Free tool
Stock allocation calculator
See how much to put in each conviction bucket before you invest a single rupee.
This calculator turns your conviction-based star ratings into concrete targets. Set how many 4-star, 3-star, 2-star, and 1-star stocks you hold, adjust the target weight band for each tier, and see exactly how much to deploy per bucket — along with how much stays as a cash buffer.
How many stocks per rating?
Frequently asked questions
- How does the stock allocation calculator work?
- Enter your total investment amount, the number of stocks in each conviction tier (1–4 stars), and optional target weight bands per tier. The calculator shows how much to allocate to each bucket in total and what remains as a cash buffer.
- What percentage of portfolio should I put in each stock?
- A common conviction-based approach: 6–8% per 4-star holding, 4–6% per 3-star, 2–4% per 2-star, and 0–2% per 1-star. These are the defaults in this calculator — you can adjust them to match your own style.
- What is conviction-based position sizing?
- Instead of equal-weighting every stock, you size positions according to how strongly you believe in each one. Higher-conviction names get a larger target weight; speculative positions stay small. The star-rating system is one way to express that conviction as a number.
- What is the cash buffer in the results?
- The cash buffer is the portion of your total investment not assigned to any star bucket. It represents uninvested capital — useful as dry powder for future opportunities or to stay under your total.