Include large-cap mutual funds in investment portfolio for stable returns

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.

Rahul Arora is investing in funds for multiple goals. Here’s what the doctor has advised him:

PORTFOLIO CHECK-UP

• Investing in mutual funds for past 5 years.
• Early start means even ambitious goals can be achieved.
• Funds are good but performance needs to be monitored closely.
• Portfolio has midcap and smallcap skew. Be ready for volatility.
• Consider investing in largecap funds too.

Note from the doctor

• VPF can yield higher returns than PPF.
• Include gold in portfolio as hedge against uncertainty.
• Review investments and rebalance at least once in a year.
• Reduce risk when goal is near so that you don’t miss the target.

Hike SIPs every year to reach target
Sanjeev Kumar is saving for his daughter’s education. Here’s what the doctor has advised him:

PORTFOLIO CHECK-UP

• Investing in equity funds for past 3-4 years.
• SIPs will have to be raised by 5% every year to reach goal.
• Add debt component via Sukanya scheme to stabilise portfolio.
• Review mutual fund portfolio at least once a year. Change if any fund’s performance slips.
• 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.