MF portfolio doctor: Sinha needs to exit stocks to meet short-term 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.

Sushil Rastogi is investing for multiple goals. Here’s what the doctor has advised him.

Portfolio checkup

• Started investing in equity funds about 3-4 years ago.
• Needs to increase investment to reach ambitious goals.
• SIPs will also have to be increased every year.
• House goal is very near so can’t risk in equity.

Note from the doctor

• Retirement goal is low at Rs 40,000 per month.
• Consider raising it. Need to invest in equity funds for retirement.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target

Shashank Sinha is saving for a marriage, child’s education and retirement. Here’s the doctor’s advice.

Portfolio checkup

• Investing in stocks and equity funds for several years.
• Funds are good, but needs to increase investments.
• Should redeem stocks and shift to debt for near-term marriage goal.
• Provident Fund balance is low. Don’t withdraw from it before retirement.
• Opt for maximum equity exposure in NPS account.
• Review investments and rebalance at least once in a year.

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.