Question 1

What is goal-based investing?

Accepted Answer

Goal-based investing is a strategy where you plan investments to achieve specific financial goals like buying a house, funding education, or retirement. It helps determine how much to invest regularly to reach your target amount by a specific date, taking inflation into account.

Question 2

How does inflation affect my financial goal?

Accepted Answer

Inflation reduces the purchasing power of money over time. A goal of ₹25 lakhs today might need ₹50 lakhs in 15 years at 6% inflation. Our calculator accounts for inflation to show the real amount you'll need to achieve the same purchasing power.

Question 3

What if I already have some savings?

Accepted Answer

Existing savings can significantly reduce your monthly SIP requirement. The calculator considers your current corpus, projects its growth at your expected return rate, and calculates the monthly investment needed for the remaining amount. This helps you avoid over-investing.

Question 4

Which investment option should I choose for my goal?

Accepted Answer

Choose based on your time horizon: Equity funds for 5+ years (higher returns, higher volatility), balanced/hybrid funds for 3-5 years (moderate returns, balanced risk), and debt funds or fixed deposits for goals under 3 years (stable returns, lower risk). Longer horizons allow higher equity exposure for better returns.

Question 5

Can I change my monthly SIP amount later?

Accepted Answer

Yes, you can increase or decrease your SIP amount anytime through your mutual fund provider's portal or app. If you get a salary hike or bonus, consider increasing your SIP to reach your goal faster or build a larger corpus than originally planned.

Question 6

What happens if my returns are lower than expected?

Accepted Answer

If your actual returns are lower than expected, you may not reach your goal amount by the target date. Monitor your progress annually and be prepared to increase your monthly SIP or extend your time horizon. Diversification across asset classes can help manage this risk.

Question 7

Should I adjust my goal for inflation every year?

Accepted Answer

Yes, review your goal annually and adjust for actual inflation. If inflation is higher than assumed, increase your SIP amount accordingly. Our calculator shows the inflation-adjusted goal amount, but real-world inflation may vary from your assumption.

Question 8

Can I have multiple goals with different time horizons?

Accepted Answer

Create separate investment plans for each goal with different time horizons. Short-term goals (1-3 years) should use safer instruments like debt funds, while long-term goals (10+ years) can have higher equity allocation. Calculate each goal separately for accurate planning.

Goal-Based Investment Calculator

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Goal-Based Investment Calculator

Advanced Options

Benefits of Goal-Based Investing

How to Start Goal-Based Investing

Common Financial Goals in India

Common Mistakes to Avoid