Investment planning for specific goals is increasingly becoming popular. Your dreams and aspirations can come true if you plan, save and invest in the correct financial instrument. New investors often go through a steep learning curve before they become familiar with the different aspects of investing. There are certain tools available that help investors choose products to obtain their financial goals while also helping them become familiar with the nuances of investing.
Over the years, mutual funds have become popular due to the flexibility, ease of investment and diversification to suit the investor’s aspirations. Mutual funds have evolved and today, a plethora of products are available to suit your needs.
Choosing your financial goals
An important thing to remember is that you should have an overall goal coupled with smaller financial milestones that you would like to achieve within a fixed time frame. This should be your first step before you proceed with your investment.
Before you begin investing, you must fix the amount you are looking to invest, the time and how it will tie into your overall financial goal. You also have to choose between lump sum and monthly investment. However, the most important factor when it comes to investing in mutual funds is time. Shortlisting funds that have performed well historically as well as trying to understand their future performance requires extensive research and analysis which most people are not equipped to do on their own. OneClick Investment by ICICIdirect does that for you.
Investing in Mutual Funds
Think of One Click Investment as your personal financial manager that will recommend products, send alerts and help you invest in a planned manner. Once you enter the investment amount and the mode of investment, the system will display several options consisting of various baskets of recommended mutual funds. The investor can then choose his/her favourable basket.
The product offers various baskets based on your requirements. Largely, they are divided into equity, which tends to have higher risk but also has the potential to create wealth and debt, which provides stable returns year on year. Only those mutual fund schemes that have performed well in the past are included in your basket.
PACEing your investments
ICICIdirect’s One click operates under one acronym i.e. PACE (Performance, Analysis, Customization and Ease). One Click Investment offers ease and convenience of investing. The website clearly displays the past performance of the basket and across SIP and Lumpsum investment.
An interesting aspect of this product is that you can create multiple goals. For example, ‘Travelling the world’ can be one goal, ‘Buying a house’ can be the second. You can do this by creating a separate ‘OneClick Portfolio’. For each goal, the portfolio would be shown separately. The investors will also receive system Customized notification about the change of recommendation from buy to sell.
Portfolios for investment
OneClick Investment allows you to manage your investment any time and the best part is that all the mutual fund baskets are backed by extensive research and analysis. It has a list of portfolios that makes it easier for you to choose the basket for your investment.
- Maximizer: This is the most diverse basket available and it divides your investment into Large-cap, Midcap and Small Cap. This portfolio is recommended to those who are looking for a long-term investment of a minimum of 5 years.
- Builder: This portfolio has a larger percentage of equity schemes coupled with a lower percentage of debt schemes that helps reduce the overall volatility.
- 50-Fifty: As the name suggests, this portfolio has a balanced combination of equity and debt schemes.
- Secure: This portfolio tends to invest in short term debt schemes with decent, stable returns over a short time period.
- Stable: If you are someone who prefers safe investments and wants to begin small, this portfolio is perfect for you. This portfolio has a larger allocation to debt schemes in large-cap funds which tend to give stable returns that are higher than fixed deposits.
- Tax Saving: Here the investment will be made in Mutual fund schemes which are eligible for deduction under 80C of the Income Tax act. This type of Mutual fund scheme is also popularly known as ELSS (Equity-Linked Saving Scheme).
Further, no mutual fund transaction charges are applicable to any investments done through One Click Investment. One thing to note is that you can have only one nominee for one investment basket. However, you can have a separate nominee for a separate portfolio.
Investing in mutual funds and taking a step towards your financial goals is just a click away. Do let me know if you have any questions in the comment section below.
Please note that Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
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This was such a helpful post! Thank you so much for sharing this with all of us!
One thing I regret about investing was I did it too late. I was already 35 when I started but I guess I should be happy that I’ve started. I dabble on some stocks, but I don’t really know much so I invest long-term.
Mutual funds I like because it doesn’t involve work for me. I am not really a money person. But I am a paranoid future person, so I get the need for investing. Thanks for this information.
This is really helpful and easy to understand now. My friends mentioned it to me a few months ago and I got so confused. I like you blog.
This is a useful guide to investing through mutual funds.
very useful post! thanks so much for sharing this. I am absolutely empty headed about investments.. well, not that have money for that
So useful, 👍👍 well explained 👍👍 bitiya ko bataya is barey me
Uske liye helpful hai…thanks for sharing
This is so useful. Thanks for sharing with us!
Thanks for the wonderful breakdown, I was having a tough time understanding the market risks.
Thanks once again.
I really want to try investing, but have always been too scared. This is super helpful and really breaks everything down. Now I just need to bite the bullet and go for it.
It’s best to have a clear view of your goals before you start an investment 🙂
I am terrible at investment so thank you for sharing this.
This is such a nice post and you give all the information that we need to know before investing our money. Thank you!
We have mutual funds and you’re right, you do need to have short and long term goals.
This was an informative helpful post since many of us are probably not investing or saving as much as we should for our old age and retirement.
I have been searching a lot for financial investments and didn’t really think about the longterm and short-term goals, but it makes total sense! Thanks for breaking this all down!
My dad always tells me to invest in MF. Seems like a safe bet.
That’s a really helpful post, thank you! I’ve also been interesting in learning more about the Indian market – seems like a lot of opporunity here especially given it’s emerging status…
Mutual funds is a great way for investment but tax saving is also important.. It’s such a helpful post.
Am not much in MF but will share this with my husband who is in finance background.
I have always been confused of the mutual funds concepts, but this post was so helpful. Thank you.
I don’t know that mutual funds are so beneficial. Thanks for sharing this informative post.
The bottom disclaimer makes me hesitate to invest in mutual funds. However lately I have invested and am happy with the interest rate.
Really very helpful post, always we should have to aware and updated about these detailed information.
MF investment tips in very simple and easy way for a layman to understand.
I am a fan of mutual funds. There is no other better investment option available today than mf. Though I have not invested in ICICI yet. But I LL definitely check out their plans
Such a useful post about investment. I will check about this plan
Mutual funds are great way to invest money and get good returns. It’s always a great way to invest for longer time to get nice results. The post is helpful.
Oh wow such an amazing post! I’m always confused about mutual funds,
This post helped me so much with all the right insights & knowledge!
Thanks ya