Without a doubt, investment is an essential aspect of our life. In general, people opt for various investment schemes. Because of the fact that they want to save the upcoming future. Investment multiples the wealth of an Individual and also shoulders the monetary requirement that necessitates due to life need such as career, health, marriage, and many more. But very often the investors forget the main motto of their investment. Then start to expense out all the investment money. Broadly speaking due to the fact, people fail to manage the long-term monetary goal. The necessity of goal-based financing has been raised. Goal-based financing offers a complete framework that protects the future of the person.
What is a goal based investment?
The investment world is a relatively new but innovative investment method. That helps to grow your health with complete wellbeing in life. This is a broad concept, where the investors invest the money with a target of procurement security to the many aspects of life such as protecting health, career, your children’s career, your children’s marriage, spouse’s health including buying a house, saving the money for the future and many more.
How the goal-based investment is calculated:
There are many factors that are considered when the goal-based investment is counted. The first and foremost is, what is the maximum risk factor that related to the Investors’ profile. And the second most important thing is to invest the money in order to procure a sustainable wealth gain in a systemic way instead of chasing the higher monetary return. Besides that, this method of investment counts the time horizon, that backs people to earn a return on their wealth as well as saves their future.
Why the goal-based investment is important in life
As we all know that the future is unpredictable and to save our future we usually save our hard owned money. So that we can get help from our investment money in a bad period of life. But there are such big instances that happen in our life. It could take a portion of the investment money from your pocket. Perhaps there are no such deadly instances in your life and hence you able to achieve a full gain of investment.
To make understand the situation, we will give a small example. Imagine a situation, Where one of the mutual funds is got matured in recent days and you got the whole amount intact in your hand. In fact, you got the maximum return benefit out of the investment scheme. Because you did not use a single penny from that mutual fund. But as you don’t have a monetary goal, you spend all the money on a foreign tour, and thus your whole is vested in unnecessary expense. On the other hand in this case, if you were in a complete goal-based investment method, then maybe you are wealthier to secure your future. Hence, we can say that the investment scheme without a goal is just like the boat without a rudder floating in the sea.
How to Make Goal-Based Investment:
Goal-Based Investment is a complete, easy, and effective process. In the beginning phase, you have to hire a personal portfolio manager who will manage your finance on behalf of you. Even you can manage your goal-based investment by own if you know the complete procedure of investment structure. All the professional goal-based managers actually count your age, your financial capacity, career, responsibility, the requirement of retirement, and many other factors. Also, they count the future market volatility in the upcoming 40 years. After calculations all these factors they provide a strong investment pathway for your future. Even they consider all the upcoming recessions that will come in the life market.
Things that should be counted while measuring goal-based investment are written below:
- Specific and calculated risk
- Measurable income
- Action-oriented investment steps
- Realistic approach
- Time-bound small steps
Give on Hand to reputed Portfolio:
Before giving the privilege to manage your fund, investigate and examine whether the portfolio manager is capable to manage the long-term goal-based investment or not.
Ending our discussion, we must say that, in the above, we have given a short description of the process of achieving the Goal-Based Investment goal.