Investment Goals (2024)

FAQs

What is your investment goal example? ›

From there, you can start identifying your investment goals, which is any event in your life that you'll need to save and invest for in order to meet. Buying a house, weddings, having children and retirement are all common examples of investment goals.

An investment objective is a statement of what investors want to achieve. It can be short-term, such as generating income, or long-term, such as capital appreciation. Breaking down an investment objective means analyzing it to develop a plan to achieve it.

Fidelity Investments recommends saving at least 1x your pre-retirement income at age 30, 3x at 40, 7x at 55 and 10x at 67. If you think you'll need $100,000 per year after you retire, you should have $100,000 in savings at age 30, $300,000 at age 40, and so on.

Different types of investment instruments are created to cater to goals like safety, liquidity, capital gains, etc. These also reflect the objectives of investment of an investor. For instance, you invest in stocks to yield gains over time, i.e., capital gains.

Your primary objective is your overarching investment purpose. For example, you may identify an exact goal, such as retirement, or you might have a more general goal, such as building wealth for future generations. It's okay to have multiple goals — most investors do.

Key Takeaways. An investment strategy is a plan designed to help individual investors achieve their financial and investment goals. Your investment strategy depends on your personal circ*mstances, including your age, capital, risk tolerance, and goals.

3.1 Return Objectives

For example, a client wants to achieve a return of 9% or inflation-adjusted (real) return of 2%. The objective is to deliver a positive return over time, irrespective of how good or bad the market performance is. No index or benchmark is used to measure the performance.

Short-term goals are usually made to be accomplished within a few months to a few years. The amount of time it takes to achieve depends on the goal, how much it will cost, and how much you're able to save toward it. That's why it's important to make a plan and determine the best way to invest for it.

How to do goal based investment? ›

Investment goals: Defining your objectives

You have a goal for your money that says what you want to achieve with your money, whether that's retirement, building your wealth or creating passive income etc.

Answer and Explanation:

The main goal of investors is to make money. This, in more specific terms, means that they want to maximize the returns of the company they invested in as their primary objective.

So why do we invest anyway? Now there's an obvious question, right? It's right up there with “Why do we go on diets?” But try finding obvious answers.

For example: Every month, you might want to put 30% of your investment money into stocks, another 30% into bonds, and the remaining 40% into a savings account. Adjust those percentages and investment options so that they're in line with your financial goals. Ensure that your plan is in line with your risk profile.

Time horizon, risk tolerance, and liquidity needs

There are three key areas you'll need to consider in setting investment goals. You'll need to think about each one not only in terms of an individual goal, but in terms of your overall finances.

Short-term goals are usually made to be accomplished within a few months to a few years. The amount of time it takes to achieve depends on the goal, how much it will cost, and how much you're able to save toward it. That's why it's important to make a plan and determine the best way to invest for it.

Investment funds are investment products created with the sole purpose of gathering investors' capital, and investing that capital collectively through a portfolio of financial instruments such as stocks, bonds and other securities.