MF portfolio doctor: Why Dogra needs to restart mutual fund SIPs, hike amounts to reach money 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.

Case I: Vikas Dogra is saving for his kid’s education and his retirement. Here’s what the doctor has advised him.
Goals

PORTFOLIO CHECK-UP

• Investing in equity funds for past 3-4 years but stopped recently.
• Has chosen good schemes with very little overlap.
• Goals are ambitious and need big hike in SIPs and annual increases.
• Additional investment of Rs 40,000 needed per month.
• Go for balanced portfolio in NPS with 50:50 split in debt and equity.

Investment Portfolio

Note from the doctor

• Avoid narrow focused funds. Well diversified funds are better.
• Set up an emergency fund to tide over unforeseen expenses.
• Review investments and rebalance at least once in a year.

Case II: Dinesh Ahuja is saving for his kid’s education and his retirement. Here’s what the doctor has advised.
Goals

PORTFOLIO CHECK-UP

• Investing in equity funds for past five years.
• Early start and regular investing have helped amass sizeable corpus.
• Present investments are adequate but increasing SIPs every year will reach goals before time.
• 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.

Investment Portfolio

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.