For mutual fund investors, building a portfolio is only the beginning. Periodic reviews are equally important to ensure investments remain aligned with changing income, expenses and long-term financial goals. Whether the objective is early retirement, funding a child's future or maintaining a desired lifestyle, a portfolio review can help investors identify gaps and make timely course corrections.A 45-year-old salaried investor reached out to ETMutualFunds and sought advice on his mutual fund portfolio and asked whether his current investments would be sufficient to support his goal of retiring at 60 while maintaining his lifestyle. Also Read | 10 equity mutual funds deliver over 25% returns in 2026, one of them doubled money He also wanted to provide for his nine-year-old son's future, including buying him his dream car, and planned to take an international trip after retirement.The investor earns around Rs 3 lakh a month, with monthly expenses of approximately Rs 2 lakh, including rent, household bills, insurance premiums and his child's education expenses.He has no outstanding liabilities or debt and owns multiple real estate assets, including a commercial property generating monthly rental income of Rs 45,000-50,000, agricultural land and a plot earmarked for building a home.On the investment front, he began investing through a monthly SIP of Rs 10,000 in 2017. After a partial redemption in 2019 for emergency needs, he gradually increased his SIP to Rs 30,000 in early 2025 and further to Rs 80,000 by the end of the year.His mutual fund portfolio is currently valued at around Rs 32-33 lakh, while he also holds around Rs 2 lakh in direct equities.Shivam Pathak, CFP and Founder of Asset Elixir, analysed the portfolio and shared with ETMutualFunds that the investor appears well-positioned to achieve his retirement goal, provided he continues investing consistently.With a monthly SIP of Rs 80,000 and an annual SIP step-up of 10%, the portfolio could potentially grow to around Rs 8.7 crore by the age of 60, assuming an annual return of approximately 12%.The expert said that at a conservative 4% withdrawal rate, this corpus could generate nearly Rs 2.9 lakh per month before taxes, which, combined with his expected pension income, may be sufficient to support his retirement lifestyle.The investor is also expecting pension income of around Rs 2 lakh per month from the age of 60, with an additional pension of Rs 35,000 per month beginning at age 65. The investor also expressed his desire to buy his son a Ford Mustang once he becomes eligible for a full driving licence.Also Read | Good investing outcomes come from doing few boring things well: Nithin Kamath While acknowledging the emotional value of the goal, the expert advised against earmarking investments specifically for the purchase at this stage. Instead, the recommendation was to continue investing the monthly surplus and revisit the decision when the goal is closer.The expert pointed out that future education expenses—particularly if international education becomes a possibility—could require significantly higher financial resources than currently anticipated.According to the expert, it is more practical to make decisions closer to the goal date rather than trying to estimate inflation and future costs several years in advance. The expert also advised the investor to avoid allocating excessive money to assets that are difficult to liquidate.As his son grows older, expenses related to education and other milestones are likely to increase. Keeping a larger portion of investments in liquid financial assets such as mutual funds would provide the flexibility to meet these future expenses whenever required.Portfolio consolidationOne of the biggest concerns highlighted by the expert was the structure of the investor's mutual fund portfolio. Currently, the investor holds 17 mutual fund schemes with a combined value of around Rs 32.46 lakh.According to the expert, the portfolio appears to have been built by adding successive top-performing funds rather than following a defined investment strategy.Instead of maintaining such a large number of schemes, the expert recommended limiting the portfolio to a maximum of seven mutual funds, making it easier to monitor performance and avoid unnecessary overlap.The expert also suggested allocating around 10% of the portfolio to gold for diversification, while adding international mutual funds to provide geographical diversification.Mutual funds over direct stocksThe investor also has around Rs 2 lakh invested directly in equities. The expert believes mutual funds remain a better investment vehicle for most retail investors because they are professionally managed and offer diversification that individual stock portfolios often lack. Rather than increasing exposure to direct equities, the recommendation was to continue building wealth primarily through mutual funds.Also Read |Which mutual funds are best for SWP? Expert explains, also decodes STP tax implications According to the expert, the investor is on track to build a sizeable retirement corpus if he continues with disciplined SIPs and annual step-ups.However, simplifying the portfolio, reducing the number of mutual funds, maintaining adequate liquidity and focusing on long-term goals instead of short-term aspirations can help improve overall portfolio efficiency and increase the likelihood of achieving financial independence by retirement.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. 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