Explainer: What is Goal Based Investing? Targets will be easily met and will be strong\

Key Steps For Invest Money: If you are planning to do anything in life, it is important for you to plan carefully and save regularly. Keeping your goal in mind, investing in the right place is goal-based investing.

What is Goal Based Investing: Everyone in life wants to do something big. These desires can be different for everyone such as going somewhere or buying a car or buying their own house or taking care of the education of children. Some people also plan for their retirement. But you can't do all this just by dreaming. For this, it is necessary to plan wisely and save by the rules. Not only this, it is also important to invest in the right place. In all these cases, your 'Target Based Savings' does.

Keep in mind inflation and the time it takes to complete the goal

Investments can also be in your property, mutual funds or gold etc. For this, you should also keep in mind inflation and the time it takes to complete each goal while withdrawing money. 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 need to identify inflation and the time it takes to achieve each goal.

Vivek Jain, Investment Head, Policybazaar, says that you are buying your dream home or saving for your child's education or you are planning your retirement. For all these, you should focus on goal-based investment schemes. For example, if you are planning to start planning for retirement at the age of 35 and you can set aside Rs 20,000 every month for the next 25 years, you can save up to Rs 3.8 crore for retirement at an average return of 12% in market-related products. While making a goal-based investment, you should keep some of the following things in mind-

First, make a list of all your financial goals. After this, set these goals as a priority according to their importance and immediate need. This will help you understand where you should put your money.

Find out the amount you need for your goal at number

two. How much money will you actually need to complete each of your goals? This is important to understand. For this, you have to take care of two things. The first of these is inflation and the second is the time it takes to meet your target.

Depending on the time taken to meet

each goal and the risk involved, you should invest your money in different places. Low-risk investments are right for quick goals. At the same time, you can take a little more risk for the distance goal.

Choose

the right investment method for your goal, it is beneficial to invest money differently for each goal. For quicker goals, you can choose a low-cost investment method. Such as fixed deposits, short-term bonds, or liquid funds, etc. You can take a little more money for other distant goals like you can invest in shares, mutual funds or ETFs.

Review and rebalance regularly: From

time to time, keep an eye on your goals and investments. Rebalance your investments as needed. This will determine whether your money is based on changing goals and scoring capacity.

Automate Investment:

Start the facility of transferring money automatically from your salary to the investment account. The advantage of this will be that you are constantly accumulating money to fulfill your goal. Also, you will not have to worry every time for this.

Always be disciplined towards your investment: Always be disciplined towards whatever investment

planning you do. This means that you should invest yourself first when the salary comes. Also, there may be fluctuations in the market. Do not take any decision that will threaten your long-term financial goals.

Keep an eye on your investments:

You have to be cautious while investing. Keep watching how your investments are performing with different goals in mind. If needed, change the amount of money invested in your investment or investment strategy so that you do not fall short of your goal.

If you are having trouble understanding what you should do or where you should invest, then you can think about consulting any financial advisor. These advisors can help you create a special investment plan according to your goals and risk appetite.