Why this Hullabaloo About Investment

Objectives?
 Investment objectives/goals are the most important factors
that determine the investment schemes or securities one
should opt for.

 Concretely articulating one’s present and future requirements

and making investment plans helps one figure out the right
path and attain one’s goals.

 Moving in the right direction is half the battle won: it enables

one to maximize returns, minimize risks and make the most of
the benefits provided by the chosen investment security.
 Some Objectives Investors May Want to Fulfil

Short-Term Investment Mid-Term Long-Term Investment

Goals Investment Goals Goals
 Travel plans  Buying a vehicle  Starting a family

 Small repairs at home  Home renovation  Funding a child’s education

 Organizing a wedding  For down payments  Financially supporting a

loved one
 Rent payment  Paying off mortgage  As a source of income

 Personal emergencies  Planning a long vacation  For a secure life post

retirement
 Purchasing goods  Paying off student loans  Buying property/land
 About FD: Here, one deposits a lump-sum amount in
the bank to reap fixed interest rates upon maturity.

Investment goals it caters to:

Short-term and mid-term.

Fixed Lock-in period: 1 week to less than a year.

Deposit
Risk level: Low to moderate.

Types: Bank FDs and company FDs.

Risk level: Low to moderate.

 About RD: Here, one invests fixed amounts
at regular intervals, to reap interests upon
maturity.

Investment goals it caters to:

Short-term and mid-term.
Recurring
Deposit
Lock-in period: 1 week to less than a year.

Risk level: Low to moderate.

 About bonds: These are debt instruments where
the investor loans money to the financial entity
and reaps fixed interests upon maturity.

Investment goals it caters to:

Mid-term and long-term.

Bonds Lock-in period: Depends on the bond (can even

exceed 10 years in some cases).

Types: Government bonds and corporate bonds.

Risk level: Usually considered less risky.

 About ELSS: Equity Linked Savings Scheme is a
mutual funds investment scheme that primarily
invests one’s corpus in stocks. It is a popular tax-
saving scheme.

Equity Investment goals it caters to:

Mid-term and long-term.
Linked
Savings
Scheme Lock-in period: 3 years.

Risk level: High risk as it is a stock-linked

investment scheme.
 About NPS: A Government investment scheme
aimed at ensuring sufficient funds for senior-
citizens after their retirement

Investment goals it caters to:

National Long-term.

Pension
Scheme
Lock-in period: Corpus can be withdrawn only
after one’s retirement.

Risk level: Typically a low-risk investment.

Tips on Selecting the Right Investment Avenues

 Prepare an investment plan that clearly specifies your investment objectives, risk tolerance
and expectations.

 Classify your objectives as short-term, mid-term or long-term.

 Research thoroughly on the various schemes and securities available to you based on your
objectives.

 Analyse current market trends and future predictions before investing in any security.

 Read the company prospectus and objectives carefully if investing in a private company
scheme.

 Consult stock brokers and registered investment advisors for sound advice and the right
guidance.
Visit www.investmentz.com to know more!