Investment portfolio: Use current rally to get rid of underperformers, increase SIPs by 10% every year to achieve long-term goals faster

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 Aggarwal is investing for his kids’ goals and retirement. Here’s what the doctor advises:

PORTFOLIO CHECK-UP

• Has been investing in mix of equity and debt funds for the past 4-5 years.
• Started with ELSS funds to save tax and later added more schemes.
• Funds are a mixed bag of outperformers, stable and underperformers.
• Ongoing rally is a good opportunity to remove laggards from portfolio.
• Goals are ambitious, but early planning, regular investing will help achieve them.
• Monthly investments will have to be increased by more than 50% to Rs.78,167.
• SIPs will also have to be increased by 10% every year.

Note from the doctor

• Investing small amounts across too many funds. Consolidate portfolio.
• Increase contribution to the PPF to make portfolio stable.
• Take adequate life insurance to safeguard financial goals.
• Opt for balanced allocation to equity and debt in NPS portfolio.
• Review investments and rebalance at least once 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.