Start investing early if you want to retire at 50

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.

Sunil Babar is saving for his children’s goals and early retirement. Here’s what the doctor advises.

PORTFOLIO CHECK-UP

• Has been investing in mutual funds, insurance plans and fixed income options.
• Regular investing for past 15 years has built a big portfolio.
• All goals can be reached with a small annual increase in SIP amounts.
• Most funds have done well, but some changes are required.
• Thematic and sectoral funds can be volatile. Diversified schemes are better.
• Fixed deposits are not tax-efficient. Shift to debt funds or arbitrage schemes.
• Defer retirement plan by three years till the age of 50.
• Open NPS account to save tax and build retirement kitty.
• Build emergency fund for unforeseen expenses.

Note from the doctor

• Buy life insurance cover of at least Rs.2 crore to safeguard financial goals.
• Direct stock investments can be risky. Consider moving to mutual funds.
• Extend PPF account for five years when it matures.
• In the NPS, opt for aggressive allocation with at least 50% in equity funds.
• 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.