MF portfolio doctor: Trivedi should hike all mutual fund SIPs by 10% every year to reach money goals

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: Gaurav Trivedi is saving for his children’s goals and his retirement. Here’s what the doctor advises.

Portfolio Check-up

• Invests in a mix of small-cap, mid-cap and large-cap funds.
• Has chosen good schemes.
• Goals are ambitious but 10% hike in SIPs will help achieve them.
• Start SIPs in equity fund for retirement.
• Increase contributions to NPS for tax benefit.

Note from the doctor

• Buy health cover for family and life insurance for yourself.
• Establish an emergency fund to tide over unforeseen expenses.
• 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: Deepak Sethi is saving for multiple goals. Here’s what the doctor has advised him.

Portfolio Check-up

• Investing in equity funds for past 3-4 years.
• Early start and regular investing have helped, but goals too ambitious.
• SIP amount will have to be doubled to reach the targets.
• Review mutual fund portfolio at least once a year. Change if any fund’s performance slips.

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