Client shall enter into Portfolio Management Services agreement with minimum participatory amount of NPR 3
Lakhs. The client can invest but is under no obligation to make further investment. The following products
are available under this scheme.
Prudent portfolio implies greater allocation of fund toward liquid investment with
allocation toward risky securities. A prudent portfolio is appropriate for an investor who is passive,
nearing retirement and emotional. Therefore, conservative investor who is looking for stable return with
lower risk would opt for this product. This product is conventional in the sense that it emphasizes on
passive approach to managing portfolios.
Balanced portfolio entails roughly equal allocation toward risky securities
and lower risk instruments. A balanced portfolio is appropriate for an investor who has the capacity to
bear risk but shies away from taking risk. Such an investor is quick to follow the latest fad and is
interested in preservation of capital. Therefore, moderately conservative investor who is looking for
healthy return but lower risk would go for this product. With regard to the portfolio management approach,
this product places emphasis on semi active approach.
In value growth portfolio, a large chuck of fund is
allocated to value
stocks and a tiny fragment is allocated to cash. This portfolio is appropriate for those investors who
base their decisions on facts and not on emotions. They exhibit trait of independence and are able to
withstand a massive loss in value. Since the focus is on both capital growth and income generation, active
approach is the way to go about managing this portfolio.
The asset allocation in equity growth
portfolio isidentical to that of value growth product but the key difference is that here the emphasis is
on picking stocks with volatile return as
opposed to value stocks. This product is a right fit for investors who are emotional in their temperament
and have high willingness to take risks. Since this product is highly aggressive with key emphasis on
return generation, active approach is pursued in managing the portfolio.
Client shall enter into Portfolio Management Services agreement with minimum...