Buy a car or go for a foreign holiday? Goal-based investing can help you plan better
Investing that amount in the most suitable product helps to achieve the goal without any difficulty.
- Aug 14, 2017,
- Updated Aug 20, 2017 1:28 PM IST
We all have dreams and desires but we do not plan our investments according to our goals, most people just invest in an unplanned manner. Goal based investing adds direction to an investment. A structured, well thought out process for investing, where you know the purpose behind each rupee that is being invested is known as goal based investing. It looks at your existing assets, expense patterns, risk profile, asset allocation and the various short, long and medium-term goals and creates a road map for each of these goals in a fairly predictable manner.
It comprises of two parts - planning & investing. Goal planning notifies the amount that is required to fund the goal and the how much is needed to invest regularly or one-time to get to the desired amount. Investing that amount in the most suitable product helps to achieve the goal without any difficulty.
In a planned and structured way one's current financial situation and future goals are evaluated and a clear plan is then drawn to help them achieve those goals in a manner that is consistent and fairly predictable.
The planning process involves determining how much money you will need to fund your goal; how much would you need to invest either monthly or one-time to achieve that goal and choosing an appropriate product that best suits the time horizon of investment, providing optimum returns and minimum risk.
With the coming of robo-advisory the hassle is further reduced, as it helps in taking sound decisions without the necessary market knowledge. All you need to do is log-in and put in your preferences and it will tell exactly how much you need to invest and the best suited product - this ensures that you achieve your goals confidently.
We all have dreams and desires but we do not plan our investments according to our goals, most people just invest in an unplanned manner. Goal based investing adds direction to an investment. A structured, well thought out process for investing, where you know the purpose behind each rupee that is being invested is known as goal based investing. It looks at your existing assets, expense patterns, risk profile, asset allocation and the various short, long and medium-term goals and creates a road map for each of these goals in a fairly predictable manner.
It comprises of two parts - planning & investing. Goal planning notifies the amount that is required to fund the goal and the how much is needed to invest regularly or one-time to get to the desired amount. Investing that amount in the most suitable product helps to achieve the goal without any difficulty.
In a planned and structured way one's current financial situation and future goals are evaluated and a clear plan is then drawn to help them achieve those goals in a manner that is consistent and fairly predictable.
The planning process involves determining how much money you will need to fund your goal; how much would you need to invest either monthly or one-time to achieve that goal and choosing an appropriate product that best suits the time horizon of investment, providing optimum returns and minimum risk.
With the coming of robo-advisory the hassle is further reduced, as it helps in taking sound decisions without the necessary market knowledge. All you need to do is log-in and put in your preferences and it will tell exactly how much you need to invest and the best suited product - this ensures that you achieve your goals confidently.