Investment planning: Switch out of equity funds for short-term goal, review investments at least once in a year

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.

Rohit Agarwal and his wife are saving for multiple goals. Here’s what the doctor advises them:

PORTFOLIO CHECK-UP

• Started investing in ELSS funds to save tax nine years ago.
• Added more schemes after good experience in ELSS.
• Invests in good performing schemes, but doesn’t dump old ones.
• Needs to remove underperformers and overlapping schemes.
• House purchase goal is near, so shift from equities to safety of debt.
• Don’t invest in more funds. Just 7-8 funds are enough.
• Take Rs.2 crore life insurance to cover financial goals.
• Build emergency fund to tide over unexpected expenses.

Note from the doctor

• Fund portfolio has small- and mid-cap skew. Be ready for high volatility.
• Go for balanced allocation in NPS portfolio.
• Review investments and rebalance 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.