DOWNLOAD PDF
There is something magical
about goals. The moment you
set them, you get inspired to
follow them. Your financial goals
are the foundation of your
financial plan. Goals make your
savings meaningful. In absence
of goals, many of us get
tempted to spend on the spur of
the moment; there are just too
many ‘toys’ out there. But when
you set financial goals and
commit to them, your spending
habits automatically change.
The next step after setting
goals is to estimate the amounts
needed for them. You make
allocations for each of the goals
and contribute towards them in a
disciplined manner. This is the
surest way of achieving them.
Unfortunately, this process is
also boring; there is nothing
sensational about it. This makes
many investors ‘lose’ interest in
it. Don’t make that mistake.
Discipline is the greatest virtue
of an investor. Those who stay
disciplined not just achieve their
goals but also lead a life free
from financial stress.
Many investors ask ‘where’
they should invest for a particular
goal. The answer lies in knowing
the timeline of your goal. For
long-term goals (at least five
years away), equity mutual funds
are the best option. For shortterm
goals, go for debt funds.
This is also the first lesson in
asset allocation.
Finally, in your financial
journey, SIPs are your vehicle. For
your long-term goals, do SIPs in
equity funds. SIPs naturally bring
discipline to investing. They help
you average your investment cost
and hence improve your overall
returns. As your goal nears,
‘reverse’ the SIP process, i.e., go
for an SWP. Intrigued? That’s the
theme of this issue’s lead story.
Happy reading!
There is something magical
about goals. The moment you
set them, you get inspired to
follow them. Your financial goals
are the foundation of your
financial plan. Goals make your
savings meaningful. In absence
of goals, many of us get
tempted to spend on the spur of
the moment; there are just too
many ‘toys’ out there. But when
you set financial goals and
commit to them, your spending
habits automatically change.
The next step after setting
goals is to estimate the amounts
needed for them. You make
allocations for each of the goals
and contribute towards them in a
disciplined manner. This is the
surest way of achieving them.
Unfortunately, this process is
also boring; there is nothing
sensational about it. This makes
many investors ‘lose’ interest in
it. Don’t make that mistake.
Discipline is the greatest virtue
of an investor. Those who stay
disciplined not just achieve their
goals but also lead a life free
from financial stress.
Many investors ask ‘where’
they should invest for a particular
goal. The answer lies in knowing
the timeline of your goal. For
long-term goals (at least five
years away), equity mutual funds
are the best option. For shortterm
goals, go for debt funds.
This is also the first lesson in
asset allocation.
Finally, in your financial
journey, SIPs are your vehicle. For
your long-term goals, do SIPs in
equity funds. SIPs naturally bring
discipline to investing. They help
you average your investment cost
and hence improve your overall
returns. As your goal nears,
‘reverse’ the SIP process, i.e., go
for an SWP. Intrigued? That’s the
theme of this issue’s lead story.
Happy reading!