Every individual have some life goals, some of them are short term goals and some of them are long term goals. Everyone is working day and night to turn their dreams into a reality. It is really very easy to see a dream of buying a new car, sending children to some good country for higher education or to plan a daughter’s grand wedding, but sometimes when the situations are not favorable our savings or plans just doesn’t work. So the solution to such a situation is A Goal Based SIP. When the investments are made with a single mind focusing on maximizing returns, then this often leads to investment mistakes like trying to time the market. Fear and greed become the driving forces so that when markets turn volatile, we tend to pull out our money or increase our investments when the markets are already over-heated. Goal Based investing adds direction to our investments, as we know the purpose behind each investment. In Goal based investment, performance is measured by the success of investments in meeting an individual’s personal and lifestyle goals. For Example: For example if you are planning for your children higher education then you need to amass a corpus of Rs. 1 crore, but think is it really Possible to accumulate such a huge amount with your regular investment strategy? It might be possible that you will end up spending your saving for some other purpose in such a situation. But if you will start an SIP at an early stage of Rs. 15000 for 18 years, then you might be able to accumulate a corpus of Rs. 1,43,45,741 for your child’s education in your choice of college.
Thus, Goal-based financial planning helps you invest in a systematic and disciplined manner to achieve your goals. It helps you remain focused and unaffected by the short term volatility in the markets.
Based on past performances of various SIPs, we have assumed an expected CAGR of 14%.
Mutual Fund Investments are Subjected to Market Risks. Please read the offer document carefully before investing.