Goal Based Investment Products Offering
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.
What :
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.
Why :
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Gives you clarity and focus
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Better investment management
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Invest less, achieve more
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Takes the guilt out of spending
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Freedom from debt stress
How :
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 – work out the present cost of each of these goals. Now, apply inflation to the current cost and you know the future value of your goal.
For example - your current cost of a future goal, which is 10 years away from now, is Rs 20 Lakhs. Assuming the average annual inflation rate at 6%, the future goal value would be Rs approx 36 Lakhs. Therefore, you need to plan investments to reach the goal of Rs 36 Lakhs and not Rs 20 Lakhs.
On the basis of understanding your Goal, investment suitability study offers you the most suitable goal based investment products which give you the right amount of money at the time of achieving your financial goal. We do periodical reviews of products invested and assumptions done at the investment to rebalancing and readjustment. We suggest at least one meeting with a client every six month tp review the client portfolio.