Making holistic investment choice is always preferred to making random investments. This can be achieved if every investment made is linked to a certain purpose. There are life’s goals that are critical to achieve. That includes – retirement fund accumulation, a child’s higher education, and marriage, etc. The choice of products also depends a lot on the linked goal.

The key to accumulating a retirement fund in time is to start at the earliest. It is not necessary to start with a bang. You can start with small amounts and increase it as your salary/income increases. Also, if you start early and you have time with you, you can gain the advantage of high returns and maximize your investments by investing in equities or equity mutual funds.

Child’s future goals changes in form and size every now and then. Hence it should be tackled by taking help from experts as and when needed. Making assumptions about the future cost of education involves considering the inflation rate of education cost as realistic as possible. Higher studies within India or abroad costs differently based on the stream of education and choice of institutes. Funding the cost of the marriage of your children also requires prudent steps to be taken at the earliest. As such critical goals come close, the asset allocation should also change accordingly. 

Following are the important points while planning Target Based Investments

  • Client’s financial goals and objectives

  • Risk tolerance assessment

  • Current financial situation and assets

  • Time horizon for investments

  • Tax implications and strategies

  • Diversification of portfolio

  • Investment options and asset allocation

  • Regular portfolio review and rebalancing

  • Fees and costs associated with investments

  • Contingency plans for unexpected events

  • Investment performance benchmarks and expectations