The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.
I. Vinod Bajaj is saving for his child’s goals and retirement. Here’s what the doctor has advised him.
Goals
Portfolio Recommendations
Portfolio check-up
- Started with ELSS funds 6-7 years ago.
- Now holds mix of small, mid and flexi cap funds.
- Funds are good but holds too many of them.
- Child goals can be reached if SIPs hiked by 5-10% every year.
- Retirement target is ambitious; needs to increase SIPs by 10% every year.
Note from the doctor
- Portfolio has smallcap skew. Be ready for high volatility.
- With no Provident Fund, use NPS to save for retirement.
- Opt for maximum allocation to equities 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.
II. Shikher Arya is saving for his daughter’s goals and retirement. Here’s what the doctor has advised.
Goals
Portfolio Recommendations
Portfolio check-up
- Investing in equity funds for 3-4 years.
- Child’s goals are within easy reach.
- Retirement goal of Rs 8 crore too low.
- Will yield only Rs 40,000 per month.
- Shift out of fixed deposits to debt and hybrid funds.
- 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.
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.
