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.
CASE I: Rakesh Munjal is saving for multiple goals. Here’s what the doctor has advised him:
Portfolio check-up
Investing in equity funds for the past 12-15 years.
Redeemed funds to buy house. Now holds only ELSS.
Use short-term debt fund to save for car. Consider taking a loan if SIP too high.
Start SIPs in equity funds to save for child’s education.
Post-tax returns from FDs and recurring deposits are too low.
Note from the doctor
Don’t let money idle in bank account. Use to pay off home loan.
Buy adequate life insurance for yourself.
Review investments and rebalance at least once in a year.
CASE II: Ansel Xavier is saving for his child’s marriage and retirement. Here’s what the doctor advises.
Portfolio check-up
Investing in equity funds for several years.
Funds are good, but some need to be changed.
Retirement goal of Rs 29,000 a month seems low. Consider increasing it.
Add some equity exposure to retirement savings.
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:
