Ganapathi Datti is saving for his daughters’ education and marriage. Here’s what the mutual fund portfolio doctor has advised, based on the performance of the funds, the risk profile of this investor as well as her financial goals.
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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.
1. Sandip Goyal is saving for his son’s education and retirement. Here’s what the doctor has advised: Goals
Portfolio check-up
Has been investing in equity funds for the past 7-8 years.
Early start has helped build sizeable corpus.
Funds are good, but holds too many schemes in portfolio.
Small but regular increases in SIPs can help reach goals.
Retirement target very high. Scaled down to Rs 1 lakh per month.
House upgrade goal will require loan of Rs 1.05 crore. Should reconsider your plans.
Investment portfolio
Note from the doctor
Most funds in portfolio are well performing multi-cap schemes.
Choose a balanced allocation for 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.
2. Restart SIPs, don’t invest in lump sum Ganapathi Datti is saving for his daughters’ education and marriage. Here’s what the doctor advised:
Goals
Portfolio check-up
Has been investing in equity funds for the past 2-3 years.
Was investing regularly, but stopped SIPs when markets turned volatile.
Wants to now invest Rs 6 lakh lump sum and SIPs of Rs 20,000.
Review 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.
Investment 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 etwealth@timesgroup.com with "Portfolio Doctor" as the subject. Mention the following information:
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
I have lump sum amount for my daughter's wedding. Shall I invest in MF now through SIP or wait for the correction?
Bharadwaja54 days ago
As long as Income Tax is applicable on MF investments, where investors are required to pay tax on loss also, it is foolishness to invest in MFs. Every investor is bound to incur loss, irrespective of the tenure, SIP or anything. MF industry is bound to vanish in the longer run, if tax is not abolished on loss of income from MFs