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.
Shweta Jain is saving for multiple goals. Here’s what the doctor has advised her.
PORTFOLIO CHECK-UP
- Has been investing in equity funds for past 6-7 years.
- Goals are ambitious, but disciplined investing can help achieve them.
- Monthly investments will have to be increased by Rs.16,500.
- SIPs will also have to be increased by 5% every year.
- There are too many schemes and should be consolidated.
- Just 7-8 funds are more than enough to diversify risk.
- Portfolio has smallcap skew. This segment is very volatile. Large caps are more stable.
- Remove laggard schemes to streamline portfolio.
- Restart SIPs in hybrid and equity schemes to save for retirement.
Note from the doctor
- Go for the NPS to save tax and build retirement corpus.
- In NPS, opt for a balanced allocation to equity and debt funds.
- Buy life insurance cover of at least Rs.1 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.
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.
