MF portfolio doctor: Srivastava needs to use NPS to save for retirement, cut tax


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:
Rohit Srivastava is saving for his kids’ goals and retirement. Here’s what the doctor has advised:

Case 1 Goals

Case 1 recommendation


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 monthly SIPs by 5% .
  • Some laggard funds need to be replaced.
  • Delay retirement by 2-3 years to reduce stress on investments.

Note from the doctor

  • Don’t shun equities when saving for retirement.
  • Avoid 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.

Case II:
Ajay Pawar is saving for his daughters’ marriage and retirement. Here’s what the doctor advised:

Case 2 Goals

Case 2 Recommendations


Portfolio check-up

  • Investing in equity funds and stocks for past 3-4 years.
  • Goals are ambitious and require big increase in monthly investments.
  • Retirement needs only to supplement total income.
  • 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%
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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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