A swanky ride, a cool watch, latest phone and regular vacations - bet your bucket list has all this and more. The best thing is it's no more a fancy goal, it is every bit achievable through some planning and saving.

We are assuming that you know how mutual funds could help your financial future. One of the ways to invest in Mutual Funds, no matter what your age, gender or income, are Systematic Investment Plans (SIPs) that invest a fixed amount for you periodically thus potentially enabling you to get reasonable returns over a period of time.

But do you know that investing in them without a clear idea of your goals could only partially do the job?

There are more types of mutual fund schemes than you can count on your fingers and these mutual fund schemes further invest into equity, debt and other securities in different proportions. All these types and combinations come with different levels of risks and give different results as well. Thus, it is always advisable to consult your financial advisor when in doubt about the products suitability.

One who knows what they want in their future, could possibly endeavour to get the best out of these options. Read on to get an idea of how you could invest your money to help achieve your financial goals:

Vacation/Car:

• Short term goals like buying a car or going on a vacation are usually made a few years before execution. For an overseas vacation with family or for a not so expensive car you could perhaps require at least say 5-7 lakh rupees. If you need it in another 2-3 years, it is suggested that you invest your money in debt schemes. If you need it in 5-6 years you may invest 10-15% in equity and the rest in debt.

Home:

• If you plan on buying a house in another 10-15 years, you might easily need somewhere around 30 lakh rupees. For a goal 15 years in future, you could allocate around 70-80% of your funds in equity and the rest in debt funds. Equities help to achieve potential returns in the long run with high risk while debt funds seek to achieve low but potential return with low risk, compensating for the market volatility. Eg. A SIP of Rs. 7,000 split over equity and debt for the next 15 years could help you achieve that.

Retirement:

• If you are in your 20s or 30s, retirement is far, far away in the future. With so much time for your investment to grow, you could preferably invest in equities, putting almost 90-100% of your funds there. These carry high risk but in the long run equities are preferable. Illustration: A SIP of Rs 4000 per month for next 24 years could possibly give you as much as Rs.5, 000,000 when you retire.

Child’s Education:

• Cost of education has been on a steady rise for a long time and it’s very difficult to guess how much one would require for their child’s education in another 10 years. It is difficult for parents to allocate funds for their children’s education if their children have not yet decided which field of education they wish to pursue their career in. Thus, you may invest in debt funds. Eg. You may invest 40% in debt and 60% in equity in order to achieve your goal in 10 years. If it’s less than 5 years, then 80-90% can be invested in debt.

SIPs seek to enable to invest in equities through systematic purchase transactions. Not only does it aim to minimise the risk of losses due to ups and downs in market but an investor might also overcome the burden of timing the market. An investor could determine the amount to be set aside as a SIP base on his risk appetite. Aditya Birla Sun Life Mutual Fund provides an easy to use SIP Calculator which factors in your goal, risk appetite etc. to create a tailor-made portfolio for you, further an investor may consult his financial advisor before investing. So, go on, try it out and know exactly how it helps to make those dreams a reality.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.