MF portfolio doctor: Why Singh should avoid direct stock investments

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.

Kalyani Singh is saving for a mix of short- and long-term goals. Here’s what the doctor has advised him.

PORTFOLIO CHECK-UP

• Has invested in a good mix of large-cap, mid-cap, small-cap and multi-cap equity funds.
• Direct stock investments can be very volatile. Shift to short-term debt fund for house down payment.
• Targeted retirement corpus of Rs 3 crore will last only 20 years. Hike to Rs 3.6 crore to last 25 years.
• Mandatory retirement savings not included. If covered by EPF, required SIP amount will be lower.

INVESTOR’S EXISTING PORTFOLIO

Note from the doctor

• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

|| Early start makes 1 ambitious goal easy
Arjun Shankar is investing in equity funds, PPF and NPS for his retirement. Here’s what the doctor has advised:

PORTFOLIO CHECK-UP

• Holds a good mix of largecap, mid-cap and multi-cap funds and small savings.
• Enough funds in portfolio. No need to add more.
• Goal is ambitious but even small 5% hike in SIPs every year can help achieve it.
• In NPS, opt for aggressive portfolio with 75% in equity funds.
• Review fund portfolio at least once a year. Change if fund’s performance slips.
• Reduce risk when goal is near so that you don’t miss the target.

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.