Pardeshi should prepay home loan, review and rebalance investments to meet kids' graduation, own retirement goals

economictimes.indiatimes.com:

PORTFOLIO DOCTOR

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.

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Gauri Pardeshi is investing for her kids’ goals and retirement. Here’s what the doctor advised her.

PORTFOLIO CHECK-UP

• Has been investing in a mix of equity and hybrid funds, and fixed income for 6-7 years.
• Meticulous investing and aggressive allocation have helped build a sizeable corpus.
• Also has Rs.48 lakh in bank deposits and Rs.10 lakh idling in savings account.
• Tends to invest in good performing funds, but doesn’t review portfolio.
• As a result, she has many chronic laggards in portfolio.
• Holds too many funds, which makes portfolio difficult to monitor.
• Portfolio skewed towards small-cap and thematic funds. Be ready for volatility.
• Also has a traditional insurance plan. Use maturity amount to pay off home loan.

Note from the doctor

• Use bank deposits to repay long-term home loan.
• Prepayment of Rs.48 lakh will reduce tenure of loan by six years.
• Both husband and wife should buy life insurance cover of at least Rs.1 crore each to safeguard goals.
• 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@timesofindia.com with ‘Portfolio Doctor’ as the subject. Mention the following information:

• Names of the