All our lives our fathers have helped us in our financial needs and it’s now time to give back. While roses fade away and cups may break, there is something you can gift that will last a lifetime. This father’s day, let’s put a twist on gifting and give your father a mutual fund scheme.
If you’re stumped by how this would be possible, there are a few things you can do. Before you begin with where you need to invest, you need to take a step back. The best approach you can take is to follow a goal-based route to investing. This approach puts your goal at the forefront so that your investment plan is customised to meet this goal.
When taking a goal-based approach, start with the goals you need to plan for. A trip for the next long weekend, tickets for Wimbledon, gifting him his favourite car, creating a little corpus as a retirement gift or something else. Whatever your goal may be, it’s important to map out the specifics and state the timelines to achieve these goals. Once you have a goal in place, you should think about how you will achieve these goals.
When investing it’s important to understand that you shouldn’t simply invest in a fund that promises the best results. Your investments will depend on factors such as your time frame, risk appetite, return requirement and goal. Here’s how you can go about it.
Goals that are coming up in the next 1-2 years can be a part of this bucket. Since the funds needed for short-term goals are in the immediate future, it is advisable to keep your money in a liquid, arbitrage fund.
While adopting a goal-based approach to investing, it’s also important to avoid making some costly investment mistakes and adopt the right practices;
What better day then Father's Day to gift your dad a lifetime of happiness. Use a goal-based ideology to invest the right way. Let your father experience the same security that you did, knowing he was there to look after you.
Amar Pandit is the founder of Happyness Factory.
Read Amar Pandit's columns here.
First Published: IST