Where to invest for kid's education, retirement income

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.

Kailas Kokate is saving for his children’s education and retirement. Here’s what the doctor advised:


PORTFOLIO CHECK-UP

• Has been investing in equity funds for the past 10 years.
• Has also invested a sizeable amount in direct equities.
• Started with ELSS funds to save tax and then added more funds.
• Early start has helped build a large corpus.
• Portfolio is well diversified across small-, mid- and large-cap funds.
• Portfolio is too scattered with small amounts invested in several funds.

Needs to get rid of underperformers and streamline portfolio.

Small 5% hike in SIPs will help achieve children’s education goal.

Goal to retire early at 55 is also possible with annual increase in SIP amounts.

Note from the doctor

• Direct stock investments too risky. Consider shifting to mutual funds.
• Don’t buy too many funds. Just 6-7 funds are enough.
• Dump underperforming schemes by periodic review of 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.

Take life insurance cover of at least Rs.2 crore to safeguard goals.

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.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com)