Most of people lack proper financial education and invest in various asset classes by popular belief and practices without analyzing their impact on their life. The imprudent financial decisions will lead to financial hardship, which may be easily avoided by proper financial planning and investment decisions.

IT IS NOT IMPORTANT HOW YOU EARN BUT HOW MUCH YOU KEEP AND MULTIPLY DURING YOUR LIFE TIME.

You might have heard that many athletes and renowned actors have gone bankrupt and they are forced to work in car garage or other low paying job to survive. Most of the people suffer because lack of financial education and forced to work till very old age for survival.

YOUR FORTUNE DEPENDS ON TAKING THE CALCULATED RISK AND A PERSON WHO IS NEVER READY TO LOOSE IS GENERALLY BIGGEST LOOSER.

To ensure you meet your financial goals our financial planning managers use top of the line technology, knowledge and processes. Your financial plan is tailor-made to suit your requirements and all our investment advice is backed by in-depth research.

The financial planning managers are highly qualified (MBA’s / CFP’s / Financial Planning Diploma /Masters in Commerce) and are also duly certified from the SEBI established National Institute of Securities Markets (Mutual Fund Advisors Module). At Funds Masters, you can rest assured your financial goals are in good hands.

Setting short-term, mid-term and long-term financial goals is an important step toward becoming financially secure. Annual financial planning review gives you an opportunity to formally review your goals and update them if necessary. If you have never set goals before, then it is time you to start making your financial plan. Sound financial planning gives you the opportunity to formulate your goals so that you can stay confident during entire investment cycle and remain on firm financial footing to realize your dreams.

GOAL BASED FINANCIAL PLANNING

Every individual has dreams and aspirations in life. These goals take us ahead in life and help shape our future. Yet, despite our individual differences, the goals often are not altogether that different. For instance, owning a home is a big priority for many, so is buying a car, or creating a large retirement fund or ensuring their children have access to the best education money can buy. The only thing that can fulfill these goals is an adequate amount of money at the right times in life. So how do we get them?

YOU GET RETURN NOT YOU WANT BUT YOU DESERVE

Mutual funds can help achieve these financial goals whether one is looking for long-term wealth creation or to park funds for a short amount of time. It caters to the aggressive and conservative investor, long-term or short term, to all income categories and all age groups. There is something for everyone.

Therefore, picking the right type of fund is paramount. It should be guided by one’s risk capacity and investment horizon. Each type of fund provides optimum returns at certain time periods and it is important to align one’s financial goal to the right fund.

Goal-based financial planning is a method which allows investor to save for various financial goals in different time horizons. The planning process helps to identify a person’s or family goals, gives them priority and determines the best way to get them funded. It gives more confidence and flexibility to the investor to adjust for life and market as well.

STEP OF GOAL BASED FINANCIAL PLANNING

 SET PRACTICAL FINANCIAL GOALS

Depending on your risk appetite set your financial goals. Understand and draw difference between your needs and wants clearly. Where to invest your hard earned money? How long to invest for? What is the potential of growth? etc. Investing in equity has changed lives. Some have made fortunes while some have lost.

RESEARCH

You would not want to buy anything which is of sub-standard quality, would you? Research is the strongest support for your investments; or should we say “wiser investments”! People often say that investment in equities is nothing less than gambling. They say so because they often come across the term “Lack of knowledge & short term investing behavior”.

The golden rule about investing in equities is “Investing in Equity MF instead of Direct stock investing” and investing for long term horizon. It is necessary to research about the quality MFs that have shown growth in the past and at the same time have potential to deliver with similar consistency for times to come. Invest not only your money but also your time in learning these MFs.

FOCUSED PORTFOLIO

Once you have researched thoroughly and identified quality Mutual Funds scheme, the next step is to invest in appropriate quantity. Avoid investing in too many funds that may scatter your attention. You don’t need more than 3-5 MFs in your portfolio; only a few good names can do the trick. Managing big portfolios is quiet difficult as you practically can’t keep a tab on each MFs in a bigger portfolio. There is a notion that the large number of MFs reduces the risk. However, each MF scheme is itself designed in such a way to reduce risk and induct diversity. So invest in 3-5 quality Mutual funds that keep your portfolio simple to manage and will able to generate long term handsome returns.

LONG TERM

 If you are investing in equity, it’s advisable to invest for a longer time. Buy the right Mutual funds and hold them across market cycle. Investing in equities is not only about quality mutual fund picks but also requires patience to see your money grow. Remember the quote by Charlie Munger; ‘Big money is not in buying or selling, it’s in waiting’.

Reconstruction

It may happen that your risk appetite may change or you may face an unforeseen circumstance while you are still invested. At such times you may choose to effectively reconstruct your portfolio so as to benefit from the risk reward equation. Churning your portfolio time to time is not a good recommendation. However, you may opt to reconstruct your portfolio according to your changed risk appetite only if it is necessary.

THE BENEFITS OF GOALS-BASED FINANCIAL PLANNING

The objective with clarity – Identifying Goals encourages the investor to think seriously about what they want to achieve in their life. This helps to establish clear financial Goal with exact time frame to achieve them. This will enable the investor to better understand their priorities and help to achieve these life Goals with well-planned financial plan.

Asset Allocation to achieve Goals– Once the Goal is clearly established and time is allocated to achieve these Goals, the financial planning become very easy to achieve. Next step involves prioritization of Goals and allocation of various investment options available to achieve these goals.

Reducing emotional decisions– Understanding the needs of the investors provides a concrete objective. Keeping the goal reduces the chances of consumers responding to market fluctuations. If investor works towards a goal then he does not need to follow the short term market fluctuations and this helps to minimize emotional imprudent decisions. It reduces short term anxiety and makes you more positive and confident in wealth creation journey.

Prepares you to Meet Life Goal—   Setting up clear cut Goals helps investor to start saving smartly to achieve all his dreams and aspirations. This develops financial discipline and ensures that all your dreams come true as per the well-established financial planning.

Closer Investor -Advisor relationship — A closer relationships between investor and their advisors get good results. The goal-based plan facilitates healthy communication from the beginning and on a regular basis. An open, trusting relationship engages both parties.

GOAL BASED FINANCIAL PLANNING : OUR EXPERTISE

GOAL: PLANNING FOR RETIREMENT

Planning for retirement should begin as soon the individual starts earning. Mutual funds can be a great avenue for building a corpus through capital appreciation over traditional savings options. Though equity funds are supposedly risky, they tend to outperform all other asset classes in the long term on the basis of return on investments.

GOAL: SAVING TAX

ELSS or Equity Linked Savings Scheme is known as a tax saving fund. ELSS is an attractive option because of the tax benefits, shortest lock-in period & superior return potential. Any investments in an ELSS mutual fund are tax deductible under I-T Section 80C for a maximum of Rs 1.5 lakh.

 Amongst all the other tax saver options available today, it has the shortest lock-in period of three years. The beauty of the product is that with any mutual fund unit held for more than 12 months is considered long-term and because of the inherent lock-in period of ELSS, any capital gains are taxed at rate of 10% if gains are more than Rs 1.0 lakhs.

GOAL: CHILD EDUCATION AND MARRIAGE

Let us face it, education does not come cheap and quality education for the kids will severely dent a parents savings. Private schools, professional degrees, tuitions, extracurricular activities, hostel fees, etc., will cost you an arm and a leg or even more. No parent would ever want to compromise on the quality of education for their child. Fortunately, with sound financial planning, no parent has to. Depending on the investment horizon, many of options are available to plan for your child education needs efficiently.

GOAL: SAVING FOR THE NEAR TERM OR PARKING SURPLUS MONEY

For people looking to park their money to beat inflation or have short-term goals like buying a vehicle, liquid funds and short term debt funds can prove to be a good option. Liquid funds invest in money market instruments like treasury bills, corporate papers and bank certificate of deposits and have either none or low risk. However, debt funds by virtue of investing in bonds are sensitive to interest rates. If interest rates go down, the funds perform well and vice versa.