Sri Lanka Alliance Finance, Guardian Acuity offer equity, FD investment plan

ECONOMYNEXT – Sri Lanka’s Alliance Finance PLC and Guardian Acuity Asset Management (GAAM) are offering a dual return investment plan covering both fixed deposits and equity, giving investors exposure to returns of two asset classes with a single investment.

The recommended mix of investment is 70 percent in fixed deposits and 30 percent in equity, explained Asanka Jayasekara, Fund Manager with GAAM, a Unit Trust or mutual fund management joint venture between Carson Cumberbatch, HNB and DFCC bank.

When an investor invests money in the Alpha Plus plan, a fixed deposit will be opened with Alliance Finance with a portion of the money, and the balance will be allocated towards the Guardian Acuity Equity Fund, managed by a specialised fund manager.

“The recommended investment plan is to invest a minimum of Rs2.5 million for a period of three years,” said Emmanuel Muttupulle, Chief Operations Officer at Alliance Finance Company.

Investors will have the opportunity to diversify their investment portfolio, while having a hassle-free investment experience, as well as a tax-efficient investment given that Unit Trust returns are tax free in the hands of unit holders, a statement said.

The fixed deposit can be used as a source of income with interest withdrawals or the interest can be retained, along with the equity investment to add to capital appreciation.

Investors have the option of early withdrawals from both the FD and the equity investment.

A 2 percent early withdrawal fee will be charged if funds are withdrawn before the end of the first year of investment, but otherwise it has no front end or exit fees.

“Early redemption is not recommended since equity returns can be volatile,” the statement said.
(COLOMBO, August 01, 2016)

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