MF portfolio doctor: Kamat’s ambitious financial goals are within reach because of early start to investments

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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: Namit Kamat is saving for his daughter’s goals and retirement. Here’s what the doctor advised him:

Goals

231

Investor’s existing portfolio

232



Portfolio
check-up

  • Investing in equity funds for the past 8-10 years.
  • Early start has helped amass a sizeable corpus.
  • Child’s goals can be easily reached with regular investments.
  • Retirement target of Rs 45,000 a month is too low. Hiked to Rs 75,000.

Note from the doctor

  • Avoid buying physical gold as investment. Gold ETFs are better.
  • Portfolio has mid-cap bias. Be ready for high volatility.
  • Don’t avoid NPS. Use the low-cost scheme to save for retirement and reduce tax.
  • 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 monthly SIPs by Rs 15K to reach goals
Dinesh Sarthak is saving for his son’s education and retirement. Here’s the doctor’s advice to him:

Goals

233

Investor’s existing portfolio

234



Portfolio check-up

  • Invests primarily in ELSS mutual funds to save tax.
  • Goals are not realistic and need to be reviewed.
  • Child’s education target can be cut.
  • Retirement goal at Rs 30,000 a month seems too low.
  • Review mutual fund portfolio at least once a year.
  • 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.



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