Capital guarantee portfolios holds a low-risk. The portfolio may require that an investor remain invested for set number of years, as many of the underlying securities are bonds that need time to reach maturity and, subsequently, repay principal. The return on these funds are higher than savings account or money market returns. Portfolio managers in order to minimize the fund’s risk of absorbing losses will keep the majority of underlying assets conservative in investment vehicles such as bonds or treasury Bills. They may invest a small percentage in high-risk equities.
Advantages of Capital-Protected Portfolios:
The fund is a perfect way to shield your money against any risks or losses. The company guarantees the original capital of the investor against any losses the investor might incur.
The majority of fixed income instruments in the portfolio also makes it very liquid.
Also, a large sum of the profits attributed to the portfolio are reinvested in the stock market to maximize the returns of the client.
Investment Criteria:
Treasury bills: A large portion of the portfolio is invested in treasury bills with different maturities with a maximum of one year and different returns. We aim to provide the highest return in accordance with the current and anticipated economic situation which are predicted to a very high degree of accuracy.
Bonds: A large portion of the portfolio is invested in the bond market with the aim of going as long as possible in terms of maturity date and achieving the highest interest rates depending on the market and economic conditions.
Equity Market: A very small portion of the portfolio is invested in the Equity Market and in arbitrage operations.
