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: Jayant Das is saving to build a house, his child’s marriage and retirement. Here’s the doctor’s advice.

Goals

BCCL – Non Copyright

jayant-das-goals

Investor’s existing portfolio

BCCL – Non Copyright

jayant-das-portfolio

Portfolio check-up

  • Investing in equity funds, bank deposits for past 2-3 years.
  • Holds good mix of diversified funds and two banking schemes.
  • Will need to hike SIP amounts every year.
  • Interest is fully taxable. Shift to a debt fund to avoid high tax.
  • Invest in NPS for retirement. Opt for maximum equity allocation.

Note from the doctor

  • Avoid buying sector funds; diversified schemes are better.
  • Review investments and rebalance at least once in a year.

CASE II: Sarang Deo invests in equity funds and fi xed income for multiple goals. Here’s the doctor’s advice.

Goals

BCCL – Non Copyright

deo-goals

Investor’s existing portfolio

BCCL – Non Copyright

deo-portfolio

Portfolio check-up

  • Investing in equity funds for past 5-6 years. But SIP amounts are low, so corpus is not very large.
  • Goals are ambitious and will require substantial hike in SIPs.
  • SIPs will also have to be hiked every year.
  • Even then, retirement target will have to be cut to Rs 60,000 a month.
  • Review investments and rebalance at least once in a year.

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.





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