Hello Readers! 

People start their financial planning and money management task by setting their goals. These goals can be many, be it retirement planning, financial independence, or some other goals. But, what about people who don’t have any such big goal to save and invest for? Should they invest? And if they should invest so what would be the goal? 

Well, well, yes there are people who don’t have such big goals, but they can plan their savings and invest them just for the sake of saving and invest those savings just for the sake of earning returns. Yes, they can set the goal of their investment to make big returns. It is critical to understand the advantage that a high savings rate can give you and the risk of the subsequent investment plan you undertake.

How People With No Goals Must Invest?

A person who has started with their earning career has hardly any such big goals, however, they are always advised to plan their retirement from the early days of their earning career. These people find it difficult to associate a goal and plan their investment.

It’s simple to define children’s education as a goal if you have children; it’s simple to define international travel as a goal if you aren’t already in a job that requires constant travel around the world. But in a scenario where a person has no kids and even not married, it's hard for him to find a goal to invest.

Defined goals make it easier for a person to plan their investment and execute it in the best way, but the fact cannot be ignored that some people do not have defined goals for a certain period even after starting their earning carrier. To these people, it is advised do not to let an undefined goal take away the benefit of starting your savings journey early in life.

Uncertainty is really uncertain in life so if you don’t have any goal, set maximizing return as your goal and plan your investment in a mutual fund. Without a defined goal, the time frame for investments can be long, and hence, your ability to invest in growth assets is also higher. Do not forget to measure the risk capacity and never land in investments with undue risk, focus on building long-term wealth through high-quality and efficient return options.

How People With Surplus Must Invest?

There are people in society who believe in investment and people like these never wait for a specific time to invest, these people are well planned and start saving and investing as soon as they start earning. Suppose a person with this habit started saving early made good investments, earned better than expected salary, or had better than expected profits through their business.

This efficient habit ends at securing their and their family's future goals, much before time. But here the scene is their earning journey is still a bit long so what would they do with the surplus amount that they will save per month. Well, these people are much capable of investing this surplus saving towards the goal of maximizing growth.

These surplus amounts can be used The investment could be in the form of small stakes in other businesses or large contributions to managed funds in the equity markets.

Conclude…..

In both the cases explained above we saw that there is no defined goal for investors that they can set and start their financial planning. However, in both scenarios, investors can set maximizing returns as their goal and can plan their investments. Basically, whatever one’s choice of investment would, here the pure goal would be returned. The investment horizon can get stretched in time to absorb volatility risk.

Keep reading for more updates on Mutual Fund Investment!!

For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).