Nearly 90% of investors don’t have a written investment goal—and most of the remaining 10% lack clear timelines, targets, or risk planning. Investment advisor Abhijit Chokshi, in a recent post, noted that this lack of direction is the top reason portfolios underperform.
He said that when you invest without purpose, you panic during market dips and overspend during windfalls. “It’s like driving to Ladakh without a map, fuel plan, or even knowing the distance.”
Chokshi explained that SIPs are meaningless without investment goals. “Here’s the cold truth: Without investment goals, your SIPs are just emotional fire-fighting. One market dip? You panic. One promotion? You overspend. So, what’s an investment goal really? It’s not just ‘I want to retire rich.’ That’s a wish. A real goal is: ‘I want ₹2.5 crore by 2035 for retirement, growing at 12% annually, with a mix of mutual funds and PPF, investing ₹15k/month.’ It’s clear. Measurable. Real,” Chokshi wrote on X.
Investment goals
Chokshi said investment goals bring structure and discipline to your financial journey. Without a goal, your money lacks direction—making it easy to dip into savings for impulse expenses. But with a defined goal, every rupee has a job.
For example, if you’re saving ₹50 lakh for a home in five years, your SIPs become sacred, not spendable. Goals also align your investments with timelines and risk appetite. A 30-year retirement goal allows for aggressive, equity-heavy investments. A short-term car fund? Safer, debt-based options. Simply put, goals turn random investing into focused wealth-building—and help you stay committed through both market highs and lows.
Setting SMART goals to invest
Chokshi explained that the SMART framework helps you set clear, actionable, and effective investment goals. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound goals. Instead of vague goals like “saving for my daughter,” a SMART goal would be: “I want ₹25 lakh in 15 years for my daughter’s college abroad.” It defines the purpose, amount, and timeline.
Each goal should have a realistic contribution plan (e.g., ₹10,000/month), a clear financial objective, and align with your risk profile. For example, saving ₹1 crore in 15 years with ₹20,000/month at an 11% CAGR is achievable, unlike targeting the same amount in three years with ₹5,000/month.
SMART goals guide your portfolio strategy:
Long-term goals like retirement may need equity, NPS, and PPF.
Short-term goals like buying a house in four years demand low-risk options like debt or liquid funds.
With SMART goals, your investments gain direction—and discipline.