Estimating Savings For Goal

How Much Should I Invest for XYZ Goal?

This template will help you determine how much you should invest now (lumpsum) for your goal.

The template considers factors such as:

  • Priority of Goal (High/Mid/Low): High priority goals make more conservative expected returns assumption than low priority goals.
  • Investment Horizon: The duration for which you intend to hold the investment.
  • Asset Allocation: Determines your ability to take financial risk. An aggressive investor might opt for 100% equity, whereas a conservative investor might prefer 100% debt.

We have divided the asset allocation into gears (draw parallel to car gears):

  • Gear 6 | 100% Equity, 0% Debt | Aggressive
  • Gear 5 | 80% Equity, 20% Debt | Moderate to Aggressive
  • Gear 4 | 60% Equity, 40% Debt | Moderate
  • Gear 3 | 40% Equity, 60% Debt | Conservative to Moderate
  • Gear 2 | 20% Equity, 80% Debt | Conservative
  • Gear 1 | 0% Equity, 100% Debt | Ultra-Conservative

Key Observations:

Investing in equity is not suitable where your investment horizon is short since there is about 30% probability that you might experience negative return if invested for 1 year.

Sandeep Tyagi

Mr. Sandeep Tyagi

Founder and CEO, Estee Advisors

Sandeep has 30+ years of experience in portfolio management, analytics, and consulting. He pursued Bachelors in Technology from IIT Delhi and MBA from Columbia Business School.