MF portfolio doctor: Singh shouldn\'t opt for dividend plan if goal is long-term wealth creation
Not many investors know whether they have invested in the right mutual 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. Hardeep Singh is saving for his children’s goals and retirement. Here’s what the doctor advises:
Goals Portfolio check-up
Investing in equity and hybrid funds for the past 10 years.
Has built sizeable corpus through disciplined investing.
Targets are ambitious but small hike in SIPs will help achieve all.
Holds too many funds. Needs to reduce the number.
Investor’s existing portfolio Note from the doctor
II. Must increase investments to reach goals Mahantesh S. Hoogar invests in equity funds and Ulips. Here’s what the doctor has advised:
Goals Portfolio check-up
Investing in equity funds for 4-5 years.
Also invests in Ulips, including a child plan.
SIPs will have to be hiked to reach goals.
Avoid investing in Ulips. Term insurance is better option.
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.
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)
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.
