Increase SIPs every year to save for retirement, child’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.Libni Phinehas and his wife are saving for multiple goals. Here’s what the doctor has advised them.

PORTFOLIO CHECK-UP

• Have been investing in equity funds for the past 3-4 years.
• Goals are very ambitious, but disciplined investing can help achieve them.
• Monthly investments will have to be increased by Rs. 13,000.
• SIPs will also have to be increased by 10% every year to reach the targeted amount.
• Portfolio is equityheavy. Need to invest in fixed income options as well.
• Portfolio skewed towards small- and mid-cap funds. Be ready for volatility.
• Consider investing in the PPF to build a tax-free corpus.
• If expected child is a girl, they can invest in the Sukanya Samriddhi Yojana in her name.

Note from the doctor

• Go for the NPS to save tax and build retirement corpus.
• In the NPS, opt for a balanced asset allocation to equity and debt funds.
• Both should buy term insurance of at least Rs.2 crore each to safeguard goals.
• Review investments and rebalance the portfolio at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

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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