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MF portfolio doctor: Lavhe needs to shelve 2 financial goals, invest in MFs to meet others

The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals.

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Updated: Jul 08, 2019, 09.45 AM IST
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Lavhe should junk car and house plans to keep other goals on track.
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.

Amol Lavhe is saving for a mix of short-, medium- and long-term goals. Here’s what the doctor says:

Goals

27-1

Portfolio check-up
  • Goals are ambitious and need big increase in monthly investment.
  • SIPs for goals will also have to be hiked by 10% every year.
  • Retirement goal too low at Rs 5 crore; may need to raise target amount.
  • Should junk car and house plans to keep other goals on track.
  • Be ready for volatile returns from mid-cap and small-cap funds.

Investor’s existing portfolio

27-2

Note from the doctor
  • Avoid investing in closed-ended funds.
  • Open-ended schemes are better.
  • Use debt funds to save for short-term goals.
  • Review investments and rebalance at least once in a year.
  • Reduce risk when goal is near so that you don’t miss the target.

|| Treat SIPs like EMIs for house
Lavanya Pant is investing in equity funds to buy a house after her marriage. Here’s what the doctor has advised her:

Goal

27-3

Portfolio check-up

  • Started investing in equity funds at start of career.
  • Holds a good mix of largecap, mid-cap and multicap funds.
  • Goals is ambitious but early start can help reach it easily.
  • 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.

Investor’s existing portfolio

27-4

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:
  • 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.
(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.)

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