After the 2008 great recession, many financial advisors shifted their clients towards goal-based investment.

This type of investment made a clear idea for investors. On what they are investing and what is the expected outcome.

The goals may differ, but the investment for a particular goal makes it achieved and made investors happy.





·       The total investment will be on goals than profits. This type of investment has a fixed period and the expected outcome.

·       The goals maybe dream home, car, retirement, emergency fund, children education, marriage, etc.

·       This type of investment has proper planning and it should be reviewed periodically.

·       In this type of investment, investors know what is the capital required and the interest rate to achieve it.

·       In terms of the financial planner, the top priority will be their client’s needs and goals. Not on portfolio returns beating the benchmark.

·       There is no need for corrections in investments now and then. Goal-based investment lays a perfect road map to investor’s needs.


Example: If the client needs save for their children higher education which is within 10 years and the amount will be 25 lakhs. This has already stated the advisor on the tenure and the capital required. The client seeks a decent return of 10% and it should be of low risk. The advisor can easily draft an investment plan.



·       Traditional investments don’t have a particular goal. The main aim of the investment is to become rich creating some corpus, or beating inflation.

·       Since, the traditional investment is growth-oriented, the human mentality will be searching for more return. This will never end greedy in investors.

·       When we don’t have a goal on investment, the fund which is performing currently will please our eye. We will shift our investments towards those funds, which will be in high value. The next year when it falls makes a bleed in investor’s hearts.

·       In traditional investing, we only look at returns and not at risk appetite of the investment.

·       In Goal-based investment, we completely plan our investment with a connection with goals, tenure, and risk appetite. So the chance of barter between our funds is not required.





·       90% of our asset allocation works well if we go by goal-based investments.

·       Asset allocation should have all types of investments like fixed income instruments, debt funds, bonds, equity mutual funds, shares, golds, etc.

·       We have to predefine what class of assets allocation for a goal.

·       Example, for retirement at age 60. The asset allocation will be having EPF which will be having a major portion, PPF, Few equity assets, and some bonds.

·       When investments are planned on basis of Goal, there will be less chance of tracking error. So, it doesn’t make investors panic in any situation.

·       The investor will be sure of what he is investing in and how long to invest if he has a clear goal.




·       Easy to understand the portfolio management of investments.

·       It will increase the appetite in achieving more goals through investments.

·       Gold based investments give first priority towards life satisfaction and live life happily.

·       It removes a greedy mindset by fixing a minimal rate of return unlike the other type of investors.




·       Be a goal-based investor, so your goals and investments will be aligned in the same route.

·       Goal-based Investors know to manage the risk as they are well prepared with the proper plan.

·       Goal-based investments are safe and will give satisfaction in life.