For many investors, choosing the right mutual funds is only one part of financial planning. The bigger challenge is making sure the investment amount, asset allocation and time horizon are aligned with each financial goal. A portfolio can have well-known mutual fund schemes and still fall short if the goals are not adequately funded or the money is invested in the wrong asset mix.
This is particularly important when an investor has multiple long-term goals such as a child's education, house construction, retirement and marriage. As the goal approaches, the portfolio also needs to gradually become more conservative to protect the accumulated corpus from a sharp market fall.
