Why Gogna should shift from equity mutual funds to debt for retirement in three years

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.

Deepak Gogna has invested in mutual funds for his retirement. Here’s what the doctor has advised him:

PORTFOLIO CHECK-UP

• Investing in equity and debt funds for past 10-12 years.
• Funds are good, but holds too many of them.
• Needs to reduce the number of funds to streamline portfolio.
• Corpus size is big enough to fund the retirement goal easily but needs to cut risks. Start systematic transfer plans from equity to debt funds.
• Target date debt funds suggested to coincide with retirement date three years from now in April 2026.

Note from the doctor

• Portfolio has good mix of domestic equities, debt funds and global funds.
• Has not mentioned other debt instruments like Provident Fund, stocks and bank deposits.
• With retirement just three years away, needs to cut exposure to volatile assets.
• Equity exposure should be reduced to 20-25% of portfolio over the next three years.

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.