MF Portfolio Doctor: Shah's early start in saving should help meet his ambitious 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.


I.Neerav Shah is saving for his sons’ education and retirement. Here’s what the doctor has advised him:

Portfolio check-up
* Invests Rs 1.11 lakh per month in a mix of 15 equity and hybrid funds.

* All are good funds but holds too many. Must consolidate.

* Portfolio is skewed towards small and mid-cap funds so be ready for volatility.

* All SIPs will have to be hiked by 10% every year.

* Education goals very high, unless aiming for top foreign colleges.

Investor’s existing portfolio

Note from the doctor
* Don’t buy too many funds. Just 6-7 funds are enough.

* Review portfolio and rebalance at least once in a year.

* Reduce risk when goal is near so you don’t miss target.

II. Minor hike in SIPs can help reach goals
Birendra Singh is saving for his son’s goals and his retirement. Here’s what the doctor has advised:

Portfolio check-up
* Funds are good but monthly investments will have to be increased.

* All SIPs will have to be hiked by 10% every year. For medical expenses, buy health insurance for self and spouse.

* If not possible to take insurance, take amount out of son’s education goal and take loan for college.

* Review 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