MF portfolio doctor: Why Akshay needs to scale down goals or hike monthly investment

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. S.N. Akshay is saving for a house, his daughter’s education and retirement. Here’s what he was advised

Portfolio check-up
* Invests Rs 25,000 per month in equity funds, small savings schemes and NPS.

* Funds are mostly good, but needs to reduce clutter.

* Goals are ambitious. Scale them down or invest Rs 26,500 more every month.

* All SIPs must also be hiked by 10% every year to reach goals.

* Take education loan if there is shortfall in corpus.

Investor’s existing portfolio

Note from the doctor

* House purchase upsets other goals. Avoid if possible.

* Opt for Aggressive Lifecycle Fund in NPS with maximum in equity funds.

* Review portfolio and rebalance at least once in a year

II. Early start brings goals within easy reach

Abhishek Pratap Singh is saving for his child’s education and his retirement. Here’s what the doctor has advised.

Portfolio check-up

* Invests in a mix of multicap, mid and small-cap funds and ELSS schemes.

* Funds are good but performance of mid- and small-cap schemes can test patience.

* Small 5% hike in SIP amount every year will help reach both goals.

* PF not mentioned in portfolio. If substantial, it would lower the investment requirement.

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