Invest in goals, not funds — the smarter way to investing

Why investment goals matter, and what kind of investment goals should you have?

Growth — no matter how small — is always beautiful


No, we are not trying to say that people who are investing are investing without a goal or a target in mind. But it is more about the mindset that has been present for years when it comes to the topic of investments. The fund managers and brokers are uncharacteristically vague, the number of options you will find if you try searching for investment options is mindnumbing, the data available on those different options is represented in a complex fashion. The result? We give up and end up investing in whatever the bank, fund manager or broker suggests us to invest in.

  • Save for retirement (How much?)
  • Buying a house (Ok… Where? How big? Essentially, how much?)
  • Wedding of your children (How much?)

Problem #1. Defining that how much

Goals are great. But without knowing the targets, how will you even know how far off are you? How will you know if your numbers need to be adjusted at a later date? How will you know if and when you need to change your strategy, your game-plan?

Problem #2. Ignoring everything else

Sure, buying a house costs money. So does having a nice life post-retirement, or your kids’ education. But those are not the only things that cost money, do they?

  • Once you factor in the inflation against the interest you are getting on your money in the savings account, you are actually losing money by keeping it in your savings account. (And we did not even talk about the taxes you need to pay on the interests)

We can pretty much save for everything.

Let us look at it this way. There would always be some money that you would need to take care of unforeseen, sudden, unplanned expenses. Sure, keep them easily accessible (although, to be fair — that amount can be reduced to a minimum). Then there are the long term financial goals — Saving Rs.15–20L for downpayment on your first home, and the likes. Put aside that money on a longer investment plan — say 3–5 years (based on when you want to go for that expense). But then, there are other expenses.

  1. You get yourself a new phone every year — Rs. 25,000 to Rs. 60,000 (depending on the model, whether it is an Android or an iPhone etc.)
  2. You go on a shopping spree every 6 months (onset of Summer, onset of Winter) — Rs. 15,000 to Rs. 20,000 each time
  • no stress of a lock-in period
  • no penalty on pre-mature withdrawals
  • fast and easy withdrawal process

The benefit?

  • You are getting more than twice the interest on this money as compared to what your savings account would have yielded. The interest rate is typically 20–30% higher than even what you would get on your FDs (fixed deposits).
  • You are free to withdraw money for any expense that comes across. The withdrawals are instantaneous, happen 100% online (no need to visit the bank), and you can withdraw any amount you need.
  • Unlike FDs, there is no penalty or hidden charges on these withdrawals.
  • You can make multiple withdrawals
  • Unlike an FD, you don’t need to make a full withdrawal. Partial withdrawal is possible, and you continue to enjoy the same benefit and interest rates on the money that remains invested.


Direction. Focus. Commitment.


#1. Investments do not need to be vague, or long term, or even substantial in size. Any amount of money you put in for growth is an investment.#2. Have goals for your investments. It helps you to maintain a firm grip on your financial health at any time. It also increases liquidity as well as maximise growth.#3. There are investment options where you can achieve more returns and yet maintain almost the kind of liquidity your savings bank account provides. Use them well.#4. Any large incidental expenses that you can foresee — buying an expensive new gadget, getting some new furniture, re-painting the living room, a one-week long trip with your girlfriend — they can all be covered by investing wisely. Helps you save almost 20–25% as compared to what you end up paying your bank in the name of EMIs.

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