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MF portfolio doctor: Awasthi should hike mutual fund SIP investments annually to reach 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. Ranjit Awasthi 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 past 2-3 years.
  • SIP amount too low so has not been able to build a big corpus.
  • Goals are within reach but needs to hike SIPs.
  • SIPs will also have to be increased every year.
  • Reduce contribution to PPF to allow investment in equity funds.

Note from the doctor

  • Should also invest in equities for retirement.
  • Opt for maximum exposure to equity funds 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. Early start can help reach ambitious goals
Sujit Sinha is saving for his daughters’ marriage and retirement. Here’s what the doctor advised him:
Goals

Portfolio recommendation

Portfolio check-up

  • Investing in equity funds and stocks for past 3-4 years.
  • Goals are ambitious and require big increase in monthly investments.
  • Retirement needs only to supplement total income.
  • Review investments and rebalance at least once in a year.
  • Reduce risk when goal is near so that you don’t miss the target.

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.