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 ri...
By ET CONTRIBUTORS | Updated:
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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.
Nataraj Pillai is saving for his retirement. Here is what the doctor has advised him:
PORTFOLIO CHECK-UP
Has been investing in equity and hybrid funds for 7-8 years.
Despite early start and high investment, corpus size is modest.
Tends to stop SIPs after 2-3 years. Must continue for longer periods.
Exposure to equities less than 30%. Needs to increase this for long-term goal.
Portfolio has small- and mid-cap skew. Be ready for volatility.
Note from the doctor
Increase SIPs by 10% every year to reach goal.
Opt for maximum 75% allocation to equity in the 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.
Not possible to reach Rs.5 cr in 10 years Aravind Kumar wants to amass Rs.5 crore in 10 years. Here’s what the doctor has advised:
PORTFOLIO CHECK-UP
Started investing in equity funds to save tax 3-4 years ago.
Goal is very ambitious and needs a big hike in investments.
Current investments and SIPs will grow to Rs.60 lakh in 10 years.
Reduce goal to Rs.2.5 crore and defer by five years.
SIPs will have to be increased to Rs.25,000 per month and hiked by 10% every year.
Review investments and rebalance at least once in a year.
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.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
