When I have started investing, whatever little money I used to save was invested directly into Mutual Funds or FD. I never bothered about when I will need that money. But I have realized my mistake in the year 2020 and started the Goal-Based investment through Niyo Money.
Investing is just like travelling where we need to have a goal in mind so that we can take the appropriate risk in our portfolio to get to that goal just like taking some risks while travelling.
Goal-based investment is a strategy where we invest with the objective of attaining life goals like a child's marriage or higher education, buying a house or retirement corpus. This is also helpful so that investors reduce impulsive behaviour when the market fluctuates which we have seen in the recent past. The mantra of Goal-based investment is having the right amount of money when you need it.
So as I said I have two goals, both are Life Goals i.e. Retirement and Child's Education which I have created in the year 2020 and both are long term goals like 15 to 20 years.
PC: Niyo Money
So this month I have got a recommendation that I have to rebalance my portfolio. This recommendation is based on what you are already investing funds and what should be the new investment funds along with that what should be the equity percentage in your goals. The equity percentage I have not changed and kept at 70% Equity and 30% Debt but the funds which they have recommended I have update those funds.
PC: Niyo Money
And then I have started the rebalance of both of my goals and thus got the update that my rebalance will be completed by 17th Feb. This update is redemption of existing funds from the mutual funds and re investment to the new mutual funds. Once done, my rebalance will be completed.
PC: Niyo Money
This is a good thing because now I have updated all the mutual funds and thus got good suggestions. This is important too because then I have selected the best mutual funds out of so many and all with the help of automation.
With the goal-based investment, we can decide how much money should go in which goal as well as it helps in the investment discipline which is very much needed to create wealth. Also, we can attain financial independence in a simpler way.
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