Connecting Your Financial Goals to Mutual Funds |
Posted: February 4, 2021 |
Are you like…Rohit, who decides to redeem his investments when markets decline and doesn’t see any improvements? OR Roy, who decides to redeem his investments when markets rise and wishes to safeguard his gains? OR Raj, who decides to continue with his investments no matter which route the markets take? If you have invested money towards your financial goals, be it long-term mid-term or short-term, it is imperative that you stay the course and keep your long term plan in mind irrespective of market swings. Moreover, if you have matched your investments with your financial goals, you would want to see the end result by the end of your investment period. How do you create a comprehensive investment plan that fits your lifestyle and nature? Do you have a plan to stay committed in good times and bad? Whatever be your objective to save for the future, the key is to find investments that match your financial goals by investing in products that will generate enough returns. Below are 5 key factors that will help you match your investments to your financial goals:
Financial Goal: Wealth Creation Time Horizon 10 years Asset Allocation Equity mutual funds
Financial Goal: House Down Payment Time Horizon 3 - 5 years Asset Allocation Equity/Debt mutual funds / Multi Asset Allocation Fund
Financial Goal: Retirement Time Horizon: 20 years Asset Allocation: Equity mutual funds
Financial Goal: Car Time horizon: 2 - 4 years Asset Allocation: Equity/Debt mutual funds / Multi Asset Allocation Funds
Financial Goal: Vacation Abroad Time horizon: 2 years Asset allocation: Equity/Debt mutual funds / Multi Asset Allocation Funds
Financial Goal: Children’s Education Time horizon: 15 years Asset Allocation: Equity mutual funds
Note: This is for illustrative purposes. Investors should consult their financial advisors before taking any financial decisions. Not to forget, it is better to have gold as a good diversifier along with your asset allocation. In our view, as a retail investor, your portfolio can have anywhere between 10-20% in gold investments. Conclusion... Be like Raj who does not let his emotions take over by responding in an intellectual way by keeping his portfolio on track for the long run. If you need help to be like Raj, as always, take the time to speak to your financial advisors so that you can learn how to get the most from every investment to reach your short-term, medium-term and long-term goals the right way. Disclaimer, Statutory Details & Risk Factors:The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Mutual fund investments are subject to market risks read all scheme related documents carefully.
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