Calculator split, often referred to as financial calculator split, is a method in financial markets to analyze and compare investment options using a financial calculator. A financial calculator is a specialized electronic device or software application designed to perform complex financial calculations, including the calculation of returns, interest rates, and other financial metrics. The calculator split involves dividing the total investment amount into smaller, equal parts and allocating them to different investment options.
This technique offers several benefits and advantages. Firstly, it allows investors to diversify their portfolio and spread the risk across multiple investments, thereby reducing the overall risk exposure. Secondly, it enables investors to compare and analyze various investment options side-by-side, considering factors such as returns, interest rates, and risk levels. By comparing the performance of each investment option under the same calculator settings, investors can make informed decisions and choose the options that best align with their financial goals and risk tolerance.