Sumant Sarkar is reaping rewards of a good diversification strategy.

BEFORE THE CHECK-UP

• Investments spread across all asset classes
• Aggressive equity player investing in both mutual funds and direct equity
• Ample insurance cover through term and endowment policies

WHAT WE SAID

• Tweak investments in funds for better diversification
• Convert endowment policies into term plans, take family health cover
• Increase investment in pension plans to build retirement corpus
• Take a loan for investing in real estate

ACTION TAKEN AFTER OUR PRESCRIPTION

• Changed mutual fund portfolio according to advice
• Bought a family floater health insurance
• Taken a loan for second real estate investment. Paid higher down payment than originally planned.
• Investing in equity-diversified funds rather than pension plans for building retirement corpus.

FINANCIAL HEALTH NOW

Financial planning couldn’t get a better brand ambassador. The rewards are for all to see (and envy) in Sumant Sarkar’s portfolio. Invested across all asset classes, he’s making his money work terribly hard. But it is the investment blend that is amazing.

For most investors, one property purchase gobbles away 60-70% of total assets. Here’s Sarkar, owner of a Rs 32-lakh apartment with real estate constituting just 27% of his portfolio. Even equity investments stand a notch higher. It was a near-perfect investment strategy and we presented it likewise — a model portfolio.

But some nip and tucks would make a better fit. Like reducing concentration in Franklin India Prima fund and investing in mid-caps (already in his kitty) for better diversification. Spreading investments within an asset class is important to reduce risk. Especially in the unpredictable markets where a consistent performer can take a sudden downturn.