MF portfolio doctor: Why Jauharis needs to reduce financial targets to reach them
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.
CASE I: Anurag Jauhari and his wife are investing for multiple goals. Here’s what the doctor advised them.
Goals Investor’s existing portfolio Portfolio check-up Note from the doctor
Don’t buy insurance as investment. Returns are too low.
Review investments and rebalance at least once in a year.
Reduce risk when goal is near so that you don’t miss the target.
CASE II: Deepak Yadav is saving for his child’s education and his retirement. Here’s what the doctor has advised him.
Goals are ambitious and will require regular hikes in SIPs.
Retirement target of Rs 2 crore after 20 years is too modest. Will yield Rs 25,000 a month (current value).
Has not mentioned PF, small savings, NPS. Could obviate need for more investments.
Review investments and rebalance at least once in a year
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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