How to allocate your investments to achieve your goals
Wednesday, Apr 20, 2022
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A lot of people invest their money without a clear plan in mind. It's empirical to have a proper plan insight and invest to achieve it. While allocating the investments across different products, one must aim to fulfil their investment goals. The investment allocation can be done by setting up specific and clear goals. Furthermore, the goals set should be measurable to know if and when they have achieved. To achieve the goal, the goal should be set so that it is achievable. Having unachievable goals will only lead to failure and make unreasonable investments. The goals should be time-bound with specific time in hindsight to achieve them and must be relevant to the investor. In short the investment goals must be
Specific
Measurable
Achievable
Relevant
Time-bound
Investment goals become moving targets for many individuals, with carefully laid-out plans running into roadblocks in layoffs, unplanned pregnancies, health issues and the need to care for ageing parents. All investments start with the first dollar set aside for that purpose, whatever your age, income, or outlook. Of course, those investing for decades hold a significant advantage, while their growing wealth allows them to enjoy the fruits of their saving habits.
If one is investing for retirement, they may choose to invest into less volatile products and will offer continuous returns for a long period of time. While someone planning for a short period may choose to be more aggressive with their investments to meet the goals. Whereas someone who wants to invest to safeguard their children's future may choose to do a continuous investment (SIP) into an insurance scheme or invest into physical assets that might undergo capital appreciation.
Rest assured, all investment goals can be met by investing into various smallcases that offer curated basket of stocks to fulfil varied investor goals and needs. Someone looking to invest for 2-3 years may choose High quality right price, the best performing smallcase to get higher degree of returns. Similarly, someone looking to invest after retirement may go for dividend yield or Smart Nifty index.
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