Frequently Asked Questions

1. What is Portfolio Management Service? What is portfolio construction? What is a portfolio tracker? What are beed chips? What do the beed chips comprise of? Do I have any discretion when it comes to stock picking/ liquidating my portfolio?

Portfolio Management Service is a professional service of managing investments of individual/ institutional investors that involves portfolio construction and investment/ divestment on behalf of the investor by conducting financial and technical analysis, asset allocation, stock selection, and portfolio construction that cater to the risk return profile of each investor. The risk return profile will be based on each investor’s risk tolerance, their appetite and their investment objectives. Please note: all investments will be made in the name of the clients.

Portfolio Construction is the process of constructing a portfolio by selecting stocks and determining the amount of investment to allocate to each of the stocks with the aim being to achieve capital protection and generation of optimal returns for our investors. The portfolios in offer are various types of actively or passively managed diversified portfolios of equities.

A Portfolio Tracker is a web enabled service that allows clients to view and track the status of their portfolio.

beed chips are high quality stocks of well established companies with stable earnings listed in the NEPSE that fulfill certain well-defined criteria for safety, liquidity, return and income. These stocks have also passed rigorous portfolio back-testing based on the simulation of  portfolio strategy on relevant past data which ensures that they weather downturns and operate profitably in the face of adverse economic conditions. This assures stable and reliable growth making them less volatile investment.

beed invest comprises of highly qualified individuals with knowledge and experience in this particular field who are qualified to and will exercise absolute discretion with regard to the management of the portfolio in the best interest of the investors.

2.What is the track record of the portfolio manager and why should I believe them?

We are the premier licensed portfolio management service provider in Nepal. We deliver comprehensive services and superior results through innovative research, world-class investment expertise, and intelligent risk-management. We are the first company to operate Portfolio Management Service in Nepal being regulated and monitored by the Security Exchange Board of Nepal.

We have a professional team of staff that has been carrying out equity research of the companies listed in Nepal Stock Exchange since 2006. Based on this research, we have managed investments of several private equity funds and have a track record of delivering returns to the investors with IRR over 50% p.a.

3.What kind of return can I expect? How is it calculated for my service charge fees?

Your return depends on the product you select from our range of offerings. Based on our analysis, the average return of the market is 23% to 28% p.a. The Portfolio Management Service fees are incentive based, and they are calculated on returns net of Capital Gain Tax, Brokerage, SEBON commission, and Transfer Charges.

4.How long do I need to invest?

We believe in mid-term investment period with a conservative outlook of around three years. However, the investment period might even be only a year, depending upon the achievement of the benchmark, expected return, as well as market momentum.

5.Why invest in the stock market rather than land and other assets?

The traditional economic objective of investment in securities is to receive dividend income and/or achieve capital gain through price rise by participating in the shares i.e. as owner (to the extent of investment made) of the listed company. An analysis of the historical performance of various asset classes demonstrates that equity investments typically outperform other types of investments in the long run, and also affords more liquidity to investors as securities can be bought and sold quickly and easily, thus making stock investments more liquid than land and other assets.

6.Am I eligible to invest? What is the minimum/maximum amount I can invest?

Only individuals who are legitimate citizens of Nepal can invest. The amount specifications are:

  • Minimum of NPR 5 lakhs for Growth, Value and Guaranteed portfolio.
  • Minimum of NPR 50 lakhs for Customized portfolio
  • There is no maximum amount. However, the exposure in guaranteed portfolio will not exceed 25% of the total portfolio managed by the Company.

7.What should I do if I want to withdraw a certain sum of my investment, if I want to exit, or if I want to invest an additional sum of money?

If a client wishes to voluntarily withdraw/terminate his portfolio investment, partially or fully before the Company deems it appropriate to offload the shares, the Client will have to inform their Relationship Officer by giving:

7 trading day notice (in case of voluntary partial withdrawal)

15 trading-day notice (in case of termination)

Once the portfolio has been liquidated, the Company will be entitled to 1% exit load on the Net sale consideration less applicable Incentive fee as specified in the Portfolio Management Agreement (PMA).

If a client wants to invest additional sum of money, the company will treat the additional money as a new portfolio, and the entire process- beginning from the application for investment- needs to be undertaken.

8.What are the documents I need to sign and what do you require from me to start my investment?

The following are the documents that you need to complete before taking advantage of our Portfolio Management Services.

  • Application Form
  • Investor Introduction Form
  • Purchase/Sale Orders
  • Blank Transfer Forms
  • Initial Portfolio Construction Sheet
  • PMA
  • Tripartite agreement
  • Actual Portfolio Sheet
  • Investment Completion Note

We strongly believe in customer service. All you need to do is contact one of our helpful Relationship Officers and they will guide you personally to complete the documentation and fulfill the application formality. If you are investing an amount of over Rs. 3 million with us, you will fall under our “beed Titans” category, and entitled to special doorstep services.

9.I am not based in Nepal. Can I still invest? How do I go about it? Can I pay in foreign currency?

Yes, a client can invest even if he/she is not based in Nepal. However, the individual has to have a Nepali Citizenship. The steps to begin a portfolio for offshore investors are as follows:

  • Step 1: Verbal commitment of the Gross investment amount by the investor.

  • Step 2: Download and fill up the beed invest application form and attach the necessary documents mentioned in the application along with it.

  • Step 3: The application along with the documents should be mailed to the beed invest mailing address. (If the investment amount is more than 30 lakhs then the postal charges will be borne by the company).

  • Step 4: The application form is reviewed and the documents are inspected.

  • Step 5: The Relationship Officer intimates the Client the approval of his/her application and requests the Client to deposit the service charge of 1.5% of Gross investment amount (i.e. committed amount) along with the Gross Investment Amount. If a review and management of their existing portfolio is required, an additional 0.5% of the market value of their existing portfolio has to be deposited. The money can be sent through any remittance centre/ counter in the name of beed invest.

Payment in foreign currency will not be accepted. As per the Foreign Exchange Regulation 2002, we will have to receive and pay all payments in Nepali currency.

10.Can I pledge my shares? What if I need details of my share holdings/share certificates for valuation purposes?

Yes, you can pledge your shares. In order to pledge your shares, you will have to inform your assigned Relationship officer (RO), who will coordinate with you to provide your share certificates and holding details. The RO will simultaneously assist you in carrying out the procedures of pledging which is outlined below:

Once the offer letter for the loan is released against the shares by your bank, the RO can release the share certificates to the bank with whom the shares are being pledged.

Before receiving the certificates, you should simultaneously issue a Manager cheque for 3% of the pledged amount for Value or Growth Portfolios ‘OR’ 3.5% of the pledged amount for Customized Portfolios into the Client’s Bank Account which will serve as the escrow account.

For the details of share holdings/share certificates for valuation purpose, you will have to inform the RO, who will in turn provide the clients with a certificate listing the details of the stocks bought in the clients’ name which will be approved by beed invest.

Please note clients with Guaranteed portfolio cannot pledge their shares.

11.Do you invest in commodities?

As there is no fixed regulation, or regulatory body for the commodities market in Nepal as yet, higher risk is involved in such types of investments. Therefore, we prefer not to involve our clients in such risks.

12.Is beed invest a brokerage firm? Are you affiliated with any other organization?

We are not brokers. We work with brokers to carry out your transactions. No, we are not affiliated with any organizations.

13.What software are you using?

We have designed an ‘in-house’ customized software that builds an optimal portfolio as per your risk profile through a scientific and internationally accepted methodology. We construct all the portfolios in our software. It also calculates risks and expected returns of the investments made.

14. Can I refer other potential investors?

Existing Clients may recommend our services to potential clients. In doing so, the former will be entitled to a finder’s fee of 0.5% of the Gross Investment Amount, if applicable, from the service charge fee deposited by the latter.

15.I forgot my password. How do I retrieve it?

You can call your assigned Relationship Officer to resolve the issue.

You can contact us via email or call us to get more information and clarification, or to give us feedback regarding our services. We would love to hear from you!