Provide details of your goals - description, amount & time-period. Enter expected rate of return from your investment
An average monthly investment amount is suggested basis details provided. Basis your inputs, system creates a master for expected portfolio value at each monthly installement.
Define the maximum amount that you wish to invest each month. Select a scheme and date of investment and confirm your order.
Depending on NAV fluctuations in the invested scheme, varying amount gets invested each month - ensuring that you stay on course to achieve your goal in defined time-frame.
“Target Investment Plan really helps in achieving goals. I have achieved my goals in the past using TIP and continue to invest through it for my upcoming goals like buying a house & retirement.”
– Seasoned investor, Investing with ICICIdirect for 16 + years
“It is a very helpful tool for reaching goals. I prefer TIP for my short and medium term goals. It saves me from hassles of tracking the markets levels by intelligently varying investment amount.”
– Seasoned investor, Investing with ICICIdirect for 16 + years
“Target Investment Plan is best suitable for investors like me who want to achieve goals within a time period and are willing to invest variable amount on a monthly basis.”
– Seasoned investor, Investing with ICICIdirect for 10+ years
In Mutual Funds login section, select Place TIP and click on Create a Target Investment Plan
Provide the details of your goal, expected returns from investment & click on Proceed
Select a scheme, investment date and provide maximum investment amount. Provide other details, click on proceed & confirm to set up TIP
Target Investment Plan is a well-designed investment plan can help you achieve your financial goals by aligning your investment strategy within the time frame required to reach your goal.
The Target Investment Plan (TIP) offers to create a simple process that helps an investor to achieve a specific medium to long-term financial goal. The plan helps to achieve the target amount of the goal on a given time frame and budget of the customer.
TIP works on an innovative and intelligent investment strategy that is similar to Systematic Investment Plan (SIP) in terms of a regular periodic investment, but differs in the amount invested in each installment.
Let us take an example to understand the concept. In TIP you start by setting a target amount and an expected growth rate over the period of achieving the target. The longer the period the better is the opportunity to achieve the desired target amount.
Let's take an example to simplify the understanding:
Suppose you have a child who would study Medical after say seven years and if his/her fees to be paid at that time would be say around Rs.10 Lacs, you can start with your Target amount as Rs.10 Lacs.
The duration of the investment would be seven years and you expect the investments to grow at an expected rate of return of 12%.
| Target Amount | 10 Lacs |
| Expected Return | 12% |
| Duration | 84 months |
| Average Investment Amount | (Rs.) 7700 |
| TIP Dates | Opening Portfolio Rs. | Monthly installment Rs. | Closing Portfolio Rs. | Closing Portfolio Rs. |
|---|---|---|---|---|
| 7th March 2018 | 0 | 7700 | 7700 | This is the first installment |
| 7th April 2018 | 7000 | 7000 | 15500 | Portfolio Value went down from Rs.7700 to Rs.7000. Hence the monthly installment amount went up from Rs.7,700 to Rs.8,500 |
| 7th May 2018 | 17000 | 6300 | 23300 | Portfolio Value went up from Rs.15500 to Rs.17000; Hence the monthly installment amount went down from Rs.7700 to Rs.6300 |
| 7th June 2018 | 22000 | 9300 | 31300 | Portfolio Value went down from Rs.23300 to Rs.22000; Hence the monthly installment amount went up from Rs.7700 to Rs.9300 |
| 7th July 2018 | 33000 | 6300 | 39300 | Portfolio Value went up from Rs.31300 to Rs.33000; Hence the monthly installment amount went down from Rs.7700 to Rs.6300 |
As shown above, against your total investment of Rs.38100/-(Sum of monthly installments in 5 months), your current portfolio stands at Rs.39300/-
The plan thus establishes the target portfolio value by periodically calculating the investment amount, and bridging the gap between the target value and the actual portfolio value.
First investment amount: Your first investment amount would be Rs.7700/- which is equal to the average amount of investment.
Yes, you can cap your maximum amount of installment amount when you set your TIP. In TIP, if your investments do well, you only need to invest less and if your investments do poorly, you need to contribute more, only to the amount capped by you during the set up.
The following are considered while computing monthly TIP
a) Corpus desired (Rs.) = 1 Lac to 10 Crore
b) Required Return (%) = 6%, 9%, 12%, 15%, 18%, 20% and
c) Investment duration (Months) = 12 months to 300 months
No. To help you achieve and monitor the plan, a New Folio will be created.
Subsequent purchase would be calculated on a monthly basis five working days prior to purchase/installment date.
Yes, you will get an email giving you details of amount that would get debited and the date on which the same would be done.
The follow-up investment amount will be the calculated investment or the minimum additional purchase amount, whichever is higher.
Yes, you can cancel your TIP subsequent purchase request/installment, but based on the Target Amount, the subsequent month's amount purchase/installment amount will be higher. This is to help bring the investments in line with the Target amount and expected rate of return.
No, you cannot change the details of a TIP once set up, you may choose to start a new TIP in case of any changes.
Yes, you can redeem your TIP but before doing the same you should cancel the TIP. Post redemption, TIP would be discontinued. You cannot redeem a part of the TIP amount. Please note that any redemption (offline/online) would cancel your TIP. You may choose to start a new TIP to continue investing.
No. Switch in and Switch out are not applicable under TIP.
The plan's main benefit is that it eliminates the need for an investor to consider if now the correct or wrong time to invest is. All the investor has to do now is stick to the plan, safe in the assurance that his or her investments will assist him or her reach the target amount in the timeframe and at the desired rate of return.
To view the details of your TIP purchased online visit the TIP Book of the Mutual Fund section of your ICICIDirect trading account.
ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund related services are not Exchange traded products and I-Sec is just acting as distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.
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