Regulated by Capital Markets Authority (CMA) and the Office of the Data Protection Commissioner Kenya (ODPC)

Goal-based Investing for Long-Term Financial Gains – Ndovu

Regulated by Capital Markets Authority (CMA) and the Office of the Data Protection Commissioner Kenya (ODPC)

Goal-based Investing for Long-Term Financial Gains

Goal Based Investing for Long-Term Financial Gains

The concept of goal-based investing helps many entrepreneurs answer important questions such as how much to invest, where to invest, and when to start investing. This is the one goal that helps investors meet their financial goals.

There are a plethora of benefits to having a goal-based investment plan. The strategies to attain them may be a little different, but having a goal in mind goes a long way in helping you get there.

So, why explore goal-based investing?

Here are a few ways in which goal-based investing helps you reach your objectives faster:

  1. Maintaining Discipline

Without a goal in mind, it is easy to get distracted and lose hope along the journey. Having a goal, on the other hand, helps you stay the course while keeping you disciplined since you can measure and track your progress regularly.

A set of goals are ideal to help us strategize and improve our budgets. As a result, we enjoy a pivotal advantage that helps us deal with adverse market fluctuations.

This advantage negates the incessant desire to approach investing from an emotional point of view. With a clear financial goal, investors can remove greed and fear and be disciplined in the long term.

  1. Starting Early

Often, the success of an investment is determined by how early you begin. Warren Buffet, for instance, is a good example. He started investing at the age of 11, and he says his biggest regret is not starting earlier.

Take, for example, two people who started investing at different ages, say, at 20 and 30 years of age. The one who started early will have a significantly higher portfolio value as compared to someone who started a decade later.

  1. Identifying Risk Profile

Investors mostly gravitate toward rising markets and remain fearful in down markets. As a result, they end up investors buying risky securities at inflated prices and selling them when markets perform poorly. This leads to losses.

When you are a disciplined investor, you make decisions with a long-term perspective instead of responding to markets by panicking. In the long run, markets have usually gone up, nonetheless.

A sure way to do this is to have a risk profile and follow it for long. Switching risk profiles by being conservative during weak markets and becoming aggressive during bull markets will only destroy your wealth eventually. 

If you choose to have 60 percent of your investments in equity and the balance in Bonds, Gold, and other asset classes, it’s important to stick to the 60 percent equity at all points in time.

  1. Tracking Progress

Amidst all, track your progress, because, if you don’t know where you are going, you are probably going wrong. 

Through planning, you can ascertain how far you’ve come, and this helps you analyze and iterate your strategy for future outcomes.

Unsurprisingly, many investors may not recognize the power of compounding unless they witness it in action on their portfolios in the long term. 

  1. Diversifying Portfolios

Through goal-based investing, one can easily have a diversified portfolio, which helps in mitigating the risks of investing in a single asset class.

Diversification allows you to achieve goals without too much volatility. 

Goal-Based Investing Is Key To Financial Success

In conclusion, goal-based investing is the best way to maintain discipline, keep emotions in check, and solve the problem of how much and where to inject your funds.

While the idea is to have all your goals mapped out and ready, as well as their timelines (that is, how long it will take to achieve them), it is also important to have a planner help you make the most out of your portfolio.

This is why Ndovu is here for you. Ndovu puts your money on autopilot and ensures that you reach your goals faster.

Diversifying your investments means you can reduce risk while maximizing rewards. Ndovu invests your money across the entire stock market using funds.

Investing with Ndovu will help you choose a risk level you’re comfortable with, then build a custom portfolio based on your financial goals. Better yet, your money grows passively.

Auto-investing with Ndovu helps you with:

  • Investing for the long term – Ndovu’s portfolios are designed to invest in low-cost funds that track the market, outperforming stock picking over the long term.
  • Easy access – Manage your account from anywhere in the world with your devices. 
  • Dividend reinvestment – Put your stock dividends back to work, earning you more. Compound growth!

If you are ready to venture into goal-based investing, Ndovu is the place to get started.

Take advantage of this chance to diversify your portfolio and have your money work for you without breaking a sweat.

Leave a Reply

Your email address will not be published. Required fields are marked *

Share the Post:

Related Posts

Are you feeling the pinch of Kenya's high cost of living? You are not alone. Many Kenyans struggle to make ends meet...

Let’s talk goal-based investing! As an investor, you probably have a lot of questions running through your mind such as how to...

Real tips from money-saving experts on how to grow your savings and most importantly, how to make your money work for you…...

ndovu is a regulated roboadvisory platform owned and run by Ndovu Wealth Limited (“Ndovu”). Ndovu is licensed by the Capital Markets Authority (Kenya) as a Fund Manager and is also regulated by the Institute of Certified Investment & Financial Analysts (ICIFA), the Communications Authority, and the Nairobi Securities Exchange. Ndovu is a registered trademark.” “Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.”

Last Updated: April 15th 2021 These terms of use (“Terms and Conditions”) mandate the terms on which the users (“You” or “Your” or “User”) access and register on the website and/or mobile application ‘Ndovu’ operated and managed by Ndovu Inc., its affiliates and its group entities, together referred to as “Company” or “We” or “Us”, collectively referred to as, “the Platform”. Ndovu is a registered trademark of Ndovu wealth Limited. Advisory services provided by Ndovu wealth Ltd, a CMA-registered investment adviser. US-traded securities are provided to Ndovu users by Interactive Brokers LLC, a regulated member of FINRA/SIPC. Interactive Brokers is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at Investments in securities: • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Ndovu wealth Ltd charges and expenses. Ndovu wealth Ltd’s internet-based advisory services are designed to assist clients in achieving discrete financial goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client’s financial situation and do not incorporate specific investments that clients hold elsewhere. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Ndovu wealth Ltd is not registered. For further details see our Legal Disclosures. By using this website, you accept our (Terms of Use) and (Privacy Policy) and (Data Protection Policy).