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: Anup Ajbani is saving for his kids’ goals and his retirement. Here’s what the doctor has advised him.
Goals
Portfolio check-up
- Started investing in equity funds to save tax 10-12 years ago.
- Holding for long term has helped build sizeable corpus.
- Goals are ambitious but can be reached by hiking SIPs every year.
- Retirement goal of Rs 40,000 a month was too low. Revised to Rs 50,000 a month.
Note from the doctor
- Wants to increase current SIPs from Rs 8,000 to Rs 20,000 a month.
- Buy term insurance plan of Rs 1.5 crore to safeguard goals.
- Review investments and rebalance at least once in a year.
- Reduce risk when goal is near so that you don’t miss the target.
CASE II: Girish Chander is saving to buy a house and his kids’ education. Here’s what the doctor advised him.
Goals
Portfolio check-up
- Investing in mix of equity funds, stocks and fixed income for goals.
- Investments for house will grow to Rs 34 lakh in two years. Take loan for the balance.
- Child’s education goal is on track. Continue SIPs in existing funds.
- 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%
- 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
