual Funds, Stocks, EPF, PPF, Real Estate, Gold, and NPS. You can also type a custom name for bonds, debt funds, or other instruments.

For each investment, enter the current market value and the annual return rate. Use actual trailing returns from your investment statements for a backward-looking review. Use conservative expected returns for forward-looking allocation planning. The calculator automatically computes the weighted blend.

The results panel shows your total invested amount and the weighted average portfolio return. The donut chart visualises how your portfolio is allocated across assets. The breakdown table reveals each investment exact contribution to the overall return, sorted from largest to smallest allocation.

Use the multi-currency selector to view amounts in your preferred currency. NRIs can enter values in rupees and switch to USD, EUR, or GBP for overseas planning. Remove any investment using the X button. Add up to 8 investments for a complete picture.

For a deeper analysis of individual investment performance, use the CAGR Calculator for lumpsum holdings or the XIRR Calculator for SIP portfolios.

Frequently Asked Questions

Portfolio return is the weighted average rate of return earned on a collection of investments. It combines the individual returns of each investment in proportion to their share of the total portfolio value. A portfolio with a large FD allocation earning 7% and a smaller equity allocation earning 15% will have a blended return somewhere between 7% and 15%, depending on the exact weights.

Disclaimer: All calculations on this page are indicative only. Portfolio return is a mathematical measure of blended investment performance and does not predict future returns. Past performance of any investment does not guarantee future results. This calculator is for educational and planning purposes and does not constitute financial advice. Consult a SEBI-registered investment adviser before making investment decisions.