5 Tips to Help Investors Effectively Set Their Investment Goals

1. 5 Tips to Help Investors Effectively Set Their Investment Goals If investment is a boat, the objectives are the oars – your investment cannot stay afloat without them. That’s why registered investment advisors and experts emphasize on setting one’s investment goals and objectives before deciding upon what investment securities to opt for. However, investors are often in a dilemma as to what investment objectives they must set and which ones to assign first priority to. So, here are some quick tips on how you can prioritize your investment goals and then decide on relevant investment securities and strategies accordingly: 1.TAG: Tangible & Attainable Goals The TAG principle of setting tangible and attainable investment goals is the most basic step to begin your investment in securities. Concrete and specific objectives are not only easier to attain but also bring about significant clarity into one’s investment decisions. Thus, it would probably be a better idea to set a more specific goal such as “x amount of interest on a yearly basis after retirement” as opposed to a vaguer objective like “long-term financial security”. 2.Documenting Your Objectives Once you have finalized your concrete objectives, it is time to document these goals so that you do not divert from your path. Documenting your investment objectives as part of your investment plan helps you to remain focused and not leave out any of the goals while deciding on what stocks to buy and which securities to invest in. 3.Your Goals Vis-à-vis Your Earnings and Risk Tolerance

2. Next, it’s always a good idea to consider your investment objectives in relation to your current earnings, possibilities of a future fluctuation in the same, your risk tolerance and your expectation from the investment. Based on these observations, you can pragmatically estimate the other nitty gritties of the investment, such as what securities you can opt for; what amount you can afford to spend in a specific investment; whether you should go for a flexible SIP that allows you to vary investment amounts with a fluctuation in your earnings; how you choose to diversify your portfolio and so on. For instance, if you have mid-term goals and a moderate risk tolerance, you could opt for a diversified portfolio with stocks, bonds and other money market instruments. In contrast, for the same goals, if you are willing to undertake greater risks and expect higher returns, you could opt for a stock-linked scheme such as the Equity Linked Savings Scheme or even an IPO or new NFO mutual fund investment. 4.An Analysis of the Market Situation and Predictions Analysing the current stock and investment market situation and predictions of future stock performances can help you estimate the approximate investment returns you are likely to achieve and whether you would have to bear the brunt of a bear market as you go along. This can also enable one to think of effective strategies (such as portfolio diversification, holding on to stocks etc.) to alleviate any future risks resulting from a potential economic crisis or fluctuations. 5.Consulting a Reputed Stock Broker or Investment Advisor Finally, while you own your decisions and have the last word, it is always good to consult an investment professional or registered investment advisor who can act as your sounding board as you finalize your investment objectives. If you are a beginner, you may want to consider investing in mutual funds or availing of PMS services in India to avoid risks and ensure a smooth investment journey. Discuss your objectives

3. and expectations with an investment expert and chalk out a concrete plan that you can carry forward as you invest in securities. Conclusion Your investment objectives are the foundations to a strong and sturdy investment venture. The more concrete and specific your investment objectives, the more your plans are likely to succeed. Are you looking for expert guidance in setting your investment goals and preparing your investment plan? Then, click here to know more about us!