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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: Dhruva Kumar and his wife are saving for multiple goals. Here’s what the doctor has advised them:

Goals

Investor’s existing portfolio

Portfolio check-up

  • Self-employed couple investing in equity funds for past 5-6 years.
  • Early start and good fund selection helped build large corpus.
  • Being self employed, keep buffer of fixed income investments.
  • Opt for 100% allocation to debt in NPS.
  • House goal can be achieved with loan of Rs 60 lakh.

Note from the doctor

  • Portfolio has small and mid-cap skew, be ready for volatility.
  • Don’t underestimate inflation. Education cost rise 10% per year.
  • Review investments and rebalance at least once in a year.
  • Reduce risk when goal is near so that you don’t miss the target.

II: Hike SIPs by 10% every year to reach goals
Kishore Rajpal is saving for his child’s goals and his retirement. Here’s what the doctor has advised:
Goals

Investor’s existing portfolio


Portfolio check-up

  • Investing in mix of well chosen small, mid and large-cap funds.
  • High monthly investment will help reach ambitious goals.
  • Some targets are too high. Retirement goal reduced from Rs 6 crore to Rs 3 crore.
  • Child education goal at Rs 80 lakh also looks very high. Consider reducing it.
  • 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.
How far away is each goal.