Setting goals for mutual fund investments

Every individual has various kinds of goals in life. A person with a family of four consisting of spouse, son, daughter and himself/herself will also have many goals to achieve for himself/herself and his/her family. Besides, professional goals, some of the personal goals may include buying own house/farm house, buying a car, foreign tour with the family, etc. There will family goals such as children’s education, children’s marriage, building retirement corpus, etc. These goals can be achieved by proper financial planning begun at an early stage in life.

In order to achieve these financial goals, it is necessary to categorise them as per the duration required to achieve these goals, viz. short term, medium term and long term. Some of the short term goals include prepayment of personal loan, renovation of house, etc. The medium term goals can include going on a foreign vacation with the family, down payment for buying own house or car, etc., while long term goals can include children’s higher education, children’s marriage, building retirement corpus, etc.

Mutual fund houses provide a plethora of schemes that cater to the varying needs and requirements of individuals and can help them achieve their financial goals.So, one can invest in liquid funds or short term debt funds to achieve short term goals. The balanced and hybrid funds would be suitable for meeting the medium term goals, while one can invest in equity and equity-oriented funds to achieve long term goals.

Hence, various types of mutual fund schemes can help individuals to achieve their financial goals.