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MF portfolio doctor: Mishra needs to invest more, defer retirement to meet goals

The mutual fund portfolio doctor gives advice based on the performance of the funds, the risk profile of the investor as well as his financial goals. Find out what his analysis of these two investors' portfolios was.

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Last Updated: Mar 30, 2020, 09.52 AM IST
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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.

CASE I: Kuldeep Bhardwaj invests in equity funds for multiple goals. Here’s what the doctor has advised:

Goals
231

Investor's existing portoflio
232

Portfolio check-up
  • Investing aggressively in stocks and equity funds for past 2-3 years.
  • Funds are mostly good but needs to streamline portfolio.
  • Small 5% hike in SIP amounts can help reach all goals easily.
  • Direct stocks are risky. Mutual funds diversify the risk and give stable returns.
  • Use low-cost NPS to save for retirement and save tax.
Note from the doctor
  • Don’t buy too many funds. Just 5-6 funds are enough.
  • Review investments and rebalance at least once in a year.

CASE II: Smita Mishra is saving for her child’s education and early retirement. Here’s what the doctor has advised:

Goals
233

Investor's exisitng portfolio
234


Portfolio check-up
  • Started investing in equity funds to save tax 3-4 years ago.
  • Switch from dividend option of funds to growth option.
  • Goal of retiring in 10 years will need bigger corpus and higher investments.
  • Delay retirement by five years to reach target comfortably.
  • Review investments and rebalance at least once in a year.

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.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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