A financial planning step you must take before starting your own business

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.

Manisha Kothari and her husband are saving for multiple goals. Here’s what the doctor advises:

*Residual value after partial withdrawal in 2026; SIPs continue after withdrawal till 2033

PORTFOLIO CHECK-UP

• Has been investing in mix of hybrid and equity funds for the past 10-12 years.
• Regular, high investments have helped build a large corpus.
• Holds too many funds. Needs to throw out laggards.
• Sectoral funds can be volatile. Should go for diversified schemes.
• All goals can be reached comfortably without increasing investments.
• Should build emergency fund before starting business venture.
• Wife has stopped working, so health insurance is critical for family.
• Primary earner should also buy adequate term cover.

Note from the doctor

• Portfolio has small-& mid-cap skew. Be ready for volatility.
• Too much in fixed deposits. Invest more in tax-free PPF instead.
• Don’t ignore NPS. Increase SIP to maximise tax benefits.
• Review investments and rebalance at least once 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.