MF Portfolio Doctor: Uniyal can meet goals but needs to rejig portfolio
The Portfolio Doctor will consider the performance of schemes, the risk profile of the investor as well as the financial goals of the individual.
By ET Bureau | Updated:
BCCL
If you want to get your fund portfolio examined, write to us at etwealth@timesgroup.com with "Portfolio Doctor" as the subject.
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. Mohan Uniyal invests Rs 74,000 a month for multiple goals. Here’s what the doctor advised him:
Portfolio check up
* Started investing 7-8 years ago in a mix of equity funds and stocks.
* Mix of diversified and sectoral equity funds.
* All goals can be met but needs to rejig portfolio, prune number of funds.
* Also investing in NPS, but PF balance is low due to withdrawals.
* Shift out of direct stocks to large-cap equity funds.
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Investor’s existing portfolio Note from the doctor
* Avoid sector and thematic funds. Diversified funds are better.
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* Review investments and rebalance at least once in a year.
* Reduce risk when goal is near so that you don’t miss the target.
II. Increase equity exposure, hike SIPs to reach goals Gururaj Bagalkotker is saving for his kid’s education and his retirement. Here’s what the doctor advised him:
Portfolio check up
* Investing in good equity funds but overall allocation to equity is low.
* Increase equity allocation if comfortable with risk of volatility.
* Review investments and rebalance at least once in a year.
* Reduce risk by switching from equity to debt when goal is near so that you don’t miss the target.
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:
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
