MF portfolio doctor: Why Saxena must hike mutual fund SIP amount to reach money goals

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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: Kartik Saxena is investing for his son’s goals and his retirement. Here’s what the doctor advises.


Portfolio recommendations

Portfolio check-up

  • Investing in well chosen equity funds for past 1-2 years.
  • All funds are good but needs to increase investments.
  • SIPs must also be hiked 10% every year to reach goals.
  • Besides funds, invests in stocks directly every month.

Note from the doctor

  • Portfolio has too many small- and mid-cap funds. Be ready for volatility.
  • Direct stocks can be risky. Consider moving to funds.
  • Buy life insurance to safeguard family’s financial future.
  • 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: Rachit Mehrotra is saving for his daughter’s goals and his retirement. Here’s the doctor’s advice.


Portfolio recommendations

Portfolio check-up

  • Investing in equity funds for past three years.
  • Child goals are easy to achieve with small increases in SIPs.
  • Retirement target of Rs 70,000 per month cut to Rs 50,000.
  • Review mutual fund portfolio at least once 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.

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