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.
| Aradhana Bansal is 28 and wants to retire in 17 years. Here’s what the doctor has advised her:
Goals
Portfolio check-up
- Started investing in a mix of equity, hybrid and debt funds two years ago.
- Plans to retire early at 45, but investments not geared for that.
- Early retirement means she has to save more for 35-40 years in retirement.
- Targeted amounts very low. Must take inflation into account.
- Retirement corpus of Rs 4 crore will yield Rs 35,000 per month (at today’s prices) after 17 years.
Investor’s existing portfolio
Note from the doctor
- Revise targets after considering inflation.
- Consider deferring retirement by 4-5 years to build bigger corpus. Review investments and rebalance at least once in a year.
- Reduce risk when goal is near so that you don’t miss the target.
|| Can achieve all financial goals with ease
Rohitash Singh is saving for his child’s goals and his retirement. Here’s what the doctor advised:
Goals
Portfolio check-up
- Investing in a mix of debt and equity funds for past 12-15 years.
- Early start has helped him build a sizeable corpus.
- All goals are reachable. Some goals don’t need any additions, while others need small increases in SIPs.
- Should gradually shift to debt funds or debtoriented hybrid funds.
- Review investments and rebalance at least once in a year.
Investor’s existing 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)
If you want your portfolio examined, write to [email protected] with “Portfolio Doctor” as the subject. Mention the following information:
- Names of the fund 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.
