MF portfolio doctor: Why the Tyagis must not dip into retirement savings for kids’ education

Sharing Is Caring:


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. Vijaya and Deepak Tyagi are saving for their kids’ goals and retirement. Here’s the doctor’s advice:


Goals

232



Portfolio check-up

  • Investing in mutual funds for the past 7-8 years.
  • Hold too many funds. Need to streamline portfolio.
  • Goals are ambitious. Must increase monthly investment by Rs 24,000.
  • All SIPs will also have to be hiked by 10% every year to reach goals.
  • Some goals can be downsized if not possible to increase SIPs.

233

Note from the doctor

  • Take loan for children’s education but keep retirement savings intact.
  • Avoid using insurance as an investment. Returns from plans are too low.
  • Both husband and wife should buy term covers of at least Rs 1 crore each.
  • Review investments and rebalance at least once in a year.
  • 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%

(Portfolio analysed by Raj Khosla, Managing Director and Founder, MyMoneyMantra)

If you want your portfolio examined, write to [email protected] 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

Sharing Is Caring:

Post a comment