MF portfolio doctor: Vara needs to defer retirement by five years to save more


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.

Amit Vara is investing for multiple goals. Here’s what the doctor has advised him:

PORTFOLIO CHECK-UP

  • Started investing in equity funds last year.
  • Invested in several new funds launched last year.
  • Child goals have modest targets; can be easily reached.
  • But early retirement at 50 not possible. Must defer by at least five years.
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Note from the doctor

  • Avoid investing in new funds. Existing funds with track record are better.
  • Too much gold in portfolio. Do not buy any more.
  • Buy term insurance cover of Rs.2 crore as guard against unforeseen events.
  • Review investments and rebalance at least once in a year.
  • Reduce risk when goal is near so that you don’t miss the target.

Sumit Sinha is investing for his daughter’s goals and retirement. Here’s what the doctor advised:

PORTFOLIO CHECK-UP

  • Investing in equity funds for 3-4 years.
  • Child’s goals are within easy reach.
  • Hike retirement goal to match current lifestyle.
  • Shift out of fixed deposits to debt and hybrid funds.
  • 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.
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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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