Long Term Financial Goals
// Long Term Financial Goals
Long Term Goals
A general rule for long-term goals could be anything that typically takes you five years or longer to accomplish. In Indian context, long-term financial goals may include Buying a house, a fund for kids higher studies and last but most important which we normally take back seat: Retirement Corpus
Keep an eye on Inflation – while planning for long term goals, inflation has to be taken in consideration before deciding the value of the goal
Mutual Funds - A good trade-off between returns and risk
The basic rule of financial planning is that every action has a cost associated with it. Not investing or being too conservative in investing has a cost in the form of lower returns. Too much aggression and risk in allocation makes you vulnerable to the risk of potential losses.
Then, of course, there is the risk of your underlying assets performing well. The entire activity, therefore, is a massive trade-off. How do individuals with limited access to information and insights manage the trade-offs? Mutual funds ensure that you do not have to worry about the trade-offs.
First, the fund manager takes care of most of the risk management either through diversification or through portfolio tweaking.
Secondly, tweaking the right mix of equity and debt is another way of prioritizing your goals and that is where we as a distributor play our role and the flexibility of doing the same with minimum hassles. All these factors make mutual funds a great choice across life stages.
