MF portfolio doctor: Kale should start equity fund SIPs instead of trying to time market
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.
1. Raju Kale is saving for his daughter’s goals and his retirement. Here’s what the doctor advised:
Goals
Portfolio check-up Investor’s existing portfolio Note from the doctor
2. Early start can help achieve ambitious goals Madhusudan is investing in equity funds and the Sukanya scheme for his daughter’s education and marriage. Here’s what the doctor has advised:
Goals
Portfolio check-up
Has a neat portfolio of three equity funds and a small savings scheme.
Goals are ambitious but early start has brought them within reach.
Monthly SIPs in equity funds will have to be increased by 10% every year.
Review mutual 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.
Investor’s existing portfolio
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:
