How to become an expert mutual fund investor: Avoid hitting bumps

While we may have a never-ending list of needs and wants, a few of them are also time-sensitive. So, an essential part of financial planning is to categorise your goals on the basis of negotiability. Just think - would you want to delay your kid's enrollment in school because of a shortage of funds? Similarly, think of retirement. If your employer policy says you can work till 60 years of age, it is cast in stone. You cannot bargain here to work for some additional years to be retirement-ready. In contrast, other financial goals such as buying a house, car or going on that chilling vacation can wait. So, despite the entire goal planning, why do you need to prepare extra notes for your non-negotiable goals? The answer lies in understanding the inherent risks of long-term financial planning - the what-ifs that can derail your plans. What if you earn lesser returns than you had forecast? What if the market hits a rough pa

This article was originally published on December 23, 2021.