MF portfolio doctor: Early start, systematic investing can secure this couple's financial goals

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.

I. Girish Vyas and his wife are investing for multiple goals. Here’s what the doctor has advised them:


Goals:

Portfolio check-up:

• Started early and invested in a mix of large-, mid-, small- and multi-cap funds.
• All goals can be reached easily without hiking investments. Use stock investments to purchase property.
• Debt investments and Provident Fund can fund retirement. Use debt funds instead of fixed deposits for greater tax efficiency.

Investor’s existing portfolio:

Note from the doctor:

• Avoid investing in too many funds and thematic schemes.
• Global funds diversify but watch the tax.
• Review and rebalance at least once in a year.

II. Goals need to be scaled down or deferred
Kunal Patnaik is investing to buy a car, a house and his retirement. Here’s what the doctor advised:

Goals:

Portfolio check-up:

• Started investing early but goals are too ambitious. Take Rs 5 lakh loan for car or hike SIPs to Rs 15,000.
• Push back house plans to 10 years or hike SIPs by Rs 23,000.
• In NPS, opt for aggressive portfolio with 75% in equity funds.
• Review mutual fund portfolio at least once a year. Change if any fund’s performance slips.

Investor’s existing portfolio:

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.