Goal based investing is the easy way to achieve financial goals. It is based on the premise that financial planning is more effective when you work towards achieving a goal rather than chasing returns. A goal based investment strategy first creates a personalised financial goal according to the investor's age, income, expenses, savings and risk appetite. Then, based on that personalised goal and the time period available to achieve the goal, an approximate amount is calculated while taking inflation, expenses and other investments into consideration. Also, one needs to calculate the amount that must be invested regularly (monthly, quarterly, half yearly or annually) to build that corpus in the predetermined time frame. The next question the investor may ask after that is: Where to invest money? Again, the answer to that question will be based on your desired corpus size, timeframe and risk appetite. How to get it right You know everything about goal-based investing and are ready to
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