How to Plan Your Investments via Goal-Based Investing with Moneyfy

Not sure whether to adopt a conservative investment strategy or an aggressive one? Wondering if a moderately high degree of risk is safe or if lower-risk mutual funds (MF) suit your needs better? Worry not, Tata Capital Moneyfy app helps you plan your investments strategically with goal-based investing.

Before you start with goal-based investments

• Determine why you are investing – education, wedding, post-retirement corpus, etc.
• Next, figure out the time frame within which you wish to achieve the goal
• Work out the present cost of achieving this goal. For instance, the present-day cost of overseas education could come to Rs. 30 lakhs
• Finally, apply the rate of inflation to the current cost to arrive at the future cost of meeting this goal

It is this future value that you need to invest for. Set this goal amount to plan your investment further.

Additional Read: Common Mistakes to Avoid While Planning Your Retirement

Different options available for Moneyfy goal-based investing

Once you have created an account on Tata Capital Moneyfy or logged in to your existing account, navigate to the ‘My Goals’ section through the ‘Menu’ icon top left of the page.

You will find the following goal options –

• Education
• Home
• Cars
• Wedding
• Build Wealth
• Vacation
• Retirement
• Custom Goal

Once you fill in the required goal name, goal value, and the expected time period in which you wish to achieve the goal, the app will recommend the top funds - equity, debt, hybrid, and ELSS.

How to make Moneyfy goal-based investing work for you

To understand how Tata Capital’s Moneyfy app can help you with goal-based investing, let’s use some examples. Say, you choose your investment goal as ‘Vacation’ and want to save Rs. 5 lakhs for a trip to Singapore over the next 3 years and 6 months. Once you have entered the three values in their respective slots and clicked on ‘Proceed,’ the app will instantaneously calculate and display the SIP amount, the lumpsum amount, as well as the degree of risk involved if you were to take the recommendation. In this case, the answers are Rs. 12,729, Rs. 4,59,626, and moderate, respectively. You can also click on 'Show Suggestions' to see recommended funds (both equity and debt) you should have in your portfolio.

Similarly, if you set a goal of a dream home purchase for which you plan to save Rs. 20 lakhs within a period of 7 years 6 months, the app will recommend you to save Rs. 14,735 in SIP or Rs. 9,51,371 as a lumpsum with a moderately high degree of risk. Notice how the risk involved differs for both the goals since the former is a short-term goal while the latter is a long-term goal. You will also find that for the long-term goal, a greater portion of your portfolio will be allocated towards equity funds as compared to the short-term goal, where debt funds will dominate the portfolio.

Also, the recommended investment amount and fund types will be based on certain assumptions such as the inflation rate, expected returns (%), down-payment, etc.

Additional Read: When is the Right Time to Sell Your ELSS Investment?

Final Thoughts

Use Tata Capital Moneyfy to understand just how much you need to set aside each month towards mutual funds investing. Once the investments mature, you can easily redeem them through the mutual fund app. So, what are you waiting for? Start your goal-based investing journey today!