GOAL BASED INVESTMENTS

Good investment advisors are increasingly endeavoring that their investors do not make random investments in mutual funds and instead map these with their various financial goals.

Most Indian investors do not have a structured approach to savings and investments. Most people do not have saving targets as the amount of money they save depends on their spending habits.

What is the meaning of goal based investments

Every individual has financial goals that he needs to reach in the short, medium or long term period. Investing regularly to be able to reach the respective financial goal is called goal-based investing.

For example, if you plan to buy a car in next 2-3 yeas, it can be called a short-term goal. Likewise, if you wish to plan for your retirement and children’s higher education, then these can be termed as long term goals.

How can you plan for financial goals

First, you need to know your various financial goals which you wish to achieve over various time periods.

Then you need to figure out the time you have in hand to reach those goals. Once you are clear about these two – goal and the time frame – reach out to the financial advisor to work out  the future value of your goal.