How to Set Investing Goals?

How to Set Investing Goals? – Investment Goals Calculator for Beginners by Age.

Understand How to Set Investing Goals? – Investment Goals Calculator for Beginners by Age. Importance, Objectives and Examples.

Importance of Investment Goals

Setting investment goal or objectives is a must prior to investing money in Best Investment Options for High Return such as equities or mutual funds. Investment goals should always be for long-term. Long-term investment goals can generate good return over a period of time. Short term investment can be fetal and may result in loss.

In share trading business, prices in the Stock Market in India can fluctuate rapidly over a short period. Hence a long term investment prospective is always good. Beginners who want to invest in stock market must always go for long-term of at least 2 years.

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How to Set Investment Goals?

In order to set an investment goal for yourself, you need to ask some questions:

1. Understand your sources of income, expenditure and risks you can take.
2. Why do you want to invest? To increase income and wealth or to meet your other objectives. Do you want to save money for your retirement or need money to buy a home or you just want to improve your living standards?
3. How long can you leave the money invested and allow it to grow.
4. Do you have any short-term financial needs?

Once you get honest answers to all the above questions, you will be able to understand your investment goals and the type of investments you can make.

Long-term Investment in Stock Market

Most people sell their shares as soon as the prices falls. These are the people who make most losses in share trading. NEVER follow this approach. This is why you need a long-term investment prospective to protect yourself from risks of trading for short-term.

Investment Guru Warren Buffet would never remove any stock from his Investment Portfolio if the fundamentals of a company is good. He would allow enough time for his money to grow. There is no hurry. With this kind of long-term investment approach, it doesn’t matters if price of a stock falls over minutes, hours, days or even month. If the company has strong fundamentals and strong management, it will always grow. This is How Stock Market Works.

If you are not sure about your investment goals or the kind of risks you can take, then start with mutual funds. Mutual funds are a good way to start investing in stock market. Mutual fund companies will invest your money in selected shares and help your money grow.

If you are still not sure about investing in stock market then most probably you can invest in fixed income securities that are considered as risk free.

Also Read:

• What is Equity Investment?
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Investment and Financial Goal Calculator

There are Tools such that can help you calculate your Investment and Financial Goals. With the help of these tools you can Find out the future value of your Goal and your Monthly Investment to achieve it. Here is one such Tool.

FAQs: Investment Goals

Conclusion

I hope now you know How to Set Investing Goals. Please share your thoughts and ideas via Comment Below.

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