PAC ING, Is it worth it? Opinions and Features on the Accumulation Plan

Do you want to start investing and are you interested in one accumulation plan? Your consultant has offered you the PAC ING and now you want to know how it works, what are its costs, advantages and disadvantages?

If so, then you are in the right place because today we will try to understand together the characteristics of the PAC ING, if you are thinking of allocating your money here rather than leaving it in your current account.

My he PAC ING could it be a good solution for you?

Let’s start!

A few words about ING Italia

Before starting I always like to present theinstitute that offers you the investment or the products.

ING Italia is part of ING Groupan original banking group Dutch which can count on a customer base made up of over 40 countries in Europe, North America, Latin America and Asia. It is present in Italy with both retail banking and wholesale banking activities, and employs more than 1,000 people.

They base their way of banking on some important values: innovation, sustainability and a clear language.

It has been present in Italy since 2001, with the brand ING Directand to date it is one of the leading online banks by number of customers, with a volume of assets exceeding 21 billion euro.

His to date offer is really broad, since it offers payment services, savings, mortgages, investments, loans and insurance services.

The bank operates through i digital channelssuch as web apps and mobiles but still offers its customers a telephone service and 23 physical points.

Some information on the PAC

Let’s see now so a PAC.

And accumulation plan it’s a investment solution designed for an investor who is looking for a way to invest his money gradually, through periodic payments of the amount of his choice and frequency of his choice.

Il PAC in fact it offers you a lot of freedom in choosing the investment: you can decide to pay once a month, every two, every three, or once a year and you can decide the amount of your capital.

In this case, the amounts you choose to invest will flow into one or more mutual funds and at the end of the investment (provided you do not follow the path of disinvestment before expiry) you will receive your capital increased by the interest accrued during the period of time.

We will soon see how it works PAC proposed by ING, but first I invite you to read this section of the blog where I tell you about mutual funds.

If you still have any doubts about the PAC and to his strategyI also invite you to consult the general guide on the accumulation plan.

He cap ing

ING offers you the possibility to build your capital investing your money in small numbers.

The service is completely freeso you will have no expenses of any kind.

It is a customizable service, given that you can decide how much to invest and for how long to do it, based on your choices and above all on your ability to save.

It is 100% flexible: you can activate it whenever you want, starting from 20 euros a week and you can interrupt or modify it whenever you prefer.

If you set up your PAC today then you won’t have to think about it anymore: furthermore, by investing with small amounts you can buy the shares at different prices, more or less low, thus obtaining a better average price.

How to activate it

Il accumulation plan is reserved for those who own a do-it-yourself and for those who own a orange current account.

To subscribe to a capital accumulation plan, simply enter your private area by entering the access codes and required data, and then you can choose the fund of your interest.

You can then start subscribing to the fund of your choice, and finally select “tax cap” among the various purchase options available.

I would like to understand how to divest, is it possible?

If after subscribing to a PAC you realize that the investment is no longer profitable or that it might be more convenient for you to divest, you will certainly want to know if it can be done and above all what costs and penalties a similar decision entails.

For this I want to warn you: the road to divestment it should be traveled only after the appropriate checks, and after having read and considered all the information on the KID funds and/or on the official website of the bank or platform that makes the PAC available to you.

Before opting for this solution it is better to evaluate the exit costs, and understand if you really should opt for this and therefore pay the exit costs or if instead it is better to wait and keep the investment a little longer, waiting for times best.

If you want to learn more about this topic, you can read this guide.

Costs

As we have already mentioned before, there are none entry or exit costsand best of all, there are no overperformance fees either.

You can also make switch at no cost.

However, the costs come with the fund management: since to build the PAC you will invest in investment funds, they will have management costs, which in the case of mutual funds that follow active management could fluctuate between 1.50% and even reach 3%.

In this regard, I invite you to read in detail the KIID of the background or of the funds that you are going to choose for build your own CAP.

Is it worth investing in these products? My Business Opinions

Now that we’ve analyzed the PAC at ING and we understand how it can be activated, let’s try to understand if it is a useful and convenient tool for you.

Il accumulation plan ING it’s quite simple to build, it’s really a very simplified procedure.

It is then up to you to choose which fund or what funds insert in your PAC, decide how much to pay and how often to do it.

Naturally, given that there are no real costs of opening and maintaining the PAC itself, the main problem falls on the costs related to the active management of mutual funds.

Perhaps you have already understood that I am a fan of these tools, and to show you that they have some significant critical issues I invite you to read this insight into active management.

Il PAC is suitable for an investor who is looking for a long-term investmentwho takes the time to watch his capital grow and to exploit, in most cases, the power of compound interest.

If you opt for a PAC of long durationof course i returns will be greater, and therefore the interest that will accrue at maturity will be more and your return on investment will become much more interesting.

In my opinion therefore the PAC is undoubtedly one investment strategy very interesting, suitable for anyone who wants to start investing, even without having who knows what important figures. In fact, we have seen that you can also start with 20 euros.

However, I would like to tell you one thing: a PAC can also be built with other instruments, other than mutual funds, which in my opinion have very high management costs.

For example, if you wanted you could opt for a CAP to be built with ETFspassively managed funds that have truly lower, more comfortable and more transparent costs.

I hope this guide has been useful for you to be able to evaluate the savings plan proposed by INGand above all that it helped you to clarify your ideas on this investment strategy.

Additional useful resources:

Before saying goodbye, I would also like to leave you some useful resources with which you could start an investment journey based on your knowledge and the characteristics of your risk profile:

Good continuation on My business!