MF portfolio doctor: Srivastava should set up emergency fund for unexpected expenses

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.

Vijay Srivastava is saving for his child’s goals and retirement. Here’s what the doctor advised him:

PORTFOLIO CHECK-UP

• Investing in equity funds for 6-7 years. Built sizeable corpus.
• Goals are ambitious but small hikes in SIPs can achieve them.
• Direct stock investing requires research. Stick to mutual funds.
• Marriage goal of Rs.10 lakh too modest. Increased to Rs.20 lakh.

Note from the doctor

• Very long-term insurance plans of 50-60 years are meaningless.
• Avoid sector schemes. Diversified funds yield better results.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

Ashwani Mittal is saving for his child’s goals and retirement. Here’s what the doctor has advised:

PORTFOLIO CHECK-UP

• Investing in equity funds for past 2-3 years.
• Low SIP amounts so corpus is not very large.
• Buy a term plan of Rs.1 crore to cover these goals.
• 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.

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.