Peace of Mind Through Investing: Secure Your Future with an Investment Profile

16 July, 2024

Synopsis

• Setting an investment profile on the HDFC Bank SmartWealth app helps align investments with your risk tolerance. You, thus, get tailored recommendations, which saves you from the problem of choosing funds on your own.

• The app uses a simple 6-question quiz to determine your investment profile, with the flexibility of skipping the quiz or updating your profile, as the case may be.

• Creating an accurate investment profile ensures you receive investment suggestions that suit you, avoiding overly risky or conservative options that are not aligned with your objectives.
  
  

Priya and Rhea are relaxing on a couch on a Sunday afternoon, and the conversation drifted towards financial security. Priya is conservative and prefers minimal risk, whereas Rhea does not mind taking risks for possible high returns for mutual fund investment.

Priya: I know investing is important, but the thought of big losses scares me. How do I invest safely in mutual funds?

Rhea: It's good you're aware of your risk tolerance. The key is to set your investment profile that matches your comfort level. I recommend you explore the HDFC Bank SmartWealth app.

Priya: Investment profile on SmartWealth app, what’s that? How does it work, and why does setting an investment profile matter?

Rhea: It's a simple quiz will determine your attitude towards risk and the SmartWealth app will give all your answers.

Did you know setting an accurate investment profile has many advantages?

• Gets you suitable investment recommendations matching your risk tolerance and capacity.

• It saves you from having to identify funds yourself that align with your comfort level.

• Adjusts automatically if your investment appetite changes over time.

• Ensures you don't end up with investments that are too risky or too conservative for your needs.

• Provides tailored portfolios and SmartJars aligned to your risk preferences.

• Gives you peace of mind that your investments are just right for your appetite.
  
  

Priya: Oh, I see. And then it recommends investments matching that risk level?

Rhea: Exactly! No more guessing which funds are right for you. SmartWealth will suggest suitable mutual fund schemes and portfolios tailored to your profile.

Priya: That's amazing! But how do I determine my profile accurately?

Rhea: SmartWealth app will ask 6 simple questions about your investment appetite, investment horizon, and more. Answer honestly so it can evaluate your tolerance.

Priya: Hmm, but what if I'm unsure about some questions?

Rhea: No problem! You can skip the quiz and directly select a profile if you already know your preference.

Priya: This is so useful! What kind of questions does it ask?

Rhea: Things like what percentage of losses you can withstand, how quickly you need to grow your money, and how you'd react if markets fell suddenly.

Priya: Ah, I see. My answers will clearly show I dislike risk and losses!

Rhea: Exactly, be true to yourself. The quiz is designed to determine your comfort level accurately.

Priya: This is making me feel so much better about investing. One last thing - can I change my profile later if needed?

Rhea: Yes, you can retake the quiz and update your profile anytime on the SmartWealth app. As your situation evolves, your risk appetite may change too.

Priya: Phew, that's the flexibility I need as a first-time investor. Thanks, Rhea; now I feel confident I can invest the right way for me! But tell me how to set up the investment profile?u

Rhea: Sure dear, here are a few tips to set up the investment profile with HDFC Bank SmartWealth:

• Step 1: Login to Your HDFC Bank SmartWealth Account

  • If you're new, register and create an account. Existing users can simply log in.

• Step 2: Navigate to the Investment Profile Section

  • On the homepage, tap 'Investment Profile' under the 'More' section OR tap the 'Set your Investment Profile' within the 'Discover' section.

• Step 3: Take the Investment Profile Quiz

  • You'll see an option to 'Get Your Investment Profile Evaluated.' Tap this and answer 6 simple questions to determine your risk preferences.

• Step 4: View Your Investment Profile

  • Once you complete the quiz, HDFC Bank SmartWealth app will reveal your automatically generated investment profile. As a risk-averse investor, this is likely to be 'Risk-averse' or 'Conservative.'

• Step 5: Adjust Profile If Needed

  • If you feel the quiz did not accurately capture your risk tolerance, simply use the scrollbar to select a more suitable profile.

• Step 6: Check Investment Recommendations

  • Based on your profile, SmartWealth will now suggest mutual funds and other investments matching your risk appetite.

• Step 7: Retake Quiz If Risk Tolerance Changes

  • You can retake the investment profile quiz anytime if your risk tolerance changes. Your profile will be updated accordingly.

Priya: Thanks Rhea. I got what I wanted. Right now, I’m downloading the HDFC Bank SmartWealth App and starting my investment journey.

FAQs

What is suitable for a risk-averse risk profile?

For individuals with a risk-averse profile, maintaining their portfolio's value takes precedence over pursuing high or moderate returns.

Are investors always risk-averse?

Generally, individual investors lean towards risk aversion, displaying a greater concern about losing money than enthusiasm for potential gains.

Disclaimer: This communication has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. HDFC Bank Limited ("HDFC Bank") does not warrant its completeness and accuracy. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument / units of Mutual Fund. Recipients of this information should rely on their own investigations and take their own professional advice. Neither HDFC Bank nor any of its employees shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this material. HDFC Bank and its affiliates, officers, directors, key managerial persons and employees, including persons involved in the preparation or issuance of this material may, from time to time, have investments / positions in Mutual Funds / schemes referred in the document. HDFC Bank may at any time solicit or provide commercial banking, credit or other services to the Mutual Funds / AMCs referred to herein.

Accordingly, information may be available to HDFC Bank, which is not reflected in this material, and HDFC Bank may have acted upon or used the information prior to, or immediately following its publication. HDFC Bank neither guarantees nor makes any representations or warranties, express or

implied, with respect to the fairness, correctness, accuracy, adequacy, reasonableness, viability for any particular purpose or completeness of the information and views. Further, HDFC Bank disclaims all liability in relation to use of data or information used in this report which is sourced from third parties.

HDFC Bank is a AMFI-registered Mutual Fund Distributor & a Corporate Agent for Insurance products.