Goal-Based Investing - How Does It Work? - fisdom

Goal-Based Investing – How Does It Work?

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Investing with a goal is very important. Read to know why.

Your goal / objective form the starting point for all our research and algorithms to rally behind.

Through a couple of simple questions, we learn from you the timing and amount of the goal. This allows us to compute what investments would make most sense, to minimize your monthly investment towards the goal.

Having said that, it is perfectly legitimate for you to not know the exact timing of a goal – for e.g. overall ‘wealth building’ is a goal. We use heuristics to determine the best allocations in such situations.

A couple of guiding principles enable us to determine the best products:

  1. The farther away the goal, the more risk you can take to try and earn a higher return. Conversely, a goal that is near requires investing in safe instruments
  2. Goals that are far away are affected by inflation – for e.g. it would be difficult for you to estimate what your toddler’s higher education would cost 15 years from today. We again use heuristics to estimate what the goal could look like in today’s terms (i.e. after adjusting for inflation)

We then help you invest one-time or monthly amounts towards this goal in the best instruments chosen. Our reporting then helps you monitor progress towards achieving the goal.

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Click Here to invest to build wealth and achieve your goals.

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