MF portfolio doctor: Joshi's ambitious financial goals require yearly increase in mutual fund SIPs

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.

Ritesh Joshi is saving for his children’s goals and retirement. Here’s what the doctor advised him:

PORTFOLIO CHECK-UP

• Investing in equity and hybrid funds for the past 4-5 years.
• Targets a little high.
• SIPs have to be hiked by 10% annually.
• Consider downsizing some goals if not possible to increase SIPs.
• Avoid FDs. Debt funds are better.
• Opt for maximum equity exposure in NPS.

Note from the doctor

• Avoid investing in too many funds. Just 5-6 funds are enough.
• Review investments regularly and weed out underperformers.
• Rebalance portfolio at least once in a year to control the risk.
• Reduce risk when goal is near so that you don’t miss the target.

Monitor and weed out underperformers
Jitin Dubey is investing in equity funds for his son’s education and marriage. Here’s what the doctor has advised:

PORTFOLIO CHECK-UP

• Most of the funds in portfolio are underperforming.
• Switch to better performing schemes with more stable returns.
• Goal value not mentioned. Assumed at Rs 15 lakh for each goal.
• Review mutual fund portfolio at least once a year. Change if any fund’s performance slips.
• 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