As investment is a mixture of both arts and science, the biases of people take precedence over investment goals. Hence, it is imperative to invest with a goal in mind.
“Investment without an investment objective is like a traveller without destination” is a famous quote that brings to the basic question of investment with a purpose.
India is a country where there is a huge need for financial security as most of the employees in the organized and unorganized private sector enterprises does not have a social security system which they can fall on post-retirement. The government does not provide social security to the normal salaried class hence it is ideal to plan for one’s retirement due to the impact of inflation and the longevity of life.
Retirement goals are one such important goal in a person’s lifetime as we moved on to the nuclear family setup and also there is early retirement in most of the IT-enabled sectors resulting in reduced cash flow for the future.
Mutual fund schemes ideally provide for long term wealth creation which has the benefit of compounding if someone has an investment horizon of more than 10 years !!
Retirement corpus generation helps you to plan for your own corpus along with providing financial freedom to your dependents (spouse and dependents). I urge each one of you to plan for retirement as soon as possible to ensure you retire peacefully and pursue your dreams post your work life