MF portfolio doctor: Sinha must scale down financial goals if he cannot hike SIPs substantially

Not many investors know whether they have invested in the right funds and if their fund portfolio is on track.

The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures.

The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.

1. Surajit Sinha is saving for his children’s goals and retirement. Here’s what the doctor has advised.


Goals

Portfolio check-up

• Investing in a mix of equity and hybrid funds for the past 4-5 years.
• Targets seem a little too high. Consider downsizing to realistic levels.
• To reach the high targets, all SIPs must be hiked by 15% every year.
• Downsize some goals if not possible to increase SIPs. Opt for maximum equity exposure in NPS.

Investment portfolio

Note from the doctor

• Avoid investing in too many funds. Just 5-6 funds are enough.
• Also avoid tax inefficient fixed deposits. Debt funds are better.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

2. Delay retirement to build bigger corpus
Manvendra Singh is saving for his child’s education and retirement. Here’s the doctor’s advice:

Goals

Portfolio check-up

• Started investing in equity funds to save tax 3-4 years ago.
• Switch from dividend option of funds to growth option.
• Goal of retiring in 15 years will need bigger corpus and higher investments.
• Delay retirement by five years to reach target comfortably.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

Investment portfolio

Assumptions used in the calculations

Inflation
Education expenses: 10%

For all other goals: 7%

Returns

Equity funds: 12%

Debt options: 8%

(Portfolios analysed by Raj Khosla, Managing Director and Founder, MyMoneyMantra)


If you want your portfolio examined, write to etwealth@timesgroup.com with “Portfolio Doctor” as the subject. Mention the following information:
Names of the fund you hold
Current value of the investment.
If you have SIPs running in any of them.
The financial goals for which you invested.
How much you need for each financial goal.
How far away is each goal.