MF Portfolio Doctor: Why Raghav needs to reduce number of schemes in his portfolio

financial-analysis-thinksto
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. Dharmesh Raghav invests Rs 1 lakh a month in equity funds. Here’s what the doctor advised him:

Goals:
Dharmesh-Raghav-Goals
Investor’s existing portfolio
Dharmesh-Raghav-portfolio
Portfolio check-up
  • Investing in equity funds since 2013, but increased SIPs to Rs 1 lakh only this year.
  • Funds are mostly good performers, but holds too many schemes.
  • Retirement goal will have to be pushed forward by at least two years.
  • Increase SIPs by 10% every year in line with rise in income.
  • Switch from smallcap and mid-cap funds to multi-cap schemes.
Note from the doctor
  • Avoid investing in too many funds of same genre.
  • 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. Ashish Upadhyay is saving to buy a house and his retirement. Here’s what the doctor has advised:

Goals:
Ashish-Upadhyay-goals
Investor’s existing portfolio
Ashish-Upadhyay-portfolio
Portfolio check-up
  • Goals are ambitious but early start and discipline will help.
  • Shift from debt funds to large-cap funds for better returns.
  • Monitor progress of portfolio and review at least once a year.
  • Reduce risk as goals come near by cutting equity exposure.
Assumptions used in the calculations
  • Education expenses inflation: 10%
  • For all other goals inflation: 7%
  • Equity funds returns: 12%
  • Debt options returns: 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.