MF portfolio doctor: 10% annual hike in mutual fund SIPs can help Malik accumulate Rs 1 crore in 15 years
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.
|Mandeep Siddhu and his wife are saving for multiple goals. Here’s what the doctor advised them:
Goal
Portfolio check-up
- Investing in diversified and sector funds in lump sum and SIPs for 3-4 years.
- Has built a healthy corpus through regular investments.
- Too many sector funds in portfolio has hit returns.
- House purchase goal will need a loan of Rs 60 lakh.
- Review retirement goal. Corpus of Rs 2 cr will yield Rs 80,000 a month (today’s prices).
Investment portfolio
Note from the doctor
- Avoid sector funds. Diversified schemes are better.
- Don’t get tempted to invest in this year’s winners.
- Review investments and rebalance at least once in a year.
- Reduce risk when goal is near so that you don’t miss the target.
|| 10% annual hike in SIPs can build Rs 1 cr in 15 yrs
Sonia Malik is 35 and aims to save Rs 1 crore by the age of 50. Here’s what the doctor has advised:
Goal
Portfolio check-up
- Investing in equity funds for the past 1-2 years.
- Has not set any target or specified the objective of the investment.
- 10% hike in SIPs can build a corpus of Rs 1 crore in 15 years.
- 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)
If you want your portfolio examined, write to etwealth@timesgroup.com with "Portfolio Doctor" as the subject. Mention the following information:
- Names of the fund 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.