MF : Mittal should hike SIPs by 10% every year to reach ambitious 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.

Aniruddh Mittal is investing for his son’s goals and his retirement. Here’s what the doctor advised:

PORTFOLIO CHECK-UP

  • Investing in well chosen equity funds for past 2-3 years.
  • All funds are good but needs to increase investments.
  • SIPs must also be hiked 10% every year to reach goals.
  • Portfolio has too many small and midcap funds. Be ready for volatility.
2

Note from the doctor

  • Don’t buy too many funds. Just 4-5 funds are enough.
  • Buy life insurance for yourself 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.

Dinesh Parmar is saving for his daughter’s goals and his retirement. Here’s what the doctor says:

1

2 (1)

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. Change if any fund’s performance slips.
  • 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



Source link