Rebalance your portfolio at least once in a year to control the risk

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.

Venkat Raman is saving for his kids’ goals and retirement. Here’s what the doctor advised him:

PORTFOLIO CHECK-UP

• Investing in a mix of equity and hybrid funds for the past 4-5 years.
• Targets too high. SIPs will have to be hiked by 10% every year.
• Consider downsizing some goals if not possible to increase SIPs.
• Avoid tax inefficient fixed deposits. Debt funds are better.
• Opt for maximum equity exposure in NPS.

Note from the doctor

• Avoid investing in too many funds. Just 5-6 funds are enough.
• Review investments regularly and weed out underperformers.
• Rebalance portfolio at least once in a year to control the risk.
• Reduce risk when goal is near so that you don’t miss the target.

Restart SIPs to build sufficient corpus
Satish Shukla is investing in equity funds for his son’s education and marriage. Here’s the doctor’s advice:

PORTFOLIO CHECK-UP

• Started investing in equity funds five years ago but stopped midway.
• Needs to restart SIPs and hike by 10% every year.
• Avoid sectoral and thematic funds. Diversified schemes are best.
• 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.

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:

• 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.