MF portfolio doctor: Vijayaraghavan needs to hike monthly investment as he has multiple 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. Sathish Vijayaraghavan is saving for multiple goals. Here’s what the doctor has advised him:

Portfolio check-up:

• Investing regularly in equity funds and debt instruments.
• Goals have high targets but not enough time available for them.
• Needs to hike monthly investment by Rs 34,000. All SIPs will also need to be hiked by 10% every year.
• Invest in NPS for retirement. Opt for aggressive portfolio with 75% in equities.
• Avoid fixed deposits and invest in tax efficient debt funds.

Investor’s existing portfolio

Note from the doctor

• Avoid investing in too many funds. Makes portfolio unwieldy.
• Fund portfolio has mid-cap skew so be ready for volatility.
• 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. Invest in debt, gradually shift to equity funds

Samruddha Gawande is a student and has Rs 15 lakh to invest. Here’s what the doctor has advised him:

Portfolio check-up:

• Invest in debt and systematically transfer to equity funds.
• For ease, pick debt funds from the same fund houses as the equity funds.
• Review fund portfolio at least once a year.
• Change if any fund’s performance slips.
• 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, MD 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.