In investing, goal tracking means periodically checking whether you are on-track to achieve the desired target amount in the time horizon you have set for the goal.
Whether a goal is on track or off track depends on whether the projected value of the goal (based on its current status and your planned investments, asset allocation, and some reasonable assumptions about the future returns of these investments) is higher or lower than your desired target value.
If your goal is on-track then you can rest easy rather than constantly wondering and worrying. If not then you can take some corrective actions to bring it back on track in a timely way. When you find that your portfolio is off-rack then you can take one or more of the following corrective actions to get it back on-track:
- Increase the SIP amount
- Do a one-time lumpsum investment
- Increase the time horizon
- Decrease the target amount
Below is an example of how these options are shown:
You can read about this in further detail in our blog about goal tracking.
To understand more terms that you may see on your dashboard, you can refer to our blog.