Suitable for whom

  • Have excess money to invest for at least one year
  • Have preference of getting attractive return over bank’s fixed deposit interest rate
  • Have objective of investing in stocks with low risk
  • Have tolerance of accepting volatility in return
  • Do not have time, inclination or expertise to manage the portfolio

Management Style

BetaPRUDENT portfolio is managed through investing in stocks with low risk and to provide attractive return, which is expected to be higher than bank’s fixed deposit interest rate. BetaOne Investments Limited follows both top down and bottom up approaches to select low risk stocks. While forming portfolio for its clients, BetaOne evaluates market condition and analyses sector attractiveness to construct the most suitable portfolio. BetaOne maintains a universe of stocks with low risk and updates it regularly. Investment of BetaPRUDENT is made within this universe and for quit long period. Short term volatility of BetaPRUDENT is lower than market volatility.

Investment Analysis

Fundamental analysis, technical analysis and quantitative analysis are used to select stocks and ensure proper timing of trade execution.

Benchmark

BetaPRUDENT intends to provide higher return over bank’s fixed deposit interest rate. It is expected that BetaPRUDENT will significantly outperform bank’s fixed deposit interest rate over long run.

Risk

BetaPRUDENT is the lowest risky among the actively managed portfolio of BetaOne Investments Limited. But, it is not unlikely that investor may get back less than his investment at the end of investment period. However, potential risk of BetaPRUDENT is lower because of its long term investment in safe stocks. To manage risk properly, a dedicated risk management department works carefully and efficiently to manage all types of investment risks. Through proper diversification, asset allocation, liquidity management, volatility analysis etc. unreasonable risk of the portfolio is professionally managed and eliminated.

Minimum Investment

Minimum investment amount is BDT 2.5 million.

Investment Horizon

Investment should be made for at least one year. However, investors may maintain their investment for his entire life. If the time horizon is long, the portfolio has more time to recover short term loss and the client may enjoy attractive return from his portfolio.

Margin Loan

Margin loan brings high volatility in a portfolio. Being a defensive portfolio, BetaPRUDENT does not use margin loan.

Withdrawal Mode

Investor may withdraw his entire investment with return, either positive or negative, at the end of one year. However, he may maintain his investment for more time if he wishes. In case of necessity, investor may even withdraw his money, fully or partially, before the end of one year. In this case, early withdrawal fee of 0.5% will be charged on his withdrawal amount.

Fee Structure

For managing BetaPRUDENT portfolio, BetaOne Investments Limited charges management fee of 2.5% per annum on asset value of the portfolio. Asset value of portfolio is decided by market value of the portfolio. Management fee is charged monthly. Other than management fee, transaction and settlement fee is also charged @ 0.40% on transaction value.

Interested?

Would you like to know more about BetaPRUDENT or other Discretionary Portfolio Services? BetaOne Investments Limited will be glad to inform you further.

 

Other Discretionary Portfolios are: