Cap Investment

Cap Invest is an Investor's Discretionary Account that provides margin loan facilities to the investors:

Major Services

  • Extending margin loan facilities to enable investors to earn enhanced return
  • Registering the securities, and collecting dividends and bonus shares
  • Subscribing to the rights issues
  • Completing dematerialization process
  • Keeping the securities in safe custody

Major Characteristics

  • Cap Invest clients will have absolute discretionary power to make their own investment decisions. IDLC, the Portfolio Manager, will provide all support for efficient execution of the trades.
  • Clients will be allowed to invest only in the securities carefully selected and approved by the Portfolio Manager.
  • The Portfolio Manager will extend Margin Loan to the clients to facilitate enhancement of their return on investments through leveraging
  • All the securities purchased for the clients shall remain in lien in favor of the Portfolio Manager.
  • Clients will have access to various research materials on market, industry and companies prepared by the independent research team of the Portfolio Manager.
  • Investment in "Cap Invest" will be considered allowable investment for obtaining tax rebate. Additionally, capital gains from investments are currently completely tax-exempt.
  • Clients can place Trade Orders through Internet/SMS/Mobile Application

Key Features

  • Minimum Investment Amount: Taka 1 Lac *
  • Margin Loan Amount: Maximum 0.50% * of client's equity, but not exceeding Taka 80 Million. However clients below 1 million investments will be allowed at 0.5% loan of their respective equity.
  • Mark to Market (MTM)* : MTM is a gradual adjustment process to protect clients equity level. If equity level drops, deposit or partial sell will be required by the next working day to raise it. Any account having Equity to Debt ratio (E/D ratio) below 30% will be auto adjusted through daily Mark-to-Market (MTM).
  • Margin Call: In the event of the client's equity falling below 50% of the total debt liability, the Portfolio Manager will call for additional margin deposit from the client to maintain the stipulated equity to debt ratio of the given loan ratio

* Subject to change at the discretion of portfolio manager

Fees and Charges *

  • Documentation Fee: Taka 500 (one off)
  • Management Fee:
    Client's Equity Level
    Taka 10 Million and above
    Below Taka 10 Million

    Management Fee
    At 1.00% pa, charged quarterly
    At 1.50% pa, charged quarterly
  • Interest on Margin:
    Client's Equity Level
    Taka 30 Million and above
    Below Taka 30 Million

    Applicable Interest Rate
    At 14.25% pa, charged quarterly
    At 14.75% pa, charged quarterly
  • Settlement Fee: 0.35% on Transaction Value
  • Out of Pocket and Third Party Charges (Central Depository, SMS charges etc.): At actual basis

* Subject to change at the discretion of portfolio manager

Fees and Charges* for MAXCAP

  • Documentation Fee: Taka 500 (one off)
  • Management Fee: 2.50% p.a. on the value of the securities, charged on a quarterly basis
  • Settlement Fee: 0.35% on the transaction value
  • Early Exit Fee (within 1st year of investment): 0.50% on the withdrawal/closing amount
  • Annual CDBL account renewal fees: BDT 500

* Subject to change

Fees and Charges for Cap Invest

  • Documentation Fee: Tk. 500/- (one off)
  • Management Fee:
    Client's Equity Level Management Fee
    Taka 10 Million and above At 1.00% pa, charged quarterly
    Below Taka 10 Million At 1.50% pa, charged quarterly
  • Interest on Margin:
    Client's Equity Level Applicable Interest Rate
    Taka 30 Million and above At 16.25% pa, charged quarterly
    Below Taka 30 Million At 16.50% pa, charged quarterly
  • Settlement Fee: 0.35% on transaction value
  • Out of Pocket and Third Party Charges (Central Depository, SMS charges etc.): On actual basis

* Subject to change

Fees and Charges for Brokerage Services

  • Brokerage Services: Nominal Brokerage fee up to 0.40%
  • CDBL Charges: At actual
  • Research Services: Upon subscription
  • Custodial Services: At actual

Please refer to Forms and Documents for Investment to download forms and know about required documents
To know more about Cap Invest, please contact us at merbank@idlc.com or call us at +880 (2) 957 1842
For more information on our other products, please contact our relevant department.

Forms and Documents

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