Know your financial goals and risk profile potential before investing

Know your financial goals and risk profile potential before investing

Return generation through a mix of dividend income and capital appreciation, primarily through investment in a well-diversified value stock portfolio. However, there can be no certainty or guarantee that the scheme’s investment target will be achieved. You will not receive any dividend. Your investment will get the most significant benefit of compounding.

ICICI Prudential Value Discovery Fund is an equity-value fund and belongs to ICICI Prudential Mutual Fund. It was released on 01-Jan-2013 and now has an AUM of 14,728.88 crores. The ICICI Prudential, Value Discovery Fund, is benchmarked against the NIFTY 50 – TRI as the primary index and the NIFTY500 value 50 as the – TRI as the secondary index. ICICI Prudential, Value Discovery Fund, led by Mrinal Singh and Priyanka Khandelwal.

ICICI Prudential Value Discovery Fund:

  • 87.12% investment in Indian stocks
  • 63.1% is in large-cap stocks
  • 17.48% is in mid-cap stocks
  • 3.43% in small-cap stocks
  • 3.7% investment in Debt
  • 3.69% in Government securities.

The best investment for a medium risk investor

  • If your risk profile is moderate, then you should mostly invest in multi-cap mutual funds. You can also add large-cap mutual funds if you want to reduce the overall risk in the portfolio.
  • If you invest in value-oriented plans, tax saving schemes, small-cap schemes, first, the small-cap scheme does not fit your risk profile. They are intended for active buyers with high risk and volatility tolerance.
  • The ICICI Prudential, Value Discovery Fund, is a value-oriented scheme. For a while, value-oriented schemes endured a rough patch. The ICICI Prudential Quality Discovery Fund has also been underperforming for some time. However, the track record of the plan and the success of the entire group make it difficult to call the plan.
  • It is a medium to the high-risk scheme as an equity scheme so that investors will remain committed to long term gains. The fund has adopted a valuation-conscious stock selection strategy. The fund has taken the little risk of underperformance in fast-paced and growth-oriented markets due to a higher concentration on valuation components.
  • It is a multi-cap fund that invests in available companies at fair or low-intrinsic value. In the current liquidity-driven market, it is essential to avoid stocks with high valuations. Therefore, a scheme of this nature with a simple parameter of selection is suitable for investors, especially if the markets are heading towards a prolonged slowdown.

Know your investment goals before investing

Adopt an investment strategy focused on goals. Identify various financial goals, evaluate the cost of achieving those goals, and provide for annual inflation and taxes to achieve realistic goals.

Invest in bond mutual funds for short term goals. To achieve your long-term financial goals, you can invest in equity schemes that fit your risk profile. Consider hiring a mutual fund manager if you consider it a significant task.

Investors have macro-trend knowledge and prefer to take a targeted risk for higher returns relative to other equity funds. At the same time, even if the overall market is outperforming, these investors should also be prepared for the possibility of moderate to high losses on their investments.

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