MF portfolio doctor: 5% hike in mutual fund SIPs can help Nanvani meet all money goals

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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: Prakash Nanvani is saving for his children’s goals and retirement. Here’s what the doctor advised.

Goals

nanvani-portfolio-bccl

Portfolio check-up

  • Started investing in equity funds three years ago. Gradually increased amount.
  • Holds mix of good, mediocre and poor funds. Needs to make a few changes.
  • Targets ambitious but can be met by hiking SIPs by 5% every year.
  • Other savings not given. We assumed PF at Rs 20 lakh, Rs 10,000 added every month.

Note from the doctor

  • Take life insurance cover of Rs 2 crore for 15 years.
  • Portfolio has mid and small cap bias so be ready for volatility.
  • 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: Sakamuri Koushik is targeting a corpus of Rs 20 lakh in seven years. Here’s what the doctor has advised.

Koushik-goals-bccl
Koushik-portfolio-bccl

Portfolio check-up

  • Started investing in equity funds in April this year.
  • Funds are good but needs to increase investments.
  • All SIPs will have to be hiked by 10% every year.
  • 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 [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.





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