MF Portfolio Doctor: Early start to investing should help Sansare reach goals easily

Not many investors know whether they have invested in the right mutual fund schemes and if their portfolio is on track.

The Portfolio Doctor will assess the health of the mutual funds held by individuals, examine their suitability with regard to the goals of the investor and, if required, recommend corrective measures.

While doing so, the doctor will consider the performance of the schemes, the risk profile of the investor as well as the financial goals of the individual.

I. Sagar Sansare invests Rs 30,000 a month in 10 equity funds. He is saving for his daughter’s education and marriage and his retirement.



Investor’s existing portfolio


The goals can be reached using the mutual funds marked in the same colour.

Here’s what the doctor has advised him:

Portfolio check up
* Started early and invests regularly in well chosen funds.

* Goals are long-term so diversified equity funds are the best investment option.
* All goals within reach if investments are regular and there are no withdrawals.

* Has invested in too many similar funds. Consolidate portfolio to make monitoring easy.

Note from the doctor

* Funds are good but monitor their performance.

* Review investments and rebalance at least once in a year.

* Reduce risk when goal is near so that you don’t miss the target.


II. Continue SIPs but don’t buy more high-cost insurance

Hridayesh Singh, 51, is saving for his daughter’s wedding and his retirement.



Investor’s existing SIPs

The goals can be reached using the mutual funds marked in the same colour.

Here’s what the doctor advises him.

Portfolio check up

* Started investing in stocks and equity funds only two years ago.

* Two goals and both within reach if he continues investing at the same pace.

* Retirement target of Rs 1 crore too low. Will sustain inflation-adjusted withdrawals for 15 years. Should be Rs 1.7 crore.

* Too many high-cost insurance and pension plans. Avoid buying more of these.

* For daughter’s wedding, stop investing in equity funds after two years and start systematic transfer to debt funds.

Write to us for help
If you want to get your fund portfolio examined, write to us at etwealth@timesgroup.com with "Portfolio Doctor" as the subject. Mention the following information clearly:

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