Tweak NPS allocation, increase SIPs by 5% every year to achieve ambitious 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.

Himanshu Sharma is investing for multiple goals. Here’s what the doctor has advised him.

PORTFOLIO CHECK-UP

• Has been investing in diversified equity funds for 4-5 years.
• Early start has helped build sizeable corpus.
• A few underperformers in portfolio need to be removed.
• Targets are ambitious but also long term. Regular investing can help reach them.
• Small 5% annual increase in SIPs can help reach targets.
• In case of shortfall for education goals, consider taking a loan.
• Allocation to equity is very high. Add some fixed income investments also.
• Fund portfolio has some mid-cap and small-cap funds. Be ready for volatility.

Note from the doctor

• Build an emergency fund to cover 6-8 months’ expenses.
• Take adequate life insurance to safeguard financial goals.
• Allocate maximum 75% to equity funds in NPS portfolio.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

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