Mutual Fund Portfolio: MF portfolio doctor: Bhatia needs to plan for longer retirement of at least 20-25 years


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.

Vivek Bhatia is saving for his children’s goals and retirement. Here’s what the doctor advised him:

PORTFOLIO CHECK-UP

  • Investing in a mix of equity funds for the past 4-5 years.
  • Portfolio has well chosen funds. Don’t buy more but keep adding to existing ones.
  • Early start has helped but needs to hike monthly SIPs by 5% every year.
  • Needs to plan for at least 20-25 years in retirement. 15 years not enough.
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Note from the doctor

  • Take maximum possible exposure to equity funds in NPS.
  • Take adequate insurance to safeguard financial goals.
  • Review investments and rebalance at least once in a year.
  • Reduce risk when goal is near so that you don’t miss the target.

Must hike SIPs to reach ambitious goal

Manmohan Gupta wants to save Rs.1 crore in 15 years. Here’s what the doctor has advised:

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PORTFOLIO CHECK-UP

  • Investing in equity funds for past 5-6 years.
  • Holds too many funds. Needs to reduce the number.
  • Inflation adjusted value of goal puts it out of reach.
  • Must increase investments and hike SIPs every year.
  • Has not mentioned fixed income investments in portfolio.
  • Review mutual fund portfolio at least once a year. Change if any fund’s performance slips.

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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.



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