MF portfolio doctor: How Agarwal can retire early despite saving for multiple money 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.

CASE I: Nipun Agarwal is investing for multiple goals. Here’s what the doctor has advised him:

Portfolio check-up

• Started investing in equity funds 4-5 years ago. Goals are ambitious, but early start has helped.
• Don’t invest in too many funds.
• Just 5-6 schemes are enough.
• Too many global funds in portfolio.
• Small 5-10% increase in SIPs can help achieve all goals.

Note from the doctor

• Retirement goal low at Rs 50,000 per month. Hike to about Rs 1 lakh.
• Retirement at 50 is a challenge but regular SIPs can achieve it.
• Start building corpus for house purchase.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

CASE II: Arvind Gautam is saving for his daughter’s education and marriage. Here’s what the doctor has advised:

Portfolio check-up

• Investing in equity funds and stocks for past 8-10 years.
• Education goal too near so needs to protect capital.
• Marriage goal also near so start withdrawing 2-3 years from now.
• 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.