Designing Goal-Based Portfolios
Lesson 5 of 5 in Portfolio Construction & Risk · 10 min read
Goal-based investing links every rupee to a purpose.
Map your goals
List each goal with its target amount in today's value, target date and priority, for example retirement, a child's education or a home down payment.
Inflate the target
Use expected inflation to estimate the future cost. Our Goal-Based Investment calculator does this for you.
Allocation per goal
A goal 15 years away can hold more equity; a goal 2 years away should be mostly stable assets.
The glide path
As a goal approaches, gradually shift from equity to debt so that a late market fall does not derail it. Many planners begin this shift three to five years before the goal.
Review and adapt
Life changes. Revisit goals yearly, after major life events, and when your income changes. A Quantora consultation can help you structure this.
Key takeaways
- Give every goal its own horizon and allocation
- Glide-path towards safety as goals approach
- Review goals annually