retirement: MF portfolio doctor: Ghosh’s investments will help him save for kids’ money goals and retire early

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.

I: Soumili Ghosh is saving for his children’s goals and early retirement. Here’s what the doctor advised:

Goals

Investor’s existing portfolio

Portfolio check-up

• Plans to retire at 50. All SIPs will stop after eight years.
• Early start, aggressive investing have helped build a sizeable corpus.
• Retirement target is stiff but can be reached if SIPs continue.
• Portfolio has mid-cap and small-cap bias. Be ready for volatility.
• Continue investing in NPS even after retirement till you turn 60.

Note from the doctor

• Holds too many funds, some of them underperformers.
• Dump underperforming schemes and focus on good ones.
• 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: Hike SIPs by 10% every year to reach goals
Kishore Rajpal is saving for his child’s goals and his retirement. Here’s what the doctor has advised:

Goals

Investor’s existing portfolio

Portfolio check-up

• Investing in equity funds for past 2-3 years.
• Portfolio is a mix of small-, mid- and large-cap funds.
• Goals are ambitious and require increase in investments.
• SIPs will also have to be increased by 10% every year.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that target is not missed.

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.