Remove underperforming mutual funds and cut risk from shares by shifting to index funds to meet life goals

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.

Abhishek Mittal is investing for multiple goals. Here’s what the doctor has advised him.

PORTFOLIO CHECK-UP

• Abhishek Mittal and his wife are investing for their son’s education and wedding, as well as their own retirement.
• The couple has highrisk investments, with over 50% of the portfolio in stocks.
• Direct investment in stocks can be volatile and risky. They should move to a mutual fund or an index scheme.
• The three equity mutual funds have been consistent underperformers and should be weeded out.
• They should continue investing in the NPS scheme.
• They should invest only Rs.1.5 lakh a year in their own and minor’s PPF accounts. Can restart investing more when the son turns 18.

Note from the doctor

• The couple has adequate life insurance: Rs.2 crore for husband and Rs.1 crore for wife.
• They also have passive rental income from two flats.
• They should review and rebalance their portfolio at least once a year.
• They should reduce risk when goal is near to avoid missing the target.

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.