Follow your dreams.
Goal Based Investing
We all have dreams and desires, but most of us do not plan our investments according to our goals. Whether it is for child’s education or marriage, retirement planning, tax savings, dream car, house or vacation, you need to plan for future requirement. Goal based investing adds direction to an investment. It is a structured, well thought out process for investing, where you know the purpose behind each rupee that is being invested. In Goal based investing, performance is measured by the success of investments in meeting an individual’s personal and lifestyle goals.
Plan for your Goals
The following are different types of goals. The below list is indicative and depends on life stage and ambitions of each individual.
|Short-term: Has a time frame of few months tocouple of years. It coversimmediate goals such asgoing for foreign vacation.
||Mid-term: Involves a time frame from one to five years. Midterm goals include buying a car or starting a business.
||Long-term: Involves plans that are more than five years. It includes goals such as retirement or child’s education or marriage.
You may have several goals but prioritizing them can help you plan for the most important goals. Also, your goals should be
For instance, “I wish to accumulate Rs 25 lakh by 2025 to fund my kid's higher education” is an example of a SMART goal.
Also consider inflation, while computing the future value of your goals. Assuming the current cost of funding your daughter's education is Rs 5 lakh. After five years, you would require Rs 6.38 lakh, assuming an inflation rate of 5%.
Hence, you should work with your financial advisor review your goals, say annually and update for any major life changes. There are many online calculators which can help you calculate your goal amount, click here for more details on our goal calculators.
Mirae Asset Goal SIP
An investor can specify the target value for his/her goal while making his investments. He can choose from any of the existing schemes of Mirae Asset Mutual Fund to invest his/her savings on a periodic basis, by way of Systematic Investment Plan (SIP). By starting your Goal SIP, you avoid the hassle of aiming for appropriate market timing, along with the added advantage of rupee cost averaging.
- Per SIP application can have only one Goal assigned. Investors will be required to submit separate application forms for each Goal.
- Units will not be Automatically Redeemed upon Achievement of Goal and the SIP shall continue till the term of the SIP, even after the completion of the Target Amount. Further, Units will be redeemed as per First In First Out basis for any Redemption applied for.
- Goal Amount & Goal is mandatory for each Goal Based SIP Application. Default option will be Retirement Planning where no Goal isticked. If no Goal amount is mentioned on the SIP application in section 2a., then the SIP will be registered as a regular SIP & not as Goal Based SIP.
- Goal based SIP facility is currently not available for SIP registered/submitted through Post-dated cheques (PDCs), OR through Mutual Fund Utility (MFU), OR through MFSS system if NSE or BSE Star MF platform of BSE or any other platforms of these stock exchanges or Channel partners, I-SIP. As & When relevant systems are put in place, this facility will be automatically offered.
- All other conditions generally applicable for SIP shall also be applicable for Goal Based SIP and/or Top-Up facility.