MF portfolio doctor: How Wagh can use mutual fund SIPs to save for a house

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: Amol Wagh is investing in equity funds for multiple goals. Here’s what the doctor has advised him.

PORTFOLIO CHECK-UP

• Early start, systematic investing have helped build sizeable corpus.
• Goals are ambitious but small increases in SIPs will help achieve them
• Holds too many funds. Prune number to make portfolio manageable.
• Portfolio has small and midcap skew. Be ready for volatile returns.
• Direct stock investing can be risky. Consider shifting to funds.

Note from the doctor

• Cash in bank should be deployed in debt fund to earn better returns.
• Choose aggressive allocation for NPS portfolio.
• 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: Shilpa S. is 27 and wants to retire at 50 with a corpus of about `7 crore. Here’s what the doctor has advised.

PORTFOLIO CHECK-UP

• Started SIPs in equity funds two years ago, but stopped when markets crashed in 2020.
• SIPs done during downmarkets earn the best returns.
• Early retirement means she must target bigger corpus to last 30-35 years.
• Funds are good, but needs to restart SIPs in them to build wealth.
• Review mutual fund portfolio at least once a year. Change if any fund’s performance slips.

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.