- PAC
- Big Chance
- ISS
- Double Chance
- PAF
For clients who can save small amounts regularly
Capital accumulation plan (PAC) allows a client to plan over ten, fifteen, twenty or forty years to accumulate the capital behind any financial goal they may have — buying a holiday home, education for the children, or preparing for retirement.
Regular contributions to a capital accumulation plan (PAC) can help clients invest gradually in equities. Over a longer investment period, reinvested returns may themselves generate returns through compounding. The effect depends on how much and how long you invest, investment performance and fees: ongoing costs reduce the amount left invested and available to compound, and returns are not guaranteed. Contributions are collected automatically, helping maintain a regular schedule even when markets are volatile.
For clients who have already saved or inherited money
Big Chance applies the same disciplined investment principles to clients with smaller lump sums who want not only to preserve the purchasing power of their money, but also to grow it over time.
The initial amount is invested in a low-risk fixed income fund and then automatically phased into equities over a selected period of three, six, nine, twelve or twenty-four months. Investing gradually can ease concerns about choosing the wrong moment and spread purchases across different market conditions. Investing the full lump sum at once gives the money market exposure sooner, which may benefit investors if markets rise, but also exposes the entire amount to market falls from the outset. The right approach depends on your circumstances, time horizon and comfort with risk.
Disclaimer: Investments can go down as well as up and the return upon the investment will therefore necessarily be variable.
For clients whose savings should work harder
The Intelligent Investment Strategy (IIS) is a rule-based approach that phases investments from a low-risk fixed income fund into equities over three, four or five years. It adjusts the investment schedule to market movements: after market falls, it increases the amount invested; when gains reach predefined levels, it transfers part of the gains to lower-risk holdings. These rules do not prevent losses or guarantee returns, and the value of investments can fall as well as rise.
A pre-planned subscription into chosen funds over a set period, with the lump sum held in a dedicated account and transferred in equal amounts on a fixed schedule.
A savings plan designed for younger investors, with smaller amounts, more flexible conditions, and the ability for family members to contribute.
For over forty years Mediolanum has delivered a proven method based on compounding, the cost averaging method, and multi-manager investment funds. What differs between the services is the client situation, not the thinking.
Investing the same amount at regular intervals means buying more units when prices are low and fewer when prices are high. This cost-averaging approach can spread purchases across different market conditions and reduce the risk of investing the full amount at a market peak. Over a longer time horizon, reinvested returns may also earn returns through compounding. Results depend on market performance, fees and how long you invest; losses remain possible.
Automation can help maintain a consistent investment schedule during market uncertainty, when emotions may make decisions harder. It does not mean you should continue investing regardless of your circumstances. Review your time horizon, cash needs and tolerance for risk, and consider whether your plan still suits your goals. Investments can fall in value, and you may get back less than you invest.
Disclaimer: Past performance may not be a reliable guide to future performance. An investment can go down as well as up and that the return upon the investment will therefore necessarily be variable.
Three monthly contributions of €100: two units bought at €50, one unit at €100, and four units at €25.
| Month | Price | Units |
|---|---|---|
| 1 | €50 | 2 |
| 2 | €100 | 1 |
| 3 | €25 | 4 |
€300 invested, seven units held — an average cost well below the simple average of the three prices. Buying more when prices are low is what produces that.
Source: Mediolanum International Funds Ltd.
Disclaimer: This table is intended solely to demonstrate how investing a fixed amount at regular intervals may affect the average purchase price where market prices fluctuate. It is based on hypothetical figures and assumptions and does not represent the actual or expected performance of any investment, product or strategy. Cost averaging does not assure a profit or protect against loss: investors may purchase more units when prices are lower and fewer units when prices are higher, but the value of the investment can fall as well as rise and investors may receive back less than the amount invested. The outcome will depend on matters including the timing and frequency of contributions, market movements, the investment period and any applicable costs, charges, taxes and currency movements.
These investment services let you serve more clients with ease, through personalised solutions at every investor level. The automated engine works on your behalf, managing client investments seamlessly in the background and giving you back the most valuable asset you have: time.
Time to meet new prospects. Time to deepen trust with existing clients. Time to grow your business. With less administration and more meaningful client engagement, you can focus on what truly drives success for you and your clients.