Margin Account
Margin— Self-Directed (Non- Discretionary Account)
It’s a fully non-discretionary portfolio account where the accountholder will have the option to avail margin loan facility. The investors will operate his account at his own discretion. Portfolio Manager will act only according to the client instruction and ensure all management services related to the account. Nothing shall bind portfolio manager to any consequences resulted from any decision made by the Account holder, under this scheme.
Eligibility to open the Account
Any Bangladeshi over 18 years of age is eligible to open an account under PrimeInvest program. Every two persons can open maximum of three Self-Directed Accounts — two in their individual name and the other in joint name.
Salient Features
- Any Client may choose to open an Account from the different types of products/services under Prime Invest program to invest in securities.
- Client has to sign an Agreement with the portfolio manager. The portfolio manager shall carryout operation as per the agreement.
- The client shall have absolute discretionary power to make investment decisions and may from time to time instruct portfolio manager to execute such investment decision(s) for and on his behalf.
- The client shall have the option to avail margin loan under “Margin Loan Policy” of the Bank.
- The client shall be eligible to purchase only the securities from the “list of securities” approved by the Portfolio Manager.
- An individual client shall be allowed to appoint 1 person to act on his behalf.
- An institutional client shall be allowed to appoint maximum 3 persons to act jointly or individually on its behalf.
- The Client shall give “Power of Attorney” to the portfolio manager to perform portfolio management activities as per direction/instruction of the client.
- The portfolio manager will ensure custodian service, brokering service, and all other services required to manage portfolio of the clients.
- Portfolio manager shall maintain records of all individual clients separately.
- The client shall have the option to avail "assisted service" facility from the portfolio manager on payment of service charge.
- The client will be allowed to withdraw fund from the account up to 40% excluding all dues and charges subject to have positive purchase power.
- Portfolio manager will ensure all corporate entitlements of the clients and timely collection of the same.
- The portfolio manager is entitled to recover various charges and fees from the Investor as agreed by both parties including brokerage on buy and sale value of securities, necessary stamp duty and other expenses for transfer of securities, portfolio fees and other relevant charges as shown in the financial account of the Investor.
Eligible Products
- General
- Silver
- Gold
- Platinum
- Prime
| Particulars | General | Silver | Gold | Platinum | Prime |
|---|---|---|---|---|---|
| Minimum Deposit | 50,000 | 500,000 | 2,500,000 | 7,500,000 | 20,000,000 |
| Maximum Deposit | 4,99,999 | 19,99,999 | 49,99,999 | 1,99,99,999 | No limit |
| Retention Amount | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
| Particulars | General | Silver | Gold | Platinum | Prime |
|---|---|---|---|---|---|
| Documentation Charge (one of) | 500 | 500 | 500 | 500 | 500 |
| Management Fee % | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 |
| Transaction Fee % | 0.35 | 0.35 | 0.35 | 0.30 | 0.30 |
| Particulars | General | Silver | Gold | Platinum | Prime |
|---|---|---|---|---|---|
| Interest Rate on ML (%) | 13.25 | 13.25 | 13.25 | 13.25 | 13.25 |
Margin— Managed (Discretionary Account)
It’s a fully Portfolio Manager’s Discretionary Investment Management Service. Portfolio Manager will act on behalf of the investors and will be authorized to exercise his discretion to make best professional investment decision having no guarantee for return on such investment. Profit and loss will be borne by the investors exclusively. Under this scheme, the goal of the portfolio manager—regardless of whether the portfolio is composed of — should always be to create an "efficient" portfolio by using his best knowledge and skill, i.e. a portfolio that has minimum risk for a given level of expected return.
Eligibility to open the Account
Any Bangladeshi over 18 years of age is eligible to open an account under Prime Invest program. Every two persons can open maximum of three Managed Accounts — two in their individual name and the other in joint name.
Salient Features
- Any Client may choose to open an Account with the portfolio manager.
- Client has to sign an Agreement with the portfolio manager. The portfolio manager shall carryout operation as per the agreement.
- The client shall have the option to avail margin loan under "Margin Loan Policy" of the Bank.
- The Portfolio will be build up through purchase of securities from the primary market i.e. Pre-IPO/IPO as well as from the secondary market through the Stock Exchanges.
- Portfolio Manager will manage portfolio on best effort basis.
- Portfolio Manager does not ensure return/equal return for all clients.
- Portfolio manager will provide portfolio management service according to clients’ need and based on their expected return, risk tolerance and investment objective.
- Portfolio manager will maintain clients’ funds and securities through an omnibus account.
- Portfolio manager shall maintain records of all individual clients separately.
- Portfolio manager will ensure all corporate entitlements of the clients and timely collection of the same.
- The portfolio manager is entitled to recover various charges and fees from the Investor as agreed by both parties including brokerage on buy and sale value of securities, necessary stamp duty and other expenses for transfer of securities, portfolio fees and other relevant charges as shown in the financial account of the Investor.
- Portfolio manager will maintain complete secrecy about investors’ portfolio.