An asset manager’s campaign to change your personal finances

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If the long-term investment generates even half of the expected return, the small monthly inputs would reach Tk 22 lakh two decades later and Tk 36 lakh if ​​the compound annual growth rate of return is 10%.

September 10, 2022, 9:50 PM

Last modification: September 10, 2022, 10:02 PM

SM Samiuzzaman. Illustration: TBS

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SM Samiuzzaman. Illustration: TBS

A Friday at home every month means Tk46 lakh – a marketing campaign by next-generation asset manager UCB Asset Management Ltd may prove helpful.

A middle-class family in the capital spends about Tk5,000 to enjoy their weekend away from home and staying home once a month would help save the sum that should be invested for future wealth – the message the asset manager communicates to change your personal finances.

“You’re not only spending Tk5,000 on the weekend itself, but you’re also spending a much larger future return,” said SM Samiuzzaman, a Chartered Financial Analyst (CFA) who serves UCB Asset Management as a portfolio manager.

Their campaign aims to encourage families to save at least Tk5,000 per month simply by making minor lifestyle changes, investing the sum in an open-end mutual fund as part of a systematic investment plan ( SIP) for a decent, consistent return over years that would grow to big money once, he said during a speech on TBS Markets, a capital market show by The Business Standard, on Saturday.

For example, he said, a family would deposit a total of Tk 12 lakh in two decades without compromising too much in life, and the money would reach Tk 46 lakh at maturity if the asset manager did not can generate only 12% annualized return of the fund.

If the long-term investment generates even half of the expected return, the small monthly inputs would reach Tk 22 lakh two decades later and Tk 36 lakh if ​​the compound annual growth rate of return is 10%.

The ultimate sum can be used to buy a house, a car or finance the children’s overall education or a family vacation abroad.

Everyone should think that way, believes investment expert Samiuzzaman.

He also explained how professional investment teams steer funds built from clients’ money for a decent long-term return with minimization of risk in mind.

After extensive research, like most other experts, UCB Asset Management believes in the future of Bangladesh’s economy, he said.

If the economy continues to grow, the best companies here should also do the same and investing in their stocks at the right price should generate consistent returns, he added.

Expertise in selecting the right companies and allocating assets not only among the right companies but also among asset classes helps professional investment managers control risk and generate returns for their clients.

“Long-term SIP subscription imposes discipline on your financial behavior, helps you avoid market timing issues in various cycles.”

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