MF Portfolio Doctor: Why Tyagi needs to reduce targeted corpus for kid’s education


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. Deepak Tyagi, 38, is investing in MFs for multiple goals. Here’s what the doctor has advised him:

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Portfolio check-up

  • Goals are ambitious and need additional monthly investment of Rs 21,500. SIPs also need to be hiked by 10% every year.
  • Invested in too many funds, so portfolio needs consolidation.
  • Switch from gold and debt schemes to equity funds

Investor’s existing portfolio

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The goals can be reached using the mutual funds marked in the same colour


Note from the doctor

  • Prune some goals: Rs 32 lakh for child’s education is high.
  • Start shifting the corpus for child’s education from equity to debt schemes 2-3 years before the goal is due.

II. Ambitious goals need big increase in SIPs
Akshay Pansare, 31, is saving for his children’s education and marriage, buying a house and his retirement. Here’s what the doctor has advised:

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Portfolio check-up

  • Investing in mutual funds for past 1-2 years.
  • Monthly investment must be raised by Rs 8,250 to reach goals. Increase SIPs by 10% every year.
  • Buying new house and retirement goal will need more investments

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



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