Simulate a theoretical ideal asset allocation (Fixed Income, Brazilian Stocks, Real Estate Investment Trusts, Foreign Assets, and Cash) tailored to your risk profile and objectives. Use the Rebalancing tool to adjust your current portfolio to the model in a simple way.
| Asset Class | Suggested Percentage | Suggested Amount | Role in Portfolio (Objective) | Risk | Liquidity |
|---|
Asset Allocation is an investment strategy that aims to balance risk and return by distributing wealth among different asset classes (such as Fixed Income, Stocks, Real Estate Investment Trusts, and Foreign Assets) according to the investor's risk profile, objectives, and time horizon.
Classic modern finance studies (such as those by Harry Markowitz, the father of Modern Portfolio Theory) show that more than 90% of a portfolio's long-term return variation comes from overall asset allocation, not from individual stock picking.
Over time, normal market fluctuations cause the original percentage distribution of your portfolio to change. For example, if the stock market rises strongly, the stock portion may grow from 15% to 25% of your total wealth, leaving you more exposed to the risk of a subsequent decline.
Periodic rebalancing involves restoring the original target percentages. In practice, you sell part of the assets that have risen too much (realizing profits at the high point) and buy more of the assets that have fallen or lagged behind (buying more cheaply at the low point). The rebalancing plan in this calculator calculates the exact purchases and sales to restore balance without guessing.
There is no need to rebalance the portfolio daily or weekly. This generates unnecessary operational costs and taxes. Most analysts recommend rebalancing every 6 months or 1 year, or only when an asset class deviates more than 5% from its original target.
Yes! For small portfolios or those in an accelerated accumulation phase, this is the most recommended strategy. Instead of selling assets that have risen too much (which can generate capital gains tax), you simply direct 100% of your new monthly contributions to purchase assets that are below the recommended target, rebalancing the portfolio without needing to sell anything.
Currency diversification means having part of your investments tied to strong currencies (such as the US Dollar or Euro). Since the Real is an emerging market currency, having global assets protects the investor's global purchasing power against sudden declines in the Real and against local Brazilian crises.