A review of your Goals enables you to clarify where you want to get to and why.  Investing with Goals in Mind, assist you in determining if your goals are achievable and what you have to do to make them happen. Having clear achievable Goals is motivational.

Goal-Based Investing takes into account the progress against goals which are categorized as either essential needs, lifestyle wants or legacy aspirations depending on the level of importance to an individual or family.

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Here is an infographic on Investing With Goals in Mind

KEY learnings on Investing with Goals

• Goals make it far more likely you’ll save for each goal in advance—which makes you more likely to achieve them.
• Using goals helps you to match your time horizon to your asset allocation, which means you take on the optimum amount of risk.
• It is important to note that the Financial Plan below will largely revolve around helping you lay a roadmap for achieving your financial goals through various strategies as outlined therein.
• While external factors like inflation, rate of return on investments etc. changes continuously, so does your financial situation. You are advised to periodically review the financial plan to make sure you are on track to achieve your financial goals. The plan is an on-going exercise as part of your long term financial planning process.
• “A goal is a dream with a deadline” – Napoleon Hill. We all have some goals in our lives and to attain those, we need to plan our investment smartly.

Investing With Goals & Role of MFs

1.  SIP DURING WORK YEARS
   You may have different Goals and portfolios, but that doesn’t mean you invest differently. Opting for a Systematic Investment Plan (SIP) may still work out better for every single portfolio.
2.  ONE PORTFOLIO GOAL
   If you are diversifying your investments, you may as well extend the idea to portfolios too. If you put all your eggs in a single basket, you could get confused about which egg belonged to whom. Similarly, create a portfolio of assets for each Goal.
3.  ALLOCATE ASSETS
   You should change your asset allocation for each Goal. Certain Goals need you to invest in one particular asset more than another. For example, for a long-term Goal of say 15 years, you could invest more in Equity; for a short-term Goal like buying a car in 2 years, you could opt for Debt for capital protection
4.  Goal INVESTMENT DURATION
   Investments benefits after a certain time period. If it is longer than your Goal, then it would not be beneficial.  So, each portfolio can contain only those investments that match the duration of your Goals. Very investment asset Goals that market

5.    Debt FOR SHORT, MEDIUM TERM
Goals that need to be achieved in a few year need more of capital protection.  This means, you have lower capacity to take risks through the Equity market. What if a bear market lasts through t your short investment period? This is why Debt Funds are preferred for shorter periods

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