MF portfolio doctor: Arora needs to raise retirement goal to match current expenses
Rachit Arora is saving for a car, his son’s education and retirement. Here are the portfolio recommendations given on the basis of the performance of the funds, the risk profile of the investor as well as his/her financial goals.
By ET CONTRIBUTORS |
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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.
Rachit Arora is saving for a car, his son’s education and retirement. Here’s what the doctor advised: Portfolio check up
Investing in mix of equity and hybrid funds for past 3-4 years.
Funds are good, but some changes needed in portfolio.
With 50% allocation to equities, be ready for volatility in returns.
Retirement goal of Rs 30,000 per month is quite low. Must hike to Rs 60,000.
Early start will help reach all key goals easily with small hike in SIPs.
Note from the doctor
US-focused funds will hedge against dollar appreciation.
Opt for maximum exposure to equity funds in 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.
Navin Kumar is saving for his son’s education and his retirement. Here’s what the doctor advised: Portfolio check up
Investing in equity funds for past two years.
Goals are very ambitious and require big increase in monthly investments.
SIPs will also have to be increased by 10% every year.
Review investments and rebalance at least once in a year.
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:
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.)
