Understanding your risk appetite
Understanding your risk appetite
Do note that your potential returns would be determined by your asset allocation, which in turn is determined by your risk appetite. If you need help with determining your risk tolerance, have a look at some profiles below.
| Potential for Capital Growth | Expected Volatility | Expected potential returns | Investment objective | |
|---|---|---|---|---|
| Risk Averse | Low | Low | Low | Focused on portfolio preservation / stability with some income generation |
| Conservative | Low – Medium | Low – Medium | Low – Medium | Focused on a modest level of portfolio appreciation with minimal risk or volatility |
| Balanced | Medium | Medium | Medium – High | Focused on a balance between portfolio stability and appreciation, willing to take some risk to generate higher returns and capital growth |
| Aggressive | High | High | High | Strongly focused on generating high returns and willing to accept large fluctuations in your portfolio performance, willing to take high risks including a leverage on your assets to improve your potential capital growth |
Understanding the difference between SIP and Lumpsum investments
Why SIP (Systematic Investment Plan)?
A SIP is an investment route offered by mutual funds wherein you can invest a fixed amount into a particular mutual fund scheme periodically (say every month or every quarter) instead of making one large lump-sum investment.
There are several advantages of a SIP:
- Get disciplined: Make investments periodically to achieve your dreams
- Start small, think big: You can start investing as low as Rs. 100 only every month but still benefit from compounding
- Tough to time: Timing the market is very difficult, with SIPs you don’t have to!
- Skip the Stress: Skip investing in any month or quarter if funds are tight
- Add on when you want: It is easy to start another SIP if you have more funds
Get disciplined: Make investments periodically to achieve your dreams
Start small, think big: You can start investing as low as Rs. 100 only every month but still benefit from compounding
Tough to time: Timing the market is very difficult, with SIPs you don’t have to!
Skip the Stress: Skip investing in any month or quarter if funds are tight
Add on when you want: It is easy to start another SIP if you have more funds
Why Lumpsum (one-time significant cash outflow)?
Why Lumpsum (one-time significant cash outflow)?
A lump-sum investment is when an investment in
mutual fund is made at one go as is. The investment amount is usually larger and not made
at regular intervals. The rest of the information can be shown in the form of three bullets as
below:
One-time cash outflow you would make at your own discretion
Allows you to buy more units at lower prices during market lows, allowing you to potentially generate higher returns.
A good option for you if you have some knowledge about market cycles!
Look out for market information
- Keep an eye on information across products to help you make an informed decision
Investment within minutes
- Seamlessly invest in more than XX mutual funds from more than XX leading AMCs via SIP or lumpsum investment
- Use your existing bank account or open a new one with ICICI
- Invest in equities, bonds, fixed deposits, and customised PMS with ICICI Direct
Review your portfolio
- Access comprehensive reports on your portfolio to gauge your performance including P&L, XIRR and more!
1
Look out for market information
Keep an eye on information across products to help you make an informed decision
2
Investment within minutes
- Seamlessly invest in more than XX mutual funds from more than XX
leading AMCs via SIP or lumpsum investment
- Use your existing bank account or open a new one with ICICI
- Invest in equities, bonds, fixed deposits, and customised PMS with ICICI Direct
3
Review your portfolio
Access comprehensive reports on your portfolio to gauge your performance including P&L, XIRR and more!