MF Portfolio Doctor: Sandeep needs to increase investments to achieve his goals

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. Sandeep Goyal is 34 and invests Rs 39,500 a month in a clutch of eight funds. He also has debt funds, bank deposits and his PF to reach his goals.



Here’s what the doctor has advised him:

Portfolio check up

Has been investing in equity funds for more than five years.

Holds good funds but portfolio has too many schemes. Cut number of funds.

Also holds debt funds and a global fund that invests in Nasdaq stocks.
Goals are very ambitious. Will have to increase the investments to reach target amount.

All SIPs will have to be increased by 10% every year to reach the goals.
Investor’s existing portfolio

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

Note from the doctor
Stick to diversified funds. Avoid sectoral schemes and foreign funds.

Refrain from buying new funds. Just keep adding to existing schemes.

Funds are good but performance should be monitored.

Review investments and rebalance once in a year. Cut risk as goals come near.


II. Set specific goals for better outcome

Sandeep Manchikanti wants to save Rs 1.5 crore in 20 years.

Here’s the doctor’s advice:

Goals
Unspecified: 20 years
Present cost: NA
Future cost : Rs 1.5 crore

Investor’s existing SIPs


Portfolio check up
Started investing in equity funds two years ago. Chosen good ELSS funds.

Has not specified goal or factored in inflation.

Assuming 6% inflation, Rs 1 crore will be worth Rs 29 lakh after 20 years.

After few years ELSS limit will be crossed. Switch to regular diversified 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: 1. Names of the funds you hold 2. Current value of the investment 3. If you have SIPs running in any of them 4. The financial goals for which you invested 5. How much you need for each financial goal 6. How far away is each goal