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Build your own successful Investment Portfolio
The Sri Lankan investment environment has changed significantly over the last few years. In the current interest rate environment, it may be time for you to re-look at your investment portfolio and question whether you still want to invest all your funds in fixed income securities, as your investments may not be able to keep up with inflation. On the other hand it is also not advisable to have large exposure to equity as you will be exposed to a higher level of risk.
What you may therefore consider is a diversified approach to investing, combining the growth potential of equity funds with the stability of fixed income investments
(Eg: Treasury Bills, Bonds, Commercial Paper) that would yield you a combined return in excess of a savings deposit rate. The degree of risk you take should depend on your goals and changing needs.
Investing in the different financial instruments on your own may not be easy, as you may not know which shares to select, when treasury bills are issued or have the time to continuously monitor the market. Furthermore, without a sufficiently large amount of funds, you may not be able to enjoy the benefits of diversification.
This is where Eagle NDB Fund Management Co Ltd. (a fully-owned subsidiary of Eagle Insurance PLC) can step in to help you with its Mutual Funds, which can help you to balance your risk and return. Eagle NDB is one of the largest licensed fund managers in Sri Lanka, with over Rs. 19 billion in funds under management. It has one of the most advanced portfolio management systems available in the country and manages some of the largest private sector provident funds together with equity and fixed income portfolios of well known blue chip companies in Sri Lanka.
In addition to offering discretionary portfolio management for the corporate and the high net-worth sector the Company offers Mutual Funds for the retail sector. These include 4 risk rated funds spanning government gilt edged to equity funds.
Mutual Funds or a Unit Trust is the pooled investment of money contributed by investors. When you contribute to this pooled fund you become an owner of the fund's units. Eagle Mutual Funds consist of the following:
Eagle Gilt Edged Fund
This fund has a low risk profile (more secure). It invests in government securities such as Treasury Bills and Bonds
Eagle Income Fund
This fund invests in fixed income securities such as Treasury Bills, Commercial Paper, Corporate Debentures and Asset Backed Securities, most of which are otherwise not available for individuals to invest in. The risk level of this Fund could be considered medium.
The Pyramid Fund
A balanced fund which invests in both equity and fixed income. The manager will allocate funds between these classes of investments depending on market conditions. For example when the stock market is performing well, the Pyramid fund will have a greater proportion of it's funds invested in equity. Ideal for a medium risk taker.
Eagle Growth Fund
This fund is for the more adventurous investor. It aims to provide capital appreciation in the medium to long term (ideally 3-5 years). This Fund is invested exclusively in quoted equities with an emphasis on fundamentally sound companies with a proven track record. This fund should not be looked at with a short term investment horizon as the gains (which could be significantly higher than most other forms of investment) will come through long term appreciation.
You can invest in any one or a combination of funds and the pool of money collected is invested by an expert team of fund managers.
The yield earned from these investments will result in the units growing over time giving unit holders an increase in the value of the units they hold.
There is currently no capital gains tax.
Liquidity is guaranteed as the fund is bound to buy back units at any time.
