Retirement Planning: MF Portfolio Doctor: Vara needs to postpone retirement for five years to save more

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Few investors know if they have invested in the right funds and if their fund portfolio is on the right track. The Portfolio Doctor assesses the health of the fund portfolio, reviews the schemes and their suitability for the objectives and, if necessary, recommends corrective measures. The advice given is based on the performance of the funds, the investor’s risk profile and their financial objectives.

Amit Vara invests for several purposes. Here is what the doctor advised him:

PORTFOLIO CHECK-UP

  • I started investing in equity funds last year.
  • Invested in several new funds launched last year.
  • The child’s goals have modest targets; can be easily reached.
  • But early retirement at 50 is not possible. Must be at least five years old.
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Doctor’s Note

  • Avoid investing in new funds. Existing funds with a track record are better.
  • Too much gold in the wallet. Don’t buy anymore.
  • Buy a temporary insurance of Rs.2 crore to protect against unforeseen events.
  • Review investments and rebalance them at least once a year.
  • Reduce the risk when the target is close so you don’t miss the target.

Sumit Sinha is investing for her daughter’s goals and retirement. Here is what the doctor advised:

PORTFOLIO CHECK-UP

  • Invest in equity funds for 3-4 years.
  • The child’s goals are within reach.
  • Increase your retirement goal based on your current lifestyle.
  • Move from fixed deposits to debt and hybrid funds.
  • Review the mutual fund portfolio at least once a year. Change if a fund’s performance slips.
  • Reduce the risk when the target is close so you don’t miss the target.
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WRITE US FOR HELP

If you would like your portfolio reviewed, write to etwealth@timesgroup.com with “Portfolio Doctor” in the subject. Mention the following information:

  • Names of funds you hold.
  • Current value of the investment.
  • If you have SIPs running in any of them.
  • The financial objectives for which you have invested.
  • How much you need for each financial goal.
  • How far away each goal is.


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