Gold Based Investing – Targets will be achieved easily and strong returns will be obtained
Gold Based Investing – Are you confused about your financial goals? Whether it is buying a house, saving money for children’s education, or planning for retirement – all this will not be accomplished by just saving, but the right investment strategy is also necessary. Goal based Investing is the answer to this!
Goal based investing means investing in the right place according to your financial goals so that at the right time you have as much money as you need. Let’s understand in detail how it works and what the benefits of adopting it are.
Good News for NPS Investors
What is Goal Based Investing?
Goal based investing means planning and investing keeping in mind your financial goal. In this, you choose the right investment according to your short-term, medium-term and long-term goals.
Example:
- Short-term goal (1-3 years) – Buying a new phone, trip, car
- Medium-term goal (3-10 years) – Buying a house, children’s education
- Long-term goal (10+ years) – Retirement, children’s marriage
6 important steps of goal based investing
Set your goals
First of all you have to decide how much money is needed for what.
Then see how much time it will take to achieve that goal.
Example:
If you want to buy a car worth ₹5 lakh after 5 years, then you have to save only so much that that amount is completed in 5 years.
Account for Inflation and Timeframe
- Due to inflation, a car worth ₹5 lakh today may become ₹6-7 lakh after 5 years.
- Therefore, make a savings plan by adjusting inflation while investing.
Choose the Right Investment Option
Choose a different investment option for each goal:
Goal Type – Investment Option
- Short-term Goal (1-3 years) – Fixed Deposit (FD), Liquid Funds, Bonds
- Medium-term Goal (3-10 years) – Balanced Mutual Funds, Hybrid Funds, PPF
- Long-term Goal (10+ years) – Equity Mutual Funds, Stocks, NPS, SIP
Set Up Automatic Investments
Auto-deduct a fixed amount from your salary every month and put it in a SIP or investment account.
This will enable you to save and invest regularly without any delay.
SIP (Systematic Investment Plan) is the best way as it helps in creating a large fund from small investments.
Review investments from time to time (Regularly Review & Rebalance)
Keep an eye on the progress of investments and see if your plan is going in the right direction.
Rebalance your investments when needed so that your goals can be achieved on time.
Example:
If your portfolio is taking too much risk in equity, then some part can be shifted to debt funds.
Stay Disciplined & Avoid Emotional Decisions
Do not withdraw investments in a hurry out of panic due to market fluctuations.
Maintain investments for a long time according to financial goals so that you get the benefit of compounding.
Benefits of Goal based investing
- Financial goals are met without stress.
- Balance remains between investment and savings.
- Better returns are available according to inflation and time.
- The right investment plan is made for every goal.
- Money keeps growing with regular investment.
Why is Goal based investing important?
Goal based investing is a smart way to fulfill your dreams without any financial pressure.
If you also want to achieve the big goals of your life easily, then plan the right investment from now on and stay disciplined.
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