What are your investment goals?

How do you write investment goals?

Specific – make each goal clear and specific. Measurable – frame each goal so that you know when you have achieved it. Achievable – you need to take practical action to achieve a goal. Relevant – determine whether your goals relate to your life and are realistic.

What is the goal of investment and why?

Accordingly, the objectives of investment funds can be generally classified as the following: Invest to maintain capital. Invest to achieve income. Invest to achieve income and growth.

What are the 5 major investment objectives?

What Are Investment Objectives and Why Do I Have to Choose One?

  • Income. Preservation of capital with a primary consideration on current income.
  • Balanced. …
  • Growth & Income. …
  • Long Term Growth with Safety. …
  • Long Term Growth with Greater Risk. …
  • Speculation.

How do I plan my investments?

4 steps to creating your plan

  1. Set specific and realistic goals. For example, instead of saying you want to have enough money to retire comfortably, think about how much money you’ll need. …
  2. Calculate how much you need to save each month. …
  3. Choose your investment strategy. …
  4. Develop an investment policy statement.
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What are the motives for investment?

Investment objective is the motive for which investment is made. Some investors may invest fund for regular income while others may prefer capital gain. In general, investment is concerned with risk taking activity for future returns over a long period which is not necessary to be marketable in short run.

Why do we need investment goals?

1. Provides a Clear Vision. When you have a clear idea of your financial goals, it adds a lot of clarity and confidence to your investment decisions. It helps you control and manage your finance in a far better way, allowing you to stay prepared for the different phases of your life.

What are the financial goals?

What Is a Financial Goal? A financial goal is a target to aim for when managing your money. It can involve saving, spending, earning or even investing. Creating a list of financial goals is vital to creating a budget.

What are the 2 types of investment objectives?

Your objective should guide what types of assets you add to your portfolio. You might want to see the best possible tax results, minimize your risk as much as possible, or focus on a target-date goal like retirement. There are three types of investment objectives: growth, growth and income, or income.

What is a growth investment objective?

Growth investors do not seek account income; their primary objective is capital appreciation. Risk tolerance conservative. … They are willing to accept lower potential returns in exchange for lower risk. Equities will typically be a significant portion of the account.

What is a balanced investment objective?

The investment objective of a Balanced investor is to obtain a balance of security, income and growth with security and income ranking before growth in priority. A Balanced portfolio looks to invest around 50% in growth assets (eg equities and property) and the remainder in defensive assets (eg cash and fixed income).

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