MF portfolio doctor: Why Tripathi should invest in Sukanya Samriddhi Yojana

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: Maya V.M. is saving for foreign holidays and early retirement. Here’s what the doctor advised her:

Portfolio Check-Up

• Started investing in equity funds 1-2 years ago.
• Putting small amounts in too many funds hasn’t really helped.
• Funds are good, but portfolio is too cluttered. Dump some of the funds.
• Goals are ambitious but can be reached by hiking SIPs every year.
• Retirement goal of Rs 40,000 a month is too low. Consider revising it.

Note from the doctor

• Early retirement means bigger corpus needed to sustain 30-35 years.
• Avoid NSCs and bank deposits as interest is taxed at slab rate.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

Case II: Pratyush Tripathi needs Rs 3 crore for his daughter’s education in 17 years. Here’s what the doctor has advised him:

Portfolio Check-Up

• All the equity funds are highly rated and have performed well.
• SIPs will have to be raised by 5% every year to reach goal.
• Add debt component via Sukanya scheme to stabilise portfolio.
• 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.

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.