An asset manager’s campaign to change your personal finances
If the long term investment generates even half of the expected return, the small monthly inputs would grow to Tk22 lakh two decades later and to Tk36 lakh if the compound annual growth rate of return is 10%.
A Friday at home every month means Tk46 lakh -- a marketing campaign by new generation asset manager UCB Asset Management Ltd can prove worth lending an ear.
A middle class family in the capital roughly spends Tk5,000 to enjoy their weekend outside home and staying home once every month would help save the sum that should be invested for future wealth — the message the asset manager is communicating to change your personal finances.
"You are not only spending Tk5,000 in the very weekend, but also spending a much bigger future return," said SM Samiuzzaman, a Chartered Financial Analyst (CFA) who is serving UCB Asset Management as the portfolio manager.
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Their campaign aims to encourage families to save at least Tk5,000 a month just through small modification in lifestyle, investing the sum in an open end mutual fund under a systematic investment plan (SIP) for a decent and consistent return over years that would grow to a big money once, he said while speaking at TBS Markets, a capital market show by The Business Standard, on Saturday.
For example, he said, a family would deposit a total of Tk12 lakh in two decades without compromising too many things in life, and the money would grow to Tk46 lakh in maturity if the asset manager can generate only 12% annualised return from the fund.
If the long term investment generates even half of the expected return, the small monthly inputs would grow to Tk22 lakh two decades later and to Tk36 lakh if the compound annual growth rate of return is 10%.
The ultimate sum can be used in buying a home, car or financing children's global education or a family vacation abroad.
Everyone should think this way, believes investment expert Samiuzzaman.
He also shared how the professional investment teams steer the funds built out of client money for a decent long term return keeping risk minimization in mind.
Going through extensive research, like most other experts, UCB Asset Management believes in the future of Bangladesh economy, he said.
If the economy keeps growing, the top companies here also should do the same and investing in their shares at right prices should generate consistent returns, he added.
Expertise in picking the right companies and asset allocation not only among right companies but also among asset classes help professional investment managers control risk and generate returns for their clients.
"Long term SIP subscription imposes a discipline on your financial behaviour, helps you avert pains in market timing in various cycles."
