No, I did not mean the Goods & Services Tax introduced recently in India.
For any successful wealth creation journey, there are three vital elements that one must address.
GOALS: what is the objective of investing? The more clear and powerful the goal is, the more likely that your investment plan will be successful. A Goal should comprise of the event, the time of need and the funds needed at that time. So, for example, it could be the Higher Education Fund for your 2 year old. For this you would need that in 18 years time and what would be the quantum of funds needed especially if your ward needs the best of global education? Os, it could be your retirement goal of having a sufficient corpus to maintain your lifestyle post retirement. All of us have goals to reach; only that some of us are blissfully unaware of them.
STRATEGY: Strategy is the plan that is needed to operationalise the goal. It is the 1.2.3 of how you get from point starting to point goal. Strategy outlines the method or modus operandi of how you are going to get to your goals. For example say you have a 10 year window to create a corpus. Strategy would comprise of how much you must be investing in a monthly, quarterly, annually, in various assets like equity (per your risk appetite), debt, other assets and how you would manage the portfolio to reach the desired goal post.
Last is the TACTIC: this is really the operational day to day, often boring, but the most important aspect of operationalising the strategy. Without a practical tactic at work, both fantastic goals and great strategy remain just as much a wishful dream. Tactic is the everyday stuff that one needs to do to ensure that the strategy is implemented so that one is constantly narrowing the gap to the goal.
To put it simply,
GOAL is the WHY?
STRATEGY shows the HOW?
TACTICS is all about DOING it
GST is therefore essential for a successful investment experience.
Have you done it ?