Goal-Based Investing: A Quick Guide
June 28, 2025
If you are planning to do anything in life, then it is important for you to plan carefully and save regularly. Goal-based investing is to investing in the right place by keeping your goal in mind.
What Is Goal-Based Investing:
Everyone has a desire to do something big in life. These desires may be different for everyone, like going somewhere or buying a car or buying your own house or bearing the expense of children's education etc. Some people also plan for their retirement. But you cannot do all this just by dreaming. For this, it is important for you to plan carefully and save regularly. Not only this, it is also important for you to invest in the right place. In all these cases, your 'target-based saving' helps.
Keep in mind inflation and the time taken to achieve the goal
Your investment could be in property, mutual funds or gold etc. For this, while withdrawing the money, you should also keep in mind inflation and the time taken to achieve each goal. These two things will decide how much money you have to save. After setting your goal, the right step is to calculate how much money you will need for it. To understand this, you will need to identify inflation and the time taken to achieve each goal.
Focus on goal-based investment scheme
Whether you want to buy your dream house or save for your child's education, or you are planning your retirement. For all these, you should focus on a goal-based investment scheme. For example, if you are planning for retirement at the age of 35, and you can set aside Rs 10,000 every month for the next 25 years, then at an average return of 12% on market-linked products, you can deposit up to Rs 1.9 crore for retirement. While making goal-based investments, you should keep in mind the following things:
Identify your goal and set priority
First, prepare a list of all your financial goals. After this, set priority to these goals according to their importance and immediate need. This will help you understand where you should invest your money.
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Make the right investment according to the target
Depending on the time taken to achieve each target and the risk involved in it, you should invest your money in different places. Low-risk investments are good for goals that can be achieved soon. For distant goals, you can take a little more risk.
Choose the right investment method for the goal
It is beneficial to invest money differently for each of your goals. For goals that can be achieved soon, you can choose low-risk investment methods. Such as fixed deposits, short-term bonds, or liquid funds, etc. For other distant goals, you can take a little more risk, such as investing in shares, mutual funds or ETFs.
Review and rebalance regularly
Keep an eye on your goals and investments from time to time. Rebalance your investments as per your needs. This will ensure that your money is invested according to your changing goals and risk-taking ability.
Automatic investment
Start the facility of automatically transferring money from your salary to your investment account. The advantage of this will be that you are continuously depositing money to achieve your goals. Also, you will not have to worry about it every time.
Be disciplined towards investment
Always be disciplined towards whatever investment planning you do. This means that you should invest first when you get your salary. Also, even if there are fluctuations in the market, do not take any decision out of emotion, which may pose any kind of threat to your long-term financial goals.
Keep an eye on the investment
You have to be cautious while investing. Keep an eye on how your investments made for different goals are performing. If needed, change your investment amount or investment strategy so that you do not stray away from your goals.
Take advice from an expert if needed
If you are having trouble understanding what you should do or where you should invest, you can think of taking advice from any financial advisor. These advisors can help you create a special investment plan according to your goals and risk-taking ability.
What Is Goal-Based Investing:
Everyone has a desire to do something big in life. These desires may be different for everyone, like going somewhere or buying a car or buying your own house or bearing the expense of children's education etc. Some people also plan for their retirement. But you cannot do all this just by dreaming. For this, it is important for you to plan carefully and save regularly. Not only this, it is also important for you to invest in the right place. In all these cases, your 'target-based saving' helps.
Keep in mind inflation and the time taken to achieve the goal
Your investment could be in property, mutual funds or gold etc. For this, while withdrawing the money, you should also keep in mind inflation and the time taken to achieve each goal. These two things will decide how much money you have to save. After setting your goal, the right step is to calculate how much money you will need for it. To understand this, you will need to identify inflation and the time taken to achieve each goal.
Focus on goal-based investment scheme
Whether you want to buy your dream house or save for your child's education, or you are planning your retirement. For all these, you should focus on a goal-based investment scheme. For example, if you are planning for retirement at the age of 35, and you can set aside Rs 10,000 every month for the next 25 years, then at an average return of 12% on market-linked products, you can deposit up to Rs 1.9 crore for retirement. While making goal-based investments, you should keep in mind the following things:
Identify your goal and set priority
First, prepare a list of all your financial goals. After this, set priority to these goals according to their importance and immediate need. This will help you understand where you should invest your money.
.jpg)
Calculate the amount required according to the goal
Secondly, find out the amount required for your goal. It is important to understand how much money you will actually need to fulfill each of your goals. You have to keep two things in mind. The first is inflation and the second is the time taken to achieve your target.Make the right investment according to the target
Depending on the time taken to achieve each target and the risk involved in it, you should invest your money in different places. Low-risk investments are good for goals that can be achieved soon. For distant goals, you can take a little more risk.
Choose the right investment method for the goal
It is beneficial to invest money differently for each of your goals. For goals that can be achieved soon, you can choose low-risk investment methods. Such as fixed deposits, short-term bonds, or liquid funds, etc. For other distant goals, you can take a little more risk, such as investing in shares, mutual funds or ETFs.
Review and rebalance regularly
Keep an eye on your goals and investments from time to time. Rebalance your investments as per your needs. This will ensure that your money is invested according to your changing goals and risk-taking ability.
Automatic investment
Start the facility of automatically transferring money from your salary to your investment account. The advantage of this will be that you are continuously depositing money to achieve your goals. Also, you will not have to worry about it every time.
Be disciplined towards investment
Always be disciplined towards whatever investment planning you do. This means that you should invest first when you get your salary. Also, even if there are fluctuations in the market, do not take any decision out of emotion, which may pose any kind of threat to your long-term financial goals.
Keep an eye on the investment
You have to be cautious while investing. Keep an eye on how your investments made for different goals are performing. If needed, change your investment amount or investment strategy so that you do not stray away from your goals.
Take advice from an expert if needed
If you are having trouble understanding what you should do or where you should invest, you can think of taking advice from any financial advisor. These advisors can help you create a special investment plan according to your goals and risk-taking ability.