MF portfolio doctor: Sen needs to increase mutual fund SIP amount to achieve 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: Aditya Sen is saving for his son’s goals and his retirement. Here’s what the doctor has advised him.

Portfolio check-up

• Investing in well-chosen equity funds for past 1-2 years.
• All funds are good but needs to increase investments.
• SIPs must also be hiked 10% every year to reach goals.
• Besides funds, invests in stocks directly every month.
• Also holds insurance plans and a child Ulip.
• Too much lying idle in savings bank and fully taxable recurring deposits.

Note from the doctor

• Do not invest in insurance policies. Returns are too low.
• Recurring deposits are fully taxable. Opt for debt funds instead.
• When buying a Ulip, align maturity with key goals.
• 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: Deepak Sirohi is saving for his child’s education and retirement. Here’s what the doctor has advised.

Portfolio check-up

• Investing in equity funds for the past 2-3 years.
• Goals are ambitious and require big increase in monthly investments.
• SIPs will also have to be increased by 10% every year.
• 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.
• How far away is each goal.