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To achieve future goals you need to channelize your existing resources and make fresh investments, if needed, so as to accumulate a higher value that may be used to accomplish the goal. Every one want maximum return against taking minimum risk but one think which we should except is every think has some kind of risk and not taking risk is a bigger risk.

One can easily get 6 to 7% return from bank FD and feel ourselves safe but the other part of the coin is inflation which is indirectly eroding our capital. Risk tolerance refers to the ability of a person to endure market volatility. In the world of investments, there is a direct relationship between expected and risk. Higher the expected return, higher the risk. There is a trade off between expected return and risk taken. If you are unwilling to assume risk, you must be satisfied with the risk-free rate of return. If you wish to try to earn a larger rate of return, you must be willing to assume a larger risk.

There are only two options are available in the investment market and the basic thump rules of investing are
Debt- always opt debt option for investment when one have funds for short duration
Equity- always opt Equity option for investment when one has funds for long duration.

Factors effecting Long-term goals: When it comes to long-term goals, there is one factor that needs to be kept in mind such as:

Effect of inflation: A persistent increase in the level of consumer prices resulting in the loss of purchasing power of money is called inflation. It is reflected, in percentage terms, as a change in the wholesale price index. What this means is that a rupee today is worth more than a rupee tomorrow. Take your own case as example. Compare that amount you spent on groceries 10 years back and what you spend today. You will find that the prices you are paying today for the various items have risen sharply over the period. Inflation is a silent killer of the purchasing power of money.

Asset Allocation: In fact buying a investment product or selling a investment product is not a investment planning but allocation of asset between Debt and Equity in such a manner in which one can get the desire rate of return according to his risk taking appetite:-

Risk Taking appetite:-  every one is a risk averse but up to what extent one is risk averse is debatable point Before talking about risk or return let us know our risk taking appetite.

Just click on the link and answer the given question and we will mail you your risk Profile

Know Your Risk Appetite - Click here

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Table of all Post office debt scheme(Excel Attached)