Suitable for whom
- Have excess money to invest for at least one year
- Have preference of getting higher return over market return
- Have tolerance of accepting volatility in return
- Have objective of appreciating investment amount significantly over the long run
- Do not have time, inclination or expertise to manage the portfolio by himself
BetaSMART is an actively managed portfolio that intends to beat the market over long run. In this portfolio, investment is made in value stocks, growth stocks and other financial instruments. To generate higher return, portfolio is comprised of stocks and other financial instruments when market is expected to go up. In other times, when market is expected to go down, most of the stocks are liquidated and cash balance is held. Proper market timing and utilization of short term attractive investment opportunities are the keys to provide excellent return to BetaSMART investors.
Fundamental analysis, technical analysis and quantitative analysis are used to select stocks and to ensure proper timing of trade execution.
DSE Broad Index (DSEX) is benchmark index for BetaSMART. Like any other active portfolio, BetaSMART’s target is to beat its benchmark index. Over the long run BetaSMART is expected to provide higher return over its benchmark. However sometimes in short run BetaSMART may underperform its benchmark.
BetaSMART is a high risk portfolio and is expected to produce high return. It is not unlikely that investor may get back less than his investment at the end of investment period. But loss of entire investment is also unlikely as BetaSMART portfolio does not use margin loan. 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 amount is BDT 2.5 million.
Investment should be made for at least one year. However, investor may maintain his 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.
BetaSMART is a cash portfolio account and, therefore, margin loan is not used in this portfolio.
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.
For managing BetaSMART 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.
Would you like to know more about BetaSMART or other Discretionary Portfolio Services? BetaOne Investments Limited will be glad to inform you further.
Other Discretionary Portfolios are: