The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.
I: Vivek Gupta is saving for his daughters’ education and marriage. Here’s what the doctor has advised:
Goals
Portfolio recommendations
Portfolio check-up
- Investing in equity funds for past two years.
- Has now stopped SIPs because markets are high and correction is feared.
- Wants to withdraw from market and enter after correction.
- 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.
II: Raghu Kumar is saving for his child’s education and retirement. Here’s what the doctor has advised.
Goals
Portfolio recommendations
Portfolio check-up
- Investing in equity funds for past 5-6 years. Holds good mix of funds.
- Early start has helped build large corpus.
- Education goal can be reached easily with 5% hike in SIPs.
- Added child marriage goal as there is enough surplus.
- Retirement goal hiked to Rs 60,000 per month.
Note from the doctor
- Portfolio has small and mid-cap skew, be ready for volatility.
- Portfolio is also equity heavy. Add some fixed income instruments.
- Opt for 100% allocation to debt in NPS.
- Review investments and rebalance at least once in a year.
- Reduce risk when goal is near so that you don’t miss the target.
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
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.
