Capital Protected Scheme

"Capital Protected Scheme" is a discretionary portfolio management service where IDLC Investments Limited will manage your fund and take all investment decisions. This is a specific structured product that includes a capital guarantee of the initial investment amount up to a set percentage (100%).

Key Features

 

  • Minimum Investment Amount : Individual/Corporate : BDT 10 Lacs
  • Minimum Investment Horizon: 4 (Four) Years & 3 (Three) Months
  • Margin Loan Facility : N/A

Investment Process

Your Portfolio Manager will adopt a clear and transparent investment process in terms of portfolio composition, stock selection, trade execution, monitoring and rebalancing.

The investment process has been carefully designed to ensure:

  • Independent professional judgment and responsibility in each area of decision making
  • Elimination of all sorts of conflicts of interest
  • Fair dealing and objectivity in every transaction
  • Compliance of law and other fiduciary duties

Investment Approach

We adopt a Top-Down Approach to determine appropriate sector allocation and security selection to build your portfolio. We use both fundamental and quantitative analysis for managing the investments.

Investment Style

Your Portfolio Manager will focus on achieving long term returns at a reasonable risk through active management of your portfolio.

Where to Invest?

Your Portfolio Manager will invest only in capital market securities (both debt and equity) approved by the Securities and Exchange Commission and/or Bangladesh Bank. In order to protect the capital and increase the profit potential, funds may be invested, as a defense strategy, in quoted/unquoted debt securities, depository instruments, or fixed deposit accounts.

Risk Aspect

Prospective investors of “Capital Protected Scheme” account should appreciate that portfolio investment in capital market is subject to certain risk factors, as detailed below, which are not necessarily exhaustive or mutually exclusive:

  • Portfolio return is significantly dependent on the macro economic situation and the capital market in particular.
  • Lack of liquidity and extreme price volatility may significantly impact portfolio performance. Due to lack of adequate number of securities, the portfolio may not be optimally diversified. Moreover, strong positive correlation among the equity securities also greatly limits the diversification benefits.
  • Appropriate balancing between different asset classes may not be achieved due to absence of an active debt market.
  • Despite careful selection of stocks, the companies may fail to provide expected dividend or make timely disbursements.
  • The value of the portfolio assets may be affected by uncertainties such as political or social instability, adverse climatic condition, and change in any law or regulations of the territory etc. Such risk exposure may limit your portfolio’s ability to achieve its stated return objective.

What is guaranteed?

As a client of "Capital Protected Scheme", irrespective of market condition, your principal investment amount will be 100% secured. On top of that, you will have all the benefits of the bullish market trend and even in the current market condition you can expect a sustainable growth on your portfolio in the long term.

Risk Control Measures

To control volatile portfolio performance, your Portfolio Manager will judiciously apply various risk control measures. The primary paradigm of risk control has been described below:

  • First, the Portfolio Manager will set appropriate limits on downside shortfall in securities, industry and portfolio levels
  • Second, the Portfolio Manager will try to minimize risk by selecting fundamental and potential securities and achieving adequate diversification
  • Finally and most importantly, the Portfolio Manager will continuously monitor the performance of your portfolio and the capital market conditions. Your portfolio will be actively balanced in line with the changed market scenario, if it is deemed prudent.

Reporting

Semi-annually portfolio and transaction statements will be given.

 

Fees and Charges *

  • Account Opening Fee: BDT 500
  • Management Fee: 1.50% p.a. on market value of securities, charged quarterly
  • Settlement Fee: 0.35% on transaction value
  • Early Exit Fee (within tenor): 2.00% on the withdrawal/closing amount

Out of Pocket and Third Party Charges (Central Depository, SMS charges etc.): At actual basis

* Subject to change at the discretion of portfolio Manager

 

Contact Person's Information

  • Mohammad Nayem Uddin: +8801730 374571
  • Abir Hussain Talukdar: +8801708 803430
  • Mahmudur Rahman : +8801700 707606
  • Ashraful Islam : +8801700 707607

 

Please refer to Forms and Documents for Investment to download forms.
To know more about DPM products and services, please contact us at dpm@idlc.com or call us at 16409, +8809609994352.

Forms and Documents

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