Setting up financial goals before going for mutual fund investment is very important. Mutual Fund goal-based investment will help you to achieve your goal properly. Whether you are going for a mutual fund for short term goal or long term goal, a proper investment strategy is very important. Depending on the mutual fund goal planner, you come one step closer to your goal fulfillment. The investment in goal-based mutual fund helps in capital gain and earning a profit. Based on your age, risk profile and repaying capacity, you can invest in the best mutual fund for short term goal and long term goal.
Things to consider before setting the Mutual Fund Goal
You need to first identify the short term and long term goal. To invest in the mutual fund for short term goal, you need to set the goal first like- vacation, house renovation, buy an electronic gadget. etc. Likewise, for long term goal based mutual fund investment, you have to plan your goal for ex- planning for child’s education, retirement corpus, build wealth, etc. Following are some important things to consider before setting mutual fund goal-
- Measurable goal-based Mutual Fund- In order to invest in a mutual fund for short term goal or long term goal, you need to have a clear idea of the amount you would need. You must have an understanding of the monetary amount which you must yield by investing in the best mutual fund for short term goal and long term goal. So, using mutual fund planner, you must set the mutual fund goal which is measurable.
- Mutual Fund goal must be specific- Investment in the mutual fund for short term goal and long term goal must be specific and smart. Before going for any goal-based mutual fund, you need to set the specific goals starting from child’s education to buying a gadget, house renovation to retirement planning, etc. Instead of going for investment first and then figuring out for which purpose you can use it, the process must be reversed. You must follow mutual fund goal planner invest in the best mutual fund for short term goal.
- Mutual Fund Goal must be rational & attainable- The goal you are setting must be practical enough to achieve. You must not invest for that mutual fund for short term goal or long term goal which you cannot attain and is dependent on some miracle to happen. So, you need to set that particular goal based mutual fund which is attainable and rational.
How mutual fund goal setting is beneficial?
The goal-setting before investing in the mutual fund for short term goal or long term goal is very important. Here are the key reasons as to why should you go for goal-based mutual fund investment-
- To achieve your financial goal, you must set your goal which keeps you motivated. So, investment in the mutual fund for short term goal or long term goal by setting the goal first is extremely encouraging.
- The best mutual fund for short term goal differs from that of long term goal. So, using mutual fund goal planner, you need to set the goal first for better formulation of investment strategies.
- You get a clarity of your investment in the mutual fund for short term goal and long term goal by setting the goal first. Short term goal based mutual fund risk profile varies from that of long term goal.
- Mutual Fund goal setting helps you to get a clear idea on the time period for which you need to invest. The time horizon for the mutual fund for short term goal can range from 6months to 24 months. While that for long term goal, the time horizon range from 3 years to 30 years or more.
