Goal-based investing: A more effective approach than return-based
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Many investors often become fixated on chasing high returns, and we’ve seen them asking questions like “How much can I earn?”, “What are the best returns in the market?” While it’s natural to want the best possible profit, focussing solely on returns without a clear plan is like sailing without a destination. You may ride the waves for a while, but eventually, you’ll find yourself lost. If your investments are guided solely by returns, it often leads to risky decisions and missed goals. Instead, goal-based investing offers a more effective and smarter approach by aligning your investments with personal financial goals, making your journey clearer and more secure. Let me explain this with an example, you have Rs 50,000 to invest, and you see the stock market booming. Tempted by the recent performance of equities, you put all your money into stocks, hoping for high returns. What if the market is volatile and you need the money to buy a home...