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.
Sujeet Sinha is saving for his children’s goals and retirement. Here’s what the doctor has advised:
PORTFOLIO CHECK-UP
- Investing in a mix of flexi cap, large cap and thematic funds for the past 4-5 years.
- Early start has helped but needs to hike SIPs by 5% every year.
- Some laggard funds need to be replaced with better schemes.
- Start SIPs in equity fund for retirement..
Note from the doctor
- Avoid sector and thematic schemes unless sure of prospects.
- Use NPS to save for retirement and cut tax.
- Review investments and rebalance at least once in a year.
- Reduce risk when goal is near so that you don’t miss the target.
Early retirement not possible
Dinesh Sharma is saving for his children’s education and retirement. Here’s what the doctor says:
PORTFOLIO CHECK-UP
- Investing in equity funds for past 3-4 years.
- Late start means won’t be able to reach goals with existing investments.
- Must increase investments and SIPs every year. Retirement at 50 not possible.
- Review mutual fund portfolio at least once a year. Change if any fund’s performance slips.. Read More
Source By: economictimes
