MF Portfolio Doctor: Mitesh should invest more in SIPs to reach goals
ET Bureau|
Sep 25, 2017, 06.30 AM IST
Not many investors know whether they have invested in the right mutual fund schemes and if their portfolio is on track.
The Portfolio Doctor will assess the health of the mutual funds held by individuals, examine their suitability with regard to the goals of the investor and, if required, recommend corrective measures.
While doing so, the doctor will consider the performance of the schemes, the risk profile of the investor as well as the financial goals of the individual.
I. Mitesh Mehta has invested Rs 11.28 lakh in 12 equity funds and has SIPs running in eight schemes. He is saving for multiple goals. Here’s what the doctor has advised him.
Investor’s existing portfolio
The goals can be reached using the mutual funds marked in the same colour.
PORTFOLIO CHECK UP
1. Started investing regularly in equity funds only two years ago.
2. Goals can be reached if monthly investment is hiked by almost Rs 12,000.
3. SIPs will also have to be increased by 10% every year to reach the goals.
4. For yearly holiday requirement of Rs 1 lakh, invest Rs 8,000 a month in short-term debt fund or start recurring deposit.
Note from the doctor
1. Except sector funds and a few schemes, all funds are good. But monitor their performance.
2. Review investments and rebalance at least once in a year.
3. Reduce risk when goal is near so that you don’t miss the target.
II. Vikash Gupta invests Rs 23,500 every month in a clutch of seven funds. Here’s what the doctor has advised him.
Investor’s existing portfolio
The goals can be reached using the mutual funds marked in the same colour.
PORTFOLIO CHECK UP
1. Just three years to go for home purchase so shift out of equity funds to the safety of debt funds.
2. All SIPs will have to be increased by 10% every year to reach the goals.
3. Review performance of funds and rebalance at least once in a year.
4. For other goals too, move from equity to debt 2-3 years before goal date.
5. Retirement corpus of Rs 2 crore may not be enough. Will last 15-16 years.
Write to us for help
If you want to get your fund portfolio examined, write to us at etwealth@timesgroup.com with "Portfolio Doctor" as the subject. Mention the following information clearly:
1. Names of the funds you hold
2. Current value of the investment
3. If you have SIPs running in any of them
4. The financial goals for which you invested
5. How much you need for each financial goal
6. How far away is each goal
The Portfolio Doctor will assess the health of the mutual funds held by individuals, examine their suitability with regard to the goals of the investor and, if required, recommend corrective measures.
While doing so, the doctor will consider the performance of the schemes, the risk profile of the investor as well as the financial goals of the individual.
I. Mitesh Mehta has invested Rs 11.28 lakh in 12 equity funds and has SIPs running in eight schemes. He is saving for multiple goals. Here’s what the doctor has advised him.
Investor’s existing portfolio
The goals can be reached using the mutual funds marked in the same colour.
PORTFOLIO CHECK UP
1. Started investing regularly in equity funds only two years ago.
2. Goals can be reached if monthly investment is hiked by almost Rs 12,000.
3. SIPs will also have to be increased by 10% every year to reach the goals.
4. For yearly holiday requirement of Rs 1 lakh, invest Rs 8,000 a month in short-term debt fund or start recurring deposit.
Note from the doctor
1. Except sector funds and a few schemes, all funds are good. But monitor their performance.
2. Review investments and rebalance at least once in a year.
3. Reduce risk when goal is near so that you don’t miss the target.
II. Vikash Gupta invests Rs 23,500 every month in a clutch of seven funds. Here’s what the doctor has advised him.
Investor’s existing portfolio
The goals can be reached using the mutual funds marked in the same colour.
PORTFOLIO CHECK UP
1. Just three years to go for home purchase so shift out of equity funds to the safety of debt funds.
2. All SIPs will have to be increased by 10% every year to reach the goals.
3. Review performance of funds and rebalance at least once in a year.
4. For other goals too, move from equity to debt 2-3 years before goal date.
5. Retirement corpus of Rs 2 crore may not be enough. Will last 15-16 years.
Write to us for help
If you want to get your fund portfolio examined, write to us at etwealth@timesgroup.com with "Portfolio Doctor" as the subject. Mention the following information clearly:
1. Names of the funds you hold
2. Current value of the investment
3. If you have SIPs running in any of them
4. The financial goals for which you invested
5. How much you need for each financial goal
6. How far away is each goal
