Within the financial cycle, there are various different investment avenues. But the question is that, is your investment focusing on achieving your financial goals? Do you know some common financial goals?
Well, we have covered it all! In this article, we’ll be focusing on the below-mentioned things-
● What is goal-based investing?
● How does one select the most appropriate investment product?
● Where can you invest in your goal-based investing plan?
What is goal-based investing?
Goal-based investment is an approach towards investing that is linked with your financial goals. It maps down your savings and investments towards a fixed financial goal. Goal-based investing aims to bring a sense of discipline to your investing method. Goal-Based Investing is a very important aspect. Unlike regular investing, it links your investment with financial goals like Child Education, Retirement planning, car planning or even buying a house. Goal-based investing brings out a perspective for helping you achieve such goals with proper financial planning. Having a goal in life and working towards that goal and fulfilling it brings out a different level of happiness.
Types of Goal-Based Investment
How does one select the most appropriate investment product?
Selecting the most appropriate goal solely depends on your future needs. As per the time horizon, one should focus on selecting their financial goal.
For example, a child education plan is the best long-term investment for your child. Nowadays, the fees of courses are already so expensive.
Say you invest 10,000 monthly for 18 years. As you will be needing money by the time your child turns 18. If we expect a return of 11% your investment could grow to Rs. 68.01 lakhs* after 18 years. The power of compounding will grow your wealth exponentially.
Figure out your requirement. Figure out whether you want a short-term, mid-term, or long-term goal. Accordingly, plan for it!
Where can you invest in your goal-based investing plan?
Investment opens up various avenues, that you could select based on your expectation of returns and risk appetite. While considering the factors of return, have a steer clear focus on taxation too!
Below are some available investment avenues for goal-based investing-
We all have some goals in our life. But with proper planning and investment options, one can achieve those goals.
Making a meaningful impact on the lives of Indians across the globe with sound & profitable investments. That’s the FINCART dream!
Get Expert Advice Now!