ICIF Investment Portfolio Method
1.Risk Profiling
Risk Appetite: We Identify How You React to Risk Using Advance Behavioral Finance Techniques.
Risk Capacity: We Identify Your Risk Capacity by analyzing your Financial Details.
2. Goals:
Your Goals Priority, Criticality, Tenure, and Value are analyzed and used as critical Input to design your risk-return optimized Portfolio.
3. Surplus:
Your Investable Surplus amount, its frequency and certainty are taken, analyzed and used as the base point for portfolio formation.
4. Asset Diversification and Allocation:
Based on your risk profile, Goals and Surplus, we use Modern Portfolio Theory to Identify right asset allocation for you. This Theory ensured that for a given riskiness, the maximum possible return is found by identifying the right mix of asset classes that deliver the highest return among all possible outcome.
5. The Outcome:
A portfolio that delivers higher returns at lower risk.
Portfolio Management Services
PMS is a type of investment management service that offers a range of specialized investment strategies to benefit from the opportunities in the market and is managed by professional portfolio managers. Portfolio management services (PMS) and mutual funds (MF) are avenues to invest in stocks or bonds.
We Believe in two types of portfolio management services (PMS):
- Discretionary PMS
- Non-discretionary PMS
In discretionary portfolio management, the portfolio manager individually and independently manages the funds of each client. But in non-discretionary portfolio management, the portfolio manager manages the funds in accordance with the directions of the client. The portfolio manager cannot make buy-sell decisions at his own discretion; he has to refer to the client for every transaction.
Our PMS Portfolio Strategies
Inter City Investment Fund Private Limited offers various portfolio management portfolio strategies which will satisfy the needs of investors to build a strong equity portfolio with a medium to long-term horizon. Following are our active portfolios:
- ICIF Wealth Builder Portfolio (Discretionary)
- ICIF Wealth Desire Portfolio (Non-Discretionary)
At Inter City Investment Fund Pvt. Ltd, we believe the true “Wealth Creation” is possible only through the holistic diversified investment decisions. Hence, we have also chosen the “Long-term holistic diversified Investing” as our value offering for the PMS. This, in our belief, is the most appropriate route for wealth building. This is optimized by managing investments through several economic and business cycles and varied financial market conditions.
Core Ideology
Responsible – Ethically, Morally (only if fits into our Ideology) and Legally.
Dynamic – In terms of decision making and on ideology to generate long-term consistent returns in a disciplined manner. It does not mean we will settle for lower returns.
Aligned and Non-Speculative – Aligned with Clients interest and stick to core ideology even at the cost of underperformance.
Successful – Ability to generate sizeable returns over the long term.
Who can benefit from Portfolio Management Services?
We are focused on the special needs of select high net-worth investors, who would have:
- Interest and confidence in Nepalese equities and are interested in structuring a personalized investment program as a part of their wealth management plan.
- Higher risk appetite and medium to long-term perspective.
- Seeking above-average returns with an investment horizon of 3 to 5 years without being distracted by volatility and market momentum.
Our Value Proposition
“Investment returns aren’t a direct function of how long or hard one works or how much one wishes to earn the return. All an investor can do is follow a consistently disciplined and rigorous approach, over time returns will come” – Seth Klarman “Margin of Safety – Risk Averse Investing Strategies for the Thoughtful Investor”
Our Value Proposition has following distinct parts:
- Our Core Ideology – It revolves around being responsible ethically, morally and legally; being conservative in decision making and targeting long-term consistent returns; being aligned with clients’ interest and remain non-speculative.
- Our commitment to follow the process and the philosophy laid down for the respective portfolio Strategy.
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In the true spirit of aligning with Clients Interest, all our Team members including Our Board of Directors have made the investment in our PMS in the same manner as any of the outside investors.
Investment Philosophy
The Investment philosophy is designed with an intent to place our PMS among one of your core portfolios which shall deliver steady returns over the long term. We think for holdings to qualify as a core, the stocks need to have the following attributes:
Strong and focused businesses run by
- High-quality management
- Having a long runway ahead
- Built on concentrated positions
- Lastly, the portfolio also needs to be diversified from the risk perspective
Hence our value creation process follows a distinct chronology of evaluation of Business, then Management assessment and only if these two are met, we look at Valuation. We call it the B-M-V (Business-Management-Valuation) philosophy.