4 days ago
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How a Goal Planner Can Help You Choose the Right Aditya Birla Sun Life Mutual Fund Based on Age and Income
A goal planner helps you to determine how much you need to invest every month and in which mutual fund schemes. To help you plan this, they take your age and income into account, based on which they recommend the schemes to you. Here's why age and income matter so much.
Why Age and Income Matter in Mutual Fund Selection?
There is no set age for investing in a mutual fund, but the general guideline is that the sooner you do it, the better. Younger investors tend to have a higher risk appetite and generally can invest in more risky schemes. On the other hand, older investors tend to have a moderate risk appetite as they have a lot of responsibilities, and they generally like to play it safe.
Income also plays a big role in deciding investment. Your income is usually utilised for three primary things, spending, saving for emergencies, and investing to reach your financial goals. So, you should figure out what your fixed costs are before you start investing.
What is a Goal Planner?
A goal planner is a tool, either physical or digital, that helps people or groups set, track, and reach particular goals. You can use goal planners to help you arrange your finances and selectthe fund that suits you.
The key functions of goal planners are:
Setting goals: Clearly stating what you want to accomplish and what you want to get out of it.
Action Planning: Making big ambitions into smaller, more doable activities or actions.
Progress Tracking: Keeping an eye on how well you're doing compared to the goals and action plan you've set.
Responsibility: Making sure you stay on track and own up to what you do.
Motivation: Giving people a feeling of direction and purpose can help them stay motivated and inspired.
How Does Aditya Birla Sun Life Goal Planner Work?
Now, you might have a goal in mind, but the question still stands: which Aditya Birla Sun Life Mutual Fund is the best mutual fund for my goal? Well, there's no need for you to beat your head, because there are goal planners that help you achieve every goal in your mutual fund investment.
The Aditya Birla Sun Life Goal Planner is an interactive tool. It helps you map out your financial goals and figure out how much you need to invest to reach them.
Here's how it works:
Define Your Goal – Enter the goal (e.g., retirement, buying a house) and its current estimated cost.
You enter your current age and income – This helps the planner understand how much time you have to invest and how much you can realistically contribute.
Set a Time Horizon – Specify when you want to achieve the goal (e.g., 20 years from now).
Adjust for Inflation – The tool factors in inflation to estimate how much your goal will actually cost in the future.
Assess Current Savings and Monthly Contribution – Input any existing savings and how much you can invest monthly.
Get Investment Recommendations – Based on your inputs and expected return rates, the tool shows you how close you are to your goal and what you need to do to bridge the gap.
Let's say Ravi wants to save for retirement. Ravi is 25 years old and hopes to retire at the age of 45. He spends 30,000 a month right now. If inflation stays at 6%, he will need about 96,000 a month to keep living the same way by the time he gets 45.
Ravi will need about 2 crore when he retires to pay for 35 years of living expenses (until he turns 80).
He puts 15,000 into Aditya Birla Sun Life Mutual Funds every month, expecting to make 12% each year. In the following 20 years, this might rise to around 2 crore, which would help Ravi reach his objective of retiring early.
Benefits of Using a Goal Planner
Let's understand the benefits of using a Goal Planner.
Removes guesswork
You do not have to guess the fund and how much you should invest. With the goal planners, you can get your answer in seconds.
Offers personalised recommendations
A goal planner can help you tailor a plan to your specific needs and make sure you invest in top mutual funds for your needs.
Conclusion
Investment is the utmost necessity in modern day with goal planners. You can use goal planners and decide which Aditya Birla Sun Life Mutual Fund, suits your needs, whether it is for retirement or your child's education. Aditya Birla Sun Life Mutual Fund has got you covered.
