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.
I Rajneesh Gohil is saving for mutliple goals. Here’s what the doctor has advised him:
Goals
Portfolio check-up
Investing in diversified and sector funds in lump sum and SIPs for past 3-4 years.
Has built a healthy corpus through regular investments.
SIPs will have to be increased every year.
Reduce number of funds in portfolio. Just 6-8 funds are enough.
Note from the doctor
Avoid sector funds. Diversified schemes are better.
Don’t get tempted to invest in this year’s winners.
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 Harshad Patel is saving for multiple goals. Here’s what the doctor has advised him:
Goals
Portfolio check-up
Investing in stocks and equity funds for past three years.
Funds are doing alright but investment is too low.
Needs to hike SIPs by 10% every year to reach goals.
Provident Fund is the best debt option. Take it seriously.
NPS is a low cost option. Use it to the hilt to save for retirement.
Review mutual fund portfolio at least once a year. Change if any fund’s performance slips.
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:
