MAXCAP

MAXCAP is a personalized discretionary investment account designed for individuals and institutional clients including gratuity, provident funds. IDLC Investments Limited, your Portfolio Manager, will follow a disciplined investment process and structured approach to build your portfolio, tailored to your specific needs and constraints.

Key Features

Minimum Investment Amount: BDT 5 Lacs
Minimum Investment Horizon: 5 (Five) Years
Asset Class: Treasury Bonds and/or Equity Securities

Where to Invest?

Your Portfolio Manager will invest in Treasury Bonds and/or Equity Securities approved by the Bangladesh Securities and Exchange Commission and/or Bangladesh Bank.

Bangladesh Government Treasury Bond:

Treasury bond is a government issued instrument that is risk-free in nature. It offers fixed return, tax rebate benefits and has the potential of capital gain/loss. Key Features are:

Treasury bonds are considered risk-free assets as they are backed by government.
Maturities are available for 2, 5, 10, 15 & 20 years.
Coupon is paid in every six months and the principal is repaid on maturity.
Tradable in the secondary market.
Tax Rebate opportunities are available for Individual Investors.

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.

Reporting

Quarterly portfolio and transaction statements will be given. Although, clients can access his/her weekly portfolio from our web portal (https://i-trade.idlc.com/)

Fees and Charges

Account Opening Fee: BDT 500
Management Fee *: 2.50% p.a. on market value of securities (For equity Investment), 1.00% p.a. on investment amount (for Treasury Bond Investment)
Settlement Fee: 0.35% on transaction value (for equity investment only)
Early Exit Fee: Not Applicable
Out of Pocket and Third Party Charges (Central Depository, SMS charges etc.): At actual basis

* Accrued daily charged quarterly
* Subject to change at the discretion of portfolio Manager

Required Documents

1 Passport Size Photograph of Applicant and Nominee each
Photocopy of National ID (Applicant and Nominee). In case the nominee is minor, a document of guardian must be provided by the applicant
Cheque Leaf/Bank Statement/Bank Certificate
Photocopy of Employee ID Card/Letter of Introduction from Employer/Visiting Card/Approval of Operational Head (if Applicant is a service holder)
Trade License (if Applicant is a business person)
12 Digit Tin Certificate (Optional)

Contact Person's Information

Hotline Number: +880170 8457025 (9.30 AM to 4.30 PM on working days)
Mostafa Khalid Mahmud Rubel, CFA: +8801313 792681
Imrul Hasan : +8801302 609801

“Capital market investments are subject to market risks and there is no assurance or guarantee that the objective will be achieved. However, As fund manager, IDLC will follow a disciplined and structured investment process to reduce the risk of market volatility.”

FAQ

What is MAXCAP?

MAXCAP is a personalized discretionary investment account for individuals and institutional clients. IDLC Investments Limited-your portfolio manager, will follow a disciplined investment process and structured approach to build your portfolio, tailored to your specific needs and constraints.

Who Can Invest in MAXCAP?

 Any Bangladeshi Individual (over 18 years old)
 Institutions/Provident fund

Why should I invest in stock market?

 Possibility of higher return from long-term investment. Return of Fixed Deposit just covers the inflation.
 Allowed for Tax rebate
 Capital gain is totally tax exempted for individuals

Why should I invest in stock market through IDLC?

 16 Years’ strong track record with 16% simple average return
 Achieved 24.2% return in 2020 and 22.5% in 2021
 The ‘Investment Committee’ comprises of fund managers who have more than 20 years’ experience in local capital market

What will be the investment horizon?

The ideal investment horizon will be 5 years. Investing over a long time horizon in selected blue chip stocks will minimize downside risk and ensure better return in bearish and bullish spell.

Where will the fund be invested?

Your Portfolio Manager will invest in Treasury Bonds and/or Equity Securities approved by the Bangladesh Securities and Exchange Commission and/or Bangladesh Bank.

Please explain me the Tax Rebate issue.*

Individual capital gain is tax exempted. You can get 15% tax rebate by investing 20% of your total taxable income. You may claim rebate up to BDT. 10.00 lac.

FDR/DPS assures me fixed return; can you assure me certain return?

For investment in Treasury bond, you will get fixed return until maturity at the rate of coupon of that bond. Thus, fixed return is possible through investing in Treasury bond.

On the other hand, it is not possible to assure any kind of return in stock market like FDR/DPS; but IDLC has 16 years’ strong track record of generating average return of 16%.

Is there any probability of loss?

For investment in Treasury bond, you will get fixed return until maturity at the rate of coupon of that bond. In case of early encashment before maturity, capital gain or loss may be arisen depending on interest rate scenario.

Capital market investment is subject to market risk and there is probability of loss. However, IDLC follows research based disciplined investment process to maximize your return.

When will I get portfolio and transaction statements?

Portfolio and transaction statement will be sent to the clients on quarterly basis (April, July, October, and January) through E-mail. Although, clients can access his/her weekly portfolio from our web portal (https://i-trade.idlc.com/)

Will the charges be deducted from my portfolio account?

Yes. The charges will be deducted from the account time to time. You do not need to make any payment for fee and charges separately.

What will happen after expiry of the scheme?

The account will be renewed after expiry of the scheme with no time bar unless client requests for closure. Total asset value of the portfolio will be paid to client at the time of closure.

What will be the payment procedures to clients?

Preferred payment mode to clients is BEFTN (Bangladesh Electronic Funds Transfer Network)/RTGS (Real Time Gross Settlement).

What will be the investment strategy of this scheme - “Buy and Hold” or “Frequent Trading”?

IDLC will follow mostly “Buy and Hold” strategy.

Can I withdraw any fund from the investment?

You can withdraw your investment at any time without any sort of charges. It may take minimum 5 (Five) working days to transfer the amount.

What happens when I request to close my account?

After receiving the closure request from investor, your portfolio will be liquidated at market price and the fund will be handed over to you at your preferred method within 5 working days. If there is any receivables, like dividend or refund from IPO application, maximum withdrawal will be processed within 5 working days. The rest of the amount will be transferred after getting the receivables from respective company.

Is there any lock-in period?

There is no lock-in period but we strongly suggest you invest for a long time horizon at least for 5 years.

Who will bear the risk?

As a client of "MAXCAP" you need to withstand the risk of volatile portfolio performance. However, your portfolio manager will be responsible for undertaking diligent risk control measures. Once bought, interest rate will be fixed for the remaining tenure in case of Treasury bond.