Importance of Goal Planning We all love vacations! But going to a place we don’t know much about without any plans could be tricky. The vacation is the goal here, and planning can help us effectively fulfil it. Investing in mutual funds is somewhat similar. If you don’t have a plan, you may not know how much and where to invest. That’s why goal planning is essential. It is the process of identifying and drawing up a strategy to achieve your financial goals. The following reasons will help you understand the importance of planning to fulfil your goals. Importance of Goal Planning If you invest by following a financial plan, it can give you a sense of purpose in your long-term financial journey. A solid financial plan links goals to investments. You may have emotional attachments to your goals like owning a home, sending your kids to a top college, and having a tension-free retired life. It can strengthen your financial commitment. have peace of mind Isn’t this something we all crave? With enough money, you can pay for your monthly expenses, save for future goals, and treat yourself and your family to the small joys of life. Financial planning helps you manage your money wisely. Don’t worry if you’re not there yet. Peace of mind is not far away if you are on the path to financial planning. be ready for emergencies A financial plan also takes care of emergencies. Although the amount of money you need to set aside may depend on your job and liabilities, it is advisable to invest money equal to at least six months of your expenses in a mutual fund. The emergency fund might help you cover expenses during a job loss or any other unexpected scenario. reduce dependence on debt Debt can drain your savings and jeopardise your long-term financial goals. If you invest wisely, you can fund big-ticket purchases like buying a car or a home with your investments and minimise your debt. become a disciplined investor One of the easiest ways to make sure that you reach your goals is to become a disciplined investor. It means sticking to your SIP regardless of market conditions, maintaining your asset allocation, and regularly rebalancing. Disclaimer: The calculator results are for illustration purpose only. Please get in touch with a professional advisor for a detailed suggestion. The calculations are not based on any judgments of the future return of the debt and equity markets / sectors or of any individual security and should not be construed as a promise on minimum returns and/or safeguard of capital. While utmost care has been exercised while preparing the calculator, NIMF does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator. The examples do not purport to represent the performance of any security or investments. Given the individual nature of tax consequences, each investor is advised to consult his/her professional tax/financial advisor before making any investment decision. The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their affiliates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
