MF portfolio doctor: Rana should reduce contribution to PPF, increase equity mutual SIPs

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. Nisha Rana is saving for her children’s goals and retirement. Here’s what the doctor has advised her:

Goal
Portfolio check-up

Investment portfolio
Note from the doctor

• Set realistic goal targets keeping inflation in mind.
• Don’t invest too much in low yielding debt instruments.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

2. Defer retirement to build bigger corpus
Shankar Baskaran is saving for his kids’ goals and retirement. Here’s what the doctor advised him:

Goals
Portfolio check-up

• Invests in well chosen funds, including those with global stocks.
• Child goals need big increase in SIPs.
• Early retirement at 50 not possible. Defer by 5 years to save more.
• Retirement goal of Rs 30,000 a month seems low. Review target.
• Keep close watch on funds with global exposure.
• Review at least once a year. Reduce risk when goal is near so that you don’t miss the target.

Investment 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.