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Capital Protected Strategy

NBP Funds Islamic Capital Preservation Strategy

If you invest your savings in fixed income savings options, you receive a profit rate which does not even compensate for rising costs – inflation. This will cause your savings to lose its value over time. On the other hand, investing in Stock Market offers attractive returns in the long run but the risk of investing in it is high.

NBP Funds Islamic Capital Preservation Strategy aims to provide you with higher returns compared to standard saving options while preserving your capital at maturity from the risks associated with the Stock Market. The plan achieves this through allocation of your money between Equity and Money Market instruments to capitalize on market conditions based on proven strategies by our professional Fund Managers.

The strategy is a perfect investment option for investors to invest their medium-term savings as it offers downside protection and with an opportunity to benefit from the upside of the stock market.

Return Objective:

The objective of NBP Funds Islamic Capital Preservation Strategy is to earn a potentially high return through dynamic asset allocation between Shariah Compliant Equity and Shariah compliant Money Market avenues while providing Capital Preservation of the Initial Investment Value at maturity.

Investment Methodology

A certain portion of the Portfolio will be invested in the low-risk asset. The remaining portion will gradually be invested in the risky asset. Due to the changing performance of the assets, especially the risky asset, the percentage between the risky and low-risk assets will be constantly managed. Based on the strategy, the risky asset is sold as it falls in value and bought as it rises in value

Risk Tolerance

The Net Asset Value per unit of the Plan, may not fall below the Floor Value per unit at maturity

Liquidity

There is no “lock-in” period. The investor can encash his/her investment anytime without any penalty

Time Horizon

The investment time horizon is medium-term