The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.
I: Hike investments or defer plans to retire early at 52
Divya Bhatia is investing for her son’s education and retirement. Here’s what the doctor advised:
Goals
Investor’s existing portfolio
Portfolio check-up
- Investing in mix of equity and hybrid funds for 7-8 years.
- Aggressive investments have paid off, building large corpus.
- Education goal is near so start shifting from equity funds to safety of debt.
- Retiring early requires bigger corpus to sustain 28-30 years in retirement.
- Will need to increase investments by Rs 33,000 per month or defer retirement plans by 2-3 years.
Note from the doctor
- Being single parent, needs life cover of at least Rs 1-2 crore.
- Given high equity exposure in portfolio, opt for debt fund in NPS.
- 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: Take long-term view for retirement
Vishesh Kumar is investing for his retirement. Here’s what the doctor has advised:
Goals
Investor’s existing portfolio
Portfolio check-up
- Started investing in equity funds three years ago.
- Investments have done well but feeling uncertain about future. Don’t let market noise deter you from your long-term plan.
- 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:
- 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.
