Goal-Based Investing for Financial Success
From our school days, we have been taught that goal setting is fundamental to our long-term success. . What Is Goal-Based Investing? Goal-based investing involves identifying your financial goals, setting a timeline for each, and regularly investing to achieve them. This structured approach ensures you have a clear plan for reaching your financial aspirations. Benefits of Goal-Based Investing 1. Accurate Financial Planning By listing your goals, you can determine the exact amount needed and adjust for inflation. For instance, planning for a child's education ten years from now involves calculating the future cost based on current prices and expected inflation. 2. Choosing the Right Investment Products Understanding your financial goals and time horizon helps in selecting appropriate investment products. For short-term goals, debt funds or fixed deposits may be suitable. Medium-term goals could benefit from a mix of equity and debt, while long-term goals can focus on equity funds fo...