MF Portfolio Doctor: Why Sagar needs to take loans to reach financial goals
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. Chandrajeet Sagar is investing in a mix of equity funds and debt options for his son’s higher education, a car, new house and his retirement. Here’s what the doctor has advised him:
Goals: Investor’s existing portfolio Portfolio check-up Note from the doctor
Avoid adding more funds. Stay away from new fund offers.
Don’t buy thematic and sector funds. Diversified schemes do better in long term.
Review investments and rebalance at least once in a year.
Reduce risk when goal is near so you don’t miss the target.
II. Gokul Kumar saves Rs 40,000 a month for multiple goals. Here’s what the doctor has advised him:
Has invested in mix of insurance policies, mutual funds and bank deposits.
Investments will have to be hiked significantly to reach all financial goals.
Healthy PF balance means portfolio has enough debt.
Start SIPs in equity fund for retirement.
Review portfolio at least once a year. Change if any fund’s performance slips.
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:
