How does it benefit investors?

A goals-based approach to investing is beneficial to investors because it puts them in the driver’s seat as they are actively involved in the decision making process.

Risk is viewed as will I fall short of my goals? What do I need to do to ensure I am on track to meet my goals?

The two biggest advantages of goal-based investing are

1.It increases investors’ commitments to their life goals by enabling them to gauge tangible progress towards their goals

2.It reduces negative behavioural biases such as impulsive decision-making and overreaction.

3.It involves regular rebalancing of portfolio, which reduces the risk of the portfolio.