Identify your financial goals!

Before investing, it is important to identify your key financial goals. These goals help in establishing a scientific approach towards meeting them in the future, otherwise there will be no clear purpose to your investments. Your investment strategies will be aligned towards meeting these financial goals. So, for example you have a short-term goal of child’s education, then same can be met by investing in short/medium duration debt funds or FDs. Whereas long-term financial goals can be achieved by investing in direct equity or mutual funds. Remember, a dream without a plan is just a wish.