MF Portfolio Doctor: Why Ghosh needs to delay retirement by few years
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. Sanjoy Ghosh is saving for his children’s education and marriage and his retirement. He invests Rs 50,000 a month in a mix of equity and balanced funds. Here’s what the doctor has advised him:
Goals: Portfolio check-up
Has invested in good funds and earned good returns till now.
Children related goals are reachable and don’t need further investments.
Retirement target is too high. Scale down requirement to Rs 50,000 a month or delay by 2-3 years.
Channelise SIPs of children’s goals towards retirement. Even then, SIPs will have to be hiked every year by 10%.
Investor’s existing portfolio Note from the doctor
Avoid thematic funds. Diversified schemes give stable returns.
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. Shekhar Sundar will retire in three years and wants a corpus of Rs 1.5 crore. He has invested in a clutch of equity funds. Here’s what the doctor has advised:
Goals: Investor’s existing portfolio Portfolio check-up 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
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