Set aside about 2 hours once a year and check 7 things: goals, income, SIP, asset mix, insurance, emergency fund and tax. Most plans fail not because the maths was wrong, but because life changed and the plan did not.
A good date is your birthday, or just after the financial year closes. Pick one and keep it fixed.
| # | Check | The question to ask |
|---|---|---|
| 1 | Goals | Has any goal changed in amount, timing or priority? |
| 2 | Income and expenses | Did income grow? Did lifestyle grow faster? |
| 3 | SIPs | Is each SIP still on track for its goal? |
| 4 | Asset mix | Has equity drifted far from the target? |
| 5 | Insurance | Are term and health cover still enough? |
| 6 | Emergency fund | Does it still cover 6 months of expenses? |
| 7 | Tax | Did you use the available deductions sensibly? |
Costs move every year. A goal that needed ₹20 lakh last year may need more now, because education inflates near 10% a year and general costs near 6%. Re-enter the current cost and the years left, then see whether the required SIP moved. If a goal is now 3 years away, it should no longer sit in aggressive equity.
If your income rose 10% and your SIP did not, your savings rate quietly fell. A simple rule: every increment, send at least half of the raise into SIPs. A 10% yearly step-up on a SIP can shorten the time to a goal by years over a long horizon.
Keep one SIP per goal so you can see exactly which goal is ahead or behind. A single pooled SIP hides this.
Over a year, equity can grow faster than debt and push you past your target. As a rough guide, if any asset class is more than 5 to 10 percentage points away from the target, rebalance by directing new money to the lagging class first. Selling can trigger tax, so use fresh SIPs before redemptions where possible.
The target itself should fall as a goal nears. This is the glide path: more equity when the goal is far, more debt and gold as it comes closer.
Do not leave tax planning for March. Under current rules, deductions and regime choice depend on that year's limits, so confirm them or check with a CA. Spreading ELSS or other tax-saving investments across the year avoids a last-minute lump sum.
Q. How often should I review my financial plan?
A. Once a year is enough for most people, plus an extra review after a big life event such as marriage, a child, a job change or a home purchase.
Q. Should I change my SIPs when the market falls or rises?
A. Not because of market moves alone. Change them when a goal, your income or your time horizon changes.
Q. How long does a yearly review take?
A. About 2 hours if your goals and investments are written down in one place. It takes much longer when everything is scattered.
Q. Do I need an advisor for this?
A. Not necessarily. A structured plan tool helps, and for tax-specific or complex situations a CA or a SEBI-registered professional is worth consulting. This is educational, not personalised advice.
Tools like the 6-step goal plan on Plan Our Future keep goals, SIPs and the equity, debt and gold mix together, so the yearly review becomes a quick update rather than a rebuild.
Plan Our Future · AMFI-registered Mutual Fund Distributor (ARN-360754). Mutual Fund investments are subject to market risks, read all scheme related documents carefully.