The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.
I: Raj Kamal is saving to buy a car, his child’s education and retirement. Here’s what the doctor says:
Goals
Investor’s existing portfolio
Portfolio check-up
- Investing in equity funds for the past 4-5 years.
- Holds several ELSS funds, even underperformers.
- Needs to hike monthly SIPs by 5-10% every year.
- Has not mentioned Provident Fund and other investments.
- If investor also has PF, the investments for retirement can be reduced.
Note from
the doctor
- Avoid sector and thematic schemes unless sure of prospects.
- Opt for aggressive asset mix in NPS for higher returns.
- Review investments and rebalance at least once in a year.
- Reduce risk when goal is near so that you don’t miss the target.
II: Don’t risk capital for short-term goals
Mahesh Charekar is saving for his daughter’s goals and retirement. Here’s what the doctor advised:
Goals
Investor’s existing portfolio
Portfolio check-up
- Investing in equity funds and stocks for past 8-10 years.
- Early start has helped build large corpus. But SIPs need to be increased.
- Liquid funds will not give high returns but offer greater safety.
- Direct investments in stocks need to be reviewed.
- Review investments and rebalance at least once in a year.
- Reduce risk when goal is near so that you don’t miss the target.
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
Write to us for help
If you want your portfolio examined, write to etwealth@timesgroup.com with “Portfolio Doctor” as the subject. Mention the following information:
Names of the funds 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.
