The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.
CASE I: Biplab Das invests in equity funds and fixed income for his goals. Here’s what the doctor advises:
Goals
Investor’s existing portfolio
Portfolio check-up
- Investing in equity funds for the past 10-12 years.
- Early start and regular investing have helped amass large corpus.
- Holds a good mix of small-cap, mid-cap and large-cap funds.
- Should be ready for volatility in small-cap and midcap funds.
- Comfortably placed to reach all goals; no need to hike SIPs.
Note from the doctor
- Avoid buying too many funds. Just 4-5 funds from different categories are fine.
- Review investments and rebalance at least once in a year.
- Reduce risk when goal is near so that you don’t miss the target.
CASE II: Shweta Jalan is investing to buy a house, her kid’s studies and retirement. Here’s the doctor’s advice:
Goals
Investor’s existing portfolio
Portfolio check-up
- Started investing in equity funds and PPF recently.
- Chosen good funds but must monitor their progress over long term.
- All goals are reachable with small hikes in SIPs.
- 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.
